International Journal of Engineering Research and Development e-ISSN: 2278-067X, p-ISSN: 2278-800X, www.ijerd.com Volume 6, Issue 10 (April 2013), PP. 01-08 1 Industrial Growth in Ethiopia–A Review M. Narasimha 1 , AchamyelehAemro Kassie 2 , R. Reji Kumar 3 1,2,3 Lecturer, School of Mechanical and Industrial Engineering,Bahir Dar University, Bahir Dar, Ethiopia, Abstract:- Ethiopia is one of the land-locked countries in Africa. By African standards, Ethiopia is a potentially wealthy country, with fertile soil and good rainfall over large regions. Ethiopia possesses several valuable minerals, including gold and platinum. Unlike most sub-Saharan African countries, Ethiopia's resources have enabled the country to maintain contacts with the outside world for centuries. Since Ethiopia doesn’t manufacture automotive, construction machineries, machine tools and agricultural equipment’s locally at present, it imports those from various countries of the world. Ethiopia claims that there are lots of resources available in the country. It is true the country has treasure of resources which are not being fully utilized or explored. There is a need of industrial growth in the country. This paper is in relation to develop industries in the country by developing industrial zones, estates, techno craft guilds and enhancing private management capacity. In the present situation industries such as manufacturing of machineries and equipments, automobiles spare parts treated as non-resources based industries and the Govt. pays little attention for these industries. But now Ethiopian Govt. with Industrial Master Plans (IMP) lay the foundation for the development of the manufacture sector, which quickly became the leading growth sector of the economy. These depend the development of the manufacturing sector which led to increased value-added activities, enhanced productivity, greater industry linkages as well as growth of manufacturing related services. Utilizing the resources and the techniques available, it is possible to produce the various engineering products of the daily needs. In developed countries in the mass manufacturing industry; they are using latest equipment and improved methods in process to produce the quality goods. Similarly it is possible to produce the same items maintaining the same quality here by using the proper tooling with the equipment available. As it is in the country all the necessary goods are imported from the other countries spending lot money and time. The country is depending on the other source. The country is still under developed it is true, but how long it will continue this stage, here all the required resources are available and skilled labour, so only will power is lacking. Today the world is advancing, and emerging into new heights of growth. Growth is required for everyone hence it is the time to utilize the resources available start producing the products to meet the demand of the domestic market and later international market. The countries industrial and commerce bureau has to look at the newly industrialized countries performance and how they are progressing day by day, adapt similar industrial policies of them and implement the policies in a phased manner. If look at the present condition of industry and current situation of the industries in Ethiopia, it is a long way to go and takes more time, but right decision at right time will help in progressing. Key words:- Machine building, Agro industries, Electrical, Electronic and Automobile Industries. I. INTRODUCTION Ethiopia, with an area of 1.1 million square kilometres (444,000 square miles), is the ninth largest country in Africa. This is slightly less than twice the size of Texas. In July 2000, the population was estimated at 60 million with a growth rate of 2.9 percent. The rural to urban population ratio is 4:1. The Ethiopian economy is largely based; agriculture on average accounts for about 40 percent of GDP, 85 percent of exports, and 85 percent of total employment. Ethiopia’s main imports include petroleum products, civil aircraft, vehicles, spare parts, construction equipment, medical and pharmaceutical products, industrial equipment and machinery, both agricultural and industrial chemicals, agricultural machinery, hybrid seed, fertilizers, irrigation equipment, and durable and non-durable consumer goods. [1] Ethiopia’s main exports are coffee, chat, leather and leather products, pulses, gold, live animals and processed meat, oilseed cake, and fruits and vegetables. Among these products, coffee is by far the most important, constituting an average of 55 percent of total exports by value during the last twenty three years and reaching as high as 60 percent in 1999/2000. [2]