Manufacturing Companies Supporting Economy by Enhancing Import Substitution

Manufacturing companies in Ethiopia have been supporting the national economy by implementing import substitution policy of the country, Managers of Waryt Mulutila International and Hilina Enriched Foods PLCs disclosed.

Ethiopia is observing ‘Productivity Day’ under the theme “From Consumer to Producer!’ as part the series of events being marked during the month of Pagumen.

The objective of the event is to promote productivity in all sectors of the economic activities with a view to strengthen import substitution, job creation among other vital things.

Managers of Waryt Mulutila International and Hilina Enriched Foods told ENA that pursuant to the special attention paid by the government for facilitating full substitution of imported commodities by locally produced ones, their enterprises have been supporting the national economy by implementing import substitution policy of the country.

Managing Director of Waryt Mulutila International Tihetina Legesse said her company, which is engaged in the manufacturing of furniture, used to import finished products from abroad.

However, she indicated that currently the company has been successfully substituted imported wooden products by locally manufactured ones.

Faced by lack of forex, her company resolved to substitute formerly imported produced by locally produced ones.

She added that her company has created a favorable situation for totally replacing imported products by those produced in the country.

The policy framework issued by the government for substituting imported commodities by locally manufactured ones has contributed to the decision made by her company to fully replace imported products by those produced locally, she noted.

This has enabled us to embark on producing products that were originally assumed that they cannot be produced in the country thereby giving us the necessary impetus to test our production capacity and paved the way for our future production strategy, the managing director added

She said that her company used to import more than 100 containers of imported goods but nowadays their import has dropped to only one or two containers of imported commodities that are not currently available in the country.

Few materials that they are importing from overseas are those which can actually be produced by companies who are engaged in manufacturing industrial inputs and they need to be encouraged to continue their production, Tihetina said.

She finally remarked that it is useful to promote the chain of production of such commodities by operating in cooperation with these companies.

Hilina Enriched Foods Company has also shared similar success story about the encouraging import substitution vision of the country.

The company, that engaged in the production of “Plumpy Sup” widely known as RUSF, for the treatment of Moderate Acute Malnutrition, has been supporting the country’s economy by producing locally.

General Manager of the company, Hilina Belete told ENA that her company is engaged in the production of lifesaving foodstuffs locally vital to children in Ethiopia.

Besides its contribution to save foreign currency expenses, the production of such food items locally is very helpful to treat and save the lives of children who are in need of the products, she said.

According to the manager, the local products have also become source of foreign currency to the country as the company is supplying its products to international humanitarian organizations that operate in Ethiopia in the provision of food aid.

“There are international organizations like UNICEF and WFP. We supply our products by competing in the international bids. For instance we have secured more than 20 million USD during the concluded fiscal year.”

Ethiopia has obtained more than 2 billion USD by import substitution efforts carried out last budget year as part of the “Let Ethiopia Produces.” Campaign

Source: Ethiopian News Agency