Ethiopia’s manufacturing sector export revenue disappoints

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ADDIS ABABA, Aug. 8 (Xinhua) — Ethiopia managed to earn 436.73 million U.S. dollars from the manufacturing sector exports in the Ethiopian Fiscal Year (EFY) 2016/17 that ended on July 8.
The export revenue met only 47.8 percent target of the 913.66 million U.S. dollars the East African nation had planned to earn during the EFY.
Assefa Tesfaye Corporate Communications Director at Ethiopia Ministry of Industry (MoI) told Xinhua on Tuesday that lack of management and technological capacity of some industries, insufficient supply of manufacturing inputs, quality problems with manufacturing inputs and delay in commissioning of several industries contributed to the disappointing result.
MoI in particular mentioned a commissioning lag in some manufacturing plants operating in Ethiopia’s highly advertized Hawassa Industrial Park for the disappointing export revenue.
Built by China Civil Engineering Corporation (CCECC), the Hawassa Industrial Park 275 kms south of capital Addis Ababa was inaugurated back in July 2016.
Eighteen companies have already started operations inside the industrial park and six of them are presently exporting their products to the global market.
Once operational at its full potential, the park is expected to generate 1 billion dollars for the Ethiopia annually mainly from textile and garment sector.
It is the textile and garment sector that showed its most disappointing result earning the East African country 89.3 million dollars in export revenue out of a planned 271 million dollars. Enditem

One Response to Ethiopia’s manufacturing sector export revenue disappoints

  1. I think this is going to be to happen again and again since most of the mfg products are textile and leather items. Those are saturated markets. Other countries that are heavily dependent on these industries such as Bangladesh will not be sitting idle to watch Ethiopia eating their lunch either. Like Taiwan did in the 1970’s the old country must find its niches. Also like Japan did in the 1960’s. You remember Japanese products in the 1950’s? They were cheap with short lifetime. There is a saying in my Itu community about certain ear ring that goes like ‘it broke apart because I laughed so hard’. Now all you young people, stop calling me an old man because I already am. But those Japanese products were all the rage then because they looked attractive and affordable by low income people. So were Taiwanese gadgets of the late 1970’s and early 1980’s. With gradual accumulation of capital at their disposal they were able to buy established companies in the USA and Europe. Do you remember Admiral Products and its overseas subsidiary? How about the sale of flat panel display technology developed by RCA that was accumulating dust on its shelf until it was purchased by Sharp? But both Japan and Taiwan graduated themselves into a high quality product sources. That may not happen without private enterprises dominating the economy.

    Ittu Aba Farda
    August 9, 2017 at 1:50 pm
    Reply

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