Addis Ababa — A memorandum of understanding (MoU) that will allow government institutions work in collaboration to realize the manufacturing of medical equipments locally was signed Tuesday.
The MoU was signed between the ministries of Innovation & Technology, Health, and Trade & Industry as well as Investment Commission.
It is said to help to mobilize efforts in promoting innovation among the youth and encourage entrepreneurs and the private sector to engage in the manufacturing of the equipments.
Speaking on the occasion, Dr. Amir Aman, Minister of Health explained the importance to join hands in encouraging entrepreneurs and the private sector to engage in the field.
The Horn African country spends more than five billion Birr every year to import medical equipments.
Despite the country invests such huge money, it still unable to meet the demand for medical equipments, he added.
In this regard, the MoU will provide an opportunity for stakeholders to work in collaboration to create the capacity to locally manufacture medical equipments, he added.
Minister of Innovation and Technology, Getahun Mekuria said on his part the MoU is a crucial step in realizing import substitution in some types of medical equipments.
Noting that the country has innovative youth that have the to realize this, Getahun said the MoU will provide the opportunity to tap this potential.
Fetlework Gebregziabher, Minister of Trade and Industry for her part said her ministry will support the private sector to engage in the manufacturing of the equipments.
She added that the government will work to create market linkage for the companies.
The development of an industrial park dedicated to the health sector is well in progress.
The industrial park is among the initiatives taken by the government in encouraging the private sector engage in the manufacturing of equipments along with the production of medications, said Abebe Abebayehu, Ethiopian Investment Commissioner.
The Commission will support companies by creating market linkage as well as facilitating situations that will help them form joint ventures with foreign companies.