Lion Bank
Dashen Bank
Dashen Bank
FORTUNE+ VIDEO JOBS SPONSORED CONTENTS FORTUNE AUDIO TRADE AFRICA new

Fortune Logo
Thus, the answer should be to pour money into the manufacturing sector, improve infrastructure significantly and market the nation’s low labour costs as a means of attracting foreign direct investments.

It should have been easy. The manufacturing sector's contribution to GDP is insignificant, although it is a high productivity area that can boost Ethiopia’s foreign currency earnings. But the sector with the highest share to GDP is agriculture, which is a low productivity area and is easily susceptible to nature’s vagaries and the global fluctuations in commodity prices. Thus, the answer should be to pour money into the manufacturing sector, improve infrastructure significantly and market the nation’s low labour costs as a means of attracting foreign direct investments.


Tax incentives, around a dozen industrial parks and a plethora of Turkish, Indian and Chinese investors later, the outcome has been far from impressive. It stood at 6.8pc in the 2018/19 fiscal year, a snail pace Of 4.9pc at the start of the decade. But long-planned projects have gradually come online, and it is yet to be seen if these will end with improved manufacturing output.




PUBLISHED ON Jan 05,2020 [ VOL 20 , NO 1028]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here


Editors' Pick

Agenda

Is the Coffee Bonanza Here to Stay?

July 2 , 2022 . By RUTH TAYE

On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...

Editorial

Financial Sector-sourced Glucose Drips No Remedy to Save Economy

November 27 , 2021

Against my will, I have witnessed the most terrible defeat of reason and the most sa...

Editorial

Contingency Economic Plan Necessary to Reconcile with Political Storm

November 13 , 2021

Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...

Agenda

Banks Miss Deadline, Mergers Prove Unattainable

October 16 , 2021 . By HAWI DADHI

Residing in a country with no capital market, an organised marketplace for trading se...

Commentaries

No Better Time for CSOs to Prove their Worth

Several human rights violations and abuses have occurred against civilians and proper...

Curbing Commodity-Market Speculation

Primary commodity prices have been on a roller-coaster ride for the past year, and es...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...

Editorial

National Dialogue! What National Dialogue?

August 14 , 2022

The call for lofty ideals such as national dialogue and consensus has been as old as...

Finance to the Tiller! Plebiscite on the Land Question

August 6 , 2022

Few initiatives by the administration of Prime Minister Abiy Ahmed (PhD) have been pu...

What Do New Banks Offer Their Older Cousins Don't?

July 30 , 2022

Ethiopia’s banking industry is not merely underdeveloped. It has historically regre...

Tweaking Tax Policies No Silver Bullet to Fund Budget Deficit

July 23 , 2022

The flip side of a government spending plan is financing. Behind the campaign promise...

Gallery

Parliament Approves New Cabinet Members

October 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

January 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

September 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

December 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

April 26 , 2019

Sunday With Eden

Ageism: "Younger than Thee” Syndrome

I often meet many young people at conferences, restaurants, or family gatherings. Som...

Success Intoxicates the Faint-hearted

A few months ago, my husband introduced me to a wealthy woman who had recently lost h...

Life Matters

When Depression's Just Apathy

Having studied psychology, I am fascinated by how our thoughts shape our lives. I am also interested in mental health and try my best to cre...

Face the Rain Like Men

As the rainy season gets wetter, accompanied by heavier rain showers, it is not unusual to see folks with umbrellas. Little do they know tha...