Addis Ababa, April 17, 2026 (FMC) — Ethiopia’s manufacturing sector is registering notable progress under the “Made in Ethiopia” initiative, with expanded private sector participation, rising production capacity, and growing import substitution, Prime Minister Abiy Ahmed (PhD) has said.
Speaking in the second part of his interview with the Ethiopian Broadcasting Corporation (EBC) under the theme “The Heart of Sovereignty,” the Prime Minister outlined key outcomes of reforms aimed at strengthening domestic industrial capacity and reducing reliance on external inputs.
He indicated that one of the central pillars of the initiative has been the expansion of private sector engagement in production, noting a significant increase in the number of licensed businesses across the commercial landscape. According to him, the number of small and medium industries has grown markedly in recent years, alongside a rise in medium and large-scale enterprises.
The Prime Minister also pointed to improvements in foreign direct investment inflows and increased industrial energy consumption as indicators of expanding manufacturing activity.
A major component of the reform effort, he said, has been the push to substitute imported industrial inputs with locally sourced alternatives. He noted that while Ethiopia previously relied heavily on imported inputs, ongoing efforts are enabling several sectors—including textiles, wheat, and malting barley—to increasingly source inputs domestically.
He added that large numbers of farmers are being integrated into industrial supply chains to support this transition, creating stronger linkages between agriculture and manufacturing.
Efforts have also been directed at reviving underperforming industries, with hundreds of factories returning to operation after receiving targeted support to address longstanding constraints. As a result, overall industrial capacity utilization has shown steady improvement.
The Prime Minister further noted that the country is expanding domestic production of goods that were previously imported, with dozens of products already identified for local substitution, contributing to significant savings in foreign exchange.
Beyond these gains, he emphasized that Ethiopia’s broader ambition is to position itself as a regional manufacturing hub, supported by ongoing investments in logistics, energy, and human capital development.
He highlighted the country’s youthful population as a key advantage, noting that large-scale initiatives aimed at equipping young people with digital and technological skills are expected to reinforce the industrial workforce.
The Prime Minister also identified priority sectors for future growth, including renewable energy technologies, pharmaceuticals, chemicals, electronics, electric vehicles, and aerospace industries.
He added that policy reforms are increasingly geared toward enabling private sector leadership in the economy, with measures designed to ease market constraints and enhance competitiveness.