Manufacturing is instrumental for the development of the national economy. The nation has registered impressive growth from export market in the past few years. Looking from a closer, the structure of exports constituted leather and leather products, food and textiles and other industrial exports. Export earnings generated from the sector have been able to meet about half of the sector’s foreign exchange requirements.
At the same time, manufacturing industry employs only 0.5 per cent of the labour force, while the textile and food industries accounts over 60 per cent of the manufacturing employment.
To further strengthen the sector, there has a need to develop the human power acquiring skilled and semi-skilled labor force. Hence, executive personnel such as managers, production supervisors, various disciplines in engineering, should take priority.
It is essential to strengthened linkages among manufacturing industries in a bid to support the economy. The linkages between the agriculture and construction should also be engrossed. Certainly, many of the industries have been operated in some parts of the country, particularly in Addis Ababa, Dire Dawa and other major cities accounting for 91.7 per cent of all industrial establishments.
The construction of ten new industrial parks are expected to be completed in the coming ten or nine months and would realize to handle the shackles posed by uneven distribution of enterprises.
On a conference themed: ‘Sustainable Manufacturing Matters for Ethiopia and Africa’ President Dr. Mulatu Teshome said that priority has been given to the manufacturing sector for it is an engine for economic development and prosperity.
The theme of the conference is indeed timely and significant in the eyes of the people and government of Ethiopia as the country is fast moving to enter into the manufacturing realm to enhance its economic development through industrialization.
Recognizing such fact, the government is addressing the manufacturing sector through utilizing modern technology and innovation that would sustain the national development.
The fourth technological and industrial revolution characterized by a fusion of technologies that is blurring the lines between the physical, digital and biological spheres, he said.
“Both Ethiopia and Africa need to focus on two key activities if they are to benefit from the fourth industrial revolution. We should strive to invest on the infrastructure and produce more human power in the form of education to be part of the global growing technology.”
President Dr. Mulatu said currently the industrial sector is at its infancy which accounts 33 per cent of the industrial output. Manufactured product has not still exceeded five per cent of the Gross Domestic Product. Currently, there are over 2, 000 medium and large scale industrial enterprises in Ethiopia.
Industry State Minister Tadesse Haile said that Africa is endowed with abundant and untapped natural resources. And the continent must attract local and international investment to utilize the natural resource as an input for industries. Instead of exporting raw materials adding value and changing it into finished goods must be a prime attention, he said.
In addition to the abundant natural resources the availability of economically active young population brings more comparative advantage to the continent. Tadesse further said that Ethiopia is striving to realize its renaissance through development strategy and plan. The double digit economic growth registered for the last decade was the result of our commitment. The electrification and other facilities should be handled in line with with dire advantages of the sector.
It is significant to acknowledge major constraints for industrial development such as the absence of appropriate institutions for the development of human power, and the incapability to select, transfer, adapt and diffuse technologies.
Technical and Vocational Education Training (TVET) should be tailored with the demands of human power on the ground, addressing through short term trainings. The TVETs should be active in order to produce capable human power that could meet the manufacturing sector.
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