Human Resource Requirement Plan for Ethiopian ... · Human Resource Requirement Plan for Ethiopian...

Human Resource Requirement Plan for Ethiopian

Manufacturing Industries

(2016-2025)

Prepared by Adama Science and Technology University Study team

Submitted to: Ministry of Industry

Ministry of Industry

Addis Ababa, Ethiopia

April, 2015

High

Tech-Manufacturing

Industries

Adama Science and Technology University Study team members

Dr. Lemi Guta……………Coordinator

Dr. Bekele Shibru………..Team leader

Dr. Ayele Abebe…………member

Dr. Wassihun Yimer……...member

Dr. Solomon Alemu………member

Dr. Ziyn Engidasewu……..member

Dr. Habtamu Beri…………member and adminstrative Issues facilitator

i

Contents

List of Tables ........................................................................................................................................ vii

List of Figures ........................................................................................................................................ ix

Executive Summary ............................................................................................................................... xii

CHAPTER ONE: INTRODUCTION ..................................................................................................... 1

1.1 Background of the study ............................................................................................................... 1

1.2 Rationale of the study ................................................................................................................... 3

1.3. Objectives of the study ................................................................................................................. 3

1.4 Scope of the study ......................................................................................................................... 3

1.5 Limitations of the Study ................................................................................................................ 4

1.6. Ethiopian Manufacturing Sector Development ............................................................................ 5

1.7 Human Resource in the Manufacturing Sector in Ethiopia........................................................... 7

1.8 Medium and Large-Scale Manufacturing Industry Development................................................. 8

1.9. Overview of International Experience in Industrial Human Resource Development .................. 9

1.9.1 HRD experience from Singapore ......................................................................................... 10

1.9.2 HRD experience from Hong Kong SAR .............................................................................. 12

1.9.3 HRD experience from Republic of Korea ........................................................................... 13

1.9.4 HRD experience from India ................................................................................................. 16

CHAPTER TWO: OVERVIEW OF CURRENT HR SUPPLY ........................................................... 21

2.1. Education and Training Policy Supporting HRD for Manufacturing Sector ........................ 21

2.2. GTP Focus of HRD for Manufacturing Industries ................................................................ 21

2.2.1. TVET Strategies ............................................................................................................ 22

2.3 Role of STU‟s & IOTs (Science and Technology Cluster) ......................................................... 24

2.3 Linkage Forums of Universities, TVET Institution and the Industries ....................................... 26

2.4 Current Supply of HR for the Manufacturing Sector ............................................................ 26

2.5.2 Comparison between TVET supply and manufacturing sectors demand ............................ 28

2.5.3 The comparison between HE graduates trend and manufacturing sectors demand ............. 29

CHAPTER THREE: HUMAN RESOURCE REQUIREMENT FORECASTING METHODOLOGY

.............................................................................................................................................................. 31

3.1. Method of Data Collection .................................................................................................... 31

3.2. Method of HRR Forecast ...................................................................................................... 33

CHAPTER FOUR: HR DEMAND ANALYSIS OF THE MANUFACTURING SECTORS (2016-

2025) ..................................................................................................................................................... 37

4.1. SLOT Analysis ...................................................................................................................... 37

4.2. Strategic Issues ...................................................................................................................... 38

4.2.1 Mismatch between industry workforce skill demand and supply: ....................................... 39

4.2.2 Low labor productivity......................................................................................................... 39

4.2.2Strengthening Institutional set-up for National Skill Development: ..................................... 40

4.2.4 Limited HR capacity for technology transfer: ..................................................................... 41

4.2.5 Weak University/TVET-Industry Linkage: ......................................................................... 42

4.3 Strategic Objectives .................................................................................................................... 42

4.4 HRD Direction of the Manufacturing Sector ........................................................................ 43

4.3.1 Phase I HRD (2016-2020) ................................................................................................. 44

4.3.2 Phase II HRD (2021-2025) ............................................................................................... 44

CHAPTER FIVE: HUMAN RESOURCE REQUIREMENT OF THE MANUFACTURING

INDUSTRY (2016-2025) ..................................................................................................................... 47

5.1HR Requirement for Pharmaceutical Sector ................................................................................ 48

5.1.1 Overview of the Pharmaceutical sector................................................................................ 48

5.1.2 Major Categories of the Pharmaceuticals .......................................................................... 49

5.1.3 Market Share of the pharmaceutical Sector .................................................................. 50

5.1.4 Export and Import Performance .................................................................................... 50

