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Novel Techniques in Nutrition and Food Science

Ethiopia’s Manufacturing Industry Opportunities, Challenges and Way Forward: A Sectoral Overview

  • Open or Close Tekeba Eshetie*

    Student of Rural Development Management, Bahir Dar University, Ethiopia

    *Corresponding author: Tekeba Eshetie, Ethiopia Meat and Dairy Industry Development Institute, Bishoftu, Ethiopia

Submission: May 02, 2018; Published: May 23, 2018

DOI: 10.31031/NTNF.2018.01.000532

ISSN 2640-9208
Volume2 Issue2

Abstract

The growth of the manufacturing sector within industry is essential to build national technological capacity, industrial capability and create broad based job opportunity and improve income. In addition to this, the development of the manufacturing industry helps to improve the total factor productivity and competitiveness of the overall economy and its trickledown effect to up and down the supply chain. Because of existence of a number of comparative advantages in the country and to strengthen its competitiveness the Government of Ethiopia offered multiple incentives for the growth of the manufacturing sector. Though the manufacturing sector is a way out for sustainable economic development its growth is not without challenges. The major ones include unskilled labor forces with limited experience; limited infrastructure; external pressure from global market, shallow industrial research and development activities, underdeveloped market information system, problems related to trade logistics and limited promotion made on the resources and other opportunities. So, this study is therefore proposed to develop recommendations based on the national and international experiences and identification of the pros and cons of the manufacturing sector in Ethiopia and other developing countries. The study seeks to propose some intervention measures so as to alleviate these challenges which include but not limited to entrepreneurial, managerial and technical skill development together with the introduction of the philosophy of kaizen; establishment of plug-and-play integrated agro-industrial parks to address multiple constraints; alleviate trade logistics by regional integration along key business corridors by improving connectivity through development of hard infrastructures like multimodal trucking system; railways, airways and shipping. Simplify custom procedures and leverage information and technology capacity building; strengthening industrial input supply system; expedite the development and promotion of lease financing and evaluation of the government incentive mechanisms.

Keywords:Competitiveness; Growth and transformation plan; GDP; Manufacturing; Trickledown effect

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