Parliament Calls for Industry Funds Accountability

May 25 , 2024


[ssba-buttons]

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.


Radar

New Directive Tightens Rules for Foreign Employment Agencies

The Ministry of Labour & Skills has issued a directive under the Ethiopian foreign employment framework, setting clear standards for agency size, capital, and operations. Depending on their level, newly established agencies can serve between 10 and over 100 workers a day. Office space requirements range from 100sqm to 700sqm, tied to operational scale. Level-one agencies must hold a paid-up capital of 20 million Br and place a security deposit of 250,000 dollars or its birr equivalent...


Radar

Audit Findings Expose Deepening Gaps in Accountability

A new study reveals that audit irregularities in Ethiopia have continued to rise year after year, driven by weak enforcement and unresolved legacy problems. The finding, commissioned by the Office of the Federal Auditor General (OFAG) and conducted by independent researchers from Addis Abeba University, examined audit reports covering 2009–2023. The study attributes the persistent irregularities to limited accountability, poor follow-up, and reduced audit coverage during political transitio...


Radar

Africa Maritime Conference Sets Sights on Seafaring Innovation

The Ministry of Transport & Logistics has launched the first-ever Africa Maritime Conference, marking a bold move to position landlocked Ethiopia as a continental hub for seafaring innovation at a time of global talent shortages. At a pre-conference briefing, Frans Joubert, CEO of YCF Manning Ltd, underscored Africa's untapped potential in the maritime sector. Of the 1.9 million seafarers worldwide, only four percent are African—despite the continent hosting around 150 maritime academie...