Introduction

Industrial development in Ethiopia is extremely backward. The

contribution of the industrial sector to the Gross Domestic Product (GDP)
over recent periods is only 11.7 percent. The backwardness of the industrial
sector is an indication of the low-level development of the Ethiopian
economy. In the modern world development is equated with
industrialization. Manufacturing is a process of changing commodities to
consumable forms. In this process there is an addition of value. In other
words, the value of commodities is more after the undergone
manufacturing. Manufacturing is, therefore, a higher-level economic
activity than the production of primary materials
What Is Industry?

BLM 4–1 Many people think of industry as the collective large-scale

manufacturing of goods in well-organized plants with a high degree of
automation and specialization. Although this is a common example of
industry, it can also include other commercial activities that provide goods
and services such as agriculture, transportation, hospitality, and many
others. Industry can be classified into different categories or levels for a
better understanding of the different types and for making it easier to
study. Although many school textbooks list only three levels, more
advanced books classify industry into five levels. The terms for each level
originate from Latin words referring to the numbers one to five.

Levels of Industry

 Primary (first): Primary industries are those that extract or produce

raw materials from which useful items can be made. Extraction of
raw materials includes mining activities, forestry, and fishing.
Agriculture is also considered a primary industry as it produces “raw
materials” that require further processing for human use.
 Secondary (second): Secondary industries are those that change raw
materials into usable products through processing and
manufacturing. Bakeries that make flour into bread and factories that
change metals and plastics into vehicles are examples of secondary
industries. The term “value added” is sometimes applied to
processed and manufactured items since the change from a raw
material into a usable product has added value to the item.
 Tertiary (third): Tertiary industries are those that provide essential
services and support to allow other levels of industry to function.
Often simply called service industries, this level includes
transportation, finance, utilities, education, retail, housing, medical,
and other services. Since primary and secondary levels of industry
cannot function without these services, they are sometimes referred
to as “spin-off” industries. Much of the city of Thompson, for
example, is made up of tertiary or service industries to support the
primary industry of mining.
  Quaternary (fourth): Quaternary industries are those for the creation
and transfer of information, including research and training. Often
called information industries, this level has seen dramatic growth as
a result of advancements in technology and electronic display and
transmission of information.
https://www.edu.gov.mb.ca/

major industry in Ethiopia

Ethiopia is strategically located in the horn of Africa. The country is home to
approximately 102 million people. The land-locked country is renowned for
its beautiful landscapes with numerous rivers, jungles, fertile land, and the
Great Rift Valley.  

Ethiopia is located near the markets of Middle East, Sudan, South Sudan,
Kenya, and Somalia. Being a landlocked country, Ethiopia uses Djibouti's
seaport for its trading activities. Ethiopia one of the fastest-growing
economies in the continent. According to the Economist Intelligence Unit
(EIU), Ethiopia’s GDP growth rate will increase by around 7.8% to 10% by
2023. The country intends to be a middle-income economy by 2025. Ethiopia’s
major industries include agriculture, construction, manufacturing, resources
and energy, tourism, and food processing.

Manufacturing Industry
The manufacturing industry in Ethiopia plays a significant role in the
country’s economy. Companies engage in the production of processed food,
textiles, beverages, tobacco, chemical products, footwear, soaps, and leather
among others. Small enterprises and cottage industries have embraced the
nonfarm employment; creating more working opportunities for Ethiopians.

The industries have also led to the production of consumer-ready products

like furniture, woven fabrics, jewelry, footwear, baskets, utensils, pottery,
farming, and construction products. Ethiopia has the most prominent
manufacturing park in Africa the "Hawassa Industrial Park." The park boasts
of numerous co-related manufacturing industries dealing with a textile mill
and water treatment plant.
 Furthermore, it is the only park in Africa to exclusively manufacture textile
and apparel products. The park employs over 60,000 people who are mostly
women. Ethiopia’s manufacturing sector has helped the economy by
employing many people. It has also contributed to a diversified economy.

