BY DANIEL ALEMAYEHU
Speaking of economic and overall development of a country, a number of actions could be taken by the responsible stakeholders in order to bring change. In many cases, both the public and private sectors have a significant role in achieving the sought objective of a nation. In good truth, the economy of a nation is a corner stone to accomplish anything that the country wants to achieve.
Similarly, the government is responsible to facilitate things that have the capacity to bring the economic stability to the nation. A government is also the main actor to pave different ways to private sector to play their part in the economic, political and social activities of a certain country.
In the current climate, nations all over the world have gone through prominent challenges. Internal and external obstacles have caused multiple problems to pull down the progress of a nation. On the other hand, nations have formed numerous escape routes from those obstacles. To this point, formulating viable strategies and policies is a responsibility of the government.
In Ethiopian context, the government has been working on transforming the nation’s economy from agriculture-led to industry- led. Besides, the current incumbent has set a 10-year perspective development plan that is believed to bring remarkable change to the nation’s economy.
The government has also performed a number of activities to uncover the entire potentials and resources of the nation in order to attract investors and anyone who wishes to work on the opportunities. It is the fact that Ethiopia is blessed with resources that have the potential to bring observable changes on every activity of the nation.
Talking about transforming the economy to industry- led, the government of Ethiopia has tested a lot of ways to promote industrialization and bring an increment on the rate of production and productivity of manufacturers. To realize the objectives, the incumbent has been working on creating favorable environment to those who invest in manufacturing sector.
The nation, at the moment, has built more than ten industrial parks equipped with the necessary infrastructures to attract both local and foreign investors. In addition to that, the nation offers lucrative incentives to those who come in and developing the industrial parks. Such moves make chances to promote the manufacturing sector.
In previous reports, the manufacturing industry sector is expected to grow from 6.8 percent in 2020 to 17.2 percent by 2030 increasing its production capacity from its target 50 percent to 85 percent. It is also expected to increase foreign trade revenue from the current 400 million USD to 9 billion USD. Such figures definitely need hard work and commitment.
A year ago, FDRE Prime Minister Abiy Ahmed (PhD) launched the first ever “Ethiopia Tamrit” (Let Ethiopia Produce) movement so as to scale up the production capacity and competition level of the manufacturing industry. The goal of the movement was focusing on supporting the production and productivity of manufacturers. It was also predicted that the movement would try to address the challenges that manufacturers on the process of manufacturing encounter.
During the particular launching event, the Premier stated that the manufacturing sector needs years of hard work and devotion to address the intended goals. Mentioning the registered success in the agriculture sector, Abiy Ahmed said that it is essential to replicate the success to manufacturing; promising that the government would take every step to support manufacturers. On top of that, the Premier noted that the manufacturing sector is one of the five focus areas of the government in which the private sector takes the lion’s share in achieving the expected success.
By the same token, mentioning the economic outcomes of such moves, Minister of Industry, Melaku Alebel added about the progress that will be scored in increasing the export revenues. Melaku disclosed that 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.
It was also reported on the event that manufacturers who have participated on the opening 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.
Just a week before, Addis Ababa Labor Enterprise and Industry Development Bureau briefed journalists about the overall activities of the movement. The bureau announced that the first year of the ‘Let Ethiopia Produce’ movement was concluded successfully, and the second round of the movement was kicked off.
On the briefing, with the status of Bureau Head of Industry Sector, Chief Ezedin Misbah explained about the accomplishments and other related issues regarding the first year of the movement. As to the chief, during the first year of ‘Let Ethiopia Produce’ movement in Addis Ababa, promising results have been obtained.
Achieving the expected objectives of the movement, the chief noted that tangible and effective actions and activities have been taken by the responsible body in relation to identifying the problems that manufacturers have been facing and observed in the sector. Accordingly, the responsible organ has been trying to solve those problems step by step.
As to Ezedin, during the first year of the movement, 677 small and medium manufacturing industries have been put into operation. Also, there are around 49 industries that have stopped operating due to various reasons of which, 43 of them have been brought back to work.
As mentioned before, the movement would elevate the nation’s export capacity. To this regard, Ezedin pointed out that with the support and monitoring of the movement, 210 manufacturing industries have started exporting their products. In addition to that, 1,926 industries have engaged in substituting imported items with local production.
On the event, there had been an exhibition that was opened to display the products and technological results of 86 manufacturing industries. The chief elucidated, “This would help to exchange experience between industries and create work connections. In addition to this, a consultation forum will be held in which 750 stakeholders and industrialists will participate.”
Ezedine further explained that the first year of the “Let Ethiopia Produce” movement has been concluded, but it does not mean that it is over; rather, the movement will be continued for the coming 10 years. At the moment, it is viable to notice the results from the actions taken to solve those challenges that manufacturers have been encountering in due process of manufacturing. Not only that, it is also possible to find out actions that should be implemented in the future.
Referring the bureau’s last year activities, the chief revealed that the bureau is exerting its effort in order to ensure the industrialization of the metropolis. Ezedin added, “In Akaki Kality Sub City, we transferred over 800 manufacturing shades to 81 investors and significantly addressed industry-related problems.”
Speaking about the outcomes obtained, the movement has played the critical role in providing finance; setting conducive business environment; easing foreign crunch and encouraging the involvement of investors in the manufacturing industry. It is also essential to expand the necessary infrastructures and create market linkages in the manufacturing sector.
The campaign is aligned with the home-grown economic reform program and it brings promising results in substituting imported items with local production. Ethiopia sets the plan to increase the current 30 percent import substitution capacity to 60 percent in the coming 10 years, Ezedin said.
All in all, crafting better ways to promote business is one of the responsibilities of the government. It is also essential to incorporate the private sector to put its fingerprint on the nation’s progress. Movement like ‘Let Ethiopia Produce’ has proved its importance to identify the manufacturing industries’ strong and weak sides that call respective actions. It is important to organize many more events and campaigns to promote the manufacturing sector.
THE ETHIOPIAN HERALD TUESDAY 9 MAY 2023
