Ethiopia to Create a Chamber of Commerce for Manufacturers

May 6, 2024

(3 Minutes Read)

The bill would allow for the formation of chambers of manufacturing industries and sectoral associations at the district and city levels, departing from the tradition of a single chamber encompassing both trade businesses and manufacturing industries.

The Ethiopian government is preparing legislation that will pave the way for the establishment of chambers of commerce dedicated to manufacturing industries. The legislation will also outline the criteria and requirements for the expansion of manufacturing industries.

The new rules would also enable manufacturing industries to ‘graduate’ in size once a year provided they meet the requirements. A small manufacturing industry can attain medium status by raising its capital to at least 10 million birr, employing at least 51 people, and holding at least 40 percent of its assets in permanent property.

Annual transactions must exceed 10 million birr, and at least 21 percent of this must be net profit. Industries looking to graduate are also subject to capacity utilization and domestic input sourcing requirements.

The Ministry of Labor and Skill is mandated to regulate and supervise the transition of industries and compile a national database. Studies will be launched to identify and link-local manufacturers with international markets. Outsourcing, franchise, and other market mechanisms will be permitted in a bid to encourage local manufacturers to expand both domestically and internationally.

A catalogue of all local manufacturing products will be prepared, and utilized for marketing and value chain purposes. The directive stipulates a series of provisions as well as reward mechanisms for local manufacturers that meet requirements.