Ethiopia's manufacturing sector has saved the nation $2.7 billion in foreign exchange, a significant boost to the country's economy.
Minister of Industry, Melaku Alebel, unveiled the impressive achievement of over $2.7 billion in foreign exchange savings through the focused promotion of locally produced "proxy products" during the past six months.
This landmark accomplishment, disclosed during the 16th regular meeting of the 4th year of the 6th House of People's Representatives, underscores Ethiopia's commitment to a self-reliant and robust industrial sector.
Minister Melaku’s comprehensive report to the House highlighted the manufacturing sector's pivotal role in Ethiopia's developmental ambitions, emphasizing its position as one of the five priority sectors within the nation's roadmap for sustainable growth in Africa.
The Minister emphasized that a carefully crafted manufacturing industry policy, designed to bolster sustainable competitiveness and productivity, has been instrumental in resolving previous challenges related to coordination. This strategic approach has yielded impressive results, as per him.
The report detailed the ambitious goal of replacing 1.3 billion tons of imports with domestic production within six months. Exceeding expectations, the sector successfully substituted a remarkable 1.9 billion tons, directly translating into the aforementioned $2.71 billion in foreign exchange savings. This accomplishment is a testament to the growing strength and adaptability of Ethiopian manufacturers.
“The average production capacity utilization of manufacturing industries soared to an impressive 61.2%, achieving 98% of the set target. This highlights a notable improvement in operational efficiency across the sector. Out of a planned 117,586 tons of exported products, the sector successfully shipped 95,167 tons, exceeding 80% of the set goal. This demonstrates a growing capacity to compete on the international stage. The sector generated $149.334 million in revenue, a figure 6% higher than the previous year, underscoring the sector's rising export capabilities,” according to the Minister of Industry.
By the same token, the report detailed significant progress in ensuring the smooth supply of vital inputs across key industries including textile, food & beverage, chemical, construction, manufacturing, and engineering.
It was learned that the sector successfully provided 9.527 million tons of inputs, surpassing the target of 8.874 million tons. Similarly, the leather industry received 10.4 million tons of hides and skins against a target of 11.7 million tons, he underscored.
Minister Melaku acknowledged the government's robust support for the sector, underscoring the positive impact of recent economic reforms, adding that $369.11 million was allocated to manufacturing industries during the reporting period, which constitutes 79% of the planned funding which represents a 35% increase compared to the $274.1 million provided in the same period last year.
Furthering the matter, Minister Melaku's address struck a tone of measured optimism, crediting both strategic government policies and the hard work of the manufacturing sector operators for these gains.
His report subtly conveyed the message that Ethiopia is taking significant strides towards greater economic self-reliance without being overly assertive or confrontational.
The emphasis on "sustainable competitiveness and productivity" positions Ethiopia as a partner committed to quality, innovation, and responsible growth, Melaku accentuated.