Among the country’s foreign currency sources, the textile and apparel industry is expected to generate one billion USD by the end of GTP-II. Hence, the Ethiopian Textile Industry Development Institute (ETIDI) has the responsibility in discharging nation’s development mission by ensuring the sector’s sustainable development through capacity building, knowledge transfer and innovative approaches.

In order to intensify the journey to industrialization, the government has undertaken a range of various activities in the manufacturing sector, like facilitating working atmospheres and transforming micro and small enterprises into medium ones and creating market chains. Customer satisfaction has been considered to be more dependable upon the present reality of Ethiopian textile and apparel industry. The textile market has become highly competitive. The final product cost is determined by the various components of entire supply chain.

On a recent Process Optimization in Textile Processing Seminar, from the Institute of Chemical Technology (ICT) of Mumbai Prof. Rv Adivarekar said that textile sector is probably the world’s largest industry. The customer demands consistent quality of the product. Determining targets for maintaining and achieving best possible outcome at each stage of textile processing ultimately helps ensuring delivery of product with optimum performance.

ICT Resident Staff and Team Leader at ETIDI Dr. Kedar Kulkami said that optimization of concentration of auxiliaries and basic chemicals is used for processing. The concentration of various basic chemicals as well as auxiliaries used in actual process is not standardized. The testing of these is not done in laboratory and the actual concentration used in the process is not optimized accordingly.

“The effect of variation in quality of chemicals should be minimized by optimizing their concentration is actual recipe. Our intervention has been helpful in overcoming some of their problems and thus trouble shooting was exercised.” he added.

Dr. Ashook Athalye from G.M. Technical Service, Atui Ltd, Gujarat, India in his presentation entitled “Role of compatibility in product optimization” said that the harmoniousness co-existence and synergistic effect is achieved by determining and ensuring the use of compatibly products and processes. It involves adequate use of substrates and their blend proportions, operating machine designs and their installations, processing sequence, colorant usage and combinations, chemical compositions and stability. Ultimately, the goal is to achieve best possible results and to deliver superior textile and material to the user, he added.

The true measure of the successful performance of the textile processing is the percentage of right first time as well as right every time production and the best levels can be consistently obtained by significantly optimizing the process of operations. The process of wide variety of fibers necessitates adequate dyestuff’s selection from diverse classes of colorants , he said.

The textile and apparel sub-sector is among the priority sub-sectors identified by the government in transforming the country’s traditional agricultural based economy to industrialization. It has been one of Ethiopia’s traditional domestic business mainly relied on traditional based and home grown old age spinning drop wheel and hand loom up to the modern textile and garment integrated mill was established in 1939 in Dire Dawa by the name of Dire Dawa Textile Factory.

Currently, Ethiopian textiles and apparel industry encompasses spinning, weaving, finishing of textiles, manufacture of cordage, rope, twine, netting, knitting mills, and manufacturing of wearing apparel. The firms in the industry produce products such as cotton and woolen fabrics, nylon fabrics, acrylic and cotton yarn, blanket, bed sheet, shirts, carpets, gunny bags, wearing apparels and sewing thread.

Moreover, the ongoing second Growth and Transformation Plan (GTP II) of Ethiopia, and its industrial development strategy are all centered agricultural-based, manufacturing sector-driven and export-led development. The GTP pursued the growth through the export-driven industrialization strategy focusing on labour and capital intensive manufacturing industries, export-oriented and import substituting industries.

