The ministry of Industry says it has been preparing to attract and expand the participation of domestic investors in manufacturing sector in the coming five years.
Corporate communication Director with the Ministry, Melaku Taye, told WIC that the ministry exerting efforts to enlarge the participation of small and medium scale domestic investors in the manufacturing sector so as to successfully achieve set targets during the second GTP period.
The Ministry has conducted 17 feasibility studies on different parts of the sector, said Melaku. This will support to attain scheduled goal of 24 percent annual growth in the manufacturing sector during the GTP II period, he added.
Capital lease system will be started to incentivize domestic investors in the, said Melaku. Medium and small scale enterprises will get essential manufacturing machinery inputs via this system.
Those operating in medium industries and who have 25 percent of the total investment cost, shall be allowed to get 75 percent investment cost from banks as loan, Melaku noted. Small enterprises with initial investment finance capacity can also get the rest of 80 percent cost from the Commercial and development banks of Ethiopia.
In addition to fostering participation of domestic investors, experienced, potentially viable and qualified foreign investors will be attracted to invest in the country, Melaku noted. The government also shall create opportunities by building various industrial parks with its own capacity.
The Ministry of Industry plans to earn 4.6 billion USD from the export of manufacturing products at the end of the GTP II period and employ 1.5 million citizens in the sector during the next 10 years to be a middle income country by 2025.
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