ADAMA SCIENCE & TECHNOLOGY UNIVERSITY

Course: Geography Of Ethiopia & The Horn

Course code: LART 1004
Group’s students Name ID number
1. Meriat Akalu UGR/25909/14
2. Biniya Feleke UGR/25505/14
3. Biruk Sitota UGR/25647/14
4. Samuel Tolossa URG/25454/14
5. Kirubel Asfaw UGR/25485/14
6. Natan Muleta UGR/25570/14
7. Uzeir Abdulalim UGR/25350/14
8. Fenet Damena UGR/25435/14
9. Kidus Asnake UGR/25665/14
10. Nibru Kefyalew UGR/26297/14

Submitted to:
 Manufacturing Industry in Ethiopia
Introduction
Ethiopia's manufacturing industry has experienced significant growth in recent years, fueled by
government policies, strategic location, and a large labor force. The industry spans across
various sectors, including textile and garment manufacturing, leather and leather products, and
food processing. The government's focus on industrialization and infrastructure development,
including the establishment of industrial parks, has been a key driver of this growth. Ethiopia's
textile and garment manufacturing industry has been a particular highlight, attracting
substantial foreign investment and becoming a sourcing destination for global fashion brands.
The leather and leather products industry has also received significant government support,
while the food processing sector is growing as a contributor to the country's GDP. Overall,
Ethiopia's manufacturing industry is a crucial aspect of the country's economic growth and
development.

The spatial distribution of Manufacturing Industry in Ethiopia

The manufacturing industry in Ethiopia is primarily concentrated in and around the major urban
centers, such as Addis Ababa, Dire Dawa, and Adama. The majority of the manufacturing
enterprises are small and medium-sized, with few large-scale industries. The government has
implemented policies to promote the development of the manufacturing sector, including the
establishment of industrial parks and incentives for foreign investors. The industrial parks,
which are strategically located near major transportation routes, have attracted investment
from both local and foreign companies. However, there is still a significant regional disparity in
terms of the distribution of manufacturing industries, with some regions experiencing limited
investment and development. To address this, the government is implementing policies to
promote the equitable distribution of industries and to support the growth of the
manufacturing sector in all regions of the country.

Geographical Distribution of The Manufacturing Industry enterprises In Ethiopia

The geographical distribution of manufacturing industries in Ethiopia is primarily concentrated
in and around major urban centers such as Addis Ababa, Dire Dawa, and Adama. The
government has also invested heavily in the establishment of industrial parks in various parts of
the country, which has led to the expansion of manufacturing activities in other regions.
However, the distribution of manufacturing industries is still uneven, with some areas having
limited access to industrial development. To address this issue, the government has undertaken
various initiatives to encourage the establishment of industries in rural areas, including
providing tax incentives and offering infrastructure development. Overall, the geographical
distribution of manufacturing industries in Ethiopia is gradually expanding and diversifying,
which has the potential to drive economic growth and create employment opportunities in
various parts of the country.

Industrial Park in Ethiopia

Industrial parks have played a significant role in the development of the manufacturing sector
in Ethiopia. These parks have attracted both domestic and foreign investors due to the
incentives provided by the government, including tax holidays, land leases, and utilities such as
water and electricity. The establishment of industrial parks has also led to the creation of job
opportunities, the transfer of technology, and the development of skills among the local
workforce. The parks have helped to improve the productivity and competitiveness of the
manufacturing sector, which is essential for sustainable economic growth. However, there have
been concerns over environmental and social impacts, as well as the sustainability of the parks
in the long run. The government has taken measures to address these issues, including
promoting eco-friendly industries and ensuring the involvement of local communities in the
planning and implementation of the parks.

Contribution of Industrial Park in Ethiopia

The industrial parks in Ethiopia have made a significant contribution to the country's economic
growth and development. They have helped to attract foreign direct investment and promote
export-oriented manufacturing industries, which have created job opportunities and generated
foreign exchange earnings. The parks provide a range of infrastructure and services, such as
electricity, water, waste management, and security, which have enabled industries to operate
efficiently and effectively.

The sugar project sector mega project in Ethiopia

The sugar project sector is a significant mega-project in Ethiopia, which aims to transform the
country's sugar industry and promote economic growth. The government has established a plan
to increase the sugar production capacity of the country by constructing 13 new sugar factories
and expanding the existing ones. This ambitious plan also involves the construction of irrigation
systems and the expansion of sugarcane plantations to meet the growing demand. The project
is expected to generate significant employment opportunities and promote rural development
in the country. However, the project has also faced criticism due to its impact on the
environment and the displacement of local communities. The government is taking measures to
address these concerns by implementing social and environmental impact assessments and
involving local communities in the planning and implementation process.
 Industrial development in Ethiopia
Industrial development is a crucial component of Ethiopia's economic growth strategy. The
government has identified the manufacturing sector as a priority area for development and has
implemented several policies and strategies to promote industrialization. The country's
industrial development strategy is focused on attracting foreign investment, developing export-
oriented manufacturing, promoting industrial parks, and building domestic industrial capacity.
The government has also invested in infrastructure development, including roads, railways, and
electricity, to support the growth of the manufacturing sector.

