Nowadays, economic stability has become the major concern of many countries as the global market hits the highest recently. As various challenges are flying in the air, countries have been trying to give responses to economy questions.
It is important to remember that policies and strategies that a country follows may bring ample changes. As Ethiopia has been implementing its 10 years perspective development plans for different sectors, a number of changes have been observed. With untapped resources, the government of Ethiopia has been trying to uncover the hidden potentials of the country by promoting itself in various scenarios.
On the onset of transforming the country from agro economy to industry- oriented one, the government of Ethiopia is working aggressively on promoting industrialization so that production and productivity rate is given advance thought to be increased. To this end, the government has been trying to create favorable atmosphere for those who want to invest in the country. Multiple actions have taken place to increase the production and productivity of manufacturing sector. In addition, the government has also provided different kinds of incentives that surely attract both local and international investors to chip in to the nation’s economic activity.
Besides, it was reported that responsible governmental organizations like the Development Bank of Ethiopia (DBE) have taken the responsibility to support those small, medium, and large scale enterprises. The bank has organized a training session for those enterprises to fit themselves with the system. To help these enterprises work their jobs with knowledge and skills, such trainings have been organized in different parts of the country. The training focuses on concepts like how to organize a business plan, business management, human resources administration, and the like. Actions like this show to what extent the government is eager to support the manufacturing industry sector.
It is reported that the manufacturing industry sector is expected to grow from 6.8 percent in 2020 to 17.2 percent by 2030, increase its production capacity from its target 50 percent to 85 percent. It is also expected to the sector’s increase foreign trade revenue from the current 400 million USD to 9 billion USD. Such figures definitely need hard work and commitment.
Recently, Prime Minister Abiy Ahmed (PhD) launched a movement dubbed ‘Let Ethiopia Produce’ which fosters competitive manufacturing industry. The aim of the movement is to support the production and productivity of manufacturers. The movement also tries to address the challenges that manufacturers face on their way to manufacturing.
The Prime Minster insisted that manufacturing industries need to work tirelessly because the sector requires years of hard work. The Premier also added that it is essential to replicate the success registered in the agricultural sector also in the manufacturing industry. The Premier has also mentioned that the government will do everything to support manufacturers.
Adding, he said that the manufacturing sector is one of the five focus areas of the government and the private sector’s participation takes the lion’s share in materializing the expected success. Regional governments and manufacturers should work hand in glove to achieve a real change and live up their mission, the Premier disclosed.
On the same token, Minister of industry, Melaku Alebel on his part, disclosed about increasing the export revenues. As to him, the government focuses on helping manufacturers to fulfill the local demand by import substitution and reduction of production cost. This will lead the nation to structural transformation in the economy.
During the event, 81 micro, small, medium, and large scale industrial enterprises have been recognized for their outstanding performance. As a result, awards were offered based on the enterprises’ contributions in generating foreign exchange, job creation, import substitution, and their honesty to pay their taxes on the right time.
By the same token, manufacturers who have participated on the event have mentioned the blessings that the movement brought aiming to ease the business. Thus, they have expressed their vision that the movement ‘Let Ethiopia produce’ will inspire and support the entire activity of the manufacturing sector.
Out of the manufacturers those participated on the event, the Ethiopian Press Agency has stayed with Cottex Textile manager, Dilnesaw Nibret. He commented on the importance of the movement. He said that the movement has the power to create conducive environment to new manufacturers in the country. It plays a significant role to create market chain among the manufacturing industries and increase their capacity.
The manager has also highlighted that every industry needs peace prior to any other thing. In the past years, things were difficult for the manufacturing industry. Due to the absence of peace in the country, the government could not give attention to the manufacturing industry sector. As a result, many industries were closed and some of them were coerced to produce below their capacities, Dilnesaw added.
The movement, ‘Let Ethiopia produce’ will spark light of hope for those industries which had been closed to be reopened and those who forced to produce below their capacity to resume to their initial potential. The movement will also support them to achieve their objectives. The manager also stressed on more actions to be taken by the government. According to him, to get what is expected from the movement, the government should encourage industries to create jobs for more citizens. In addition to that, the government has to answer the question of land or manufacturing place and the problems related to power supply.
On the other hand, Ker Ezhi Ethiopia Leather Manufacturing Managing Director, Zelalem Merawi, on his part said that the company has been exporting various leather products to different countries. The company has also created job opportunities for citizens. The current movement will definitely stimulate the sector’s market. If previous challenges are resolved, the manufacturing industry will be ignited.
In order to achieve the expected objectives of the movement, the culture of using substituted products is mandatory. Besides, the government institutions should start using local products instead of importing materials, the marketing manager added. Ker Ezhi Ethiopia Leather manufacturing has been trying to answer the need of different institutions including the Ethiopian Airlines by substituting imported leather goods with its products. Zelalem also stressed that if such culture of using local products starts to develop, local institution that purchase products from international markets may look to local manufacturers and local products. This kind of action surely supports the sector.
As stated by the managing director, this movement can create a room to find solutions for deep rooted problems seen in the manufacturing sector. To find ideas for better policies, such movements are essential. Moreover, the government should strive to alleviate the problem of basic infrastructures and foreign exchange. Not only that, the government should also make the incentives available for local investors as designed for foreign investors.
To sum up the ideas, the government has been striving to create conducive environments for both local and international investors to invest in the country. Multiple incentives have been provided to encourage investors in the manufacturing industry. Such movements like ‘Let Ethiopia Produce’ will bring positive results if responsible bodies organize it very often.
BY DANIEL ALEMAYEHU
The Ethiopian herald 17/2022
