BY HIZKEL HAILU
The manufacturing industry serves as an engine for the national as well as the global economic boom. It plays pivotal role in job creation and exports. Cognizant of this fact, the reformist government is trying its level best to upgrade the sector and took various measures including expanding industrial parks, providing incentives and market facilities.
During the discussion on the implementation of the Ministry’s 2021/22 fiscal year performance, Minister of Industry Melaku Alebel said that his ministry will pay attention to improve the production capacity of industries. According to him, despite there were major challenges in the last fiscal year, it was possible to reach an average of 52.7 percent of the production capacity. Filling the remaining 48 percent gap of the industry’s production capacity is the main focus agenda set for the new Ethiopian fiscal year.
The minister pointed out that encouraging results have been achieved and among others restarting industries that have stopped production and creating job opportunities through revitalizing the sector in the last fiscal year. He also said that the “Ethiopia Tamrit, or Let Ethiopia Produce” movement has the biggest share in the successful results achieved in the sector.
He said that the movement was a good opportunity in which the problems of the sector that could not be solved for decades were solved within six months. And it was possible to move fast and increase productivity. He also mentioned that the country has earned 500 million 44 thousand USD from the sector for the first time in its history despite the country faced multifaceted challenges including war, drought and the suspension from African Growth and Opportunity Act (AGOA). He also stated that foreign currency garnered from the sector showed 28 percent increment compared to last fiscal year.
He also pointed out that more than two billion USD worth of imports were substituted by domestic products in the fiscal year and more than two thousand 800 industries were reinvigorated in the fiscal year of which about 77 of them are higher, 816 are medium and 1,945 are small industries.
Job opportunities have been created for about 255 thousand citizens.“Our main agenda is to change the lives of citizens through creating job opportunities. However, in order to secure additional job opportunities and expand industries, the prevalence of peace in the country is a must,” he noted.
Many problems that are occurring in every area cannot be considered as simple and needs resoluteness to mitigate the shortcomings on the part of leadership. In this regard the ongoing reform has played vital role in stabilizing the sector in terms of introducing better laws, technology and human power.
The minister further said that drawing lesson from Dire Dawa City Administration’s plan accomplishment and solving problem is essential. Currently, the city attains better peace and stability and upgrade its metropolitan status.
Mayor of Dire Dawa City Administration, Kedir Jewar on his part stated that due to the coordinated work of the administration and the Ministry of Industry, Dire Dawa’s industrial center has been expanding.
According to him, the industries built in Dire Dawa are not only show how the city is being an industrial center, but also give hope to the developers as well as the residents and have contributed greatly to the economic growth of the city. Apart from creating job opportunities in the city, the sector plays significant role in earning foreign currency.
The City Trade, Industry and Investment Office also announced that it was able to export 17 million USD worth of products from the manufacturing during the last fiscal year. Abdu Mukhtar, Bureau’s Deputy Head told the Ethiopian Press Agency (EPA) that his office has made successful accomplishment in reviving industries that were stopped during the last fiscal year. Through supporting industries at different levels enabled them to increase their production capacity and improve their product quality and was possible to export commodities worth of 17 million dollars from the sector.
“Ethiopia Tamrit, or Let Ethiopia Produce” movement has helped the city to re-operate more than 5 manufacturing industries. According to him, the current production capacity of manufacturing industries has increased up to 40 to 50 percent. In the new Ethiopian fiscal year, various works are being done to raise the production and productivity capacity of industries to 60 percent.
The deputy head of the office on his part said that his office is rigorously working to have a better performance through supporting industries that can export in a different way by the next year. He said that his office will work on empowering other manufacturing industries that are producing only for the domestic market and to join the export market.
In addition to export trade, efforts are being made to encourage import substitutions. He further noticed that efforts are being made to allow car batteries, oxygen and other similar products to be manufactured in the country and to be exported to the foreign market.
He also said that a strong attention will be paid to ensuring quality and to achieve the planned export volume and workers in the manufacturing industries at all levels are being trained and supported. In addition, efforts were exerted to promote the products of the manufacturing industries in the country through preparing exhibitions, bazaars and expos and creating trade links as the result, the industries have earned more than 10 million Birr.
He also mentioned that job opportunities have been created for around 1,800 citizens in the manufacturing industry sectors in the fiscal year and more than 130 investment licenses have been issued to investors. And when all firms become fully operational, it is expected to create 22 thousand jobs by next year.
Meanwhile, Ethiopian Enterprise Development has recently announced that the manufacturing office has recorded the best performance in the last fiscal year in spite of many challenges said the Director General of Ethiopian Enterprise Development, Birru Wolde.
During the discussions held with regional offices and stakeholders on the implementation of the last Ethiopian fiscal year and new budget year plan, the Director General stated that the success was achieved by working in coordination with regional sector offices, financial institutions and stakeholders.
He further added that the sector has been able to disburse 1.4 billion Birr for operating loans and 1.5 billion Birr for capital equipment to the sector in the last fiscal year with the cooperation of the relevant stakeholders.
However, Birru said that special attention should be given to solve the sectors’ problem and pointed out that his office is working exhaustively to upgrade production facilities with supportive infrastructure.
According to him, 25 million dollars has been prepared to be allocated to enterprises which have been involved in export trade and facing shortage of inputs, adding that each regional administration should work properly so that enterprises can take advantage of the opportunity.
The Director General explained that his office is facilitating various opportunities to increase the competitiveness and profitability of enterprises and to enable them to be competent in the international market. He also said that enterprises will compete and be rewarded for their performance in the new fiscal year and enterprises should prepare themselves from now on.
The Ethiopian Herald July 31/2022
