Ethiopia Substitutes $350 Million Worth of Imports in First Fiscal Quarter

Addis Ababa – Ethiopia has substituted imported products valued at 350 million USD in the initial quarter of the current fiscal year, according to Industry Minister Melaku Alebel. The announcement came during a half-day consultative discussion with stakeholders on the national import substitution strategy held in Addis Ababa today.

According to the Ethiopia News Agency,, Ethiopia’s trade imbalance is significant and detrimental to the economy. The country imports, on average, products worth 18 billion USD, while its exports have yet to surpass 5 billion USD. This discrepancy is primarily because Ethiopia mainly exports raw materials, limiting its competitiveness in the global market.

The Ethiopian government has prioritized strengthening the industrial sector to expedite national development. Import substitution has been a key focus, and the strategy has started to yield results. Ethiopia has successfully substituted imports such as textiles and food items. Over the last fiscal year, the country substituted products worth 2.26 billion USD.

During the consultative meeting, Minister Melaku noted that there is a focus on adding value and diversifying export products. A total of 96 import products have been earmarked for local production in both short- and long-term plans. Plans are also underway to export the substituted import products.

Additionally, a capacity-building strategy has been developed by the ministry and will soon be discussed with relevant stakeholders, the meeting revealed.