Addis Ababa: Ethiopia has been actively developing its manufacturing sector, achieving significant progress in this crucial aspect of its economy, according to renowned American Political-Economic analyst for Africa, Lawrence Freeman, who spoke to ENA.
According to Ethiopian News Agency, Ethiopia's Industry State Minister, Tarekegn Bululta, emphasized that substantial reforms have been implemented to stimulate the manufacturing sector. These initiatives include macroeconomic adjustments and policies aimed at import substitution and export growth. Tarekegn highlighted that the manufacturing sector is pivotal for Ethiopia's future prosperity and is currently undergoing extensive reforms. The government's introduction of sound policies and procedures has led to a transformation in the sector.
The reformist leadership has prioritized the industrial sector, striving to enhance competitiveness and create a conducive environment for manufacturers. Tarekegn noted that significant progress has been achieved over the past three years. Lawrence Freeman, who visited textile garment factories, steel complexes, sugar factories, and other manufacturing sites, confirmed that Ethiopia is making clear progress in the sector. He stated that the new homegrown economic reform program prioritizes manufacturing growth and is now delivering concrete outcomes.
Freeman observed an increase in employment within Ethiopia's manufacturing sector and emphasized the importance of tangible product production for economic expansion. He commended Ethiopia's commitment to building its manufacturing base, an area where Africa is generally weak. Freeman drew parallels to the United States' development, which was heavily reliant on manufacturing, and expressed optimism about Ethiopia's progress and enthusiasm in the sector.
He attributed Africa's limited manufacturing sector to colonial and neo-colonial policies, noting the minimal contribution of manufactured goods by African nations in global trade. Despite this, he recognized Ethiopia's light manufacturing, particularly in textiles, as a positive step forward. Freeman urged Ethiopia to accelerate its transition to a manufacturing-based economy to achieve prosperity.
Following the new policy reforms, Ethiopia's industrial production capacity has increased from 46 percent to 61.2 percent, according to Tarekegn Bululta. While the current contribution of the manufacturing sector to GDP is less than 6.8 percent, efforts are underway to boost this to 17.2 percent. The state minister also outlined the sector's success in import substitution, generating goods valued at 3.1 billion USD in the first nine months of the fiscal year.