Ethiopia’s Import Substitution Drive Delivers Significant Economic Gains, Industry Minister Says

Arba Minch, Ethiopia, January 24, 2026 (ENA)— Ethiopia’s strategic focus on import substitution is yielding substantial economic and industrial benefits, the Ministry of Industry announced, as the country seeks to strengthen domestic production and reduce reliance on imported goods.

During a mid-year performance review for the first six months of the 2018 Ethiopian fiscal year in Arba Minch, Minister of Industry Melaku Alebel revealed that the production of locally made substitute goods saved the country 3.4 billion USD in foreign exchange.

“This approach is producing diverse and tangible results,” Minister Melaku said.

Noting that 96 products have been targeted for local production to expand domestic capacity, the minister noted that: “These efforts are helping to alleviate foreign currency shortages, create job opportunities, and provide citizens with affordable goods.”

Ethiopia’s import substitution policy is part of a broader industrial and economic reform agenda, focusing on key sectors such as textiles, food processing, chemicals, and construction materials.

The strategy aims not only to replace imported goods but also to strengthen the domestic manufacturing sector, boost investment, and enhance macroeconomic stability.

Recent data from the Ministry indicate that billions of dollars’ worth of goods have been produced locally instead of imported, reducing pressure on scarce foreign currency reserves and supporting sustainable economic growth.

The initiative has also contributed to job creation and expanded industrial capacity, aligning with the government’s long-term development plans.

Minister Alebel emphasized that the Ministry will continue working closely with stakeholders to build on these gains and further solidify Ethiopia’s industrial base.