Some $350mln-worth import substituted in first quarter: Ministry
Addis Ababa, October 30, 2023 (FBC) – Ethiopia substituted import products worth 350 million USD in the first quarter of the current fiscal year, Industry Minister Melaku Alebel said.
A half-day consultative discussion with stakeholders on the national import substitution strategy is being undertaken in the capital, Addis Ababa, today.
On the occasion, Minister Melaku said Ethiopia’s trade imbalance is very huge and hampers the economy.
Ethiopia, on average, imports 18 billion USD worth of products while its exports have not exceeded 5 billion USD, he added.
According to him, this is mainly due to the fact that the nation only exports raw materials, thereby leading to a lack of global market competitiveness.
The government of Ethiopia has been working to reverse this reality with a view to expediting the development of the country by strengthening the industrial sector. In this regard, enhancing import substitution has been given the utmost priority.
Ethiopia’s import substitution strategy has been bearing fruit, and the nation has been able to substitute products such as textiles and food items.
Encouraged by this achievement and supported by the strategy, Ethiopia was able to substitute 2.26 billion USD worth of products over the last fiscal year.
Minister Melaku said at the consultative meeting that due attention is given to value addition and diversification of export products.
Some 96 import products have been identified as being produced locally in short- and long-term plans, as indicated.
Furthermore, the Minister indicated that plans are in place to export the substituted import products.
The ministry has also developed a capacity-building strategy, which will be discussed with pertinent stakeholders soon, as reported by ENA.