In recognition of the pivotal role the private sector plays in industrial development, FDRE Ministry of Industry (MOI) is undertaking multi-faceted capacity building programs aimed at creating conducive conditions for improving productivity and competitiveness in order to enhance the participation of the private sector in the Ethiopian economy.
The Ministry of Industry through the Ethiopian Competitiveness Facility (ECF) is launching its second phase private sector capacity building project with a budget of £4 million financed by United Kingdom (UK), Department for International Development (DFID) which will be operational in the coming four years. It is anticipated that the ECF will create 5000 jobs, of which 3500 will be for women and will raise 6000 households’ incomes by at least 10%.
The ECF forms part of DFID’s wider “Private Enterprise Program Ethiopia” (PEPE), a new £70 million programme running from 2013-2019, which aims to support Growth and Transformation Plan(GTP) objectives, create jobs and raise incomes, through supporting the growth of the private sector. Other parts of PEPE will be announced later this year.
The Ethiopian Competitiveness Facility, Ministry of Industry’s private sector capacity building implementing unit, provides grant support to private firms and affiliated institutions as follows:
a) Private sector enterprises operating in the leather, textile and garment, and agro processing industries.
b) Institutions that support export development, particularly by supplying products and services to targeted industries.
c) Chambers of Commerce & Sectoral associations.
d) Eligible private sector enterprises that do not currently export, but support exporting firms or manufacturing products that substitute imports.
The support for priority sectors can also cover expenditures on capital expenses of less than 50% of the total requested support.
Private firms supported by the ECF are expected to significantly increase their exports/domestic sales in terms of volume and value. Beneficiary firms are also expected to employ a substantial proportion of women, bringing them into managerial status and promote green growth in their respective industries.
Note to Editors
• The growth and Transformation Plan (GTP) envisages that industrial development shall take the leading role for achieving sustained economic growth and substantially contribute to the agricultural development of the country as well as creating jobs in the economy.
• FDRE’s Ministry of Industry, Ethiopian Competitiveness Facility (ECF) in its phase 1 program has executed a private sector development project financed through a credit of International Development Association of the World Bank Group (IDA). It has disbursed over 7.7 Million USD (over Birr 140 million) for various capacity building activities; particularly:
a) To implement benchmarking programs by signing agreements with well known international institutions in the Leather and Textile Industries. In addition to this, different capacity building activities were undertaken in agro-processing, chemical & pharmaceuticals, floriculture and other manufacturing and exporting private firms.
b) To develop the capacity of Chambers of Commerce and Sectoral associations for the delivery of better services, advocacy role to their members and market linkages.
c) Provision of financial grants and technical assistance to final winners of the BIZPLAN competition.