5.1.5 Future Growth Expectation of pharmaceutical sector ................................................... 54

5.1.6 Human Resources in the pharmaceutical Industry in Ethiopia ..................................... 55

5.1.7 HR Forecasted for the pharmaceutical Sector (2016-2025) .......................................... 56

5.2 HR requirement for Textile and Garment Sector .................................................................. 60

5.2.1 Major Products of the Textile and Garment Sector....................................................... 62

5.2.2 The Textile and Garment Sector Size and Growth ....................................................... 63

5.2.3 Export Performance of the Textile and Garment Sector ............................................... 65

5.2.4 Value Chain of the Textile and Garment Production .................................................... 65

5.2.5 Description of the Textile and Garment Production sub-Sectors .................................. 66

5.2.6 Current Employment Pattern of the Textile and Garment Sector ................................. 68

5.2.7 Occupational Mix of Workforce in the Textile and Garment sector ............................. 68

5.2.8 HHR Forecast for the Textile and Garment Sector ....................................................... 71

5.2.9 HRR Forecast for Textile and Garment Sector (2016-2020) ........................................ 71

5.2.10 HRR Forecast for Textile and Garment Sector (2021-2025) ........................................ 75

5.3.1 Overview of the Leather Sector ........................................................................................... 79

5.3.2 GDP and productivity Trends in the leather sector .............................................................. 80

5.3.3 Production Trends of Enterprises in the leather sector ........................................................ 81

5.3.5 Twinning Program in the leather sector ............................................................................... 83

5.3.6 Leather Sector Current Employees Occupational Profile .................................................... 84

5.2.7 The trend of leather sector trained workforce need and TVET graduates ........................... 88

5.2.8 The Leather Sector Human Resource Requirement forecast for the year 2016-2025 .......... 89

5.2.9 Human Resource Requirement Forecast for the leather sector (2016-2020) ....................... 89

5.4 HR Requirement for Chemical and Construction Inputs sector ................................................ 104

5.4.1 Overview of the Chemical and Construction Inputs Sector ............................................... 104

5.4.2 Gross Value Production (GVP) of Chemical sector .......................................................... 105

5.4.3 Major products of the chemical and construction inputs sector ...................................... 106

5.4.4 Employment trend of the chemical and construction inputs sector ................................... 107

5.4.5 GDP share of the Chemical sector ..................................................................................... 110

5.4.6 Export /Import Substitution of the sector ........................................................................... 111

5.4.7 Skill requirement and skill gaps of the chemical and construction inputs sector ............... 112

5.4.8 HRR forecast for the Chemical and Construction Inputs sector ........................................ 112

5.5 HR Requirement Projection in Metal & Eengineering Sector ................................................... 122

5.5.1 Overview of the metal and engineering sector ................................................................. 122

Major products in metal and engineering sector ......................................................................... 122

GDP share and Value additions in metal and engineering sector ............................................... 122

Production Capacity and Market Share of the Sector ................................................................. 123

5.5.2 Current Workforce pattern in metal and engineering sector ............................................ 124

5.5.3 Workforce Requirement planning for metal and engineering sector ............................... 124

Major Assumptions in workforce requirement planning ............................................................ 125

5.5.4 Human Resource Requirement Projection (2016-2020).................................................... 126

5.5.5 Human Resource Requirement Projection (2020-2025).................................................... 130

5.6. The Food and Beverage Sector ................................................................................................ 135

5.6.1 Overview of the food and beverage sector ......................................................................... 135

5.6.2 Major products in food and beverages sector .................................................................... 135

5.6.3 Industry size and growth in Food and Beverage sector .................................................... 136

5.6.4 GDP share and Productivity in food and beverages sector ................................................ 137

5.6.5 Current employment pattern in food and beverages sector ................................................ 141

5.6.5.1 Number of Employees .................................................................................................... 141

5.6.6 Overview of the Meat and Dairy subsector ........................................................................ 142

5.6.7 Skill Gaps in the Food and Beverage sector ...................................................................... 145

5.6.7 HRR forecast for the food and beverage sector ................................................................. 145

CHAPTER SIX: IMPLEMENTATION PLAN FOR HRR FOR THE MANUFACTURING SECTOR

............................................................................................................................................................ 152

6.1 Implementation plan (2016-2025) ............................................................................................ 152

6.2 Urgent intervention required in the Manufacturing sector ........................................................ 154

6.3 Governance of national skill development initiative .......................................................... 155

6.3.1 Institutional Arrangements ................................................................................................. 155

