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Developing the Manufacturing sector in GTP II

Developing the Manufacturing sector in GTP II

Dawit Miteku 03-29-16

As the main resources that Ethiopia has are land and labor, the aim is to create an industrial based economic structure by utilizing these resources in way they would enable us to achieve this development. Thus, when we talk about agricultural development, we should not forget that there is a path that interlinks it with the industry sector in a bid to develop them through their inter linkage.

Thus, one of the biggest agendas that will be undertaken during the country’s Growth and Transformation Plan that will be underway in the next five years is expanding and strengthening industrial development. It was also stated on the document that it is necessary to bring transformation in the manufacturing industry sector, which has a direct linkage to agricultural development. And this will bring huge transformational change on the economic structure. And there will be focused work on bringing this success. In this respect, it is stated that special attention and works will be put towards product quality and competitiveness. It was also underlined that expanding the manufacturing sector through micro, small, medium and large scale industrial developments at federal and regional level in a fair manner, and guaranteeing the sustainability of the industry is the main attention of the next five years.

The Assembly report clearly underlined that there is a goal to record annual growth of 24% in the manufacturing sector in the next Growth and Transformation Plan. From this, it was stated that there will be various works that will be done to make the manufacturing sector's share in the country's general economy to eight percent. And the government will put in huge efforts in collaboration with developmental investors for huge quantity of investment to be poured in the sector.

And within this sector, micro and small enterprises will be made to continue to be the basis of the industrial development. Thus, by expanding these enterprises, it is planned to create job opportunities for about 6 million citizens in the next five years. And it was learned that the government will support these initiates through various strategies. As the importance micro and small enterprises to the country is immense, directives that would allow the enterprises to be a basis for a strong economy by identifying and resolving challenges that hinder them from doing so have been put. And this will continue to be implemented like it was done during previous time. One of the development sectors that are taken as important in the second Growth and Transformation Plan is expanding and strengthening micro and small institutions. Micro and small enterprises are important economic sector for developing countries like Ethiopia.

It is an important economic sector, especially, in respect to creating fair/equitable wealth distribution, expanding the industrial base, and in creating job opportunities. Understanding these factors, the Ethiopian government is doing huge works to expand and strengthen the sector – and information shows exactly this. The fact that the previously initiated campaign should continue strongly well into the second Growth and Transformation Plan was highlighted on the 10th EPRDF assembly. In parallel to this, the report also highlighted that various works will be done that will help the success of the manufacturing development. Especially, it was underlined that the government will undertake supportive tasks that will help increase their technological capabilities, expand their productivity, strengthen their capability to have quality leadership and increase their competitiveness. And the local companies will get first serve benefits from this.

Also, support will come to them with regards to capacity building and human resource training institutions so that they can have quality and capable manpower. And things will be facilitated for them to learn and share experience from companies that work in the same line of work in various foreign countries so that they can have a capable management and leadership. In addition to this, there will be facilitation done to create suitable conditions for the implementation of Kaizen philosophy into micro and small enterprises and medium to large scale industries, whilst support related to training and other technical works will be made.

It also stated that works will be carried out to bring rapid and sustainable transformation within the industry sector by creating and strengthening industry extension procedure, with an aim to support the industry development. Works will also be undertaken to enable the private sector give special support and strengthen the works that are being done within the manufacturing sector. By further strengthening the consultative meeting with the private sector that are already initiated in the past five years, works will be done to make the sector successful by swiftly identifying and solving the hurdles that are seen within the sector. The government is putting in its effort to interlink the agricultural economic sector and make it grow by interlacing them with each other. And to make the effort successful, procedure that will make the administrative services given by government executives and other various sectors be transparent, accountable, fair and swift will be setup.

As the ruling party gives priority to fighting rent-seeking and corruption, it is working on the issues labeling them existential threats. It is highlighted that there a road-map to fight good governance and bring fast service is prepared. As it is known, the basis of Ethiopian economy is the agriculture sector. It is obvious that the sector has an ample reason to lead the economy. The country has large swathes of land and abundance manpower. The country has huge amounts of land that can be used for agricultural development and other development activities. This is the reason why the agriculture led economic policy of the country was formulated.

