The Ethiopian Industry and It’s Backward Journey


The Industry sector growth rate is very slow in Ethiopia. This is occurred due to government’s poor policy towards the sector and lack of adequate technology in the country. The government’s main economic policy was towards agriculture because it is believed that the farming sector must guide the countries development.  However, in order to develop agriculture, the sector must be helped by other sectors too.

Basic policy problems are facing the sector to make the sector to contribute for overall development of the country. Many foreign investors are uncomfortable in the bureaucracy processes that are needed to enter to industrial parks. But mainly because of lack of financial power, space and facilities for those investors who are struggling to discover it, they have to enter the industrial park. It is necessary to adapt the operating environment to enable foreign investors to take cash and knowledge. Therefore, primarily a local investment, rather than a foreign investor, should own industrial parks. But this is not to mean that oversea investors should not be allowed to enter, but local investors should be encouraged.

The government intends export to play an important role to solve foreign currency problem. Industrial development aims mainly to generate employment and revenue for indigenous peoples. Therefore it is feasible to produce imports here in a nation in which unemployment is high and fresh jobs are required. We must also decrease the demand for foreign currencies. The first replacement task was done by East Asian countries. This does not imply they are going to quit exporting, but both parties are going to operate. ዘ

Of course, there have been some producers in mobile, textile, leather and the like, which should be nice. Many others need to do more by imitating other imported products in saving foreign currencies. The focus on national manufacturing should be public procurement and other private businesses rather than purchasing from abroad. This will enable to expand the manufacturing industry.

The sector is not getting enough support from the government. In order to solve the problem, local industry owners must be given opportunity to participate in the sector widely. Because of the complex processes involved in industrialization, most people prefer to participate in the service and trade sector rather than industry. Manufacturing often takes time to produce results, but it is easy for the investor to start wholesale and retail products.

Industry requires imported, trained, managed and efficient government services raw materials. And since industrialization involves many processes and risks, it simply requires the removal of the barriers.. The idea of that the Government should focus on its own production rather than on the tax should be encouraged. As the sector grows, they relieve the unemployment issue, which is the government’s headache.

Competition for quality is needed for the industrial product quality problem. Employees should also be regularly educated. It is also worth bringing them assistance and expertise. In order to enhance their quality of products, governments must be supervised and endorsed. It will take value to itself if fair trade competition exists. Therefore, there must be a successful system established. But you can’t get quality immediately without beginning.

The expansion of the industry sector is one of the main issues that need government attention. Better alternative policies have to be implemented in order to expand the product for market purposes. If agriculture is the focus of the sector, it has to be worked in a way that will concentrate both on domestic and international markets. In order to produce agricultural products for foreign market, an optimal concept is to set up farming plants for manufacturing, such as fertilizers, pesticides and other necessary material production units.