Import Substitution Saves Ethiopia 5 Billion USD, Says PM Abiy

Addis Ababa, July 2, 2026 (ENA) —Ethiopia has saved about 5 billion USD in foreign currency during the current Ethiopian fiscal year through expanded domestic manufacturing and import substitution, Prime Minister Abiy Ahmed said.

In the early hours of this afternoon, the Prime Minister visited the Yo Holding Coal Factory in the Gamo Zone, where he highlighted Ethiopia's growing success in replacing imported industrial inputs with domestic production.

He recalled that only a few years ago Ethiopia relied heavily on imported coal, spending nearly USD 300 million annually to meet industrial demand.

 

Today, coal is being produced locally, supplying domestic industries while creating opportunities for future exports.

The PM noted that the expansion of domestic manufacturing extends well beyond coal production, with a wide range of locally produced industrial goods contributing to the country's import substitution strategy.

He said these combined efforts have enabled Ethiopia to save 5 billion USD during the current fiscal year.

The success is hugely strengthening macroeconomic stability, reducing dependence on imports, and supporting the country's broader industrialization agenda, he added.

 

Prime Minister Abiy reaffirmed that Ethiopia will continue to deepen its industrial reforms, expand domestic production, and strengthen value-added manufacturing as key pillars of sustainable economic growth and national competitiveness.