Envisaging a breakaway from fettering poverty and joining the ranks of affluent nations, Ethiopia, blessed with natural resources, is flexing its muscles to leapfrog from agriculture-led-industrialization development program to an industry-led one. For this pushes of its the country is basking under laudation.
Obviously, such a leap that could highly absorb a redundant workforce mainly stranded in the rural areas helps curb challenges related to the dearth of arable land manifested following population explosion. Here it is worthwhile to note that it as well helps deflate an unemployment- related tension.
As part of this bid to swap the driver’s seat of the economy from agriculture to industry, the country has built numerous factories and put in place many industry parks, which could magnetize investors that crisscross the country in the hunt for owning manufacturing industries of their respective specialization or dream.
Enthused by the favorable situation the country facilitated for them, many foreign and local investors are running their manufacturing plants in the industry parks. As a boon of the golden opportunity, Foreign Direct Investment (FDI) has showed an upward swing in Ethiopia.
It cannot be gainsaid that ensuring the untrammeled functioning of the industries ferrying looked-forward raw materials or processed inputs to the doorsteps of the industries reinforces their effectiveness.
Seeing to a smooth, punctual and sustainable flow of inputs takes the hassle out of the transaction. It spares the industries the time and money that lay waste due to bureaucratic labyrinth. It bridges the rift between suppliers and demanders.
It is with this objective in mind, the Ethiopian Industrial Inputs Development Enterprise (EIIDE) was birthed.
Placing local industrial inputs at the kernel and putting quality as well as quantity at the center stage, EIIDE is lending impetus to the country’s thrust towards materializing Ethiopia’s leap to industrialization. It is heartening to note that EIIDE’s objective is beefing up the manufacturing sector that could tip the balance in the march towards industrialization.
Before the inputs like skin and hide become subject to damage for want of timely handling, EIIDE plays quite a role in dispatching them to industries thirsty of them.
As EIIDE purchases inputs in bulk, true to the economy of scale, it could allow the country to save much money if the industries themselves engage in the input procurement process, which could be a scattered effort. Obviously, EIIDE has played quite a role in streamlining the procurement process.
Also industries which could not have readily accessed the inputs were forced to contemplate importation at the cost of harm to the foreign currency reserve of the country. EIIDE is playing quite a role in troubleshooting this challenge.
It must also press ahead with the task of pinpointing much-needed raw materials or inputs and as to which item is much needed when.
Not to discourage local farmers engaged on cotton production, EIIDE must also play a role on the demand and supply game and stashing away surpluses in its warehouse.
EIIDE need also enjoy the support of the government in redressing possible warehouses problems in ports confronting the enterprise and transportation related hassles.
One way or another, as it helps generate foreign reserve, as much as possible, it must get the hard currency it needs for the procurement of decisive inputs.
In concert with stakeholders, it must strengthen its activities.
It has to address skill gaps among its employees to parry shortfalls which could decelerate its activities, for such shortfall will be compromising the lifeblood of industries and factories.
To actualize the leap towards industrialization that places focus on the manufacturing sector pumping industries with lifeblood of inputs is crucial. EIID must press ahead with its tasks to keep the country’s industries alive and kicking.
The Ethiopian Herald May 26/2019
