IMF continues to support industrialisation of Ethiopia
07/02/2018
In a summary of its findings, the IMF said the country’s industrialisation policy, which focuses on labour-intensive manufacturing sectors such as leather, apparel and textiles, “capitalises on Ethiopia’s competitive advantages”.
It highlighted the Ethiopian government’s promotion of industrial parks, which it said are overcoming a challenging business climate through simplified procedures, tax advantages, and easy access to financial services.
The report is part of the ongoing Programme for Country Partnership (PCP) for Ethiopia, which the IMF announced in June 2014. It brings together development partners, UN agencies, financial institutions and the business sector - under the leadership of the national government - to help achieve the goals set out in the country’s industrial development strategy and Growth and Transformation Plan II (2015-2020).
PCP focuses on three light manufacturing sectors: agro-food processing; textiles and apparel; and leather and leather products. These sectors were chosen due to their prospects for job creation, strong linkages to the agricultural sector, high export potential and capacities to attract private sector investment. The aim is for them to act as a springboard for the transformation of Ethiopia's economy from one based on agriculture to one driven primarily by light industries.
In relation to the leather industry, UNIDO is supporting the government of Ethiopia in establishing an environmentally friendly tanning district that will include a state-of-the-art common wastewater treatment plant.
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