Measures on Services Push Earning from Manufacturing: Expert

wendimagegn — May 27, 2022 

ADDIS ABABA – Taking series of scientific measures in the service sector would help Ethiopia earn more from manufacturing, an expert in the area said.

Assistant Professor at Ethiopian Civil Service University Wondaferw Mulugeta (PhD) told The Ethiopian Herald that the government has to work on avoiding bureaucratic red tape, providing the private sector with inputs, offering loans, conducting researches, and establishing responsible investment offices in a bid to encourage local manufacturers and producers as manufacturing sector has shown sluggish pace compared with that of the service sector.

According to Wondaferaw, lack of adequate input and infrastructure, finance and working place, as well as the bureaucratic red tape are the main constraints private investors have been facing. Due to these reasons, local investors are fond of engaging in the service sector to earn profit within the shortest time possible instead of investing in time taking manufacturing one.

He further said that following such a tumultuous way of doing business, Ethiopia has lost a lot from the manufacturing sector. The government has thus been exposed to burdens that pull subsidizing sectors.

He said he observed that fruits like Avocado, Papaya, and Mango are hugely produced in Jimma, Oromia State, but not more than ten percent is used for human consumption. Besides, coffee product wastage is also common. Therefore, the agro-industry is significantly useful in processing fruits and protecting coffee product wastage.

Moreover, the government has to capitalize on applying flexible approaches and provide the concerned with research-based solutions to problems so as to encourage local investors to work more on the manufacturing sector, and private companies have to in turn exert utmost effort to contribute a lot to the national economy using various ways, he advised.

BY MESERET BEHAILU

The Ethiopian Herald  27 May   2022