Addis Fortune (Addis Ababa)

3 August 2014

Ethiopia: Manufacturing Industry Falls Below 50 in Export Performance

Despite its improvement by 12.2pc from the previous year, the annual performance of export in manufacturing industry for the fiscal year of 2013/14 falls below 50pc, according a report from the Ministry of Industry (MoI).

The lag in the effectiveness of links in the garment factories and leanings towards local market are the major reasons cited by the Ministry for the disappointing performance of the industry.

In an attempt to solve the problem in the linkage the Ministry has designed a system that enables the garment factories purchase inputs as well as other accessories and components that would be used to manufacture products that have secured approved export orders from the known buyers, the report says.

The government has also sets to change the attitude factories focusing on local market and facilitate conditions through incentives to shift their target to the export market for the future.

In the following fiscal year, in order to avoid the quality problem of raw inputs to the level of expectation, by the government's direct support, products produced in raw, pickle, wet blue and crust will be imported.

The previous fiscal year's export revenue from the manufacturing industry performance also showed a lagging of 60pc.

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