Overview of the sector
- The motto of the Growth and Transformation Plan II (GTPII) is agriculture-led industrialization.
- The plan aims to bring significant growth in the manufacturing industry so that it plays a leading role in job creation, technology learning structural shift in Ethiopia export and address trade imbalance.
- The government strategy mainly focusses on the implementation of project programs which gear towards attracting quality investment, enhancing production and productivity, boosting export shares, accelerating technological learning and strengthen the linkage among industries.
Key reasons for investing
- Industrial parks that are ready for “plug and play”,
- Large pool trainable workforce available at competitive wages,
- Competitive energy rate on a global standard,
- Geographic proximity and preferential access to key markets; and
- The abundance of high-quality industrial raw materials,
- The country’s preferential access to key global markets including the US, EU, Japan, and other developing countries,
Priority areas for investment
- Light manufacturing (textile and garment, leather, agro-industry, electronics),
- Basic and import substitution as well as export (steel, equipment, chemical, and pharmaceutical)
- Strategic (energy, ICT, and biotechnology),