GIZ will support Ethiopia in Mfg, promoting decent jobs, says GIZ Sustainable Industrial Clusters Head

Addis Ababa, December 16, 2022 (FBC) – GIZ is committed to supporting Ethiopia in sustainable growth of the manufacturing sector and promoting decent jobs, GIZ Sustainable Industrial Clusters Project Head, Anna Waldmann, said.

In an interview with Ethiopian News Agency (ENA), the Head stated that the Sustainable Industrial Clusters Project is co-funded by the German and UK governments with the objective of promoting sustainable growth and creating decent jobs in Ethiopia’s manufacturing sector.

GIZ is the technical implementing agency, she added. “In this project we are committed to support Ethiopia in promoting decent jobs and sustainable growth in the manufacturing sector,” Waldmann said.

The key aspect of Ethiopia’s industrialization agenda is the establishment of industrial parks (IPs), which aims to attract foreign direct investment (FDI), increase export, create jobs for a young and growing population, and promote the country as a light manufacturing hub.

“We have focused on the textile and garment sector. In this field, we, for example, are working towards better working condition for workers in the industrial parks and outside the industrial parks.”

Despite all the challenges, the textile and garment industry has been able to contribute to the sector’s hard currency earnings during the last Ethiopian fiscal year, and stood on top in foreign currency earnings, followed by the meat and dairy sectors.

The head pointed out that GIZ has also been “working towards mobilizing more investors into these parks, improving IP operations as well as making the textile and garment production more ecologically sustainable and friendly.”

Recall that the Ethiopian government identified industrialization as the means to transform the economy, reduce poverty and provide jobs, among others.

The government’s growth strategy calls for structural reforms designed to strengthen the private sector, boost competition, and increase investment.

With respect to GIZ’s support for the ongoing economic reform in the country, Waldmann said “we are providing policy as well as regulatory advice to the Ethiopian Investment Commission (EIC) and also the Ministry of Industry.”

The Home-Grown Economic Reform (HGER) of Ethiopia, which incorporates a strong industrialization strategy, aims for Ethiopia to become a middle-income country by 2030, as per ENA.