1MBA, M. Com, Ph. D, Department of Commerce and Management Studies, Andhra University, Visakhapatnam, 530003, India
2MBA, Full Time Researcher, Department of Commerce and Management Studies, Andhra University, Visakhapatnam
Online published on 27 July, 2017.
Ethiopia's manufacturing sector is among the key productive sectors of the economy identified under GTP I (2010–2015) which can spur economic growth and development because of its immense potential for wealth creation, employment generation and poverty alleviation.
The manufacturing sector makes an important contribution to the Ethiopian economy and employs about 173 thousand people in the year 2012/2013.The sector had about 2, 610 manufacturing establishments in the same year and for the purpose of this study purpose it is divided into eight broad subsectors namely food and beverage products, textile and apparel products, leather and leather products, wood and pulp products, chemical and chemical products, rubber and plastic products, other non-metallic minerals products and metal and engineering products industries.
The top two manufacturing subsector; food and beverage and metal and engineering industries accounted for 51% of the sector's GDP and the food and beverage sector alone accounted 38% of the employment in the sector in the year 2012/2013.
The manufacturing sector contribution to the GDP in 2014/2015 was 4.8%.1 The performance of the sector has been affected by low productivity of workers and use of obsolete technologies which is attributed to the poor state of physical infrastructure, limited access to finance, limited research and development, poor institutional framework, and inadequate managerial technical skills.
Ethiopia, Manufacturing, Development, Economic role
