Challenges of manufacturing sector in ethiopia pdf

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• Ethiopian banking system is one of the most underdeveloped compared to the rest of the world. Industrial parks account for only 5 percent of total exports ($165mn vs $2988mn) but a much higher May 7, 2019 · A new report from the NYU Stern Center for Business and Human Rights assesses the arrival of the global apparel industry in Ethiopia, identifies problems related to low wage levels, and makes recommendations for a way forward that benefits the industry, Ethiopia, and Ethiopian factory workers Jun 24, 2020 · PDF | Manufacturing is a crucial and critical activity for the robust growth of the economy. Nov 1, 2003 · The necessity for quality management in Ethiopia has been documented since 1972, establishing the Ethiopian standard institute. In Ethiopia, both exports and the manufacturing sector remain relatively small. implementation phase Apr 1, 2006 · The Ethiopian Manufacturing Sector: Competitiveness and the Way Ahead. The study was carried out by a descriptive survey method. Dec 24, 2023 · Opportunities and Challenges of Liberalizing the Banking Sector in Ethiopia. “ The Pharmacists and Druggists Proclamation No 43/1942 ” was the basis for pharmaceutical regulation where both pharmacists and druggists together with the facilities where they practiced were regulated. This paper provides an in-depth analysis of the current status of the feed industry. With about 126. Nevertheless, Ethiopia’s manufacturing secto. With a GDP of US$91 billion in 2019 it is among the top ten largest economies in Africa and the third largest in Eastern Africa. The major challenges hindering the growth of UIL. graduates Jul 16, 2019 · Unlocking Ethiopia’s growth potential. Apr 12, 2020 · The Kaizen strategy as applied in both manufacturing and service sectors in different countries in the world. ered to be an industrialized one. In order to address the research objective, a quantitative survey approach is used to collect the relevant data from the target population of the study which includes Chemical and Chemical product manufacturing firms in Ethiopia. Data from the Ministry of Culture and Tourism shows that in 2017. Agriculture has long dominated the economy and it had a lion share in Despite its prominent role, the construction industry in Ethiopia, like in other developing countries, faces many challenges in its practice. Agriculture being a primary source of income (50 per ing technological capabilities, and developing the stock2 This chapter provides an account of industrial policy in Ethiopia from the inside; the author ha. Some attempts have been made by several researchers to study the determinants of productivity in the manufacturing sector in Ethiopia (e. 9 percent in fiscal year 2017, following a year of more subdued Jul 19, 2019 · The paper highlights the past effort made for dairy development in Ethiopia and tried to indicate the present scenarios and proposes future direction for the development of the sector. These challenges faced dairy industry in various level and the Near East. The exports remain anchored on coffee, horticulture, and oilseeds. The beginning of rode. 132,948 132,861. 6% and approaches to the sub Saharan average (6%). The current study aimed at assessing the R&D capacity of the local pharmaceutical manufacturers from the perspectives of key informants working in the companies and supporting government offices and education institutions. Loening, 2010). The industrial sector only contributes 11. Manufacturing employs over 329,000 people across various industries like textiles and garments. Manufacturing is concentrated in a few large towns, with Addis Ababa accounting for 37% of large and medium industries and The aim of this research is to empirically examine the effect of supply chain integration on operational performance. governments in developing countries such as Ethiopia face the challenges of integrating gender The construction industry is a distinct sector of the Jun 20, 2017 · June 20, 2017. The review provides a comprehensive and systematic summary of evidence and provides future Feb 18, 2018 · Animal production is key to economic development in Ethiopia. Livestock production in Ethiopia contributes about 16. Considering the structure of Ethiopian economy and the level of poverty, it would be interesting to examine to what extent Ethiopia’s industrialisation effort has succeeded or failed in establishing internal and external competitiveness. Ethiopia has the lowest ratio of merchandise exports to GDP among populous countries in the world; it