Ethiopia plans expanding manufactured goods export target
Addis Ababa, 22 April 2014 (WIC) - The Ministry of Industry announced that it plans to earn USD 1.29 billion from exports of locally manufactured goods in the current Ethiopian fiscal year 2013/14.
Minister of Industry (MoI( Ahmed Abtew made the announcement at the ministry’s premises where he also outlined the revenue so far earned during the last three years of the Growth and Transformation Plan (GTP).
He admitted that out of the government’s plan to earn a total of USD 1.1 billion during the last three fiscal years, it only managed to secure USD 355 million leading to a wide gap in performance.
However, the ministry stated that with the entering into force of several projects during the last couple of months, this ambitious fiscal year’s plan could be met.
Notable mentions it gave regarding bright prospects it sees in the manufacturing sector is the entry of TESCO a British multinational grocery and general merchandise retailer and H and M a Swedish multinational retail-clothing company who’ve entered the sector recently.
Chemical, Food and Pharmaceutical Institutes to be Formed
Ahmed also stated that the ministry is working on opening up institutes for food, pharmaceuticals and food just in cooperation with foreign institutes like the ones that were formed for the textile, metals and leather industries.
He said the establishment of the institutes will help boost the capacity of these sectors, which suffer from working under capacity, with them in general working less than 60 percent of total capacity, although there are some exception with some industries working between 75-80 percent of total capacity.
Nevertheless the costly nature of logistics industry, from port to manufacturing plant and vice versa, as well as difficulty related to usage of the multi modal system, intermittent power supply and issues to difficulty to adding value to agricultural products were mentioned as problems.
GMO Cotton to be Allowed to be Planted in Ethiopia
one of the announcement that the ministry also made at the end of the press conference, is the country for the first time allowing for the first time, Genetically Modified plants, in this case cotton to be planted in the country for industrial use, presumably for the textile industry.
Ahmed further said however the government will first consult with the Ministry of Forestry and Environmental Protection, and put in place a strong quarantine system in order for the land to better adapt with the plant.
The Ethiopian plans by the end of the GTP period in 2015 to help earn the country up to USD 1.8 billion, with a plan to increase its share to 18.7 percent, from the 13 percent it was in 2010. ( New Business Ethiopia)
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