The key strategic directions are small and medium scale industrial development; and large scale industries with special emphasis all geared to poverty alienation and development. The manufacturing industries that have given due attention are agro- processing industries, textile and clothing, food and beverage industries, tannery and leather goods, pharmaceutical industries, chemicals and chemical products industries, paper and paper products, plastic industries, building materials, glass and glass products, metal and metal engineering among others.

he successful achievements Ethiopia scored in different sectors by accomplishing the objectives of the first Growth and Transformation Plan (GTP-I) enabled it to proceed to the second one for further successes. Even though a year has been elapsed since the country began implementing the objectives of the GTP-II, considerable fruits that lead to the intended goal have been demonstrated. This period is considered to be the duration in which the transition from agriculture to industry has laid its proper foundation. And several activities in the industrial sector have been carried out in this first year. Thus, it is appropriate to ask: What has been accomplished so far? What are the success or failures in this first year? In order to get answers for these questions, we conducted interview with Communication Director at Ministry of Industry Melaku Taye. Here is excerpts:

How do you evaluate the first year’s performances of the second Growth and Transformation Plan?

Melaku: The plan does not only focus on economic growth but also it involves the entire transformation of the nation. In realizing this transformation, the manufacturing sector takes a lion’s share. At the outset of the year, we set some goals that support the expansion of the manufacturing sector. Since the sector competes with the international markets, we need to increase the production and productivity of the sector to the extent it can meet the international demand. Accordingly, the leather and leather products, agro-processing, metal and metal products, chemical and the like have got high attention. In connection to the expansion of the light industry, we have decided to lay lasting foundation for the heavy one in the second Growth and Transformation Plan.

Concerning the performances of the year, we have enjoyed some successes in certain sectors. For instance, in the export sector more than 57 percent of the plan has been accomplished. And there are beginnings to support the progress to transform from the light to heavy industries. The activities carried out so far in this regard played big role in laying the foundation for the transformation journey in realizing the industrialization.

At the beginning of the GTP-I, about five industries such as textile and garment, leather and leather products, foods and beverages, milk and meat, pharmaceutical as well as chemical industries were exporting their products in so random manner. In 2011, these sectors generated more than 270.9 million dollars.

On the other hand, the development of the electric and electronics as well as the pharmaceutical and medical apparatus sub-sectors is the indication of the expansion of the foundation of the industry sector. For instance, the pharmaceutical and medical apparatus sub-sector generated over 2.7 million dollars this year.

Was there any challenge you faced in the course of implementing the Plan?

Yes, since the sector is at the beginning stage, it has been accompanied with many challenges. Moreover, for the competition is with the international market, the challenges continue to prevail. Lack of well developed management and other technical skills could be the primary challenge. The instability of the global economy is the source of the other challenge. Lastly, though several industries are under construction these days in different parts of the country, most of them have not been completed as per their schedule.

What are the possible measures you took in order to solve these challenges?

Realizing the necessity of long lasting solutions for problems related to the lack of human power, we are working with universities. Through increasing and cultivating university-industry linkage, it is possible to produce well skilled human power that meets the demands of the industrial sector. Unlike the previous time, in order to meet the demands of the sector, we began training students at degree, Masters and PhD levels in textiles, leather, shoes and the like. In collaboration with Addis Ababa University, we have designed new curriculum for the post graduate programmes.

In this regard, we have achieved considerable success in the leather sub-sector and we are trying to expand the experience in the other sub-sectors. Moreover, the technical and vocational training centers are investing a great deal in capacity development in the different state of the country. We believe that these can solve constraints related to lack of human power.

The next measure we took is increasing our support, supervision and monitoring to accelerate the successful accomplishment of the ongoing projects. We have also been encouraging the local investors so that they can participate in the investment.

In different states of the country, the plan to construct about 17 integrated agro-industrial parks that can accommodate both local and international investors was designed. The construction of the industrial parks in the states helps the farmers to increase their production and productivity. Through using the international experiences, we have already planned to construct four model agro-industrial parks among others.

The construction of these industrial parks will be undertaking in Amhara, Oromia, Tigray, Southern Nations and Nationalities People States starting from the next month. One of the parks can create more than 400 thousand job opportunities for citizens. It has also the capacity to accommodate more than 400 investors. Thus, it is essential to establish all the necessary infrastructures that support the proper functioning of the parks.