As a result of these efforts, Ethiopia's manufacturing sector has grown significantly in recent
years. The sector's contribution to the country's GDP has increased from 4.8% in 2010 to 7.4%
in 2020, and its share of exports has also increased. The government's development strategy
has led to the establishment of industrial parks across the country, attracting international
investors and facilitating the growth of export-oriented manufacturing. The country's textile
and garment manufacturing sector, in particular, has seen significant growth, with several
international brands setting up factories in Ethiopia's industrial parks. Overall, industrial
development is a crucial driver of Ethiopia's economic growth and is expected to play an
increasingly significant role in the country's development in the coming years.

Challenges and Opportunities of Industrial Development in Ethiopia

Challenges Opportunities

Limited access to finance for small and Development of industrial parks to attract
medium-sized enterprises foreign investment

Limited domestic industrial capacity Growing demand for manufactured goods in

domestic and regional markets

Poor infrastructure, including roads, Government investment in infrastructure

electricity, and water supply development

Weak business environment, including Government efforts to improve the business

bureaucratic hurdles and corruption environment and attract foreign investment

Limited access to skilled labor Growing young and educated population with
potential for skilled labor force

Dependence on agriculture and natural resources Diversification of the economy and reduction of
dependence on a single sector
 Transportation and Communication in Ethiopia
Transportation and communication are crucial components of Ethiopia's economic
development, enabling the movement of goods, people, and information across the country.
Ethiopia has made significant investments in transportation infrastructure, including road and
railway networks, as well as airports and seaports. The country's road network is the largest in
Africa, connecting major cities and facilitating the movement of goods and people. The railway
network is also expanding, with new lines being constructed to improve connectivity within the
country and with neighboring countries. In terms of communication, Ethiopia has made
significant progress in recent years, with the expansion of mobile phones and internet
coverage. The government has also established a national broadband network to improve
connectivity and support the growth of the digital economy. Despite these improvements,
however, there are still challenges to be addressed in both transportation and communication,
including improving road quality, reducing transportation costs, and increasing access to
affordable internet and mobile services.

Different modes of transportation in Ethiopia:

Traditional transportation: Refers to the use of traditional methods of transportation, such as

walking, animal-drawn carts, or boats, that have been used for centuries in Ethiopia. This mode
of transportation is still used in rural areas where modern transportation infrastructure is not
available or accessible.

Road transportation: Refers to the use of vehicles, such as cars, buses, and trucks, on roads to
transport goods and people. Ethiopia has a vast network of roads that connect major cities and
towns, as well as rural areas.

Road network refers to the total length of roads,

Road accessibility refers to the ease of access to different parts of a country

using roads.

Road density refers to the number of roads per unit area.

Railway transportation: Refers to the use of trains on a railway network to transport goods and
people. Ethiopia has been investing in railway infrastructure in recent years, with new lines
being constructed to connect major cities and ports.
Waterway transportation: Refers to the use of boats and ships to transport goods and people
on rivers, lakes, and the ocean. Ethiopia has several major rivers, including the Blue Nile and the
Awash, and ports on the Red Sea, which provide access to international markets.

Airway Transportation: Refers to the use of airplanes to transport goods and people. Ethiopia
has several international airports, including Bole International Airport in Addis Ababa, which is a
major hub for air transportation in East Africa.

The contribution of transportation and communication to socio-economic

development
Transportation and communication play a significant role in the socioeconomic development of
any country, including Ethiopia. They facilitate the movement of goods and people, which in
turn leads to increased economic activity, trade, and investment. Improved transportation
infrastructure also promotes regional integration and connectivity, allowing remote areas to

access markets and services. Similarly, improved communication infrastructure, including

mobile phones and internet connectivity, enables greater access to information, education, and
business opportunities, which can lead to job creation, improved living standards, and reduced
poverty. Overall, the continued investment in transportation and communication infrastructure
is crucial for Ethiopia's development, as it supports the growth of a diverse range of industries
and sectors, and enables the country to participate fully in the global economy.

Trade in Ethiopia
Ethiopia's trade sector plays a significant role in the country's economy, with a diverse range of
export products. The government has been investing in improving trade infrastructure, but the
country faces challenges in export diversification and competitiveness. Continued development
of the trade sector is essential for Ethiopia's economic growth and development.

Internal trade refers to the buying and selling of goods and services within a country's borders.

External trade refers to the buying and selling of goods and services between countries or
across borders.

Foreign trade refers to the exchange of goods and services between individuals or entities in
different countries, typically involving the import and export of products.

