ADDIS ABABA – The Ministry of Trade and Industry (MoTI) announced that within the past five months, it gained a total of 1.33 Billion USD from the agriculture, mining, industry and other sectors.
Briefing journalists yesterday, Minister Melaku Alebel said that industries has played an important role in creating sustainable jobs and increasing productivity. Small and Medium Enterprises had greater contribution in this regard, he added.
As to him, the Ministry, setting goal to obtain 1.4 Billion USD from the sectors, it has gained 1.33 Billion USD. Of which, the agriculture sector covers 62 percent while, mining and industry contribute 23 and 12 percent respectively.
The amount when compared with the preceding similar period, it has shown a 20 percent increase.
The significant role played by small and medium enterprises in the production of affordable goods plus technology transfer is critical. They are also important for the creation of competent citizen.
What is more, they will make substantial contribution to maintain balanced income and expenditure. Thus, the expansion of these industries is vital.
However, these enterprises have been facing various challenges in their work. The Ministry along with stakeholders has been working to solve the problems.
According to him, the main challenges associated with limited capacity to provide coordinated and tangible support, provision of land, electricity, poor infrastructure, shortage of finance and foreign exchange, skilled manpower, and more.
“We have been working extensively with states and other relevant institutions to ensure that the limitations are addressed well.”
In this regard with the financial lease loan service reached between National Bank of Ethiopia and World Bank, the loan service is arranged in foreign currency to import raw materials and machinery. The money is expected to reach more than 1990 industries in various ways.
As a result, 230 new industrialists, 1,460 the existing ones and 300 new projects will receive loans.
Efforts are being made with the concerned parties to put an end to the debt consolidation process.
Furthermore, discussion is held with various local institutions and regional governments how the enterprises can stand on their own two feet- to produce quality products, create jobs and be competitive in locally and internationally, he remarked.
To this end, states’ administrations will hold discussions with relevant institutions in their respective states. In this way, it helps to solve the problems in each State and to provide support.
Hereafter, the issues that are expected of these industries is that to utilize the provided loans for the intended purpose, repay the loans on time and deliver them to the next borrowers, produce quality products, create more jobs are few among others, he remarked.