Shifting the agriculture-led economy by industry-led
Gemechu Tussa
In the course of the past consecutive years, following the government’s decision to translate into action its chalked out the short and long term as well as in-between policies, strategies and programs, a sustainable, fast and across-the-board economic growth that warranted sustainable benefit of citizens had materialized. The attention-grabbing change for the better the country portrayed had enjoyed the global limelight. The turnaround is still basking under international spotlight.
The country is still in the process of structural change or a leap from agriculture-led economy to an industry-led one. To this end, the gargantuan role the manufacturing industry could play to the ongoing growth and development could not be gainsaid.
The number of local and foreign investors had been snowballing in the course of the specified time.
In a bid to hasten the Ethiopia’s Renaissance journey, completely unshackle the country from the fetters of poverty and let it join the ranks of middle income countries, the manufacturing sector has to be the bedrock to the transformation.
The burgeoning of the manufacturing industry has to supply the springboard to the development. Especially in the second Growth and Transformation Period (GTPII), to render the thriving of the manufacturing industry, meaningful and sustainable to the country’s Renaissance journey and to spearhead the march towards the industrialization goal, the manufacturing sector is expected to play the lion’s share of the role.
To actualize this and realize the vision set to make Ethiopia first from Africa in small manufacturing industry and to lend it a cutting-edge that allows it to penetrate into the global economy, the role of developmental investors is indispensable.
Introducing various incentives aiming at attracting local and foreign investors to engage in the manufacturing sector so that they could export their products, the government is seeing to their implementation. Exploiting the favorable situation created for them by the government, those who have interest to join the manufacturing sector and those who had already joined it, have to render themselves and the country beneficiaries of the fruits of engagements in the sector.
A recently carried out survey and assessment on several manufacturing industries indicated that nearly all of the manufacturing industries are showing improved performance in implementing Climate Resilience Green Economy. According to the survey, the performances of the assessed manufacturing industries such as ‘Kombolcha Textile S. Co, MAA garment and textile factory,
According to the surevey, Mesobo cement, Coca-Cola East African Bottling, Dereba cement, Steel RMI factory, Kanoria Africa textile factory, Luna Export Slaughter House Plc., Shemu Soap factory, Hamaresa Oil factory, Abyssinia Tannery, Hawassa industry Park and (Alanna Slaughter House have shown progressively great performances.
Besides implementing the green economic policy, these industries use various techniques like Bio-mass, coffee and Sesame bran, Effluent Treatment Plant (ETP), Zero liquid discharge technology, Environmental Management System “Exhausted heat reuse, solar panel, and many other technologies that can be of assistance in minimizing emission of gas and polluting the environment.
For the reason that the performance of these companies has a crucial role in executing the green economic development path, the ministry is setting up to share their best practices to different manufacturing industries.
Although lots of best practices were witnessed throughout the assessment, there were few barriers that the manufacturing industries faced in implementing Climate Resilience Green Economy. Among such hurdles, few of them are lack of technology expansion, shortage of foreign currency, lack of loan and credit service regarding green economy activities, and problem in management skill. The government is supposed to facilitate training, experience sharing programs, and marketing researches so as to solve these problems.
Coming up with quality exportable items that could elbow their way into the global market as well as replacing importable items with locally manufactured goods investors engaged in the sector could play quite a role in curtailing foreign currency expenditure as well as generating some. Import substitution is the way some Far East countries climbed ladders of development.
Instead of exporting raw materials, boosting the manufacturing sector, if the country exports them, adding value it could generate more hard currency. This could as well allow the country to create more job opportunities to citizens. This approach goes a long way in promoting innovation and knowledge transfer. The confluence of this lends the country power to do things by itself.
Ministry of Trade’s corporate communication directorate, in concert with media outlets, utilizing different communication skills has to ensure information flow between the ministry and the general public and investors to ram home the advantage of zooming eyes to the manufacturing sector.
A formidable setback to the burgeoning development and budding democracy is maladministration. To surmount this roadblock and allow development-pinning mindset send roots, the government has brought into play troubleshooting-solutions-intertwined reform moves.
Wholeheartedly, it is pursuing this task. It is rendering services and supports being rendered in the sector free from improprieties. It is also seen in the development of a fast and continuous service. In cognizance of the fact that the problem could not be tackled by the government alone stakeholders should come aboard.
Poverty is our sole enemy. In GTPII, repeating the conviction and inspiration, we showed in the first Growth and Transformation Period and hitting the last nail on the coffin of poverty we have to commit it to the ground. Much emphasis should be given to improving the quality of exportable products in order to emerge competitive. Also attracting more FDI has to be accorded the added attention.
The efforts of the government to substitute the agricultural led economy by industrial led has been becoming a reality. In the first and second National Growth plan a lot of industries have established and there is a meaningful integration between the agricultural sector and the industrial sector that leads to the latter replacing the former in the coming few years.