The recently constructed industrial parks in Bole Lemi and Hawassa town have taken the attention of foreign investors; companies that have international brand have begun working at the parks since they have got conducive policies and circumstances to increase production and then easily export. The planned integrated agro-industrial parks on the other hand was designed to encourage the participation of the local investors. The necessary infrastructures will be built to support the purpose of the integrated agro-industrial parks.

The country is planning to construct the integrated agro-industrial parks in the four states. What are the immediate benefit they bring to the target society?

Though the parks have the capacity to accommodate hundreds of thousands of workers, considering the prevailing condition of our country, we give priority to the industries that use agricultural inputs as raw materials. Then we will focus on industries that create jobs opportunities for thousands of citizens. We have adequate human labour but limited capital. Thus, the parks are very relevant to the states in using the agricultural inputs and accommodating huge number of workers. The imminent construction of the 17 integrated agro-industrial parks will soon be realized.

Algiers — An industrial and trade partnership memorandum of understanding on the manufacturing of AugustaWesland helicopters in Ain Arnat (Setif) was signed Thursday, in Algiers, by the ministry of National Defence and the Italian group Leonardo-Finmeccanica (SPA-Italy) said the ministry in a communiqué.

The memorandum “is part of the implementation of the programme of economic relaunch, initiated by his Excellency the president of the Republic, Supreme chief of the armed forces, minister of National Defence, aimed at re-boosting the national industry and the interest granted by the High command of the People’s National Army to the development of military manufacturing to contribute to national development and strengthen its potentials,” said the source.

The parties to this agreement “agreed this year to create a joint Algerian-Italian company destined to the manufacturing of light and medium helicopters in the industrial site of Ain Arnat.”

“From the first years and following the construction of plants, the main objective of this company is to manufacture three types of light and medium helicopters for various use including the transport of personnel and cargo, medical evacuation, surveillance and control,” added the communiqué.

“From its launch, this company will benefit from a local and international distribution network and an after-sales service that includes all levels of reparations,” said the source.

Around the world, industrial parks have become significant vehicles for countries to provide competitive environments for industries to take off. Cognizant to this fact, the government of Ethiopia prioritized to the development of industrial parks to accelerate the economic transformation, promote and attract both domestic and foreign investors.

The Industrial Parks Development Corporation (IPDC) has built about ten industrial parks, and continue establishing the rest in some sectors across the country. In 2016, IPDC have been developing additional parks in Makalle, Dire Dawa, Kombolcha, Jima and Adama. Each park would cover a size ranging from 500 to 2000 hectares.

In fact, various scholars argue on the significance of industrial parks to contribute to the growth of a country’s economy. With regard to its significance and pertinence, The Ethiopian Herald recently conducted exclusive interview with some industrial professionals from university, financial sector and manufacturing unit.

Dr. Atlaw Alemu from Department of Economics at AAU explained that as industrial parks are useful for processing exports, imports and managing duty free services, the system would simplify bureaucratic situations for manufacturers particularly for importing raw materials and exporting finished goods.

According to Dr. Atlaw, the most crucial use of industrial parks are increasing foreign direct investment, transferring technologies, creating linkages with international markets, and teaching locals on how to manage similar factories. To make use of these opportunities, he stressed that the infrastructures have to be fulfilled, particularly supplying energy and labour, developing work culture and reducing bureaucracy. In fact, many of the common facilities are particularly efficient if the firms are engaged in similar activities.

As foreign and domestic investors are continuing to work in close proximity, such closeness encourages not only co-operation but also fruitful sharing of technologies, special skills and ideas. Though most industrial parks tend to have a fairly heterogeneous mix of tenants, those engaged in similar activities can easily increase their production.

Clustering into industrial parks, small, medium and even large enterprises must take advantage of public infrastructures, and gain access to nearby skilled labour markets, research and educational facilities and other critical inputs. He, therefore, suggested that local enterprises need to enter into industrial parks based on their capacity, knowledge, and business plan.

Moreover, Dr. Atlaw commented that the government should also diversify complementary factories around industrial parks those producing metals, machines, spare parts, electrical products, other than specializing on same products.

