Ethiopia’s small and medium-sized manufacturing enterprises have significantly outperformed expectations, saving the country over $1.6 billion in import costs during the first nine months of the 2024/25 fiscal year, according to the Ethiopian Enterprise Development (EED).
EED CEO Kelali Wolde-Gabriel, presenting the institution’s nine-month performance report, noted that the original target was to save $881.7 million in foreign exchange through partnerships with 1,451 manufacturers. However, by expanding collaboration to 2,231 enterprises, actual savings nearly doubled the initial projection, reaching $1.6 billion.
According to him, the success stems from increased production of goods that would otherwise have been imported, thereby supplying the domestic market and easing pressure on Ethiopia’s foreign currency reserves.
In addition to import substitution, the enterprises made notable contributions to exports, the CEO disclosed, pointing out that a total of 357 small and medium manufacturers shipped 31,760 tons of products—including textiles and garments, leather goods, agro-processed items, handicrafts, and chemical and mineral products—earning $54.5 million in foreign currency.
Kelali emphasized that EED will continue working with regional governments, stakeholders, and development partners to further strengthen the role of small and medium enterprises in building a resilient and self-reliant economy.
Source: FMC
