Recently, a high-level workshop on Ethiopia’s Holistic Program for Productive Capacities Development, was observed here in the capital. The venue was organized to fostering a national consensus on the way forward to address the gaps and limitations in Ethiopia’s productive capacities.
The workshop was expected to provide opportunities to discuss Ethiopia’s National Productive Capacities Gap Assessment (NPCGA) prepared by United Nations Conference on Trade and Development (UNCTAD) and its implications for fostering productive capacities in Ethiopia for structural economic transformation and achieving sustained and inclusive economic growth and development.
Speaking on the occasion, UNCTAD Division for Africa, Least Developed Countries and Special Programs Director, Paul Akiwumi said Ethiopia’s Holistic Productive Capacities Development Program is crucial to advancing structural economic transformation and achieve the 10-year development plan.
“Our intervention strategy focuses on reducing over dependence by tapping the country’s comparative advantages,” he added.
“Ethiopia’s Holistic Productive Capacities Development Program has been developed to address the core development constraints. Overall, it aims at advancing structural economic transformation and enables the achievements of the objectives of the 10-year development plan, a pathway to prosperity.”
The six core pillars of the program are agriculture modernization, manufacturing and value addition; international trade and integration; infrastructure; innovation and technology development; human development and private sector; and institutional building and coordination.
Planning and Development Minister, Fitsum Assefa said on the occasion that the program holds immense significance particularly given the country’s current context. Ethiopia is in the process of recovering from a two-year conflict in the north and actively engaged in revitalizing affected communities and rejuvenating the economy.
Ethiopia’s resilient recovery and reconstruction framework demonstrates the commitment to addressing the unprecedented recovery needs, the Minister stated.
“The government’s recent introduction of Ethiopia’s resilient recovery and reconstruction framework demonstrates the commitment to addressing the unprecedented recovery needs with the ultimate goal of rebuilding a resilient, stable and sustainable society in post-conflict Ethiopia,” she noted.
According to her, the government has already initiated consultations on the second phase of the Home-grown Economic Reform.
For Fitsum, the combination of the Home-grown Economic Reform and the reconstruction and recovery framework exemplifies the government’s determination to keep the economy in high trajectory.
The holistic program launched holds immense significance, the Minister said, adding that “the government is really committed to implementing this important program so that the gaps are addressed and we achieve our highest productive potential possible.”
In order to successfully attain the targets outlined, the sustainable development plan is imperative to Ethiopia to fortify its capacities, she further noted.
Industry Minister Melaku Alebel, on his part stressed that realizing productivity and homegrown economic reform need coordination among all stakeholders, enhancing the capacity of institutions and skills, among others.
UNCTAD’s engagement in Asia, Africa and Latin America, have provided UNCTAD with valuable insights into the operationalization of Holistic Program for Productive Capacities Development specifically for Ethiopia, it was indicated, according to ENA.
Holistic development of productive capacities is an important aspect of economic growth and poverty reduction in Ethiopia. In order to ensure such development, there are several key areas that need to be addressed, along with a clear way forward.
One of the key areas that need to be addressed is infrastructure development. This includes building roads, bridges, and other infrastructure that will facilitate the movement of goods and services within the country. This will also help in creating a conducive environment for businesses to operate.
Another important aspect is human capital development. This includes developing the skills and knowledge of the workforce, which will enable them to be more productive and contribute to the overall growth of the economy. This can be achieved through investing in education and training programs.
Agriculture is one of the main components of the Ethiopian economy. Therefore, developing the agricultural sector is critical to ensuring the holistic development of productive capacities. This includes investing in irrigation systems, improving access to inputs and technologies, and promoting better farming practices.
Industrialization is also a key component of productive capacity development. This involves developing the manufacturing sector, promoting the growth of small and medium-sized enterprises (SMEs), and attracting foreign direct investment (FDI) to the country.
