HAWASSA, ETHIOPIA – Ethiopia’s efforts in enhancing import substitution have yielded significant results in the past fiscal year, as discussed during the annual performance review and planning session for the 2017 Ethiopian fiscal year held by the Ministry of Industry in Hawassa.
According to Ethiopian News Agency, the country has made notable progress, particularly in replacing imported goods with locally manufactured products under the ‘Made In Ethiopia’ initiative. The initiative has successfully expanded across various sectors, including textiles, apparel, leather products, chemicals, construction materials, manufacturing technology, and food and beverages. This strategic shift is part of Ethiopia’s broader aim to balance trade and bolster local industries.
The industry’s market share has increased to 39 percent and is projected to reach 60 percent as part of the 10-year national development plan. The focus on import substitution has not only contributed to domestic growth but has also led to substantial financial savings. In the 2013 Ethiopian fiscal year, the country saved 248 million USD, which significantly increased to 2.8 billion USD by the 2016 fiscal year.
The manufacturing sector itself has seen a robust growth of 10.2 percent last year, with an anticipated increase to 12.08 percent in the current fiscal year, underscoring the positive impact of these policies on Ethiopia’s economic landscape.