Over 320 manufacturing industries curtailed operations
Melaku Alebel, Minister of Industry said Wednesday that 322 manufacturing industries have curtailed operations due to various predicaments.
Previously, 440 manufacturing industries were curtailed operations. “But, 118 companies were resumed productions,” Melaku said.
Lack of finance, inputs, deficiency of infrastructure and poor quality, and shortage of foreign currency are among the problems the industries have been facing.
Lack of trained human power and absence of coordinated government support packages for industries are also the other reasons which forced manufacturers to cease productions.
“Measures will be implemented to resume productions by all the manufacturing industries,” he said.
Melaku said that due to lack of production capacity there are some companies that are operating in 10% of their capacity. “Ministry of Industry will implement measures to improve their production capacity”.
Ethiopia’s manufacturing sector has been battered due to the shortage of foreign currency.
Requested by journalists at a presser on Wednesday that held at the headquarters of the Ministry, Melaku responded that, “The problem will be solved by improving productivity, exporting more commodities and attracting foreign investments.”
Meanwhile, a yearlong campaign being held at different regions and dubbed “Ethiopia Tamirit”, roughly translated as “Let Ethiopia produce”.
The Ministry said the campaign at regional levels is aimed at addressing problems within the industry sector, saving defunct industrial centers, and attracting more investment.
The campaign will take place at a national level starting from May 7, 2022. “It will last for years,” Melaku said.
Ethiopia has garnered $1.14 billion in four years exports from the manufacturing sector. However, the import bills show that the country purchased $5.14 billion worth commodities in four years.
Ethiopia has set a plan to create 5 million jobs from the manufacturing industry in ten years, according to the Ten Years Perspective Plan. The plan also sets to increase the share of the industrial sector in the Gross Domestic Product (GDP) from 6.9% to 17.2%.
