ABSTRACT
Ethiopia has experienced rapid and stable economic growth for about two decades since the beginning of the twenty-first century. Although transformation towards a manufacturing economy is the ultimate goal, agriculture continues to be the most dominant sector. Hence, transformation of the agriculture sector is central to Ethiopia’s goal of reaching middle-income status by 2025.
Ethiopia can become globally competitive in the apparel, leather products, and agribusiness industries, and compete with imports in the wood and metal industries.
In spite of the currently insignificant heavy industry in Ethiopia, the agricultural-led based industrialization strategy, its programs of developing physical infrastructure, higher education and training will lay a firm foundation for heavy and general industrialization of the country. Developing the country’s mineral wealth, especially metal mining, will enhance the country’s rate of industrialization.
Access to the modern container port of Djibouti and the opening of the high speed Addis Ababa-Djibouti Standard Gauge Railway have significantly eased the country’s trade logistics constraints. The government’s increased focus on industrial parks and the increasing capacity in power generation, along with the completion of electric transmission lines to neighboring countries should improve export performance and increase growth.