In this sense, industrial parks also offer a valuable contribution to equitable and sustainable industrial development. They can also be considered as one of the most important factors supporting positive economic development bringing an integrated various functions into an industrial area with bulk of industrial production and services, as well as with high economy turnover and high employment.

Furthermore, Dr. Atlaw expressed that though the manufacturing sector contributes 5 per cent to GTP, the concern should be creating links with international buyers, and promote import substitutions. The interaction of international and domestic investors could create favourable conditions to facilitate purchasing, develop productive techniques.

The industrial parks have a range of common facilities such as recycling, waste collection, and effluent treatment, testing, standard quality control and heat treatment, refrigerated storage, even security services, recreation areas, health facility and post office.

The Hawassa Industrial Park (HIP) is a state of the art facility constructed at the cost of more than US 250 million dollar. It covers a land area of 1.3 million square meters, of which 300,000 metric square is factory shed built up area. It has additional area allocated for shared facilities such as dormitory and commercial buildings for the use of shopping centers, health clinics and banking services. Many industrial parks have also good rail and road transportation. When all factories in the park are fully operational, HIP will employ about 60,000 employees in two shifts.

The focus of this year’s International Youth Day (IYD), to be observed on August 12, 2016, resonates with the African Development Bank’s key efforts that recognise the role of young people in sustainable development.

Under the theme, The Road to 2030: Eradicating Poverty and Achieving Sustainable Consumption and Production, the 2016 IYD is about achieving the 2030 Agenda for Sustainable Development. It emphasises the leading role of young people in ensuring poverty eradication and achieving sustainable development through sustainable consumption and production.

The Bank’s recently launched Jobs for Youth in Africa (JfYA) strategy underscores the importance of Africa “to promote transformative and inclusive development, where the youth are the drivers of the required transformation and are responsible for their own positive economic and social outcomes”. The initiative is expected to reduce poverty, inequality, as well as economic and conflict-driven migration, increasing social cohesion and political stability. “The future of our young people does not belong at the bottom of the Mediterranean Sea. It lies in us tapping their talents and putting our resources to support them,” President Akinwumi Adesina said earlier.

The strategy will see the Bank invest US $5 billion over the next 10 years to create 25 million new jobs. These investments are expected to open opportunities for 50 million young people through skills development, and job creation in Agriculture, Industry and ICT. The initiative is expected to generate over US $30 billion in income gains for Africa in the next 10 years.

The agriculture sector, according to President Adesina, offers numerous opportunities for job creation for Africa’s youth. “Agriculture is the future for Africa. We must make agriculture exciting for the youth; and we must stop looking at agriculture as a way of life, as a sector that manages poverty. Agriculture is a business; in fact it is the biggest business in the world,” he said in an address to an ENABLE Youth workshop held in Nigeria in April 2016.

ENABLE (Empowering Novel Agri-Business Led Employment) Youth is an AfDB-led initiative that aims at promoting youth entrepreneurship in agriculture and agri-business. Under the program, the Bank will train the next generation of agriculture entrepreneurs, also referred to as ‘agri-preneurs’. It seeks to launch 300,000 agribusinesses and create 1.5 million jobs across 30 nations over the next five years. A number of countries have already expressed interest in the initiative.

The AfDB, through its East Africa Regional Resource Centre (EARC), is currently in discussion with the Kenya government on how to train youth in agribusiness and develop proposals on bankable projects that can be funded by the Bank, according to the Gabriel Negatu, the EARC Director.

Both ENABLE Youth and the JfYA approaches feed into the Bank’s top development priorities, the High 5s, especially “Feed Africa” and “Improve the quality of life for the people of Africa.

Geneva, Switzerland — Africa’s social development indicators reveal a paradox: high unemployment and poverty coexisting with robust growth. Industrialization and trade are two key instruments playing a major role in economic growth performance having the potential to structurally transform Africa economies.  The goal of trade-induced industrialization must also guide the conduct, negotiations and implementation of trade and investment agreements and arrangements.