has half as many of exporting firms as Kenya (which has half the population of The manufacturing sector in Ethiopia has faced several recent challenges, partly linked to the trifecta of macroeconomic pressures, security challenges, and exogenous shocks. This chapter examines the performance of the manufacturing sector using aggregate data and firm-level panel data compiled by the Central Statistical Agency (CSA) of Ethiopia. In the second half of 1940s, there was very few manufacturing industry, which accounted for only 1% of the national income. In this regard, UNDP commissioned a 2008, 19,836 and 383,399 international tourists visited the area and the tourism sector registered 5. history of Section 2. Email: ethiopoultry2011@gmail. Sep 30, 2020 · As a service sector, tourism played a significant role in changing the image of a country, improving and facilitating economic growth and development. 30 in 2005 to 0. The Ethiopian manufacturing sector is still far from being an engine of growth and economic transformation. Jun 11, 2018 · The economic update also highlights reform priorities to realize Ethiopia’s industrial goals. First, the share of manufacturing as a percent of GDP has declined from 5. private sector to emerge as the engine of transformation from a subsistence agriculture-based economy to a more modern economy based on the higher productivity – and, thus, higher income – of manufacturing and services. The government is engaged in a gradual process of economic reform and liberalization, and the state remains heavily involved in most economic sectors. 4% in 2019 GC, below the African average and almost 10% less than the 17% contribution to GDP envisioned Recent performance: Ethiopia’s ten active industrial parks (five government and five private) registered exports of $165mn in 2019-20, up 16 percent from the year before and nearly four-fold the export levels of two years earlier (Tables 1-5). Ethiopia’s manufacturing sector, there are quite a few challenges that the sector is expected Jul 29, 2019 · The economic contribution of the livestock sub sector in Ethiopia is also about 12% of the total and 33% of agricultural gross domestic product (GDP) and provides livelihood for 65% of the population. Discover Jan 1, 2016 · Ayalew, et al. ¨ Aug 29, 2020 · The tourism sector of Ethiopia faces many challenges, some of which include the shortage of tourist facilities, a lack of skilled human resources, a lack of physical infrastructure, weak promotion productivity manufacturing and sustain high rates of economic growth for decades. een closely involved in the design of this policy. Nov 21, 2023 · leather industry to exploit the opportunities presented by the AfCFTA to the full; and • To consider the utility and feasibility of establishing a permanent platform for regular dialogue on AfCFTA and the leather industry in Ethiopia. Ethiopian Cotton Producers, Ginners, and Exporters Association (ECPGEA) Tel: +251 11 515-5708. The sector is dominated by small firms and resource-based industries, low-value and low-technology products, and weak inter-sectoral and intra-sectoral linkages. Manufacturing of edible oil in Ethiopia has been a significant manufacturing sector (1. 1 Data and Variable Description. However, manufacturing makes up a small portion of GDP at only 4%. In Ethiopia cash is still the most dominant medium of exchange and electronic-banking is not well known, let alone used for transacting banking business. 6% of the agricultural GDP, 15% of export earnings, and. State-owned enterprises (SOEs) dominate the economic landscape, reducing room for the private sector to flourish. , Bigsten & Gebreeyesus, 2007; Gebreeyesus; 2008; Rijkers, Soderbom and. During the course of the TA, six WBG missions visited Ethiopia and prepared multiple technical and policy notes laying down strategic challenges and priority recommendations for each sector. Improving the manufacturing sector will benefit all Ethiopians but growth requires adjustments to tax and trade rules. 13% of the major industries and 8%-12. 4. However, in the market led economy where production signals are derived from market it is rational to expect basic changes and dynamism in overall status, challenges and opportunities. Ethiopia has the lowest ratio of merchandise exports to GDP among populous countries in the world; it has half as many of exporting firms as Kenya (which has half the population of The manufacturing industry in Ethiopia is underdeveloped. is still far from being an engine of growth and structural change. 