Manufacturing sectors in Ethiopia receiving loans in billions of Birr to boost investment

Addis Ababa, July 6, 2024 (FBC) – As part of the government’s high priority to expedite industrial development in Ethiopia, the manufacturing sector has been receiving loans in billions of Birr to expand their investment, Minister of Industry, Melaku Alebel revealed.

The minister said the attention given to ‘MadeInEthiopia’ Movement, both at federal and regional states level has played key role to the advancement of the manufacturing sector.

‘Made In Ethiopia’ is a national manufacturing industry movement that was launched two years ago by Prime Minister Abiy Ahmed with the objective to boosting competitiveness of the sector by solving the bottlenecks in a sustainable, integrated and comprehensive manner.

The measures taken by the government in terms of policy and other vital issues have contributed for the success registered so far in the industry sector.

According to the minister, Ethiopia has been able to substitute 96 kinds of products which used to be imported from other countries. This was achieved due to the implementation of the import substitution strategy aimed at improving the country’s distorted foreign trade system.

He added that over the last ten months of this concluding fiscal year, some 42 billion Birr of loans was allocated to high level manufacturing industries alone, as reported by ENA.

Small and medium scale industries have also received over 5 billion Birr loan during the stated period.

The amount of allocated loan this year has doubled compared to the same period last year, the minister indicated.

The efforts being carried out over the last years has been bearing fruits as the sector is attracting new investments which helped to increase the share of  domestic product by 10 percent.

The country was also able to substitute products worth 2 billion USD, the minister revealed.