As part of the ongoing efforts in place and to contribute in addressing to the challenges the manufacturing sector face, Addis Ababa chamber of commerce and sectoral Associations has initiated a study on Sourcing, Input Supply, and Linkages as Determinants of Investment in manufacturing sector in Ethiopia.

On welcoming speech of the workshop, Deputy Secretary General of AACCSA, Ato Zekarias Assefa said that such type of studies have crucial contribution for the improvement of industrial production in Ethiopia. The core tenet of the study is investigating the status of sourcing, input supply and linkage in the manufacturing sector. he stressed.

Manufacturing industries in the country generate their inputs both from local and foreign sources depending on the nature of the manufacturing sub-sector.

 In the workshop, consultant of the study, Dr Belay File and Ato Eyasu Kumera presented an overview of Sourcing, Input Supply, and Linkages as Determinants of Investment in manufacturing sector in Ethiopia.  . According to consultants both domestically sourced and imported inputs are pointed of poor quality and especially the domestic sources are recognized for their inferior quality and inadequate supply.

The survey result investigates level and quality of input supply, availability of good infrastructure and utility amenities, skilled manpower and entrepreneurship, availability and size of market for manufactured goods, level of institutional coordination and status of legal and regulatory environment as major determinants of investment in manufacturing sector among others.

The Study believes that Ensuring sustainability of input supply through promoting local supply and smoothing flow of resources from abroad are mandatory to solve the problem of the situations.

Strengthening input supply linkages through such as awareness raising campaigns on the importance of economic linkages; strengthening  investment, information flow and network across the value chain; improving transport and logistics and the like are recommendable, according to the study.

 Participants in the work shop pointed that traditional way of transaction is one of the challenges in the manufacturing sector. So, they stressed to focus on the value creating system, where growers, suppliers and customers work together to create value.

The study recommends to the needs of reconfiguration of roles and relationships among actors. Manufacturing industries must actively involve in improving organizational leadership by focusing on    a supply chain activities. Economic Power is still in the hands of growers not consumers, hence company owners should work for an environment of abundance so that they may see economic power shift to consumers.