Structure and Commodity export in Ethiopia

Ethiopia's export structure heavily relies on agricultural commodities, with coffee being the top
export product, followed by oilseeds, flowers, and textiles. The country is working towards
diversifying its export base by developing its manufacturing sector and exporting value-added
products. The export structure and commodity exports are critical to the country's economy,
providing foreign exchange earnings and employment opportunities. However, there is a need
for investment in value-addition industries to increase competitiveness and promote economic
growth and development. Recently, Ethiopia has started exporting significant amounts of gold
and other minerals, indicating a shift towards mining as a source of export earnings.

The Geographic Structure of expert

Ethiopia's export destinations are diverse, with the majority of its exports going to Asia,
particularly China and Saudi Arabia. Europe is also an important export destination, with the
Netherlands, Germany, and Belgium being the top importers. Ethiopia also exports to other
African countries, such as Sudan, Kenya, and Somalia. The country's export structure and
destinations are constantly evolving, with efforts to expand and diversify its export markets.
However, challenges such as infrastructure constraints and limited access to finance continue
to hinder the country's export growth potential.

Tourism
Tourism in Ethiopia refers to the industry that involves visitors traveling to and staying in the
country for leisure, business, or other purposes. It encompasses various activities such as
cultural and historical site visits, wildlife safaris, adventure sports, and eco-tourism. The
country's diverse natural landscapes, unique wildlife, rich cultural heritage, and ancient history
make it an attractive destination for tourists from around the world. Tourism is recognized as a
key sector in driving economic growth and job creation in Ethiopia, and efforts are being made
to expand and develop the industry further.

Axum is an ancient city located in the Tigray region of northern Ethiopia, known for its historical
and religious significance. It was once the capital of the Axumite Kingdom, a major trading
power in the ancient world. Today, it is a UNESCO World Heritage site and a popular tourist
destination.

Lalibela is a small town in northern Ethiopia that is famous for its rock-hewn churches, which
were built in the 12th century. The town is a UNESCO World Heritage site and a popular
pilgrimage destination for Ethiopian Orthodox Christians. Lalibela is also known for its rugged,
mountainous terrain and its vibrant local culture.

The Walls of Harar is a series of protective walls and gates that were built around the ancient
city of Harar in eastern Ethiopia in the 16th century. The walls served to protect the city from
invading forces and are made of stone and mud. Today, the walls are a UNESCO World Heritage
site and a major tourist attraction. Visitors can walk along the walls and explore the maze-like
alleys and vibrant markets within the city. The Walls of Harar are also home to a number of
historic mosques and other landmarks.

The Castles of Gonder is a group of historic structures located in the city of Gonder in northern
Ethiopia. Built-in the 17th and 18th centuries by the Ethiopian emperor Fasilides and his
successors, the castles served as the seat of the Ethiopian empire for nearly 200 years. Today,
they are a UNESCO World Heritage site and a major tourist attraction.

Natural attractions in Ethiopia

Simien Mountains National Park - a UNESCO World Heritage site with stunning mountain
landscapes and unique wildlife, including the endemic Gelada baboon.

Blue Nile Falls - a magnificent waterfall located near the town of Bahir Dar, with a height of
over 40 meters and a width of 400 meters during the rainy season.

The Rift Valley is a geological formation that stretches from Syria to Mozambique, passing
through Ethiopia. It is a major geological feature that has shaped Ethiopia's landscape, with
numerous lakes and hot springs along the way. The region is home to many unique and
endemic plant and animal species and is a popular tourist destination for its stunning scenery
and rich cultural heritage.

Role of tourism in our Economic

Tourism can generate foreign exchange earnings, create employment opportunities, promote
cultural exchange, and contribute to the growth of other sectors such as agriculture, transport,
and construction.

The challenge of the sector to be addressed

The challenges facing the tourism sector in Ethiopia include poor infrastructure, inadequate
investment, limited marketing, and a lack of skilled human resources. Addressing these
challenges would require increased investment, government support, and public-private
partnerships.

Conclusion
Through our conversation, we discussed several aspects of Ethiopia's economy, including
manufacturing industries, transportation, communication, trade, and tourism. Ethiopia is a
country with immense potential for economic growth and development, but it also faces
numerous challenges in achieving its economic goals.
Investment in key sectors such as manufacturing and tourism can drive economic growth and
create employment opportunities. However, addressing challenges such as poor infrastructure,
inadequate investment, and limited marketing is crucial for the country to fully realize its
potential.

Furthermore, the government's commitment to promoting economic growth and development

through various initiatives such as the establishment of industrial parks and tourism
development programs is commendable.

Overall, the conversation highlights the need for continued efforts to address the challenges
facing Ethiopia's economy and to leverage the country's strengths to achieve sustainable
economic growth and development.

Reference

https://www.macrotrends.net

https://en.wikipedia.org/wiki/Manufacturing_in_Ethiopia

https://geographypoint.com/2022/07/manufacturing-industries-of-
ethiopia/