Ethiopia saves $1.9bn in 9 months through import substitution: Ministry of Industry
Addis Ababa, May 19, 2023 (FBC) – Ethiopia has been able to save 1.9 billion USD by substituting imported goods during the nine months of the current budget year, Minister of Industry, Alebel Melaku said.
The performance report for the third quarter of the Fiscal Year of 2015 is being evaluated in the presence of Prime Minister Abiy Ahmed.
Among the participants of the evaluation, the Ministry of Agriculture, Ministry of Revenues, and Ministry of Industry gave their comments that the performance of the sectors in the nine months of the fiscal year is in a position to achieve their annual plan.
Minister of Industry Melaku Alebel said the manufacturing sector has increased its production capacity from 46 percent to 53 percent in the last nine months and achieved 96 percent of the plan.
On the other hand, he mentioned that through the efforts being carried out to realize import substitution, the nation was able to produce import goods in the manufacturing industries operating in the country and was able to save some 1.9 billion USD during the nine months of the budget year.
According to him, some of these industries have also been starting to export some of these products to international markets.
The market share of the manufacturing sector, which was 30 percent at the beginning of the 10-year Prospective Plan, is to reach 34 percent this year and has reached 37 percent so far, he said, adding, attention will also be given to identifying foreign products and replacing them with domestic products in the future.
Minister of Agriculture Girma Amente said for his part that the agricultural sector, which has an annual target of 6 percent growth for the coming ten years, is in a position now to achieve 6.3 percent during the current fiscal year.
He mentioned that as part of the efforts being done to substitute agricultural import products, the nation has been able to fully substitute wheat and beer grains completely.
Some 50 percent of rice import has also been substituted by domestic products, he added, indicating that work will be done to make Ethiopia self-sufficient in rice production over the coming three years.
Minister of Revenues, Aynalem Nigussie on her part said that in the last nine months, 98 percent of the plan has been achieved by collecting domestic and foreign tax revenue, and encouraging results have been obtained.
She stated that Ethiopia’s development needs are growing at a high level and that increasing income performance will help to fulfill this national development needs in a better way.
In the future, apart from achieving the plan, activities will continue to be strengthened by using technology, improving service delivery, increasing the awareness of the taxpayer community, and legal compliance, as per ENA.