Addis Ababa, April 15, 2026 (FMC) — Ethiopian Prime Minister Abiy Ahmed (PhD) has underscored that the manufacturing industry remains central to Ethiopia’s economic transformation and a defining pillar of national sovereignty, describing it as the “heart” of the country’s economy.
Speaking in the first part of his latest interview with local media EBC under the theme “The Heart of Sovereignty,” aired on April 14, the Prime Minister said Ethiopia’s current reform agenda places manufacturing at the centre of efforts to build a productive and resilient economy.
He explained that sustainable industrial development requires balance in political and economic thinking, noting that previous approaches in different periods either overemphasized politics or leaned heavily toward economic priorities, limiting overall effectiveness. He stressed that the Medemer approach seeks to maintain equilibrium between the two spheres as a foundation for long-term transformation.
The Prime Minister stated that manufacturing plays an unmatched role in boosting productivity, expanding exports in both quantity and quality, and driving innovation across sectors. He further noted that the sector is also a major source of employment and a key driver of technological advancement across the wider economy.
He added that the manufacturing industry is not only an economic driver but also a critical component of sovereignty, as it enables countries to transition across economic structures and strengthen self-reliance.
Reflecting on Ethiopia’s industrial trajectory, the Prime Minister said past efforts across successive governments demonstrated important contributions but were often undermined by lack of continuity and inconsistent policy implementation.
PM Abiy recalled that during the final years of Emperor Haile Selassie’s government, Ethiopia had 263 medium and large-scale factories, with notable participation from foreign investors including those from Japan, Italy, the Netherlands, and Armenia. He further noted that the Derg era witnessed the establishment of large-scale state-owned industries such as Akaki, Adama Tractor, and Bishoftu, which collectively employed around 60,000 workers.
He also highlighted that during the EPRDF period, industrial expansion was supported by significant private sector growth and foreign investment from countries including China, Turkey, and India, with the number of private industries reaching approximately 3,000.
The Prime Minister said the current reform government is drawing lessons from these historical phases, emphasizing continuity, institutional learning, and building on past achievements rather than discarding them. He noted that the ongoing transformation is increasingly multi-sectoral, multi-actor, and multi-beneficiary in approach.
He concluded that Ethiopia’s renewed industrial strategy is anchored in sustaining valuable past foundations while advancing a more balanced, coordinated, and sovereignty-driven economic system.