Achievement at a glance
Throughout 2016, the Government of Ethiopia (GoE) and UNIDO, together with partners, worked on mobilizing resources for PCP priority sectors. Discussions are ongoing with international financial institutions for investment in infrastructure amounting to USD 400 million, of which the GoE allocated USD 300 million for integrated agro-industrial park (IAIP) development. The IAIP initiative, part of the agro-food component, launched in 2016 and engineering designs were competed for four pilot IAIPs. Profiles of 58 Ethiopian companies were developed to encourage joint ventures and facilitate B2B linkages as part of Ethiopias First International Agro-Industry Investment Forum, successfully organized by UNIDO and the GoE in October 2016.
Challenges faced in implementation
Partnership and resource mobilization will continue in 2017. UNIDO will continue to provide technical assistance to promote and facilitate investment in key industrial projects, including monitoring, implementing lessons learned and networking. Construction of the four pilot IAIPs will commence and construction of the Modjo Leather City, a cluster of tanneries in the town of Modjo with a common wastewater treatment plant, is expected to start. A large-scale integrated livestock development programme currently in the pipeline is also expected to start.
Work will proceed with regard to improving the competitiveness of the Ethiopian textile and leather industries and upgrading the institutional capacities of the Ministry of Industry, as well as national institutes specialized in textiles and leather. Another planned activity is to support the Government in upgrading the pharmaceutical industry by updating Ethiopias good manufacturing practices roadmap. Furthermore, a programme for the development of ten clusters of small and medium-sized enterprises across three regions of Ethiopia will commence, and is expected to create 90,000 new jobs for young people.
Youth, women, smallholder farmers, the public and private sector.
Youth and women benefit from skills training programmes which increase their opportunities to find jobs or start their own businesses. The development of integrated agro-industrial parks will provide firms with infrastructure and services, promote private sector growth, attract investment and create many new jobs in the regions where the parks are being set up. Rural transformation centres around the IAIPs will provide support services for smallholder farmers, including training on modern agricultural practices, helping them to produce more and better quality products and connect to markets, in turn increasing farmers incomes and improving livelihoods in rural areas. Cluster development programmes help micro, small and medium-sized enterprises benefit from joint facilities and services, connect to larger firms and support institutions, and therefore access more market opportunities.
Effective partnerships ensure sustainable upscaling of investment in the selected priority sectors (agro-food; textiles and apparel; and leather and leather products) under the leadership of the Joint Steering Committee. (2015)