Prime Minister Abiy Ahmed (PhD) stated that the manufacturing industry plays an irreplaceable role and serves as the "heart" of the economy for Ethiopia's prosperity.
In his discussion with EBC, the Prime Minister explained the detailed reasons why the "Medemer" government has prioritized the industrial sector. Comparing the manufacturing industry to the human heart, he said:
"Just as a person cannot be effective if their heart does not work, even if all other organs are healthy, it is the manufacturing sector that makes an economy an economy."
He pointed out that the sector is called the "engine of growth" because it can bring about significant productivity changes in other sectors. For example, he explained that using industrial products like tractors and fertilizers in agriculture increases production in terms of time, quantity, and quality, which is vital for transitioning from traditional practices to modern, high-income systems.
He listed four fundamental reasonswhy the sector is prioritized:
Productivity and Export: Beyond meeting domestic demand, industry plays a key role in earning foreign currency by providing products in bulk that meet international market standards.
Structural Transformation: It enables Ethiopia to move away from being a supplier of raw materials only (e.g., selling coffee, gold, and lithium without processing) toward value-added and processed products.
Innovation and Technology: Manufacturing serves as a "springboard" for technology and innovation, not just for itself but for other sectors as well.
Job Creation: Unlike other sectors, it creates vast and continuous employment opportunities for citizens.
The Prime Minister emphasized that the issue of the manufacturing industry goes beyond economics and is linked to national sovereignty. A country that does not sufficiently produce its own food, clothing, and medicine will struggle to protect its sovereignty and defend its interests.
"To be sovereign, to create a transitioned economy, and to bring the prosperity we envision, it is a duty to lead and achieve the manufacturing industry sector at a sufficient level," he stressed. He concluded by noting that the "Medemer" government philosophy aims to ensure shared prosperity by maintaining the balance between politics and the economy, and that industry is one of the government's five key pillars for this success.
