President Mulatu Teshome has disclosed that with more skilled labor force and better investment climate, Ethiopia will reign as manufacturing powerhouse in Africa.
The President said tracking on manufacturing industries is imperative for the sustainability of the respective economies in Africa.
The President today opened a two-day conference entitled “Sustainable Manufacturing Matters for Ethiopia and Africa” that was co-organized by the Ethiopian Chamber of Commerce and Sectoral Associates (ECCSA) and Pan African Chamber of Commerce and Industries.
In his opening speech he indicated that “the government of Ethiopia recognizes that addressing the manufacturing and agricultural sectors through the introduction of modern technological innovations is an urgent issue for the sustained national development.”
“We need to make both Ethiopia and Africa a hub for manufacturing; and this is a good time for us to push forward and get more Foreign Direct Investment,” he stated.
Ethiopia is establishing a number of industrial parks through public and private investments.
However, the President said manufacturing needs reliable power, telecom, services and other industrial infrastructures that need to be provided for local and foreign investors at one-stop services in the industrial parks.
According to Kebour Ghenna, Executive Director of Pan African Chamber of Commerce and Trade, manufacturers have an interest in maintaining a vibrant and healthy manufacturing base.
“Manufacturing should be the bedrock of Africa’s economy”, the Executive Director said, adding “it should be the engine of our economic growth” as it drives productivity, provides jobs with better wages and benefits, and it stimulates innovation.
Africa faces challenges in deflationary prices, the rising costs of regulations, energy, high tariffs, and the search for qualified workers to expand the manufacturing sector.
“I believe that our efforts should be directed towards education and removing the structural costs of doing business in Africa such as lack of infrastructure and the unnecessary regulations and bureaucratic red tape,” he said.
Reiterating the statement of the President, State Minister of Industry Tadesse Haile said Africa needs to invest on public infrastructure development and improve the business environment to improve its industry sector.
Africa has vibrant and a dynamic young population that needs more skill and technology transfer to face the challenge ahead, stressed the State Minister.
ECCSA President Solomon Afework on his part said if Africa’s economy moves forward in a sustained manner, the existence of sustainable manufacturing sector becomes mandatory to have a better share in the world’s manufacturing output.
He said “much progress can be attained through active involvement of the private sector with a transformed economic world outlook.”
The conference focuses on manufacturing related issues of significant relevance to Ethiopia and Africa.
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