Country trends: Ethiopia

particularly among young people. the lack of job opportunities can lead to social instability and reduced economic growth.

• Poor infrastructure: Despite the government’s recent emphasis on infrastructure development, the country still has a substantial infrastructure gap, including roads, bridges, and electricity supplies. this can stifle economic growth and development by raising transit costs, limiting market access, and limiting the availability of essential services.

these are just some of the key macroeconomic challenges and addressing these issues would necessitate a collaborative effort from the government, private sector, and civil society organisations. Implementing policies to manage inflation and exchange rate volatility, reducing external debt levels, encouraging job creation and entrepreneurship, investing in infrastructure development, and tackling social and economic inequalities may all be part of this.

gROWT h A n D in VEs TME n T OPPORT uni T i Es

REgi O n ALLY A n D in E T hi OP i A

Ethiopia is africa’s second-most populated country and the fastest-growing economy, with enormous development and investment possibilities. the government is devoted to economic development and is fostering a business-friendly environment. businesses can invest in Ethiopia in a variety of sectors, including mining, agriculture, manufacturing, tourism, infrastructure, and energy.

• Infrastructure: Ethiopia has considerable infrastructure gaps, which gives an opportunity for investors to engage in the development of new roads, bridges, and power plants. Several infrastructure projects, including the grand Ethiopian renaissance dam, railways, and airports, have already been undertaken by the government.

• Manufacturing: The Ethiopian government has prioritised manufacturing as a vital industry for growth and investment, enacting a number of initiatives to attract investors. these initiatives have resulted in increased expansion in the textile and garment manufacturing sectors, as well as in industrial parks that provide tax breaks and infrastructure to investors.

Cities like addis ababa, as well as provincial capitals, offer the opportunity for real estate and service sectors that cater to consumer demand. In addition, I advise businesses to look for ways to leverage recent trade agreements, such as the african Continental Free trade area, which may allow them to reach more markets throughout the continent.

Th E ROLE O f REgi O n AL CEME n T A n D

CO n CRETE A ssOC i AT i O ns the associations play an important role in encouraging innovation in cement and concrete manufacturing. the associations served as a venue for cement and concrete makers to discuss ideas, collaborate on research and development, and promote best practices. the associations also represent the industry in government lobbying and strives to create awareness of the role of cement and concrete in regional development. the Ethiopian association of Civil Engineers (EaCE) is a major player in the construction industry. It played an important role in promoting the use of sustainable materials in cement and concrete production by supporting researchers and graduate students, organising forums, workshops, and webinars to share ideas and collaborate on research and development (r&d). the association works to raise awareness among policymakers and other stakeholders about the importance of innovation in the cement and concrete sector, and advocates for policies that incentivise r&d, as well as investment in infrastructure and human capital.

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I believe localisation programmes, in general, can have both beneficial and bad effects on a country’s economy, and hence must be addressed with caution.”

EaCE and other associations in the sector play an essential role in supporting r&d, education and training and advocacy and policy development.

LOCAL isAT i O n PRO g RAMMEs the concept of localisation programmes in the context of cement production involves encouraging local sourcing and processing of cement and other raw materials, rather than relying on imports. In recognition of the challenge of foreign currency shortages, the Ethiopian government has taken steps to promote localisation in the cement industry. to this end, most of the materials used for cement production are sourced locally. Furthermore, the government has put in place a range of incentives to help drive investment and expansion in cement production, such as tax exemptions. In addition to these incentives, the government has also put a ban on the importation of cement in order to encourage the use of locally produced cement. all of these measures are designed to promote local economic development and self-sufficiency in the cement industry. the cement production industry in Ethiopia is currently reliant on importing three major inputs. the first input is diesel fuel and hFo for the high-temperature kiln, the second input is periodic maintenance to the plants, which is carried out entirely by foreign companies, and the third input is expatriates who operate the plant.

I believe localisation programmes, in general, can have both beneficial and bad effects on a country’s economy, and hence must be addressed with caution. on the plus side, local cement manufacturing can help to create jobs, encourage local economic development, and lessen reliance on imports. on the negative side, localisation programmes can increase consumer and business costs, and result in inefficient production.

When it comes to sustaining cement national standards and free trade, there is a delicate balance that needs to be achieved. on the one hand, it is important to ensure that national standards are adhered to in terms of quality and safety, as well as environmental and social standards. localisation programmes can be a way to ensure that these standards are met in locally produced cement. on the other hand, free trade can boost competition, lower prices, and drive innovation, all of which benefit consumers and the overall economy. localisation programmes can be protectionist and can harm free trade. thus, deciding whether or not to conduct a localisation programme is a hard issue. a variety of considerations must be considered, including the economic, social, and political ramifications of such a programme. n