Addis Ababa - Ethiopia will intensify its import substitution efforts in the coming years to accelerate the country's economic development, according to Minister of Industry Melaku Alebel. The statement was made during a half-day consultative discussion with stakeholders about the national import substitution strategy, held in the Ethiopian capital today.
According to the Ethiopia News Agency, The Industry Minister noted the country's significant trade imbalance, stating that Ethiopia imports products worth an average of 18 billion USD, while its exports have not surpassed 5 billion USD. He attributed this imbalance to Ethiopia's primary focus on exporting raw materials, resulting in a lack of global market competitiveness.
To address this issue, the Ethiopian government has been working on strengthening the industrial sector and placing utmost priority on enhancing import substitution. This strategy has already produced results; domestically-produced items have begun to replace imported products such as textiles and food items. For example, military uniforms that were previously imported are now entirely produced domestically, and the country's entire beer barley seed demand is met with local products.
Encouraged by these achievements, Ethiopia has managed to substitute 2.26 billion USD worth of products over the last fiscal year, and an additional 350 million USD worth of products in the first quarter of the current fiscal year, Melaku added.
During the consultative meeting, the Minister stressed the importance of adding value and diversifying export products. A total of 96 products have been identified for local production as part of short- and long-term plans. Additionally, plans are underway to export substituted import products.
To further bolster these efforts, the ministry has developed a capacity-building strategy, which is slated for discussion with relevant stakeholders in the near future.