Industrial Production Capacity Rises to 66.3 Percent

Addis Ababa, February 3, 2026 (ENA)—Ethiopia’s industrial sector is demonstrating sustained recovery and expansion with production capacity rising to 66.3 percent from 47 or 48 percent three years ago, PM Abiy said.

Responding to questions during the 10th regular session of the House of People's Representatives, the premier elaborated on the progress achieved under the “Ethiopia Tamirt” (Made in Ethiopia) manufacturing movement launched nearly three years ago.

“When we began the Ethiopia Tamirt movement about three years ago, industries in Ethiopia were operating at only 47 to 48 percent capacity. Today, they have reached 66.3 percent, and the trend shows no sign of slowdown,” he stated.

He further revealed that industrial energy consumption alone increased by 16 percent over the past six months, reflecting expanding production activity.

A recent nationwide business census conducted to better understand national wealth and strengthen revenue administration identified 2.6 million enterprises. Of these, 17 percent —approximately 413,000, are engaged in manufacturing activities.

The Prime Minister noted that reforms in access to credit, land provision, and technology transfer have significantly improved the sector’s performance.

He further recalled informing the House about the government’s strategy to attract and prioritize anchor investors capable of substantially expanding export capacity.

“If we identify and bring in anchor investors strategically, they will significantly enhance our export potential.”

The PM cited as an example a solar panel manufacturing company brought from Vietnam, which exported products worth 66 million USD in just six months.

“In terms of export performance, this company has delivered results that many companies have not achieved,” he emphasized.

In addition, five anchor investors engaged in solar cell manufacturing have been secured, with some already commencing operations and all expected to become fully operational next year.

“From solar energy products alone, we expect to generate 900 million USD next year,” the premier disclosed.

Furthermore, industrial export performance has doubled over the past two years, according to PM Abiy.

Through the Ethiopia Tamirt initiative, the country has achieved substantial import substitution. Products that previously required 3.4 billion USD in foreign exchange have now been replaced with domestic production, he stated.

Beginning next year, Ethiopia will, for the first time in its history, launch industrial sector investments measured in billions of dollars, PM Abiy added. Moreover, excluding import substitution gains, industrial growth this year is projected to double last year’s expansion.