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

State-Owned Enterprises Deliver, But Fund Seeks More from Underperformers

Ethiopian Investment Holdings (EIH), the country's sovereign wealth fund, closed its annual performance review with a mix of strong gains and lingering concerns across its portfolio of state-owned enterprises. Ethiopian Shipping & Logistics led the year with 4.5 million tons of cargo, driving revenues up 90pc and doubling pre-tax profit. Sugar production from Wonji Shoa, Metehara, and Fincha climbed 34.8pc to 163,290 tons, nearly doubling revenues to 15.6 billion Br, though EIH flagged ch...


Radar

MIDROC Cocoa Drive, Local Production Focus on Value Addition

MIDROC Investment Group is placing a bold wager on cocoa in the lowlands of Sheka. Building on extensive trials at the Bebeka Coffee State Farm, the company has introduced globally prized Forastero, Trinitario, and Criollo varieties alongside coffee. "The results are astonishing," said General Manager Beshada Worku, pointing to international prices that range from 8,200 to 14,000 dollars a ton. The project's first phase covers 50 hectares, with 44,000 seedlings already planted. Expansion to ...


Radar

Bureau Maps Out 1,700 Land Rights in a Month

The Rights Registration & Holding Service Directorate under the Bureau of Land Development & Administration prepared over 1,700 landholding certification maps in a single month. The update came during the bureau's July performance review, which measured progress against the upcoming fiscal year's targets. Director Tesfamichael Endale said efforts are being scaled up to give farmers secure land rights and quicker certification. Deputy Head WendwossenBanjaw added that the priority ahead...