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Ethiopia Prioritizes Industrial Development, State Minister Tells UNDP Conference

Addis Ababa - Ethiopia's State Minister of Industry, Tarekegn Bululta, emphasized that industrial development is at the forefront of the nation's economic policy, as outlined in the 10-year Perspective Development Plan and the Homegrown Reform Agenda. Speaking at the UNDP Annual Development Conference 2023, Bululta highlighted the manufacturing sub-sector as a key area of focus.

According to Ethiopian News Agency (ENA), The State Minister stated that significant investments have been made in industrial parks, integrated industrial clusters, and infrastructure development. He noted that fostering labor-intensive light manufacturing industries is a strategic approach to create employment opportunities for the youth and enhance foreign exchange earnings through export competitiveness and technology transfer. Bululta pointed out that Ethiopia's large domestic market, abundant labor force, effective airline services, and developed industrial parks are instrumental in establishing the country as a hub for manufacturing.

Charu Bist, the United Nations Development Program Resident Representative, acknowledged that manufacturing has been a critical area for Ethiopia, with various initiatives including the establishment of industrial and agro-industrial parks over the past two decades. She added that manufacturing is vital for the country's structural transformation, foreign exchange generation, job creation for the youth, support for local SMEs, and facilitating export and import substitution.

The conference, themed "Can Ethiopia become a manufacturing powerhouse?" showcased insights from the latest UNDP working paper. The paper suggests that Ethiopia has substantial potential to become a manufacturing powerhouse, with the possibility of exporting 10 billion USD by 2030 and creating thousands of jobs. It also highlights the need for invigorating public-private dialogue to deepen economic growth and development, drive structural change, and generate quality employment opportunities.

The UNDP Annual Development Conference, initiated in 2022, aims to stimulate discussion on critical development issues in Ethiopia and present UNDP's latest analytical work.