Ethiopia's Economic Climate

Investment Opportunities In Manufacturing

Major Sub-sectors: Food, Beverages and Tobacco

Food, beverages and tobacco constitute the largest sub-sector in terms of value of output. Food processing industries mainly consist of flour mills, bakeries, pasta and macaroni factories, edible oil mills and sugar plants.
There are at present two sugar estates. A third sugar estate is under development and is expected to be operational by the end of 1997.

Textiles and Garments

This is the largest sub-sector in terms of employment. The sub-sector consists of seven integrated textile mills, two spinning mills, two thread factories, one blanket factory, two hessian sack factories and five large-scale garment factories.

Basic Metals and Engineering

As might be expected, this sub-sector is at a low stage of development, although it is now developing rapidly. By 1995/96, it accounted for 10.8% of the total gross value of production of the manufacturing sector. The range of products manufactured in the sub-sector includes galvanized roofing sheets, pipes, pumps and various metal products. In addition to these products, there are two plants assembling trucks and tractors.

Leather and Footwear

Ethiopia has the largest livestock population in Africa and the ninth largest in the world. Annual off-take is in excess of ten million heads. In order to take advantage of this enormous resource potential, the leather industry has long been well established. There are six state-owned tanneries and a number of smaller tanneries in the private sector. All the tanneries process hides and skins to the stages of pickled, wet blue, crust or finished leather. Finished leather is produced mainly for the domestic market. The main export markets are Europe and Japan. Several tanneries, footwear and leather goods factories are being set up by private companies and the existing public ones are being privatized.

Chemicals

The chemicals industry produces toilet soaps and laundry soaps, detergents, paints and lacquers, various plastic products, car batteries and tires. A number of projects implemented recently include a Caustic Soda plant, an Aluminum Sulfate factory, and an Alkyd Resin plant.

Non-Metallic Minerals

There are three cement plants in the country at present. The one at Mugher is the largest and most modem factory. In addition there are two marble making facilities, a ceramics plant and one glass factory in Addis Ababa producing bottles and tumblers. Other factories produce clay bricks, cement blocks and assorted construction materials.

Paper and Printing

There is only one paper mill in the country. The mill produces about 10,000 tons of printing and wrapping paper of different grades annually. It is dependent on imported pulp. Other industries in the sub-sector include paper-converting plants producing packing materials and toilet paper as well as a number of printing presses.

<- Previous - Next ->