Ethiopia’s government is intensifying its efforts to shift the country’s economic foundation from agriculture to manufacturing, launching new policies and initiatives aimed at accelerating industrial growth and job creation.
In recent months, authorities have unveiled a series of programs targeting infrastructure development, industrial park expansion, and investment incentives to attract both local and foreign manufacturers. The shift is part of the government’s broader development strategy to diversify the economy, increase export earnings, and reduce reliance on smallholder farming.
Several industrial parks have been commissioned or expanded across key regions, offering tax breaks, reliable electricity, and streamlined customs procedures. These zones are primarily focused on textiles, leather, agro-processing, and light manufacturing. The government has also prioritized skill development by partnering with technical institutions to train a workforce capable of supporting a modern industrial sector.
Officials say the aim is not to abandon agriculture, but to reduce overdependence on it by building a robust manufacturing base that can absorb the growing youth population into gainful employment. With agriculture still accounting for a significant portion of GDP and employment, the transition is being framed as a “gradual but focused” economic realignment.
Support has also come in the form of financing and policy reforms. Small and medium enterprises (SMEs) in the manufacturing space are receiving easier access to credit and advisory services, while new trade and investment laws are being introduced to simplify regulatory hurdles.
Analysts note that while the transition presents challenges — including infrastructure gaps and foreign exchange constraints — Ethiopia’s strategic geographic position and expanding transport networks provide a solid foundation for long-term industrial growth.
The government has vowed to continue providing financial, logistical, and policy backing to ensure the manufacturing sector becomes a pillar of the national economy in the years ahead.