Agro-Based Industry
The agriculture industry in Ethiopia contributes to over 50% of its GDP.
Ethiopia experiences favorable weather conditions leading to intensive
agricultural practices within various diverse ecological zones. Additionally,
the government has embraced both small scale and large-scale farming
leading to high production of livestock products and crop yields. The
Ethiopian agricultural sector covers agro-processed products, beverages,
livestock products (eggs, milk, and meat), leather and textile industries. It also
produces apparel, leather goods, and finished meat products for export and
domestic purposes. The cash crop farming sector employs over 60% of
Ethiopian working population. Major cash crops grown include spices, coffee,
tea, cut flowers, honey, cotton, wheat, oilseeds, khat, beeswax, vegetables,
fruits, and pulses. The high-value oil seeds cultivated in Ethiopia accounted
for $446 million in exports while fruits and vegetables generated $538 million
in the year 2017.

Moreover, Ethiopian farmers also grow coffee which is among the most
traded products in the world. Over 15 million workers get involved in various
processes of producing coffee with annual export revenue amounting to $881
million in 2016/2017. The government plans to increase its coffee exports
revenue to 2 billion dollars by 2019/2020. The subsistence livestock farming is
also part of Ethiopia’s agricultural sector with most activity taking part in the
lowlands. Mutton, beef, and goat meat processing contributed $97 million
worth of revenue while leather and raw hides’ exports revenue amounted to
approximately $74 million in 2017. The agriculture-related industries act as a
pillar to other segments of the Ethiopian economy such as machinery
production as well as wholesale and retail businesses.

Food Processing Industry

Ethiopia’s food sector generates large amounts of revenue to the government.
The popular food factory products are meat, butter, pasteurized milk, frozen
food, fresh fruits, bakery products, sugar, and cheese. The food processing
industry employs about one million people. The food processing industry is
closely related to the Agriculture industry as most of its raw materials are
farm produce.

Construction Industry
The construction sector in Ethiopia has recorded 11.6% annual growth fuelled
by an increase in infrastructure investments across the regions. The non-
residential and residential areas may further escalate the growth creating
more employment, trade, and industry value. Most of the construction
investment falls under the energy and infrastructure sector. This sector
contributes over 9.5% of the country’s GDP. The industry has been able to
provide cost-effective homes for the benefit of low-income households.
Moreover, Ethiopia’s construction sector employs over 1.8 million people
making it the second-largest operating segment. The government policies help
to identify the various constraints within the industry and facilitates the
implementation of laws. Additionally, policy implementation and rapid
growth have attracted foreign businesses. The policies have paved the way for
the involvement of the Chinese and European investors in industrial growth
and infrastructural development. The Ethiopian construction industries have
also embraced partnerships with suppliers, consultants, contractors and
engineers among others.

Resources And Energy Industry

Mineral resources mined in Ethiopia like tantalum and gold contribute about
10% of its GDP. The major gold mining areas are Kibre Mengist and Yubdo
which are located south and west of Ethiopia respectively. On the other hand,
tantalum mining takes place at the Kenticha mines in Oromia region. The
approximate annual production of tantalum is 120 tons. As of 2013, Ethiopia
was one of the world producers of tantalum. The country also has niobium,
gemstones, soda ash, and rock salt (found in Danakil plain). Ethiopia has the
potential of mining natural gas and petroleum. The energy sector impacts
both the social and economic lives of the Ethiopian population.
Hydroelectricity comes from dams stationed at Blue Nile River and its
tributaries, Awash River, Shebele River, Omo River, and Gilgel Gibe River.
 The government plans on expanding its hydroelectric power stations to
various other parts of the country. This expansion will result in rural
electrification.

https://www.worldatlas.com/articles/what-are-the-biggest-indstries-in-
ethipia.html

the manufacturing process

A manufacturing process is a method a business will follow to make its

products.

Deciding on the types of manufacturing you can use is determined by several

factors, such as:
 Market demand for products

 The state of raw materials, components, and chemicals you handle

 Availability of resources and the state of your factory

The manufacturing techniques are all different, and all have unique

advantages when used correctly.

