More than 400 companies are engaged in different metal and engineering technology industry and the number of companies are growing fast, yet the productivity still falls short of meeting the demand, Metal Industry Development Institute said.
Corporate communication director with the Institute, Fite Bekele told The Ethiopian Herald that more than 400 companies are engaged in different metal and engineering industry in basic metal and engineering, automotive industry, electrical and electronics, machineries and equipment sub sectors. Yet the productivity still not meets the demand of the country.
Fite said that the number of companies is growing fast dramatically, still the productivity remains insufficient to meet the country’s demand. After the first Growth and Transformation Plan (GTP-I) more than 20 companies are joining to the sector every year and in last fiscal year 28 new companies were joined to the sector, Fite said.
He stated that if the available companies start producing their designed capacity, it can fulfill the country’s demand, yet the companies are not fully producing their designed capacity.
Fite said that basic construction metals from still up to roof, agricultural machineries and equipment, electronics and electrical materials from refrigerators to television and mobile and other household materials and automotive trucks from pickup to buses and trucks are producing and assembling at home.
According to the director, the country’s total basic metal demand is 2 million ton per year and the current companies have five million tons designed capacity, yet the local product is still far to meet the demand.
According to Fite only Still (except roof still) and roof are covered by local product, but other metal, machineries and electronics and other engineering sectors productivity still remains small.
Not only small industries, currently 50 automotive assembling companies with annual capacity of more than 290 thousand and 14 mobile companies are available in the sector.
He said that although the focus of the sector import substitution, the country started export from this metal and engineering sector since 2013/14. During the initial export period the country exported electrical and electronics products and earned 3.18 million USD, he stated.
According to Fite the export level is currently increasing to 14 different items to more than 20 countries and the country is earned 47.3 million USD during 2017/18 fiscal year. The director added that the institute planed to earn 126 million USD from export of the sector in this fiscal year and during the first quarter, the country has earned 14.15 million USD from the sector by 14 companies to 20 countries.
Fite said that during the first quarter of 2018/19 fiscal year, 3184 vehicles were produced by the 50 automotive companies worth 3.33 million USD. He said that the country have the capacity to cover 40 per cent of automotive by local products.
Wide market opportunity, increasing demand of local products by the public, government incentives and wide investment opportunity are among the blessings of the sector, yet shortage of input due to foreign currency shortage in recent years is the main challenge of the sector, he stated.
(EPA)
BY DARGIE KAHSAY
