Ethiopia has reached a major milestone in its import substitution strategy, producing goods worth USD2.7 billion in the first eight months of the current fiscal year, according to the Ministry of Industry.

State Industry Minister Tarekgne Bululta, speaking to the state-run Ethiopian News Agency, highlighted the remarkable growth in domestic production. Just four years ago, the value of import-substituted goods stood at USD 345 million. This figure surged to USD2.9 billion three years ago and reached USD2.8 billion in the last fiscal year, reflecting a sustained upward trend.

In the first eight months of 2024/2025 alone, Ethiopia has already recorded USD2.7 billion in import substitution, underscoring the momentum of this economic policy. The government is now working closely with stakeholders to push this figure to USD3.9 billion by the end of the fiscal year.

The market share of locally produced substitute goods has also expanded significantly, now surpassing 43%. This indicates growing consumer confidence in Ethiopian-made products and increasing competitiveness in the national market.

Tarekgne attributed this success to the government’s strategic focus on reducing reliance on foreign imports and strengthening domestic production. The initiative not only aims to alleviate foreign currency shortages but also seeks to create substantial job opportunities and improve access to affordable goods.

As part of this strategy, the Ministry of Industry has identified 96 key products for domestic substitution, ensuring a structured and targeted approach to import reduction.