For example, the batch production process works in large, make-to-stock

continuous runs or smaller batches to satisfy demand and minimize waste.
However, regardless of implementation, the process types remain largely the
same. Knowing the five manufacturing processes will help you better decide
which process type is best for your business.

Type of manufactural process

1, respective manufacturing
2, discrete manufacturing
3, jop shop manufacturing
4, process manufacturing (continues)
5, process manufacturing (batch)

1. Repetitive manufacturing

A manufacturer uses process types like repetitive manufacturing for

repeating production to commit to a production rate.

Repetitive processing comprises dedicated production lines that produce

the same or similar items, 24/7, all year round. With its requirements for
setup being minimal or having little changeover, the operation speeds can
be increased or decreased to meet customer demands or requirements.

Types of manufacturing like repetitive manufacturing distinguishing

characteristic is its use of assembly/production lines.

2. Discrete manufacturing

Like repetitive manufacturing, discrete manufacturing also utilizes an

assembly or production line.

However, this process type is highly diverse, with a variety of setups and

frequent changeovers. This is due to factors based on whether the products
in production are similar or different in design. If the items are vastly
different, this will require altering the setup and a tear-down, which means
production will need more time.

In theory, the types of manufacturing businesses that use discrete

manufacturing produce products that can be broken down and recycled —
automobiles, furniture, airplanes, toys, smartphones, etc
Unlike the other process types job shop manufacturing makes use of
production areas rather than assembly lines.
3. Job shop manufacturing
This production process will produce smaller batches of custom products,
either made-to-order (MTO) or made-to-stock (MTS). Organizing
workstations in a job shop setting allows manufacturers to make one
version of a custom product or even a few dozen in batches. If customer
demand requires it, the operation can become a discrete manufacturing line
with selected labor operations being, potentially, replaced by automated
equipment.

It’s good to choose these manufacturing types if you’re a manufacturer

handling bespoke products or work on a project-to-project basis.

4. Continuous process manufacturing

Similar to repetitive manufacturing is the continuous manufacturing

process, which runs 24/7 too.

However, continuous is a different type of manufacturing due to the state

of raw materials being gases, liquids, powders, or slurries. But, in areas like
mining, the products can be granule materials. Product designs are similar
unless the disciplines to create a final product or a production process are
more diverse.
You can find this production process in oil refining, metal smelting, and
even in food production like peanut butter.

5. Batch process manufacturing

The final process shares similarities with discrete and job shop processes
— batch process manufacturing.

Depending on consumer demand, one batch could be enough to meet that

demand. After a batch production run, a manufacturer cleans the
equipment to prepare the machinery for the next batch. Batch processes are
continuous by nature.
Batch processes are achievable when ingredients or raw materials aren’t
made to a strict standard. Like the continuous manufacturing process, the
product ingredients are similar, and the production process is more
diverse.
1. Industrial Policy in Ethiopia:
More than fifteen years into a period of sustained and rapid
economic growth, Ethiopia has continued to attract international
attention for its achievements and for pursuing a home-grown
development strategy, with an active industrial policy at its center.3
Some have been sceptical about Ethiopia’s development model.

While a 2017 BBC documentary asked: “Can Ethiopia be Africa’s

leading manufacturing hub?,” the Financial Times was dismissive,
arguing in an article entitled "Ethiopia’s mythical manufacturing
boom” that the Ethiopian government had waged a successful PR
campaign by selling “a story that does not really exist.”4 The
Ethiopian People’s Revolutionary Democratic Front (EPRDF) had
initially targeted agriculture as the key driver of post-war economic
take-off (1995–2015) but increasingly pursued the development of the
manufacturing sector as the prime driver of sustained economic
growth and structural transformation post 2010.5 Nonetheless by
2018, per capita income remained very low and it was services that
had come to dominate the economy rather than manufacturing.
Despite being able to feed its growing population, Ethiopia— Africa’s
second and the world’s twelfth most populous country—faced
intense structural constraints.

https://www.afdb.org