Manufacturing Sector Boosts Trade Balance, Competitiveness: Ministry

Addis Ababa, February 9, 2026 (ENA)— The Ministry of Industry affirmed that strong performance of Ethiopia’s manufacturing sector is delivering tangible gains in international competitiveness and improving the country’s balance of trade.

In an exclusive interview with ENA, Minister of Industry Melaku Alebel said the success recorded in manufacturing reflects the impact of sustained productivity reforms and coordinated institutional efforts.

“The success of the manufacturing sector has positively affected the balance of trade by enhancing international competitiveness,” he added.

Prime Minister Abiy Ahmed, while responding to questions from members of parliament on the federal government’s 2018 fiscal year budget performance report for the first six months, highlighted notable progress in the industrial sector.

He explained that before the launch of the Ethiopian Manufacturing Movement three years ago, industrial production capacity stood at only 48 percent.

According to the Prime Minister, productivity improvement measures implemented across various sectors have raised industrial capacity utilization to 66.3 percent.

He also announced that import substitution efforts under the movement have replaced imported goods worth 3.4 billion US dollars with domestically produced alternatives.

Minister Melaku said 93 percent of the targets set for the industrial sector were achieved during the first half of the current fiscal year.

“The performance of the first six months shows that the annual plan can be met with improved quality,” he stated.

He noted that the sector registered significant achievements in export performance, import substitution, job creation and the transformation of medium scale enterprises.

The minister added that the results achieved so far will serve as a foundation for increasing the contribution of the industrial sector to overall economic growth over the next five years.

According to him, the Ethiopian Manufacturing Movement has played a critical role in reviving the sector by addressing long standing gaps through policy, legal and strategic reforms.

He said stronger coordination among institutions and sector actors has been central to boosting productivity.

“The revival capacity created in the manufacturing sector is contributing to national growth by improving product quality and strengthening competitiveness in international markets,” Melaku said.

He further explained that proxy production and import substitution initiatives have helped ease pressure on the country’s trade balance while safeguarding both the volume and quality of locally produced goods.

In connection to the improvement of export earnings, the minister recalled that Ethiopia earned 149 million US dollars from exports in the first six months of the 2017 fiscal year; however, it earned 204 million US dollars during the same period of the 2018 fiscal year.

According to the minister, these figures demonstrate that the Ethiopian Manufacturing Movement has delivered concrete results in raising industrial productivity, improving quality and strengthening export competitiveness.