Arba Minch, January 24, 2026 (FMC) — Ethiopia’s strategic focus on import substitution is yielding significant economic and industrial benefits, according to the Ministry of Industry, as the country intensifies efforts to strengthen domestic production and reduce reliance on imported goods.
Speaking during a mid-year performance review of the first six months of the current Ethiopian fiscal year held in Arba Minch, Industry Minister Melaku Alebel said the production of locally manufactured substitute goods has enabled the country to save approximately USD 3.4 billion in foreign exchange.
The Minister described the results as a clear indication that the policy direction is producing tangible outcomes, particularly in easing foreign currency pressure and strengthening the national economy.
As part of the import substitution initiative, 96 priority products have been identified for domestic production. These products are being manufactured locally to replace imported goods, contributing to job creation, improved supply stability, and increased access to affordable products for consumers.
The import substitution policy is being implemented within the framework of Ethiopia’s broader industrial and economic reform agenda, with particular emphasis on sectors such as textiles and apparel, food processing, chemicals, and construction materials.
Beyond reducing import dependency, the strategy is designed to expand manufacturing capacity, encourage investment, and enhance overall macroeconomic stability. Ministry data indicate that locally produced substitutes have replaced billions of dollars’ worth of imported goods, significantly reducing pressure on the country’s limited foreign exchange reserves while supporting sustainable economic growth.
Minister Melaku emphasized that the initiative has played a vital role in expanding industrial output and employment opportunities, in line with the government’s long-term development objectives.
He added that the Ministry of Industry will continue working closely with relevant stakeholders to consolidate the gains achieved so far and further strengthen Ethiopia’s industrial base.