Parliament Calls for Industry Funds Accountability

May 25 , 2024

Parliament is urging the Ministry of Industry to be more transparent and accountable in its allocation of financial support to industries. During a review of the Ministry's nine-month performance report, Amarech Bekalo, chairwoman of the Standing Committee for Industry & Mines Affairs, raised concerns about the lack of clear assessment of how funds are being used and their impact on these industries. Amarech stressed the need for a digital registry system to track the current status of industries and monitor the effectiveness of financial support. She said a system would provide transparency and allow for better evaluation of past spending. While acknowledging the positive aspects of import substitution reaching 3.1 billion Br and the introduction of new export products, Amarech called for public awareness campaigns to encourage domestic consumption of locally-made goods. She also emphasised the need to optimise allocated funds to further support export growth. Minister Melaku Alebel responded by outlining the criteria for evaluating industries, including loan repayment capacity, value addition, and export substitution. He also acknowledged the challenges faced by specific sectors, such as the leather industry, where concerns regarding minimum wage and worker capacity were raised for the broader manufacturing sector. Melaku highlighted the inauguration of 227 new industries in Tigray Regional State in the past nine months. He urged other regions to prioritise peace and security to create a more attractive environment for investment.