Ethiopia’s Production Capacity of Manufacturing Industries Jumps to 60 Percent

Addis Ababa, December 26, 2024 – The production capacity of Ethiopia's manufacturing industries has risen to 60 percent, according to Ministry of Industry.

Industry Minister and Prosperity Party Executive Committee member, Melaku Alebel, said that the growth was achieved by addressing the challenges faced by the sector.

Recall that a new policy has been implemented in recent years to enhance the contribution of manufacturing to the economy and address gaps.

The policy aims to leverage the potential of the sector and capitalize on emerging opportunities while adapting to the evolving dynamics of the industry.

The minister also emphasized the significant progress made in overcoming the challenges within the sector, which has enabled it to become more competitive.

Melaku credited the ‘Made in Ethiopia’ movement, launched two years ago, for playing a key role in improving competitiveness by tackling critical issues in the sector.

The government has designed and implemented policies that support both domestic and export production.

In this respect one of the sector’s major achievements has been improvement in capacity utilization.

Prior to the reform, production capacity had plummeted to just 46 percent, he disclosed, adding that this has now increased to 60 percent, which is expected to positively impact the country’s economic growth.

According to Melaku, the domestic market share of the manufacturing industry has also grown to 40 from 30 percent.

This reflects a significant progress and the positive changes occurring within the sector, he noted.

The minister also pointed out a steady increase in foreign investment in manufacturing, with more advanced industries entering production.

The manufacturing sector has created over 156,000 jobs, showcasing its growing potential to generate employment and contribute to Ethiopia's overall economic development.