Local manufacturing: Enabling sector not to step twice in the same river of poverty

 It has been years since various industries were established to create medium and large enterprises, from micro and small ones.

In addition to creating job opportunities for many, they are also contributing to the country’s economy. Although many are successful and continue to grow, many others are found left behind for a variety of reasons.

According to Yared Estifanos, General Manager of Yared Metal and Spare Part Machinery Productions, which has been in operation for many years, the workaholic attitude and innovative idea have kept him in the industry.

He started working in 2011 and said to has been involved in car repair before the manufacturing was established. According to Yared, the company was set up in the past realizing the lack of spare parts due to the limited production of cars in the country. The work was begun to solve the problem of making modify spare parts and has grown into a complete production of spare parts for the past eight years. He produces car parts including chairs.

Various financial institutions, such as South Global Bank and other individuals have shown interest to use the products. Besides, institutions also require the products like hall chairs for their customers and machineries, for example, bread machines, mills, soap manufacturer, paper machines, small household appliances, coffee dryer, as well as construction machineries. He explained that any coffee machine that can be used by coffee customers for the general purpose of operation is in operation.

“When we receive orders for each job, we understand the customers’ needs and carefully design and enter the product accordingly,” he said.

According to Yared, most of the products that can be used to replace imported products can be supplied to customers in large quantities and in pieces. Yared further said that he uses a variety of raw materials such as aluminum to produce the spare parts. He claims to produce machinery for wood work and other purposes.

He said that he uses new raw materials and by melting recycled metals. These discarded items are collected from outdated car parts and the metals from caterpillars. According to Yared, he receives these by-products of the metal purchasing from collectors paying per kilograms and melts them together.

Born and raised in Hawassa, Yared received training in automotive education before starting this innovative company. According to him, he is an expert in car repair. “I was created to be creative,” Yared said and adding he enjoys trying different things from an early age. “When I see something, I think, ‘How can I do better than this?’” he remarked.

 In addition to addressing the current focus on domestic products, Yared said that he further plans to produce export standard items. He pointed out that in view of the current situation in the country; the stagnant financial situation becomes bottleneck to his activities. However, despite the lack of capacity, he will be able to produce various products and export them quickly.

He explained that the enterprise has not only established to save foreign exchange reserves but also plans to bring in more foreign exchange to support the country’s economy.

Yared further said that he does not follow a single mechanism in the production process. He added that when a number of orders come to the company, it will be possible for other local and professional partners to supply raw materials according to the quality standards required by the company.

Recipients will receive adequate pay for their knowledge and machinery, and their organization will not have to worry about overwork. In addition to this, it will provide an opportunity for more qualified professionals in the area, he said.

Adding he said that there are currently 54 employees in the company who are working on the basis of job created for them. Among the problems he facing, there is a barrier to assign the right person on the right position when competing for a job.

He pointed out that this has made all producers less competitive. The solution, he said, is to encourage the emerging industries by leveling up the competition. “If the government is to grow its products; if our products are to save foreign exchange; if we are working for the growth of the country’s economy, then we need to put in place a full-fledged system,” he said.

According to Yared, the need for small and medium enterprises to produce high quality goods locally is a matter of concern of government institutions.

Pointing out that the government has been promoting job creation aiming to reducing the number of unemployed, he said giving priority to local producers compared to importers will contribute to the further development of the industry.

Apart from the idea of selling and producing, he is also playing his part in producing knowledgeable professionals; he said adding that in addition to the training provided by his organization, he is also providing technical training up to degree level in technical college.

After studying theory in college, the trainees present their products in a workshop. And then they provide the products to the market. The students in collaboration with an experienced professionals work in the production of a qualified workforce. There are currently about one hundred and eighty undergraduate students in the college, and they are staying at the college for four years.

However, after a year in the classroom, they will remain in the workshop until they become professionals; he said adding that the training is 30 percent theoretical 70 percent practical. He also said that his vocational training institution is the only one in the Southern Region that offers postgraduate technical training. Electronics technology, metal fabrication, and machine technology are parts of skills provided in the institute.

These include automotive technology and electronic technology. It is rated at a degree standard, while others are rated at a level standard.

Previously, many people, who used to have diplomas and have not been able to improve their skills, were forced to leave Hawassa to continue further their education.

Thus, he said that it is a relief to be able to get a college that can meet the educational needs of the local community. When it comes to social services, manpower production is one of the social services. He further said that the institute is providing free education to nine trainees those unable to afford the tuition fee. He also said that he is fulfilling his responsibility to actively participate in national calls.

As to him, the government has provided them with various supports as he has previously worked in micro and small enterprises and later moved to the middle manufacturing level.

Out of this, 800 square meters of production space has been given to him and he is renting a hall to display his products. Acknowledging the government’s support underway, he needs more support to reach the next level, he said l.

In the future, he will be working to make plastic products, sponges, and other materials, and he will be more effective if he focuses on the connection, not the charity. “Finally, I always hear about the transition of the economy from agriculture led to industry led. I think we will never stop here. It is possible to achieve the desired results but if one can only be measured professionally and by refining corrupt mentality and practices.

BY LAKACHEW ATINAFU

The Ethiopian Herald  22  April    2022

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