Access to finance is another important aspect that needs to be addressed. This includes providing financing options for small businesses and entrepreneurs, as well as developing a robust financial system that can support the growth of the economy.
The way forward for ensuring holistic productive capacities development in Ethiopia involves a multi-pronged approach that includes the implementing policies and strategies that prioritize infrastructure development, human capital development, agricultural development, and industrial development.
In addition, it includes encouraging private sector investment in the economy, particularly in the manufacturing and agricultural sectors; developing a strong regulatory framework that promotes competition and ensures a leveled playing field for all businesses; investing in research and development (R&D) to promote innovation and the development of new technologies; strengthening the financial sector by promoting financial inclusion and expanding access to finance; encouraging regional integration and collaboration to promote trade and investment across borders; and developing a comprehensive monitoring and evaluation system to track progress and identify areas that need improvement.
According to documents, the agricultural sector is a critical component of the Ethiopian economy, employing the majority of the population and contributing significantly to the country’s GDP.
However, there are several challenges facing the development of the agricultural sector in Ethiopia, including: Ethiopia is highly vulnerable to the effects of climate change, including droughts, floods, and other extreme weather events. These events can have a significant impact on agricultural productivity, particularly for smallholder farmers who rely on rain-fed agriculture.
Land degradation due to soil erosion, deforestation, and overgrazing is a major challenge facing the agricultural sector in Ethiopia. This can lead to a decline in soil fertility, reduced agricultural productivity, and increased vulnerability to climate change.
Access to inputs such as seeds, fertilizers, and pesticides is limited for many farmers in Ethiopia, particularly those in remote areas. This can limit their ability to increase productivity and improve their livelihoods.
Poor infrastructure, including roads, bridges, and storage facilities, can make it difficult for farmers to transport their products to markets and access inputs and services.
Agriculture in Ethiopia is largely dependent on manual labor, which can be time-consuming and labor-intensive. The lack of mechanization limits the productivity of farmers and makes it difficult to scale up production.
Many farmers in Ethiopia have limited access to finance, which can make it difficult for them to invest in their farms and improve their productivity.
Access to markets is a major challenge for farmers in Ethiopia, particularly those in remote areas. This can limit their ability to sell their products and earn a decent income.
Addressing these challenges will require a coordinated effort from various stakeholders, including the government, development partners, and the private sector. This can include investments in infrastructure, research and development, and the promotion of policies that support farmers and encourage private sector investment in the agricultural sector.
The international community should enhance efforts than ever before in ensuring Ethiopia’s holistic productive capacities development program.
The international community can provide development assistance to Ethiopia to support the country’s efforts in developing its productive capacities. This can include financial support, technical assistance, and capacity-building programs.
Infrastructure development is crucial for the growth and development of the Ethiopian economy. The international community also should support infrastructure development by providing financial and technical assistance to help build roads, bridges, and other essential infrastructure.
The international community enhances effort in promoting trade and investment in Ethiopia by encouraging foreign direct investment (FDI), facilitating access to global markets, and promoting regional integration.
As the agricultural sector is a critical component of the Ethiopian economy. The international community strengthens effort further make available agricultural development packages by providing assistance in areas such as irrigation, access to inputs, and technology transfer.
Human capital development is the other essential for the growth and development of any economy. The international community can support human capital development in Ethiopia by providing assistance in areas such as education and training, and skills development.
Industrial development is another critical component of productive capacity development. The international community can support industrial development in Ethiopia by providing assistance in areas such as skills development, technology transfer, and finance.
Good governance is also an asset for sustainable economic development. The international community can support good governance in Ethiopia by providing assistance in areas such as institutional strengthening, anti-corruption measures, and promoting transparency and accountability.
Overall, the international community should strengthen in supporting Ethiopia’s holistic productive capacities development program. This requires a coordinated effort among various stakeholders, including the government, development partners, civil society, and the private sector.
BY MENGISTEAB TESHOME
THE ETHIOPIAN HERALD WEDNESDAY 12 JULY 2023
