IN a bid to expedite the implementation of industrialisation agenda, the government has embarked on a one-year nationwide campaign aimed at mobilizing regions to construct at least 100 small and medium industries by December 2018.
Launching the campaign here on Thursday
evening, the Minister of State in the President’s Office (Regional
Administration and Local Government), Mr Suleiman Jafo, noted that every
region should outline priority industries based on available raw
materials and markets in respective region.
“Regional authorities should mobilize
groups and individuals on industrialisation to attain the goal of
putting up at least 50 small industries and 50 medium industries in
every region by December next year,” said the Minister.
Under the theme, ‘Kiwanda Changu, Mkoa
Wangu,’ (My Industry, My Region), the campaign is also geared towards
raising public awareness on investment opportunities available in every
region. Mr Jafo pointed out that the government through Tamisemi
portfolio and the Ministry of Industry and Trade would create conducive
environment for investment in every region in order to attain the goal
of constructing 100 industries.
The Deputy Minister for Industry and
Trade, Engineer Stella between 2010 and 2015, but is low compared to
similar countries in sub-Saharan Africa and other successful developing
countries. It shows that manufacturing sector growth in Ethiopia was 14
per cent, ECOWAS 11.8 per cent, Vietnam 9.6 per cent and SADC (excluding
South Africa and Tanzania) 5.3 per cent annual average growth since
2010.
Due to growth decline, the share of the
manufacturing sector to the economy has been contracting from 9.8 per
cent in 2000 to 8.5 per cent in 2015, the report shows. The performance
is not leading to the desired structural change towards manufacturing
and falling short again of the regional target of 25 per cent by 2032.
Growth in manufacturing growth capacity
is high on average, but declined from 22.5 per cent between 2000 and
2005 to 1.7 per cent per annum between 2010 and 2015.
According to the report, the main weakness is on poor linkages of manufacturing sector with other sectors of the economy.
It argues that an important cause and at
the same time consequence of the limited performance of the
manufacturing sector lied in the disconnected fabric of the industrial
sector of EAC partner States, impressing only weak backward and forward
linkages among manufacturing sub sectors as well as non-manufacturing
sectors.
In his opening remarks, the Permanent
Secretary in the Ministry of Industries, Trade and Investments, Prof
Elisante Gabriel, said EAC member States need to focus on making optimal
use of comparative advantage and enhance competitiveness of the region
instead of competing against each other.
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