In order to provide interested stakeholders with a better understanding of how trade can serve as an instrument of accelerated industrialization and structural transformation in Africa, the Economic Commission for Africa (ECA) together with the Institute for Economic Development and Planning (IDEP), has partnered with the United Nations Institute for Training and Research (UNITAR) to offer an instructor-led e-Learning course based on ECA’s Economic Report for Africa 2015 (ERA 2015).

he number of participants is limited to 125 persons. Until the registration deadline, participants are accepted to the course free of charge on a rolling basis and subject to availability of slots. A certificate of completion will be issued to all participants who successfully complete the course.

Further information and online registration are available at https://www.unitar.org/event/full-catalog/economic-report-africa-2015-industrialization-through-trade-0.

Registration is open until 9 September 2016 subject to availability.

At a time when Africa has bold aspirations, through Agenda 2063, to confront large scale challenges like the ascendant demographic curve, green industrialization and domestic resource mobilization, it is imperative that innovation be inclusive in order to facilitate the creation of decent jobs, generate investments, and contribute to the continent’s structural transformation. As a late comer, Africa has the advantage to leapfrog technologies, learn from others mistakes and reinvent things differently in a way that promotes sustainability as well as inclusiveness. But to succeed, deliberate policies are badly needed.

With this backdrop, the book “Innovation Africa: Emerging Hubs of Excellence” is a must read. Authors, Olugbenga Adesida, Geci Karuri-Sebina and João Resende-Santos not only illustrate Africa’s experience with innovation to date but also point to its power for transformation. From the very onset, one is reminded that “Africa is no longer the place it was in the past … the technological innovations taking place on the continent today offer the promise of transforming African countries from trading mainly in materials and commodities to trading in knowledge-intensive products.”

The book posits that the popular “Africa rising” narrative originates from external (non-African) perspectives vis a vis what economic development and innovation systems means for the continent. By default, this perspective ignores many of the realities and opportunities that actually exist on the continent. The book however offers a refreshing alternative; a Pan-African narrative and prospective framework to address the challenges of development as well as underdevelopment to match the African context. For instance, the authors advocate for the development of inclusive innovation systems; the practice of self-reliance as opposed to dependency; and the importance for strengthened human and institutional capacity which includes the richness of the African culture and its endogenous potential.

Through a medley of nine case studies, from Nollywood’s rise to Algeria’s steel industry, sizeable innovations from hubs across different regions of the continent, are showcased. The success factors as well as lessons learned are analysed and concrete policy recommendations offered on what must be done differently going forward. It becomes clear to the reader that Africa has the ability as well as potential to innovate and that there are a multiplicity of the players driving innovation. For example, the study of Cape Verde’s successful electronic government led by public sector, illustrates how policy driven innovation has reduced the costs and time of doing business and worked-well in the context of a small island developing country.

An analysis of the mobile technology innovation ecosystem in Kenya demonstrates how a combination of deliberate policies, infrastructure development as well as having the government in the lead, have been instrumental in providing the enabling institutional and macroeconomic environment needed for the innovation to thrive. The story of Ghana’s Suame Magazine illustrates how the informal sector and its artisans have been key in the emergence of one of the country’s most important industrial zones specialising in engineering and manufacturing. While a study on the Palm Residue Industry in Egypt showcases how innovation has transformed agricultural by-products into a local treasure with social and economic benefits spearheaded by the academic sector in cooperation with the private sector and local community.

A clear take away is that for innovation to mature, thrive and be valued, it must be supported by a conducive ecosystem. More must be done if Africa is to fully harness innovation systems and compete in the new world economy. In turn the book offers a menu of the deliberate policies needed in order to step up the pace of innovation in Africa, making it a treasure trove for policy makers, academics, business leaders and the public at large.

There is an exciting opportunity just around the corner to make Africa the continent of the future if we just pay attention to the messages of this book.

