Ethiopia's industrial sector is flourishing amid double-digit economic growth: Ministry.

Ethiopia's industrial sector is flourishing amid double-digit economic growth: Ministry.

Prime Minister Abiy Ahmed stated that major projects are planned to help Ethiopia achieve its economic goals. Ethiopia's industrial sector mainly comprises light industries such as food processing, beverage production, textiles, leather goods, chemicals, metalworking, and cement. Industrial production is primarily concentrated in urban centers. Although the industrial sector grew by 6.8 percent in 2003/2004, this growth lagged behind that of the overall economy, which is heavily reliant on agriculture. The industrial sector is projected to contribute approximately 25.4% to GDP by 2024. The Ethiopian government is focusing on developing industrial parks modeled on those in China to boost manufacturing industries, particularly textiles, and to elevate the country to the ranks of emerging economies by 2025. Key components also include the booming construction sector and mining for industrial and construction minerals, while the oil and gas sector remains underdeveloped due to conflicts and infrastructure problems. Challenges persist, including low productivity, skills gaps, and infrastructural and security barriers in certain regions. He explained that the national macroeconomic reform agenda has established systems to utilize the country's resources for diversified economic development and forecasted double-digit economic growth for the current fiscal year. Ethiopia is planning major infrastructure and economic projects worth approximately US$30 billion to achieve its economic development goals. These include six main projects: a nuclear power plant to diversify energy supply, which is planned to comprise two units, each with a capacity of approximately 1200 MW, by 2032-2034. This project is still in the planning and feasibility study phase. A major airport project in Bishoftu, with an investment of approximately US$10 billion, is intended to serve as a regional air traffic hub. The first phase of construction is scheduled for completion by 2029. A fertilizer factory in Gode, in eastern Ethiopia, is under construction with an investment of US$2.5 billion. It will produce 3 million tons of urea annually, along with a gas pipeline from local gas reserves. An oil refinery project to reduce import dependence on refined petroleum products is about to begin construction. Further gas production facilities, particularly in the Ogaden region, are planned with a view to future exports. A large-scale housing program aims to build 1.5 million homes within six years to alleviate urban housing shortages. These major projects reflect Ethiopia's ambition to accelerate its economic recovery, diversify its energy supply, expand its industrial capacity, and accommodate urban growth. The projects are financially supported by international partners such as the African Development Bank, although in some cases details regarding financing and site selection are not yet finalized. Other economic sectors, such as telecommunications (with investments in Safaricom and M-Pesa), electromobility, and the pharmaceutical industry, are developing in parallel and complement the economic growth plans. Overall, these large-scale projects are a key component of Ethiopia's strategy for sustainable economic growth and infrastructure modernization through the mid-2030s. The industrial sector's growth rate has risen to over ten percent and has significantly increased its contribution to GDP growth, Minister of State for Industry Tarekegn Bululta told state media. He attributed the industry's improved performance in import substitution and attracting investment, as well as its rapid structural transformation, to the government's targeted approach. According to state media, the Ethiopian Ministry of Industry has also prioritized manufacturers and supported them in overcoming past challenges and strengthening their competitiveness.