As it can be recalled, there were times where some people argued on the priority of an industry led economic policy. However, despite the fact that a country’s development is decided by its industry, it is not that hard to understand or see that a country that doesn’t have ample capital needs its agriculture sector to be a basis for its industrial growth. Ethiopia is being led by an agriculture-led industry development. Plans and works are underway in the country to sustainably develop the industry sector by interlinking the agricultural and industrial development. The agenda of laying an industrial base is clearly stated on the next five years Growth and Transformation Plan.

As per the plan, works are underway to involve the agriculture led economy in the development of the industrial sector and in the process making the sector the basis of the economy. The industrial development which is growing in this manner, comprises various sectors. The sector comprises construction, power generation, mining sector and the likes, while it gives special attention to the manufacturing sector.

The medium and large scale manufacturing industries that are currently expanding in the country are further growing day by day, helped by the support and supervision given from the Industry ministry. Within the past five years, industries that take up huge amount of capital and have huge production capabilities were established, and were made operational. And the construction of other of these types of industries is underway. The execution of such mega projects will continue strong in the next Growth and Transformation Plan. Information from Ministry of industry shows that the share of the industry sector within the general economy of the country is growing by the day. Works are being carried out to lay the groundwork for the industry sector to be the lead of the country’s economy.

And the fact that this will continue strong in the next five years can be understood from the report of the assembly. The government is working to take the country into middle income status in short span of time by getting the country out of the pit of poverty. By formulating short, medium and long term plan, and implementing them for the past five consecutive years with aim to make the country a middle income status country, encouraging economic development was gained. In order to develop the country’s growth within the needed pace and realize the country's renaissance, not only recording economic growth, but also guaranteeing fair and equitable benefits for the people is important. And during the 10th EPRDF assembly, one of the decisions made was to undertake works to bring fairness along with economic development.

And during the assembly, it was come to the conclusion that the works that will be undertaken in the next five years is an important chapter where an economic basis that would enable to transform the country’s economy will be laid. It was clearly put that the whole members of EPRDF, the government and the whole Ethiopian people should work hard in collaboration in order to implement the second Growth and Transformation Plan.  It is also stated that sectors like fishing, which previously didn't get attention, will get much needed attention to develop them in the next Growth and Transformation Plan. Works to raise the quantity and quality of animals and fishes will be carried out with attention. And this will enable our country to be beneficiary from the animal and fish resource that it has.

As it is known, although Ethiopia is in the front seat from Africa when it comes to animal resource, the measures taken to utilizing its animal resource through modern ways were not than much successful. By giving this due attention on the next Growth and Transformation Plan, it will be made for it to have huge share in the growth of the country’s economy, in addition to directly benefiting the farmers by expanding modern animal breeding. The 10th EPRDF organizational assembly report stated that there is a goal to take the annual five percent growth recorded in the animal development sector in the past years to ten percent in the next five years. In the same manner, the report also states that there is a plan to increase the 15% annual growth of fish development to 25%.

The Assembly also implicated that there will be activities to hugely involve the private sector within the sector. By linking the effort of the private sector with the farmers and pastorals, and by strengthening the measures the government takes to increase production and productivity, it is possible to realize the transformation of the agriculture sector. The livelihood of more than 80% of the Ethiopian people, either directly or indirectly, is pendent on the agriculture sector/development. And it is known that the economic basis of the country is laid on the agricultural sector. Thus, it was highlighted during the assembly that the sector should be transformed in a way that it will be able to change the livelihoods of the people for the better, and the works underway to implement this should continue strongly. Works to strengthen and expand small holder farmland based agricultural development; especially to strengthen involvement of educated young people within agricultural development will be underway. In addition to this, efforts will be made to involve local and foreign investors in the sector. By harmonizing these efforts, attention and works will be underway to bring developmental transformation in food, export and industry grains as well as flower, fruit and vegetable along with animal and fish development.

With regards to this, like in previous times, the work to increase production and productivity in the smallholder farms of farmers will be made to be the agriculture development basis and transformation. In order for it to expand, it will be organized in development districts and will be made to get support, so that the sector will bring rapid change. In order to realize this, works to support the effort through agricultural technology will continue strong. On top of technological transfer, there is also a plan to undertake the input supply and works to improve the market system in a harmonious/interlinked way.


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