Prime Minister Abiy Ahmed has been an ardent advocate of economic development and has consistently emphasized the importance of boosting the country’s export performance. In his recent statements while reporting his government six months economic performance to the parliament, the Prime Minister has highlighted Ethiopia’s progress in the export sector, showcasing the achievements and efforts made to enhance the country’s global trade. This article examines the key points conveyed by Prime Minister Abiy regarding Ethiopia’s current export performance and sheds light on the initiatives undertaken to stimulate economic growth.
Prime Minister Abiy Ahmed has emphasized the need for Ethiopia to diversify its export base beyond traditional commodities. While Ethiopia has long been renowned for its agricultural products, Prime Minister Abiy acknowledges the importance of expanding into other sectors such as manufacturing, textiles, and minerals. By diversifying exports, Ethiopia aims to reduce its reliance on a few key commodities and establish a more resilient and sustainable export sector.
To enhance Ethiopia’s export performance, Prime Minister Abiy has emphasized the significance of value addition and industrialization. By focusing on processing raw materials domestically and promoting manufacturing activities, Ethiopia can increase the value of its exports and create employment opportunities. It also helps the endeavor for import substitution, boost export, widen the space for the role of the private sector in the economy, crate link with the agricultural sector and accelerate innovation. The government has implemented measures to attract foreign direct investment (FDI) and support local industries, particularly in sectors such as textiles, leather goods, and agro-processing. It strived to adjust the exchange rate of Birr against the Dollar, introduced new laws favoring the inflow of foreign investment, allowing foreign investors to repatriate their profit to their countries, providing to courts to conduct a speedy trial in dealing with dispute settlement, the expansion of Information Communication Technology and reforming financial institutions in this regard can be mentioned.
Prime Minister Abiy recognizes the critical role of infrastructure in facilitating trade and enhancing export capabilities and reducing transaction cost. Ethiopia has made significant investments in infrastructure projects, including transportation networks, ports, and power generation. These developments have improved connectivity, reduced transportation costs, and supported the expansion of export-oriented industries. Prime Minister Abiy has reaffirmed the commitment to further infrastructure development to bolster Ethiopia’s export competitiveness and the stretching of electric powered rail transport connecting Addis Ababa with Djibouti is exemplary.
He also has emphasized the importance of regional integration and trade agreements in boosting Ethiopia’s export performance. Ethiopia is a member of the African Continental Free Trade Area (AfCFTA), which aims to promote intra-African trade and create a single market. Prime Minister Abiy believes that tapping into the vast African market will provide significant opportunities for Ethiopian exporters and contribute to the country’s economic growth.
He stressed the importance of collaboration between the government and the private sector to drive export growth to that end it works with international partners such as the European Union to digitized the economy step by step. To accelerate the endeavor, agreements has been reach with various public organizations and capacity building trainings have been given to the clerks. The government has implemented policies to attract private investment and foster a conducive business environment. By encouraging public-private partnerships, Ethiopia aims to leverage the expertise and resources of the private sector to develop export-oriented industries and increase competitiveness in the global market.
Prime Minister Abiy Ahmed’s focus on Ethiopia’s export performance underscores the government’s commitment to economic development and job creation. By diversifying exports, promoting value addition, investing in infrastructure, and fostering regional integration, Ethiopia aims to enhance its global trade presence. The efforts made by the government, in collaboration with the private sector, are crucial in driving economic growth, attracting investment, and improving the livelihoods of the Ethiopian people.
As Prime Minister underlined, the country is poised to capitalize on its potential and emerge as a prominent player in the global market. Traditionally Ethiopia exported agricultural products such as coffee, oil seeds and leather and hides but currently the newly introduced export products such as flower, vegetable and fruit products in addition to enhancing the nation foreign currency earning capacity, it created job opportunities to thousands.
Ethiopia, a country located in the Horn of Africa, has emerged as a notable player in the global export market in recent years. With its diverse range of products and strategic geographical location, Ethiopia has experienced remarkable growth in its export performance.
The government has implemented several initiatives and policy reforms aimed at promoting export-oriented industries. The country has embarked on an ambitious industrialization agenda, with a focus on developing manufacturing and processing sectors. The government has established special economic zones, provided tax incentives, and streamlined procedures to attract foreign direct investment (FDI) and stimulate export-oriented businesses.
Ethiopia has abundant natural resources and among others huge natural resources such as arable land, surface and underground water that can be utilized for the cultivation of vast irrigated farms, mine and tourism destination but due to insufficient financial, technological and trained manpower capacity, the resources are not exploited as needed. The low land parts of the country which has inadequate rainfall amount can be exploited and through producing crops which are conducive the climate by irrigation system, the nation not only become food self- sufficient but also can be food exporter and through that can enhance its foreign currency reserve.
Vast agricultural farms can attract foreign investment, enables technology and knowledge transfer and create job opportunities to thousands. Currently the Ministry of Agriculture with the cooperation of the Ministry of irrigation and low lands is exerting its energy and time for the cultivation of low land farms. It identified places conducive to the expansion of irrigation farms and building infrastructure is undergoing.
The government also gave emphasize for the expansion of manufacturing and in this regard the textile and garment industry has experienced significant growth. The country offers low-cost labor, preferential trade agreement, and duty-free access to major markets, such as the United States and the European Union. These advantages have attracted international clothing manufacturers who are seeking to diversify their sourcing locations. Ethiopia’s textile and garment exports have been on the rise, contributing substantially to the country’s export performance.
Similarly the country has a long-standing tradition of producing high-quality leather and leather products. The country’s abundant livestock resources provide a reliable supply of raw materials for the leather industry. Ethiopia has invested in modern tanning facilities and has established leather processing zones to promote value addition. As a result, Ethiopian leather and leather products, including shoes, bags, and accessories, have gained recognition in international markets. Ethiopia is rich in mineral resources, including gold, tantalum, platinum, and gemstones. The government has implemented policies to attract investment in the mining sector and promote responsible extraction practices. Ethiopia’s mining exports have witnessed significant growth, driven by increasing demand from global markets.
Ethiopia is a country with more than 120 million populations and out of it 70% of it is below the age of 30 and this implies how the nation has huge potential to develop its human resources that can change the nation economy land scape. To fully exploit the resources, expanding educational institutions is essential and so far for the last two decades and a half, the government has been aggressively engaging in the construction of institutions and so far thousands will be graduated from higher educational institutions. While some of the graduates join the labor market others unable to obtain jobs which again brought a drawback to the nation economy. Hence continuing creation of enabling environment for attraction of local and foreign investment for creating job opportunities is essential.
Summing up, the government is leading the nation in the right track which enable to harness the economic benefit which pave the way to improving citizens income and betterment of their future.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD FRIDAY 9 FEBRUARY 2024
