Ethiopia's Manufacturing Sector Soars with Gov't Special Support: Says State Minister Tarekegn

Addis Ababa, May 28, 2025 (ENA) – Ethiopia's manufacturing sector is experiencing a significant resurgence, fueled by the government's renewed strategic focus and reforms, according to State Minister of Industry Tarekegn Bululta.

In an interview with ENA, the state minister emphasized the sector's pivotal role in fostering national prosperity and leading structural economic transformation.

The manufacturing sector is critical to Ethiopia’s long-term development goals, he noted.

A cornerstone of this revival is the introduction of a new industrial policy designed to overhaul the sector’s operational framework, aiming to enhance competitiveness both within Africa and the broader global market along with addressing long-standing challenges like foreign exchange shortages.

At the heart of this reform effort is the “Made in Ethiopia” movement, a nationwide initiative that engages federal, regional, and city administrations in a coordinated push to raise public awareness and systematically address bottlenecks in the manufacturing ecosystem.

The initiative has already yielded tangible results, according to Tarekegn.

"The movement has been instrumental in reopening previously shuttered factories, improving production capacity, expanding market opportunities, and attracting new investment," he said.

Over the past three years, industrial production capacity has increased significantly, rising from 46 percent to 61.2 percent, the minister noted, adding, this progress is the result of coordinated effort to address systemic issues and as the challenges are being resolved, industry output has steadily improved.

According to the state minister, job creation is another area of marked progress that the manufacturing sector has already generated approximately 235,000 jobs and aims to create up to 800,000 as we move forward.

Efforts toward import substitution have also proven effective that only in the past nine months; Ethiopia has replaced 3.1 billion US Dollars’ worth of imported goods with domestically produced alternatives.

“We’ve seen significant gains in sectors such as textiles, steel, food, and beverages,” he said. “Our domestic market share has increased from 30 percent to 44 percent as a result.”

Tarekegn reaffirmed the sector’s strategic importance in achieving sustainable, competitive, and resilient economic growth.

He stressed the need for continued investment and improvements in service delivery to maintain momentum and attract additional capital.

Looking ahead, the state minister expressed optimism about the sector's future. “We have abundant human and natural resources, and a reform-oriented government. These factors provide a strong foundation for driving prosperity and structural transformation in Ethiopia,” he concluded.