Inefficient Capacity of Inputs Supplying Enterprise Impacted Performance of Industries

Addis Ababa September 24/2018 The inefficient capacity of the enterprise established to supply inputs for manufacturing industries has negatively affected the performance of the sector.

Despite Ethiopia has embarked on industrial development to ascertain export oriented economy, the sector has been performing law mainly due to shortage of inputs supply.

The Ethiopian Industrial Inputs Development Enterprise (EIIDE) was established four years ago by the government to supply to industries thereby ease the shortage.

Speaking at a daylong stakeholders’ consultation in Addis Ababa, Melaku Alebel, Trade Minister as well as Board Chairman of EIIDE said the enterprise’s inefficient capacity of supplying industrial inputs contributed for low export performance.

“We established EIIDE whose job is to supply inputs to textile, leather and leather products and metal manufacturing sectors both by producing them and by procuring from local and international markets. In this regard, the enterprise has brought good achievement especially in textile and leather and leather products,” he stated.

Though Ethiopia has achieved a modest growth in the manufacturing sector over the past years by attracting global manufacturers, production capacity has stood at 57percent at the national level, he said.

According to him, this is mainly because of shortage of inputs.

The enterprise, which established to rescue the ever falling performance of the sector, is supplying the industries with inputs despite shortcomings.

As the enterprise is new to the area, the activities it carried out in textile and leather area is promising.

However, the enterprise has a basic problem in supplying the inputs on time with required quality and quantity over the years.

Since enhancing its institutional capacity is crucial to change the performance of industries, the government has planned to capacitate the enterprise, Melaku said.

State Minister of Industry Bogale Feleke said the sector is being challenged by shortage of input supply.

“Our manufacturing sector is being largely challenged by shortage of supply of inputs, leading to continuously disappointing export record, it is time to exploit our domestic capacity and transform EIIDE for this purpose,” he noted.

Wondale Habitamu CEO of EIIDE said the enterprise is working to address its shortcomings and supply inputs for the industries as per their desire.

“The major challenges against the manufacturing industry are quality, quantity and supply chain of inputs. The enterprise is working to address the possible shortcomings by  purchasing inputs from local market or importing from abroad on competitive price”, he said.

EIIDE has been supplying inputs to industries engaged in the country’s priority areas.

It supplied 600 million worth of industrial inputs to textile, metal and leather and leather products last Ethiopian fiscal year, said