6.3.3 Institutional set up for Workforce Development for the Industry sector ........................... 158

6.4 Risk Management ..................................................................................................................... 159

6.5 Monitoring & Evaluation framework ....................................................................................... 162

Annex: 1 Food and Beverages. Meat and Dairy sector .................................................................. 167

Annex 2 Chemical and construction inputs .................................................................................... 183

Annex 3: Respondents for priority manufacturing sector .............................................................. 213

List of Tables

Table 1: Number of employees in manufacturing sub-sectors ................................................................ 9

Table 2: Graduates of public higher education and TVET .................................................................... 26

Table 3: Trainee Enrollment Trend ....................................................................................................... 28

Table 4: Trainee Assessment Result ..................................................................................................... 28

Table 5: TVET graduates trend for three manufacturing sectors and Manufacturing Skilled workforce

demand .................................................................................................................................................. 28

Table 6: SLOT of the manufacturing sector with respect to of HR ...................................................... 37

Table 7: Distribution of job opportunities at Agro Industrial parks for the priority manufacturing

sectors ................................................................................................................................................... 47

Table 8: Number and Types of Pharmaceutical Products .................................................................... 50

Table 9: Export Performance of Pharmaceutical Sector (000 USD) ..................................................... 51

Table 10: Local and Import Products .................................................................................................... 52

Table 11: Major Products of Pharmaceutical Industry in Ethiopia ....................................................... 53

Table 12: HR forecast for GTP II ............................................................................................................ 54

Table 13: HR for pharmaceuticals in GTP-I .......................................................................................... 56

Table 14: HR Forecast for Basic pharmaceutical Manufacturing (2016-2020) .................................... 56

Table 15: HR Forecast for Basic pharmaceutical Manufacturing (2021-2025) ..................................... 57

Table 16: Administrative and Engineering Support HR forecast (2016-2020) ...................................... 58

Table 17: Administrative and Engineering Support HR forecast (2021-2025) ...................................... 59

Table 18: Major products of the textile and garment sub-sector ........................................................... 62

Table 19: Share of Textile and Garment Sector to the Industry and Manufacturing sector .................. 64

Table 20: Trends of capacity utilization in % ....................................................................................... 64

Table 21: Export performance (2003-2006) in thousands of USD ....................................................... 65

Table 22: Number of workers by major sub-sectors ............................................................................. 68

Table 23: Current workforce in the Textile Production (2007 E.F.Y) .................................................. 69

Table 24: Currently Workforce in Garment Sub-sector by NOS in 2007 E.F.Y .................................. 70

Table 25: engineering and other supporting staff 2007 E.F.Y .............................................................. 70

Table 26: Projected Sector Growth Target ............................................................................................ 71

Table 27: Human Resource Requirement in the Textile Production .................................................... 72

Table 28: Human resource requirement in the textile production ......................................................... 73

Table 29: Engineering and Support Service Manpower Requirement of Textile and Garment Sub-

sector ..................................................................................................................................................... 74

Table 30: Human Resource Requirement in the Textile Production (2021-2025) ................................ 75

Table 31: Human Resource Requirement in the Garment and Apparel Production (2021-2025) ......... 76

Table 32: Engineering and Support Service HRR of Textile and Garment Sub-sector (2021-2025) ... 77

Table 33: New job created by MSEs ..................................................................................................... 78

Table 34: New job created by MSE’s..................................................................................................... 78

Table 35: Leather sector share of GDP and value Productivity in USD (000) ..................................... 81

Table 36: Trends of production of Tanneries and Footwear industries ................................................. 82

Table 37: The trend of leather sector export in (USD, 000) .................................................................. 83

Table 38: Global share of Ethiopian leather export .............................................................................. 83

Table 39: Average ratio of TVET graduates and leather sector 2016 HR need .................................... 88

Table 40: Leather sector HR projection for the year (2016-2025) ........................................................ 90

Table 41: HR projection of the leather sector with occupational standard and professional mix ......... 91

Table 42: Leather Tanning sub-sector HR projection for the year (2016-2020) ................................... 93

Table 43: Footwear sub-sector HR projection for the year 2016-2020 ................................................ 95

Table 44 ................................................................................................................................................. 95

Table 45: Goods and Garments sub-sector HR projection for the year (2016-2020) ........................... 97

Table 46 : Tanning sub-sector HR forecast for the year (2021-2025) ................................................... 99

Table 47: Footwear sub-sector HR projection for the year (2021-2025)............................................ 101

