Ministry Hires Firm to Rethink Industrial Incentives

Oct 8 , 2022

A private consulting firm has been hired to reexamine incentives for the industrial sector as earlier incentives made a decade ago were criticized for failing to encourage manufacturers. The incentives used for over a decade were criticized for overlooking the electronics, electrical, and automotive industries. Officials of the Ministry of Industry have selected Hemen Consultancy for the job, after securing 4.5 million dollars in loans from the African Development Bank (AfDB). Only two firms responded to the bid. "We're collecting data from agro-industrial parks," said Mengistu Birhanu, general manager of Hemen Consultancy. A committee of six comprising members from the ministries of Industry and Finance and the commission of Investment and Customs Commissions began a study last month. Experts from the United Nations Industrial Development Organization (UNIDO) have joined the effort. A draft policy drafted by the Ministry's experts aims to promote the tagline: "Let Ethiopia Produce." However, domestic manufacturers are hit by a severe foreign currency crunch, high prices for imported parts and tax burdens.



A street lamp around Addis Abeba Stadium melds into the concrete backdrop emblematic of the capital's ageing infrastructure. Over the past few years, Ethiopia's electric grid has been subject to destruction and theft, subjecting the public treasury to hundreds of millions in losses. Nearly half of the country's population does not have access to electricity. A series of projects by the World Bank has contributed to the slight but essential upgrade to the nation's grid, including a 500 million do...



A trio of donkeys drag along the main road in front of Menlik School around the Arat Kilo area. While the four-legged domestic animal is a venerated member of the Ethiopian labour force, its skin and meat are increasingly valued in the international markets. Rhong Chang, a donkey slaughterhouse operating in Assela Town, Oromia Regional State reopened its services after a seven-year break two years ago. Public outroar has often accompanied the entrance of donkey abattoirs into Ethiopia since anot...



A bustling market emerges under a bridge in the boroughs of the Bole Michael area. Addis Abeba City Administration has launched a series of aesthetic initiatives embalmed in themes of beautification and urbanisation that have removed thousands of shops built with makeshift tents. Above a quarter of Addis Abeba's labour force is engaged in the informal economy, which while often associated with connotations of illegality, remains a sizeable employer in emerging economies across the world. Calibra...