3 An annual average GDP growth rate of 10 percent and an increase in the average life expectancy from 45. The current report draws on the draft This recognizes that smallholder agriculture is the most important sub-sector of Ethiopia’s economy and there remains a high prevalence of poverty among smallholder farming communities In addition to the above there is a large potential to improve crop and livestock productivity using proven, affordable and sustainable technologies. 4% average throughout Sub-Saharan Improvements in terms of trade also support the external sector: Staff estimates suggest Ethiopia’s terms of trade could increase by about 6 percentage points in FY15. g. a livelihood from land. Dec 4, 2018 · Women in Manufacturing in Ethiopia study was intended to help us develop a better understanding of critical gender issues in the manufacturing sector at various levels of value chains in priority sub-sectors in the manufacturing industry in order to be able to devise possible interventions. Challenges to growing the manufacturing sector. Different Jan 1, 2015 · In spite of a long history of promotion and development, Ethiopia’s tourism industry is in its initial stages of development. II. A simple random sampling Feb 1, 2021 · Download full-text PDF Download full-text PDF Read full-text. 9% in the past decade, compared to a 5. 7 concludes with a discussion on some remaining and emerging challenges in realizing Ethiopia’s industrialization vision. S. Tourism Ethiopia, to revitalize the nation’s struggling tourism industry. ADDIS ABABA, July 8, 2015 – The Ethiopian economy has continued a remarkable expansion with the gross domestic product (GDP) growing by an average 10. Apr 11, 2019 · Ethiopia is an agrarian society in which the bulk of the population lives in the rural areas earning. Jul 25, 2021 · The purpose of this study was to find out demanding challenges and achievements of kaizen implementation. The manufacturing sector in Ethiopia has faced several recent challenges, partly linked to the trifecta of macroeconomic pressures, security challenges, and exogenous shocks. Ethiopia's manufacturing sector faces numerous challenges, including the following issues highlighted by business experts interviewed for this article. Accordingly, the assessment of revenue and Ethiopia's Automotive Industry. But after peaking in 2014, Ethiopia’s goods exports have fallen by one-fifth to about $2. Apr 19, 2021 · 3. The manufacturing export sector holds promising potential for the economic development of Ethiopia. Jun 11, 2018 · Abstract. , 2017). Apr 1, 2017 · For example, the 2013/14 Central Statistics Agency (CSA) survey shows that only 8% manufacturing firms participated in exports and the share of exports in total sales of the sector was only 10% Since then, Ethiopia has enjoyed strong economic growth for over 15 years. 6 percent average annual growth between 1990-2000 and grew to 15. It plays a marginal role in employment creation, exports, and output, and is short of stimulating domestic linkages. 2 Food safety is a critical challenge in Ethiopia because it is unclear which solutions are best suited to the Ethiopian context. 1. Current Status. 5 times (World Bank, 2020b). 1% of the persons engaged in work [8,9]. productivity manufacturing and sustain high rates of economic growth for decades. (2016) mentioned that the GDP contribution of the Ethiopian construction industry has been raised to 5. In Ethiopia, comprehensive firm-level data collection from all establishments has been compiled annually since 1996. Manufacturing’s value added as a share of GDP stood at 7. 2 percent. Competitiveness is the way to face Feb 21, 2022 · Micro, small and medium-sized enterprises (MSMEs) have a potential impact on achieving many of the sustainable development goals much greater than their size. 4 percent between 2000-2008. 30% of agricultural Oct 1, 2021 · backlogs are waiting to be accomplished. 7%-2. Jun 11, 2021 · The main purpose of this study was identifying and explaining current practices and challenges of domestic tourism development in Ethiopia. A number of countries in the world, including Ethiopia have been convinced by the positive contributions of the Kaizen system to the quality of business management and products from the firms (Desta et al. org. 4 percent in 2022, in large part due to the combined shocks. come from the industrial sector. The tourism sector in Ethiopia is at its early stage. Jan 18, 2024 · Tel: +251 11 868-2343. It has become necessary to pay special attention and a thorough analysis of the number of local and international tourist arrival and revenue. After Nigeria, the country is also home to the In terms of Ethiopia’s recent economic growth trends, the report notes that gross domestic product (GDP) growth increased to 10. Jan 11, 2020 · The purpose of this study is to empirically assess the status and challenges of Advanced Manufacturing Technology Transfer and Implementation in Ethiopian Manufacturing Companies, particularly in Download full-text PDF Read full-text. 7% to GDP. Jan 18, 2024 · Palm oil ($888 million) Wheat ($511 million) Cane sugar ($474 million) Rice ($447 million) Sunflower seed oil ($442 million). 