Addis Ababa:Targeted policy measures have propelled Ethiopia's domestic industries, pushing manufacturing capacity utilization beyond 69 percent, as revealed by State Minister of Industry Hassan Muhammed.
According to Ethiopian News Agency, industrial policy adjustments and macroeconomic reforms have energized the manufacturing sector, producing significant economic outcomes. National initiatives like the Ethiopia Tamrt Movement and The National Manufacturing Industry Council are actively resolving operational challenges within the sector.
Efforts to overcome infrastructure and input constraints such as electricity, water supply, capital, and raw materials have allowed previously closed factories to resume operations. The Ethiopia Tamrt Movement is collaborating closely with regional and city administrations to execute these interventions effectively.
The country saved nearly 5.9 billion USD in foreign exchange last fiscal year through domestic import substitution, which has spurred growth in sectors like textiles, food and beverage, metallurgy, and leather. This strategy not only preserves foreign currency but also enhances the trade balance, boosts employment, and increases manufacturing's economic contribution.
As a result of these strategic efforts, industrial capacity utilization has reached 69.2 percent. The sector is now focusing on improving product quality, expanding value addition, strengthening linkages with agriculture, and accelerating technology transfer.
Hassan emphasized that Ethiopia aims to become a leading African manufacturing hub by enhancing competitiveness through productivity and technology adoption. The country is also working to establish itself as a continental industrial training center, promoting the Kaizen management philosophy across Africa.
Strategic plans under the 10-Year Perspective Development Plan aim to boost industrial export revenue to 9 billion USD, create 5 million jobs, and increase manufacturing's GDP share to 17.2 percent. Macroeconomic reforms have improved foreign currency access for importing essential equipment and created a favorable business environment.
Hassan highlighted that the manufacturing sector is expanding its capacity to enter international markets and generate foreign currency, emphasizing the need for collective efforts across institutions to sustain industrial development.
