Forsooth, setting the scene for creating all round environments for import substitution will open the trajectory for booming the national economy. Thus, every sector in the country is striving forward for exploiting their potential in import substitution. As many of economic development sectors need construction inputs, it is of paramount importance for the Ethiopian Construction Works Corporation (ECWC) to engage in such activity.
Not only the corporation but also any development endeavors including infrastructure construction engagement need close collaboration among various stakeholders and partners to its success. Cognizant of this fact, ECWC has been able to overcome many problems in the past years by implementing three phase of construction management reform step by step.
According to the document that obtained from the Corporation; implementing organizational reform including cost reduction activities; solving 16 key problems which were identified by research as well as building industrialized and IT based construction management are the three phases which have been implemented by the corporation.
On top of that the corporation has recently disclosed that it is getting ready to seemingly work on creating atmosphere to foster import substitution upon various areas of the construction industry with a view to stabilizing the national economy.
During the discussion forum held recently with Rising Hongfa Group of Indian Company and the Corporation to work in collaboration, the corporation announced that it has been given due attention to its endeavor to implement its industrialization.
Delivering Ayisha Mohammed, Minister for Ministry of Irrigation and Lowlands’ remark, Wubshet Jekale (Dr.-Eng.) said that the discussion will put a platform to the corporation to play its significant role in import substitution mechanisms.
He further pointed out that the corporation should work beyond building and constructing different buildings. But it would rather play its substantial role in mitigating foreign currency problem in the country through applying different import substitute mechanisms.
Retan Singh, Director General of Rising Hongfa Group, elucidated that this cooperation will have unceasing economic benefit for Ethiopia as well as the African continent. Acknowledging Prime Minister Abiy Ahmed’s (PhD) motive to make Ethiopia the leader of economy and technology from Africa, the Director further underscored that Ethiopia can also simultaneously engage in exporting construction items for the rest of African countries.
The Director General further accentuated that the company has extensive experience in the field of construction inputs, recycling fabric materials, aluminum inputs, concrete wall panels and pipes. In addition, the company will share extensive experience with roof tiles as well as road painting and other related construction inputs production, he said, adding that they will work together to create opportunities for technology options. He also said that the construction of factories is very important as Ethiopia has the resources to produce a lot of construction inputs.
Rising Hongfa Group is an integrated science and technology enterprise, undertaking pioneering work in technologies development and machinery manufacturing, and to utilize the same in relative fields, it was learnt.
Exclusively to The Ethiopian Herald Engineer Yonas Ayalew CEO of the Corporation for his part explained that his office with more than 15,000 employees has already built the fabric around Kality area in Addis Ababa which is ready for producing construction inputs locally.
Mentioning that more than 60 percent of the government’s budget is granted for the construction of which the import market took 50 percent of its sum, the deal between the corporation and the Indian company is of paramount importance to reduce the total expense of the country.
As to him, after purchasing and installing the machineries within not more than ten months, the CEO revealed that the fabric will start its operation by the end of the next Ethiopian fiscal year.
As part of ECWC’s endeavor to implement its industrialization reform, Yonas explained that due attention has been given to the center and milestone achievements have so far been registered. In this regard, modernization of the work process, introduction of new products, scales up of the market shares are among the major achievements to be mentioned.
For the quick realization of the center’s initiatives ECWC is committed and will continue to do whatever at its disposal to collaborate and work closely with firms that have distinguished success in the areas of construction inputs production.
Cognizant of the reason that the corporation is working keenly to build resilient institution in the construction field, it is adopting new technologies coupled with working with the Rising HOGFA Group in import substitution activities, Yonas noted. “In this discussion with the group, we have already identified what kind of construction materials and manufacturing inputs are needed. As a result we are getting ready to make some investment on recycling used tires, installing aluminum and various concrete factories locally in order to avoid imported inputs and to enable us to complete constructions before or even on the deadline,” he remarked.
As to him, the main focusing areas of interests are to work together and find ways to substitute the imported construction inputs locally, thereby availing inputs at a reasonable price. And the purpose of the discussion is to align with ECWC’s reform efforts of industrialization and digitalization intentionally, whereby significant successes were achieved in the past couple of months, he mentioned.
“It is my great pleasure to announce our milestone achievements and hopes for the upcoming breakthroughs of the ECWC. One of the giant construction companies of Ethiopia, ECWC constructed several dams, airfields, roads, bridges, dry ports, buildings, water supply systems, deep water wells, reclamations, river diversions, and manufacture building materials throughout the country,” he said.
The ECWC is established with a mission to deliver quality construction works both domestically and overseas, assemble construction machinery, equipment, and manufacturing spare parts as well as acquire, own and administer dams constructed by the government.
With a great energy and caliber ECWC envisioned entering the East and Central African market, taking its long years of experience in the construction sector, expertise knowledge, technology, machinery, and quality works as a competitive advantage. It’s also noted that, the corporation gets recognition and appreciation from its esteemed customers; achieves various awards in response to ECWC’s relentless struggle for change, ISO 9001:2015 among others, the CEO underscored.
According to Mekonen Abera, an Economist, import substitution industrialization is an economic theory adhered to by developing countries that wish to decrease their dependence on developed countries. As to him, the construction sector plays a key role in the functioning of economies, accounting for considerable share of GDP and employment opportunities. It generates a significant economic activity through linkages with other industries.
The nature of the construction business requires local production, high labor and material intensity, and this helps to explain why the industry should mainly be oriented towards domestic markets, he explained. As import substitution is an approach that substitutes externally produced goods and services with locally produced ones, local communities can put their money to work within their country, he mentioned. Import substitution policies may be considered to be technically successful if they result in a reduction of imports and an expansion of domestic production.
As robust economy requires both the availability of capital and money circulation within the country, local economic development often focuses on attracting business to allow capital formation, and the employments generated by businesses will boost local income. Therefore it is a good opportunity for the country to increase its foreign currency earning through import substitution activities, the economist pointed out.
BY HIZKEL HAILU
THE ETHIOPIAN HERALD TUESDAY 19 APRIL 2022