3 However, Ethiopia’s tourism has gone through a number of inter-related challenges. These services were launched as early as 2009, and represent a noteworthy milestone in Ethiopia's digital finance landscape (Alemayehu 2011). The Financial Role Played by Foreign Banks in the Domestic Banking Sector: A Case Study of Barclays Bank of Kenya Jan 2013 . , Citation 2014). May 3, 2019 · A new report from the NYU Stern Center for Business and Human Rights assesses the arrival of the global apparel industry in Ethiopia, identifies problems related to low wage levels, and makes Manufacturing Competitiveness in Ethiopia: Developments, Challenges and Prospects @inproceedings{Getahun2018ManufacturingCI, title={Manufacturing Competitiveness in Ethiopia: Developments, Challenges and Prospects}, author={Tigabu Degu Getahun and Gebrehiwot A. In essence, the State’s preponderant role in the economy has crowded out and stunted the growth of a vigorous private Apr 9, 2024 · Overview. Currently 32 private companies and 28 farmers Jan 18, 2024 · While Ethiopia offers several opportunities, the market also has challenges. Expected Outcomes • The leather industry’s stakeholders develop an understanding of the AfCFTA and its The paper examines the practices, opportunities and challenges of E-banking services in Ethiopia. Inflation is also expected to decline, especially due to indirect Sep 4, 2015 · opia has emerged as one of the fastest-growing economies in Africa. 7 percentage points). The result of the study show that lack of promotion,lack of physical infrastructure (road, transportation system,network facility, availability of hotel accommodations especially tourist site), misperceptions the images of Ethiopia,shortage of human trained powerarechallenges of Ethiopian tourism industry. Ethiopia has achieved a remarkable economic growth rate of 11 per cent per annum in the last 12 years, underpinning of which is the expansion in the agriculture and service sectors. Aim: This study has focused on identifying the challenges and gaps observed in the post-. Sima}, year={2018}, url={https://api Jul 17, 2023 · In this comprehensive article, we will explore the manufacturing process of edible oil in Ethiopia, including the types of oils produced, the major manufacturers and importers, demand, and value of imported and manufactured edible oil, and the challenges faced by the sector. 2. mployment generation, exports, output, and inter-sectoral linkages. On the other side the Ethiopia is a The manufacturing sector has long been considered the main engine of economic growth and discussion of some major remaining and emerging challenges in realizing Ethiopia’s Jan 1, 2021 · Under the industry sector (manufacturing, construction and mining) small enterprises are defined as operates with 6 -30 persons and/or wit h a paid up capital of total asset Birr 100,000 and not Jan 1, 2018 · Toyota, General Motors and ford Motor Company in that order. Extreme poverty (the percentage of the population living below the international poverty line) fell from 55 percent in 2000 to 23. In the 1990s, a few more firms established manufacturing operations, but at less than half of their installed capacity ( 8 ). Strengthening the export sector is among the top priorities of the government. This review aimed to investigate existing literature on the contribution of MSMEs to the sustainable development of Ethiopia and its challenges. Key take-outs from this report. 123,442 116,353 construction, 120,000 112,061 5% 104,331 19,194 30,544 34,578 10,163 Leather, 30% 100,000 8,642 34,918 Food Feb 17, 2022 · In Ethiopia, the first manufacturing plant, Ethiopian Pharmaceutical Manufacturing Share Company, was established in 1964 and was the only operator for decades. Ethiopia’s automotive industry presents a long-term opportunity for first movers. Compared to other manufacturing sectors, Ethiopia has an advantage in the T&A industry. Email: info@ehpea. Despite repeated interventions to support manufacturing, the sector remains nascent. 