Industry Minister showcases manufacturing sector opportunities in Ethiopia

Addis Ababa, December 20, 2024 (FMC) – Ethiopia’s Industry Minister Melaku Alebel has highlighted the positive impact of the government’s macroeconomic reforms implemented over the past few months in encouraging the manufacturing sector. The reforms have spurred economic activity, particularly in manufacturing, exports, and foreign direct investment.

The Ministry convened a public-private dialogue today to discuss the opportunities, challenges, and potential solutions for the manufacturing sector in light of recent economic reforms. Industry Minister Melaku Alebel noted that the improved availability of foreign currency has enabled previously closed industries to resume operations.

Ethiopia has achieved over 816 million USD in import substitution in the past few months after the reform. GIZ Ethiopia Program Head, Anna Waldamann, stated the positive effects, acknowledging the noticeable improvements in the manufacturing industry. She cited increased capacity utilization in sectors like steel, which has risen from 20 percent to over 50 percent.

However, Anna also acknowledged potential challenges arising from increased international competition and the need for reliable policies and regulations. She stressed the importance of continued dialogue between the government and the private sector to address these concerns. The head expressed her organization’s commitment to supporting the government and the private sector, working on policy formulation, implementation assistance, and capacity building for industry associations.

Additionally, she highlighted the potential of digital tools, such as the electronic Public-Private Engagement platform, to facilitate structured dialogue and follow-up actions, according to ENA.