Ethiopia: Manufacturing Powers Growth in Ethiopia’s Economy – Premier
– Prime Minister Abiy Ahmed (PhD) has underscored the central role of Ethiopia’s manufacturing industry in revitalizing and accelerating the country’s broader economic transformation across agriculture, mining, tourism, and technology.
Speaking at the official opening of the Ethiopia International Expo 2025 held at the Addis International Convention Center (AICC), the Prime Minister declared that manufacturing has become the backbone of Ethiopia’s 10-year development plan, serving as a bridge to modernize and scale up the nation’s key economic pillars.
Citing recent progress, the Prime Minister pointed out how the country’s growing capacity to manufacture and assemble agricultural machinery–such as tractors and irrigation systems–has significantly reduced reliance on imports and improved domestic productivity.
“Our ability to assemble essential agricultural tools locally has empowered us to produce wheat at scale, saving over 1 billion USD in import costs. Manufacturing is what enabled this shift,” he said.
He added that agricultural growth is not sustainable without industrial support. “If we can not produce packaging materials, irrigation pumps, or harvesting machines, we cannot expect coffee or any other crop to thrive.” Ethiopia recently earned a historic 2 billion USD from coffee exports, a testament to how manufacturing supports agricultural performance.
The Prime Minister also highlighted how local production of cement and mining equipment is strengthening the mining sector, reducing dependency on imports and enabling export-oriented operations.
“In just nine months, Ethiopia has exported 2.5 billion USD worth of gold,” he said, emphasizing that investments in manufacturing mining equipment will further boost this figure and reduce outflows of foreign currency.
Manufacturing has also contributed to Ethiopia’s tourism resurgence by supporting the restoration of cultural and historical sites. “Through local industrial capabilities, we have restored landmarks such as Lalibela and the Abajifar Palace, helping Ethiopia emerge as Africa’s leading tourism destination this year,” he said.
In the area of technology, the Prime Minister stressed the critical role of the manufacturing industry in integrating automation, AI, and innovation into national development. “Technology is not just about connectivity. It is about transforming productivity through smart manufacturing and systems,” he noted.
According to the Premier, Ethiopia’s broader economic reform is rooted in reviving its industrial base. Over the past three years, 830 previously closed factories have resumed operations under the Ethiopian Industrial Revolution program.
Additionally, 13,800 small and medium enterprises (SMEs)–with investments ranging from 1 to 90 million Birr–have launched during the past six and a half years, creating thousands of jobs and adding momentum to the country’s economic restructuring.
“We believe a stagnant economy cannot sustain a stable nation,” said Prime Minister Abiy. “That is why we have placed industry–particularly manufacturing–at the heart of our economic strategy. It is not just a sector; it is the engine driving Ethiopia’s transformation.”
Crédito: Link de origem