5 million people (2023), Ethiopia is the second most populous nation in Africa after Nigeria, and one of the fastest-growing economies in the region, with an estimated 7. Nov 24, 2022 · In this regard, the pharmaceutical sector in Ethiopia, the most populous nation in East Africa, faces numerous challenges. Coffee, the backbone of Ethiopia’s economy, is the most important export commodity. 9% annual growth between 2010 and 2020. The manufacturing sector plays a marginal role in. The analysis includes case studies of teff, sesame and textile value chains, and confirms that a dynamic service sector is needed for manufacturing and agro-processing to thrive. In 2022, the United States exported $375 million in agricultural products to Ethiopia, up 157% from 2021. From the above criteria, Ethiopia is one of the least in. Ethiopia welcomed over 933,000 travelers in 2017, a slight increase on the 870,000 recorded in 2016. And while overall income inequality is not extreme relative to its peers, Ethiopia’s Gini index value has steadily worsened, climbing from 0. The study will focuses on the growth and current performance of manufacturing sector in Ethiopia. Road construction is one of The manufacturing industries in Ethiopia con- sist of a number of sectors such as textile, leather, food, pharmaceuticals, and cement industry etc. Ethiopia is one of the sub-Saharan African countries where the pharmaceutical sector is being guided by a national medicine policy . The year 2002/2003 was a drought year and, consequently, the growth rate dropped to a negative. 6. CHALLENGES AND OPPORTUNITIES OF THE PRIVATE MANUFACTURING SECTOR, IN ADDIS ABABA ETHIOPIA (THE CASE OF KALITY SUB CITY) Authors: GEREMEW, HAGOS: Keywords: Private Manufacturing Investment challenges and opportunities: Issue Date: Jan-2017: Publisher: St. Jan 9, 2023 · Private Sector Dev elopment in Ethiopia: Trends, Challenges and Policy Issues Policy Working Paper 04/2022 10 a conducive business environment at all leve ls for all; and ii) providing direct Feb 11, 2019 · Over the last two decades the Ethiopian manufacturing sector has experienced rapid expansion in terms of the number of firms, sales, and employment. Purpose One of the oldest civilizations of Africa, Ethiopia is today at the advent of industrialization in various business sectors. com. 3 percent. View in full-text Context 2 Aug 31, 2021 · Agriculture, industry, construction, tourism, hotel, social sector, & mining were tar get sectors fo r the study; this implies th at it is also hard to identify which factors affect the hotel Food safety, or the assurance that food will not cause consumers harm when it is prepared or eaten according to its intended use, is integral to food and nutrition security. Email: meknomet@gmail. The study will, therefore, add to the existing knowledge in the subject area. At least 60% of the industrial output should origin. on a positive note, there has been a visible increase in the number of tourists in Addis Ababa after Manufacturing, value added (% of GDP) - Ethiopia from The World Bank: Data collaboration with the Financial Sector Roadmap Committee established at the NBE. Chemical and Others, 6%. Kebedew and Balineau Ga{\"e}lle and Fikru D. Consequently, Ethiopia’s rural poverty rate (37 percent) exceeds the urban rate (14 percent) by 2. However, it also remains one of the poorest, with a per capita gross national income of $1,020. Ethiopian Horticulture Producers and Exporters Association (EHPEA) Tel: +251 11 663-6750. 35 in 2015 (World Bank, 2020a). Changes in governance systems have resulted in different social Dec 15, 2021 · As a result, Ethiopia is unlikely to achieve its SDG target of doubling the share of manufacturing employment by 2030 (UNIDO, 2020). 2 Evolution of Industry: Historical Perspective A conscious move to stimulate industrial growth in Ethiopia began in the mid-1950s with the formulation of the First Five-year Plan (FFYP). Some of these challenges are project overruns, poor quality, inappropriate procurement systems, and a failure to cope with project requirements and the inability to adopt best practices [4], [2], [6]. Principal U. 5 billion. mployed in the industrial sector. 25% of the GDP shoul. With the active intervention of the Imperial Government, the manufacturing sector grew at an annual average rate of 16 per cent thus pushing the share of the industrial sector from 9 per cent to 13 per cent during the planning May 13, 2021 · The agricultural sector of Ethiopia has shown remarkable resilience over many centuries though it is now increasingly failing. The objective of this paper is to provide an overview of the current status, key challenges, and the way forward for the Ethiopian feed industry. 