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.