M a r k e t N e w s

Africa to Set Up Independent Body to boost industrialization

Posted on : Thursday, 15th January 2015

 Oromia is conducting a study which could lead to the establishment of an autonomous body that will be fully in charge of industrial development in the region, instead of the Industry & Urban Development Bureau as is the case now.

This follows from Addis Abeba, which set up the Industry Development Bureau in November 2014, taking it out of Trade and Industry Bureau. This bureau, currently recruiting staff, could open its doors in less than two weeks, Yohannes Bekele, Industry Development Bureau head officer, said.

The Ministry of Industry held a meeting with small, medium and large enterprises on January 6,2015 at Ghion Hotel to discuss the challenges and way forward to improve the industry sector. In order to make a successful economic shift from agriculture to industry, which is a core element of the next GTP, this enterprise should be given due attention, stated Mehbratu. The lack of an autonomous body to deal with industry was one of the major issues raised during the meeting.

"We are facing challenges in terms of finance, land allocation and bureaucratic red tape, which happen because a clearly defined and specialized body is not present," stated Birhane Esatu, one of the participants from Oromia region representing Fraol Metal & Wood Work small enterprise.


Oromia made the decision in consultation with the Ministry of Industry (MoI) to form a single responsible autonomous body, according to Yasin Mohammed, industry service expert at the Oromia Industry & Urban Development Bureau. The autonomy will help deliver centralized and specialized support to entrepreneurs, who are interested to invest in the industry sector, he explained.

At present, the body responsible to the Oromia regional industry sector, known as Industry & Development Expansion Core-Process under, is in the Design & Construction, department under the Industry & Urban Development Bureau. It was established to give strategic and procedural support to the industry sector, but it failed to deliver because of lack of commitment and responsibility, Yasin said.

The Oromia Civil Service College is consulting the Bureau on procedures to be followed and elements to be included to study and plan the structuring of the body. The study started in December 2014 and completion is expected in the coming three months. The body will be established as an agency or bureau or department, according to Yasin. If it is established as an agency or a bureau, it will be responsible for the regional government, but if it is a department, it will still be under the regional Industry & Urban Development Bureau having its own department.

There are 218 small enterprises, 258 medium enterprises and 158 large enterprises that are private or public engaged in the manufacturing sector in Oromia, according to Yasin. This figure makes Oromia the second largest region in terms of number of manufacturing companies next to Addis Abeba, he added.

Other regions could follow in the footsteps of Addis Abeba and Oromia, according to Mebrahtu Meles, state minister for industry.

Source : allafrica.com
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