The Ministry of Industry said it has given priority to improve the production capacity of industries and improve involvement of local companies in the sector during this fiscal year.
Efforts being exerted to encourage local companies engage in the manufacturing sector will be sustained, Melaku Taye PR Head at the Ministry told ENA.
Because of the increasing capacity of the public, local companies are tending to engage in supplying consumer goods, which he said caused for the decline of local company’s involvement in the export area.
The contribution of the industry sector to the total GDP of the country has reached 21 percent from the previous 15 percent at the beginning of the growth and transformation plan period.
Support and assistance have been given to local companies to address this situation and encourage them engage in the manufacturing sub-sector.
Despite the manufacturing sub-sector has shown improvement, industries are not working with their full capacity because of various reasons, he noted.
Limitations on management, shortage of inputs and absence of modern trading system are the major challenges, according to the head.
“Efforts will be carried out to attract new companies, help inoperative industries commence operation and addressing the shortage of raw cotton.”
In the efforts to extend the production capacity of industries, activities are being underway to raise capacity of industries that have been working with their 70 percent capacity to 85 percent.
The Ministry is trying to help industries working with 50 – 60 percent current production capacity to produce with their 70 percent capacity.
[ENA]