Assessing the challenges of manufacturing export of Ethiopia

Ethiopia has demonstrated strong economic growth and become one of the best performing economies in the past decade. It had an average GDP growth rate of more than 10 percent. This study examines the trends of Ethiopia's external trade performance, particularly the Manufacturing export sector and its main challenges. The country has made relentless and massive efforts to diversify its economy and increase export earnings. However, the trade balance sustains a huge deficit with larger gaps between imports and exports, and remains persistently negative. The growth pattern of imports and exports indicates a steady increase over time with higher growth in imports than the exports. The country heavily relied on the export of primary agricultural products while the contribution of the manufacturing sector remains meager. Both external and internal factors contributed to the low level of manufacturing exports. Unfavourable business environment, Low productivity and lack of product diversification, poor border administration and regulatory environment, and lack of quality physical infrastructures are the main challenges that urged to be addressed.