The Ethiopian Industrial Inputs Development Enterprise (EIIDE) is living up to the demanding task of seeing to the sustainable supply of industrial raw material inputs to feed the ever-growing manufacturing industries at various industrial parks, spread countrywide.
Enterprise Procurement Division Acting CEO Endashaw Legesse told The Ethiopian Herald that the enterprise is timely supplying fundamental manufacturing industrial inputs in standardized quality and proper quantity. EIIDE has supplied 120 million Birr worth industrial inputs this budget year, he added
The enterprise prioritizes local industrial inputs supply with better quality and quantity, he said.
As to him, ensuring a sustainable textile and leather inputs supply, EIIDE envisages to adopt skin and hide products supply chain system. It has finalized preparations to practically launch a cotton contract farming in different parts of the country in the not distant future.
“The enterprise is also awaiting the Ministry of Industry’s response regarding confirming license to start leather and leather products processing,” he said.
As part of its bid to modernize its , EIIDE is working jointly with sector institutions under the Ministry of Trade and other pertinent stakeholders. To this effect, it endeavors to identify sought-after inputs and seasons of high demand of manufacturing factories. The two are the main current focus areas of the enterprise, he noted.
“More than 58,000 metric tons of cotton is expected to be produced in the country, while the textile factories’ total cotton consumption demand is not greater than 52,000 metric tonnes of cotton. Thus, it shows that the demand and supply is almost proportionate. But the task needs further engagements to sustain a balanced cotton demand and supply.”
Currently, the enterprise is also working aggressively on stepping up metal and metals product construction inputs supply, he indicated.
He stressed that maintaining sustainable industrial inputs supply chain is important to effectively utilize the potential of the manufacturing industries operating in the country.
For him, the country is blessed with abundant industrial raw materials. But it stops short of proper utilization of inputs along with reaching the required quality and quantity of inputs to the demanding industries.
Foreign exchange crunch to import basic industrial chemicals from abroad and internal performance shortcomings are the main bottlenecks that confront the enterprise in its bid to increase its capacity of catalyzing industrial inputs supply to various manufacturing industries without limitations, he underlined.
He said in this budget year, 1,452 metric tonnes of cotton is bought from abroad with more than 67 million Birr to be utilized with local textile manufacturing industries, adding that, 29,928 meter textile input bought with more than 4 million Birr is also provided to small and medium scale garment and textile sector practitioners.
A total of 10.2 million raw skins and 24.8 million Birr worth industry salt are supplied to leather factories. Also, 12 quintals of Wheat [16.8 million Birr worth] supplied to various Agro-processing industries operating in the country, he emphasized.
Accordingly, EIIDE is finalizing preparations to issue international procurement bid of metals and metal products, textile inputs, industrial inputs such as chemical and other inputs that are not produced locally.
Approached by The Ethiopian Herald Ethiopia Textile Industrial Production Institute of Cotton Production Deputy Director, Messele Mekuria said that the Ethiopia industry input enterprise was established by proclamation to provide inputs for the industries in effective and efficient manner. Though the enterprise is doing well it exhibits some underperformances in handling tasks appropriately and properly.
Adding he said that even if the enterprise has elephantine warehouses for stockpiling inputs and raw materials for industries as well as bargaining power to buy the products from inputs sellers, farmers voice reservation pertaining to its services.
He further said that price variation and financial constraint are the loopholes that the enterprise faced. Such constraints cripple the enterprise to serve as a bridge between the farmers and industries.
He said flexibility and doing away with bureaucratic bottleneck would help a lot to achieve success in buyers and sellers relationship.
The Ethiopian Herald May 26/2019
BY TEWODROS KASSA & MEHARI BEYENE
