Addis ababa: Prime Minister Abiy Ahmed has announced that Ethiopia's import substitution strategy has successfully saved the nation a significant 5 billion USD. This financial achievement marks a crucial milestone in Ethiopia's economic strategy aimed at reducing dependency on foreign imports and enhancing local production.
According to Ethiopian News Agency Newsthe Prime Minister emphasized the importance of this initiative as a cornerstone of the government's economic policy. By prioritizing local industries and encouraging domestic production, Ethiopia has managed to retain a substantial amount of foreign exchange, which would have otherwise been spent on imports. This policy not only strengthens the local economy but also creates job opportunities and fosters innovation within the country.
The move towards import substitution is part of a broader strategy to achieve economic self-sufficiency and resilience. The Ethiopian government has been actively supporting industries such as agriculture, textiles, and manufacturing, providing incentives and creating an environment conducive to growth. This approach has contributed to a notable reduction in import bills and has bolstered the national economy.
PM Abiy's announcement highlights the government's commitment to continuing this trend and striving for even greater economic independence. The success of the import substitution strategy is expected to inspire further investments in local industries, with the aim of sustaining the momentum of economic growth and development in Ethiopia.
Ethiopia has saved about 5 billion USD in foreign currency during the current Ethiopian fiscal year through expanded domestic manufacturing and import substitution, Prime Minister Abiy Ahmed said.In the early hours of this afternoon, the Prime Minister visited the Yo Holding Coal Factory in the Gamo Zone, where he highlighted Ethiopia's growing success in replacing imported industrial inputs with domestic production.He recalled that only a few years ago Ethiopia relied heavily on imported coal, spending nearly USD 300 million annually to meet industrial demand. Today, coal is being produced locally, supplying domestic industries while creating opportunities for future exports.The PM noted that the expansion of domestic manufacturing extends well beyond coal production, with a wide range of locally produced industrial goods contributing to the country's import substitution strategy.He said these combined efforts have enabled Ethiopia to save 5 billion USD during the current fiscal year. The success is hugely s trengthening macroeconomic stability, reducing dependence on imports, and supporting the country's broader industrialization agenda, he added.Prime Minister Abiy reaffirmed that Ethiopia will continue to deepen its industrial reforms, expand domestic production, and strengthen value-added manufacturing as key pillars of sustainable economic growth and national competitiveness.