Ethiopia's Industrial Capacity Utilization Exceeds 69 Percent Following Targeted Policy Measures

Addis Ababa, October 3, 2026 - Targeted policy measures and practical interventions have elevated the manufacturing capacity utilization of domestic industries beyond 69 percent, State Minister of Industry Hassan Muhammed disclosed.

Speaking to ENA, Hassan stated that industrial policy adjustments and broader macroeconomic reforms implemented over recent years have vitalized the manufacturing sector, yielding significant economic results.

He noted that key national initiatives, including the Ethiopia Tamrt (Made in Ethiopia) Movement and The National Manufacturing Industry Council , are actively dismantling operational bottlenecks across the sector.

Hassan explained that targeted measures are resolving critical infrastructure and input constraints—such as electricity, water supply, capital, and raw material shortages—enabling previously closed factories to return to full operation.

He added that the Ethiopia Tamrt Movement is executing these interventions in close coordination with regional and city administration structures.

Through domestic import substitution, the country saved nearly 5.9 billion USD in foreign exchange over the past fiscal year, Hassan revealed, noting that local production expanded rapidly across textiles and apparel, food and beverage, metallurgy, and leather sectors.

He stated that substituting imports not only conserves foreign currency, but also improves the national trade balance, generates employment, and increases manufacturing’s share in the broader economy.

As a result of these concerted steps, Hassan pointed out, total industrial capacity utilization has risen to 69.2 percent.

He further explained that the industrial sector is currently focusing on enhancing product quality and productivity, expanding value addition, strengthening backward and forward linkages with agriculture, and accelerating technology transfer.

Hassan stressed that ongoing efforts aim to build Ethiopia into a leading African manufacturing hub by boosting competitiveness through productivity, quality, and technology adoption.

He added that Ethiopia is working to position itself as a continental industrial training center, sharing its expertise and expanding the Kaizen management philosophy across Africa.

Looking forward, Hassan stated that strategic plans are in place to increase manufacturing's contribution to national growth through job creation, investment, and export expansion.

Under the 10-Year Perspective Development Plan, he recalled, the government aims to boost industrial export revenue to 9 billion USD, create 5 million jobs in the sector, and increase manufacturing's GDP share to 17.2 percent.

Hassan emphasized that the comprehensive macroeconomic reform has created vital opportunities to eliminate structural hurdles, particularly foreign currency shortages that previously constrained the sector.

He explained that foreign currency access for importing essential spare parts, heavy machinery, and industrial technology has improved, while revised laws, regulations, and directives continue to establish a favorable operating environment.

He noted that the manufacturing sector is progressively expanding its capacity to capture international markets and generate foreign currency for the country.

Hassan underscored that industrial development cannot be accomplished by a single institution alone, calling for continued and reinforced coordination among regional authorities, city administrations, and federal bodies.