Economy
Ethiopian Manufacturing Sector Saves $5.96 Billion Through Import Substitution
BirrMetrics · 2 weeks ago · Read the Full Story on BirrMetrics
AI SUMMARY
Ethiopia's Ministry of Industry reported that the manufacturing sector saved $5.96 billion in foreign exchange during the 2025/26 fiscal year by replacing imported goods with domestic production.
- Ethiopia's manufacturing sector saved 5.96 billion US dollars in foreign exchange during the 2025/26 fiscal year through import substitution.
- The Ministry of Industry did not disclose how the savings were calculated or provide a breakdown by product and industry.
- Manufacturing exports generated 607.2 million US dollars during the same fiscal year.
- Locally manufactured goods' share of the domestic market increased from 30 percent to 46.41 percent.
- Factory capacity utilisation climbed from 51 percent to 69.3 percent.
- The number of companies undertaking new manufacturing investments rose from 112 to 165.
- The number of small and medium-sized industries increased from 2,760 to 4,233, according to Ministry representative Kassa Alamraw.
- Employment attributed to these enterprises rose from 45,550 to 448,717 jobs, though the Ministry did not clarify if these were permanent or temporary.
- Manufacturing export earnings rose from 308 million US dollars in the 2017/18 fiscal year to 607.2 million US dollars in 2025/26.
- The sector's contribution to gross domestic product increased marginally from 6.2 percent to 6.82 percent over the same period, while its reported growth rate accelerated from 5.5 percent to 12.7 percent.
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