Nation Vows to Intensify Import Substitution Efforts 

Addis Ababa, October 30/2023 (ENA) Minister of Industry said import substitution efforts will be intensified over the coming years to enhance Ethiopia’s economic development. 

A half-day consultative discussion with stakeholders on the national import substitution strategy is undertaking in the capital, Addis Ababa today.

On the occasion, Industry Minister Melaku Alebel said Ethiopia's trade imbalance gap is very huge that hampers the economy.

Ethiopia on average imports 18 billion USD worth products while its export has not exceeded 5 billion USD, he added.

According to him, this is mainly due to the fact that the nation only exports raw materials thereby leading to lack of global market competitiveness.
 

The Government of Ethiopia has been working to reverse this reality with a view to expediting the development of the country by strengthening the industrial sector. In this regard, enhancing import substitution has been given the utmost priority.  

Ethiopia’s import substitution strategy has been bearing fruit and the nation was able to substitute products such as textiles and food stuffs. 

Military uniforms that used to be imported are now fully substituted with domestic products while 100 percent of beer barley seed demand of the country has also been covered with domestic products. 

 

Encouraged by this achievements and supported by the strategy, Ethiopia was able to substitute  2.26-billion USD worth of products over the last fiscal year.  

The nation has also substituted import products worth of 350 million USD  in the first quarter of current fiscal  year, Melaku said.

The Minister indicated that  import substitution efforts will be intensified over the coming years as well to enhance Ethiopia’s economic development. 

Minister Melaku stated at the consultative meeting that due attention is given to value addition and diversification of export products. 

Some 96 import products have been identified to be produced locally in short and long-term plans, it was indicated.

Furthermore, the Minister indicated that plans are in place to export the substituted import products.

The ministry has also developed a capacity building strategy which will be discussed with pertinent stakeholders soon, it was learned.