The government of Ethiopia is readying a multimillion investment scheme that will help revive and boost the manufacturing industry. As the country aspires to be Africa's manufacturing hub under Vision 2025, the government moves to make amendments to accommodate and catapult the changes in the highly-esteemed sector.
According to a press statement, the government plots to install at least 7,800 small and medium scale manufacturing industries to achieve its goal. In the past few years, the nation enjoyed foreign direct investments from Chinese firms that helped the Parliament set-up industrial parks to boost the manufacturing sector.
The government will as well seek to strengthen the strengthen the 3000 existing manufacturing industries, according to Small and Medium Manufacturing Industries Development Agency. The transformation and attention given to the manufacturing industry have attracted potential investors including Thai firms, Indian companies, and Chinese enterprises. German investors, Volkswagen are plotting a car manufacturing plant in Ethiopia as well.
The government has also assured total support to the foreign businesses, which has played a role in increasing the FDI inflow in the country.
An estimated $527 million will suffice the transformation process for both establishing new plants and strengthening the existing ones. The initiative to revolutionize the industry will not only create employment opportunities for the citizens, about 195,000 securing a job opportunity but will boost the national GDP.
Ethiopia's aim is that GDP will grow by 11 percent annually for the coming ten years and the manufacturing sector will grow by about 25 percent every year.
A market link worth of $194.5 million would be created overseas with a view to making the industries effective. Among the industries to be created include metal and woodwork, textile and garment, leather and leather products, agro-processing, and construction inputs.
Industrialization is driven by the conducive business environment in the country, capable of escalating the economic performance of the state.