Ethiopia’s Manufacturing Sector Performs Below Expectations

Ethiopia’s Manufacturing Sector Performs Below Expectations

ethiopias-manufacturing-sectorAugust 9, 2017 – The Ethiopian Ministry of Industry announced that it has been able to achieve only 47.8percent of its plan to earn 913.66 million U.S. dollars from the manufacturing sector in the last Ethiopian Fiscal Year (EFY) 2016/17. As part of its economical structure transformation, the government of Ethiopia has given a due emphasis to the manufacturing sector. However, the sector has continued to be a big source of disappointment to the Ethiopian government, according to the report.

Despite  a lot of buzzes that Ethiopia will become the manufacturing hub of Africa, Assefa Tesfaye Corporate Communications Director at Ethiopia Ministry of Industry (MoI) stated  that lack of management and technological capacity of some industries, insufficient supply of manufacturing inputs, quality problems with manufacturing inputs and delay in commissioning of several industries contributed to the disappointing result.

The Ethiopian Government official in particular mentioned a commissioning lag in some manufacturing plants operating in Ethiopia’s highly advertized Hawassa Industrial Park for the disappointing export revenue.

Built by China Civil Engineering Corporation (CCECC), the Hawassa Industrial Park 275 kms south of capital Addis Ababa was inaugurated back in July 2016.

Eighteen companies have already started operations inside the industrial park and six of them are presently exporting their products to the global market.

Once operational at its full potential, the park is expected to generate 1 billion dollars for the Ethiopia annually mainly from textile and garment sector.

It is the textile and garment sector that showed its most disappointing result earning Ethiopia 89.3 million dollars in export revenue out of a planned 271 million dollars.

Sourece: Xinhua