June 20, 2024

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Ethiopian Ministry of Industry Says Import Substitution Saved $1.9 Billion

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On May 22, 2024, the Ethiopian Ministry of Industry presented its 9 months reports to the House of People’s Representatives. The Ministry of Industry confirmed that significant savings in foreign currency have been achieved through the substitution of imported goods with domestic products.

The Minister of Industry, Mr. Melaku Alebel, stated that an estimated 2.2 metric tons of various products worth 3.1 billion birr have been substituted with locally produced alternatives. According to the report, he has managed to save $1.9 billion by meeting the demand using domestic products instead of imports.

The minister further mentioned that they provided 10.5 metric tons of materials, including chemicals, textiles, food, iron, leather, and leather products, to industries that benefited them.

Over the 9 months, 107,000 tons of products were exported to foreign markets which generated $202 million in revenue. Furthermore, he indicated in the report that the ministry was able to attract 20 billion birr in investments during the 9 months.

In his address, the Minister of Industry emphasized the importance of maintaining peace and stability in the regions to attract more investments and drive economic growth.

He reported that over the past 9 months, the industrial, mining, and manufacturing sectors have generated more than 176,000 new jobs. Moreover, the report also highlighted the establishment of 227 new industries in the Tigray region during this period.

Mr. Melaku Alebel said the ministry is actively working on two key initiatives to drive sustainable growth. The first one is increasing the number of skilled workers through training programs to meet the growing demand for qualified personnel in the industry. The second one is expanding green development and green industry practices to protect the environment and promote the use of alternative energy sources.

The standing committee is currently reviewing the strengths and weaknesses identified by the Ministry of Industry during the 9 months and is seeking to address these issues to improve the overall performance and efficiency of the ministry.

In the same session of Parliament, the Finance Minister of Ethiopia, Ahmed Shide, submitted the 9-month report on the Ethiopian economy. According to the minister, Ethiopia paid only 10% of its loan obligations in the first nine months of the fiscal year. Ethiopia only paid $52.1 million in loan repayments during the July-March period, despite having an obligation of $512 million. Read More…

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