Sunday, April 14, 2024
BusinessEthiopia imitates Japan to recover from industry shocks

Ethiopia imitates Japan to recover from industry shocks

The Ministry of Industry (MoI) is preparing to establish a pooled fund with contributions from the private sector and donors that will be used to actively support industries and public sector organizations during times of crisis.

In the past week, the Ministry has transformed the “Let Ethiopia Produce” campaign into a project office through which affected industries receive funding.

Last year, Prime Minister Abiy Ahmed (PhD) launched a campaign aimed at resuming production in industries that had ceased operations due to COVID-19, conflict and instability, a lack of inputs and foreign currency, and a lack of infrastructure such as power and logistics.

It is hoped that addressing the sector’s multifaceted problems in a comprehensive, sustainable, and integrated manner will increase the sector’s competitiveness by eliminating bottlenecks and creating a competitive manufacturing industry.

The project office, according to Tarekegn Bululta, the state minister of industry, will be converted into an institution and remain operational for at least the next decade.

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The Ministry will provide the project office with a budget until it is fully funded by contributions from the private sector, manufacturing industries, and donors. The project office will gradually transition from a public institution to one led by the private sector.

The two-year conflict in northern Ethiopia has had a significant impact on a number of industries. It is anticipated that the project office will provide comprehensive assistance for the manufacturing industries to recover from the shock and resume production. Other industries affected by lack of raw materials, forex, and others in different parts of the country are also included.

Tarekegn stated that the project office was established by emulating the Japan Productivity Centre (JPC). The Center was initially established by the government with the intention of stimulating the industry sector and was ultimately acquired by private companies.

“In Japan, the industries established a fund pool and allocated funds to the JPC, and the center provides various assistance that benefits the industries,” Tarekegn said, adding the campaign would eventually evolve from the project office into a private-led organization that catalyzes sector performance, enhances productivity, and supports Ethiopia’s industrialization in the next decade.

This, According to the state minister, is expected to boost productivity in other sectors in the future, in addition to the industry sector.

JPC is a non-profit and non-governmental organization established in 1955 by a cabinet meeting to enhance post-war development through productivity campaigning movements.

Ethiopian officials say the campaign has yielded positive results over the past year. The MoI is currently preparing to organize the national expo “Let Ethiopia Produce” in May, which is expected to feature over 350 manufacturing industries.

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Video from Enat Bank Youtube Channel.


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