 

Air Transport Action Group (ATAG) issued Aviation: Benefits Beyond Borders last month that focuses on the myriad of benefits that aviation brings to the world today and well into the future. GE Aviation spoke with Michael Gill, ATAG Executive Director about the report’s findings and how aviation can continue its sustainable growth.

Why did ATAG release this report?

Michael Gill: Aviation really is a unique industry. We are the only mode of transport that can move people and goods to almost anywhere else in the world within a day. Without air transport, today’s global economy would look very different. The purpose of Aviation: Benefits Beyond Borders is to show the impact that global air transport has on the modern world. Air travel has become so widespread that people can sometimes take for granted just how important it is. As well as being a major employer and driver of economic growth, aviation also generates significant social benefits, which are explored in the report.

However, air transport also comes with an environmental cost. What we argue in this report is the need for balance. We need to address the issue of aircraft CO2 emissions, while retaining the undoubted and numerous benefits of air travel. And this is exactly what the whole industry is striving to achieve.

The report details very interesting facts about aviation’s impact on global economic growth and forecasts aviation-supported jobs worldwide will increase to more than 99 million and Gross Domestic Product (GDP) to $5.9 million in the next 20 years. But it states that to achieve these benefits will require appropriate support from governments. What type of support is needed?

Michael Gill: ATAG’s members, which represent all sectors of the aviation industry (airlines, airports, manufacturers and air traffic management), all agree that support from governments and intergovernmental institutions is vital if the industry is to grow, particularly in a sustainable manner. In 2015, all sectors of the industry joined together to deliver an open letter to representatives of all the world’s governments. The letter focused on five main requests:

• Investment in and reform of the air traffic management systems;
• Continued support for research into new technology, operational measures and sustainable alternative fuels;
• Improvements in intermodal transport planning;
• Institution of the right policy framework to help accelerate the availability of sustainable alternative fuels; and
• Agreement on a global market-based measure for aviation emissions at the 2016 ICAO Assembly.

These requests all have an environmental focus and would allow the sector to continue to grow in a sustainable manner, but there are other measures governments can take to maximize the economic contribution of the air transport sector. Easing or removing restrictive tax regimes and signing international open skies agreements are steps that governments could easily take to support the industry and reap its many benefits.

How is the report being used by governments?

Michael Gill: The previous reports have been sent to governments and other regional institutions such as the African Union, and we are always happy to see facts and figures included in speeches and reports. But more importantly, when the full range of benefits are gathered together and put on paper, we hope that governments will take stock and consider just how important the aviation industry is and appreciate the need to support its role in the modern world.

Sustainable development is also a key theme in the report. What does this mean for the aviation industry, and how is the industry supporting this set of 17 goals, which were announced by the United Nations as part of the 2030 Agenda for Sustainable Development?

Michael Gill: When we sat down to plan this report and decided on using the Sustainable Development Goals as a theme, we were struck by how aviation plays at least some part in supporting 14 of the 17 goals. Goals such as ‘decent work and economic growth’ and ‘industry, innovation and infrastructure’ are clearly supported by aviation, but other less obvious goals such as ‘good health and well-being’ or ‘quality education’ can also be aided by aviation. We want to take this quick analysis for the Aviation: Benefits Beyond Borders report even further and are exploring ways that we can have a more comprehensive look at the way air transport can support the goals.

What are the key challenges for the aviation industry now and in the future?

Michael Gill: The main challenge for aviation now and in the coming decades is without a doubt sustainable development, but it is a challenge that the whole industry is committed to meeting. We are keenly awaiting the outcome of this year’s ICAO Assembly, where we hope an agreement on a global offsetting scheme for aviation emissions will be made, allowing us to meet our goal of carbon-neutral growth from 2020. However, this is only meant to be a temporary measure.

We, as an industry, have the long-term ambition to halve aviation’s net CO2 emissions by 2050, based on 2005 levels. With billions of dollars being put into technological research and the commercialization of sustainable alternative fuels, we are confident this goal can be achieved. As ever, the support of governments is needed to help us in this endeavor.