2% growth in FY2022/23. Feb 7, 2022 · Ethiopia’s economy is primarily based on agriculture, but over the last five years, its government has been determined to diversify the export products with a priority set for value-added products like leather or textile goods and garment manufactured items. This is a best prospect industry sector for this country. A Review of the small scale milk sector in Ethiopia. 9 percent in 2019 to 4. To achieve this objective, qualitative approach with a The Federal Democratic Republic of Ethiopia Central Statistical Agency Report on Large and Medium Scale Manufacturing and Electricity Industries Survey May 29, 2020 · Abstract. The country is known for the regular food shortage that occurred due to droughts, sudden outbreaks of natural disasters, pests, lack of rainfall, and shortage of technological advancement in the past centuries. firms themselves to effectively address the challenges that hold the growth of the sector at bay. The sector has experienced more than 150% growth Leather is the top manufacturing export product in export earnings in the first 5 years (from $56 million to $133 million) 140,000. Prime Minister Abiy Ahmed has announced numerous reform plans, including plans to loosen the state’s dominance in key sectors, in efforts to attract investor interest and boost growth. According to the working paper's findings, Ethiopia has considerable potential to become a manufacturing power, export USD 10 billion by 2030, and create many thousands of jobs. ADDIS ABABA, June 11, 2018 – In its latest economic update for Mar 30, 2022 · According to the Central Statistical Agency (CSA) reports, in Ethiopia, the textile industry accounts for 1. In recent years, numerous efforts have been made to encourage Overall, exports have risen about 50 percent over the past ten years, reaching $7. transport in Ethiopian is rela ted with the import of the first automotive to the country in the. in Ethiopia include the presence of limited budget to research universities; mismatch between. However the country has not yet fully benefited from its export potential and available market access opportunities. Ethiopia is among Africa’s most impressive growth performers over the past decade averaging 10. 6 billion in 2019, owing almost entirely to success in transportation services in the form of Ethiopian Airlines. At least 10% of the population should be engaged or. Specifically, this study hoped to uncover the existing situation, outlook and emerging challenges Mar 27, 2019 · operational effectiveness and efficiency of the public sector to the desired level. Apr 20, 2020 · Other opportunities of coffee production in Ethiopia are: high national and international demand for the product, increasing interest of private sector with high investment potential, high support by both regional and federal governments (Berhanu, Citation 2017). 5 percent in 2015/ Performance of manufacturing Industries in Ethiopia Structure of manufacturing sector in Ethiopia The history of Ethiopian manufacturing industry is more or less related to the post Ethio- Italy war. The contribution to the banking industry in Ethiopia by introducing fully IT-supported multi-channel banking services that span internet banking, ATM usage, SMS banking, and banking via a call center. Mary's University: Abstract: Good private manufacturing investment is a basic for the whole Apr 4, 2019 · In Ethiopia, the livestock sector, mainly dairy and dairy products, makes a massive contribution to smallholders as income generation and employment creation (Mihret et al. te from the manufacturing sector. Scope of the study This study will delimit to investigate the Factors affecting Investment in manufacturing sector in Ethiopia over the period between 1992 and 2020. 5% of the national Gross Domestic Product (GDP), 35. As indicated in Table 1, between 2003/2004 and 2018/2019, Ethiopia’s economic growth rate has averaged at 10. In some ways, the structure and performance Oct 9, 2019 · In this regard, even though Ethiopia has officially launched construction industry transformation counsel in 2017 to tackle major challenges disturbing the sector's sustainable development, the years gave priority to the industry sector in particular the agro-processing industry, mining, and power generation. exports to Ethiopia are wheat, pulses, sorghum, vegetable oils, and food preparations. In this paper, the large and medium manufacturing firm’s survey of Ethiopia conducted by a government institution called the Central Statistical Agency (CSA Footnote 5 hereafter) is employed for the successful accomplishment of this study. tu qo kh pu oh ys yi az bg zh