The Ministry of Industry announced today that domestically produced goods have successfully replaced a significant portion of previously imported substitute products, resulting in substantial foreign exchange savings and increased job creation.
The Ministry's Public Relations and Communications Executive, Abeba Tamene, confirmed the impressive gains in an interview with FM Addis 97.1.
She stated that the performance during the last budget year in replacing imported products had been exceptional, significantly exceeding initial targets.
"Being effective in substitute production means we have saved foreign exchange. We’re not just talking about savings; we're fostering jobs directly linked to production and increased productivity within our nation,” Abeba emphasized.
Data released by the Ministry indicates significant progress. While the target for the 2016 budget year was to produce 2.6 million tons of domestically produced goods and generate $2.844 billion in revenue, the 2017 fiscal year saw production reach 3.165 million tons, resulting in an impressive $4.5 billion in revenue.
The Ministry attributes this success to a comprehensive strategy that supports domestic producers through various initiatives, including creating robust market linkages, streamlining input supply chains, and fostering the local production of essential machinery, particularly in the agro-industry sector. This support extends to citizen-led initiatives aimed at bolstering domestic production capabilities.
Abeba highlighted specific examples of the success of the import substitution strategy. Notably, defence and police uniforms, previously sourced from abroad, are now manufactured domestically, she underscored.
Furthermore, water meters, another imported product, are now being produced within Ethiopia's borders.
The Ministry has identified further opportunities for expanding domestic production.
She emphasized the urgent need to study and implement the local manufacturing of children's and women's sanitary products, further reducing reliance on imports.
The Public Relations and Communications Executive concluded by urging Ethiopian citizens to embrace domestically produced goods.