Table 48: Goods and garments sub-sector HR projection for the year (2021-2025) ......................... 103

Table 49: List of Industrial groups of public and private and their establishments ............................ 105

Table 50: GVP trend by Industry groups- public and private (In „000 Birr) ..................................... 106

Table 51: Industrial groups and Major products of the sub sector ...................................................... 107

Table 52: Employment Trend by Industrial group- public and private sector .................................... 108

Table 53: Chemical and allied industry growth target in phase one ................................................... 110

Table 54: Share of chemical and allied Industry ( in %) for the period 2016-2020. ........................... 110

Table 55: Share of chemical and allied Industry for the period 2021-2025 ........................................ 110

Table 56: performance evaluation of the sub sector ............................................................................ 111

Table 57 job opportunities created in Chemical and construction inputs sector for the year 2016-

2025 .................................................................................................................................................... 113

Table 58: Number of workforce, Chemical and Construction Inputs Sub sectors for the year 2016-

2025 .................................................................................................................................................... 113

Table 59: summary of skill mix of the Chemical and construction inputs sector for the year 2016-

2025 .................................................................................................................................................... 115

Table 60: Production staff workforce, Chemical and Construction Inputs Sub sectors for the year

2016-2025 ........................................................................................................................................... 116

Table 61: Engineering and Natural sciences supportive professional workforces‟ requirement,

chemical and Construction inputs sector for the year 2016-2025 ....................................................... 118

Table 62: Number of TVET Technical workforces, chemical and construction inputs sector for the

year 2021-2025 ................................................................................................................................... 119

Table 63: Number of Social Science and administrative staff, Chemical and construction inputs sector

for the year 2016-2020 ........................................................................................................................ 120

Table 64: Engineering industry’s Major products ............................................................................... 122

Table 65: Production capacity and market share of metal & engineering sector .............................. 123

Table 66: Number of workforce, metal & engineering sub sectors year 2016-2020 ......................... 127

Table 67: Skilled Work Force Requirement of Metal & Engineering Sector for the year (2016-2020)

by Occupational Standard and Level .................................................................................................. 128

Table 68: Engineering Professional Work Force Requirement for Metal & Engineering Manufacturing

sector for the year (2016-2020) by Field of study and Qualification level ........................................ 129

Table 69: Total Number of employment in metal & engineering sub sectors year 2016-2020 ......... 129

Table 70: Number of workforce, metal & engineering sub sectors year 2013-2017 (Eth. Cal.) ......... 131

Table 71: Skilled Work Force Requirement of Metal & Engineering Sector for the year (2020-2025) by

Occupational Standard and Level ....................................................................................................... 132

Table 72: Engineering Professional Work Force Requirement of Metal & Engineering Manufacturing

Sector for the year (2020-2025) by Field of study and Qualification level ........................................ 133

Table 73: Total Number of employment in metal & engineering sub sectors year 2021-2025 (Eth.

Cal.) ..................................................................................................................................................... 134

Table 74: Number of Food industries in Ethiopia ............................................................................... 136

Table 75: Number of Beverage industries ........................................................................................... 137

Table 76: Volume of production from food industries (Ton) .............................................................. 138

Table 77: Volume of production of Beverage Industry (thousand hector liter) .................................. 138

Table 78: Gross value production of the food sector ( in thousand Birr) ............................................ 139

Table 79: oil seeds gross production value ( in thousand USD) ......................................................... 139

Table 80: Beverage industry GVP (in thousand birr) ......................................................................... 139

Table 81: The GDP share (%) of the Food and beverage sector ......................................................... 140

Table 82: Value addition in the food and beverage sector (in thousand Birr) .................................... 140

Table 83: Labor productivity ............................................................................................................... 141

Table 84: Number of employees in food industry ............................................................................... 141

Table 85: Number of employees in the Beverage industries ............................................................... 142

Table 86: Number of Industries and employees in Meat and Dairy sub sector (2003-

2007E.C. .......................................................................................................................................... 143

Table 87: Type and Amount of product produced by year 2003-2007 ........................... 144

Table 88: Growth and Transformation Plan phase one (GTP 1) performances ............ 144

Table 89: occupational mix of the food and beverage sector ............................................................. 145

Table 90: overall HRR forecast for the food and beverage sector ...................................................... 146

Table 91: Employments opportunities in the Agro processing and food preparation (2016-2025) in

000,s (in thousands) ............................................................................................................................ 147

Table 92: HRR forecast of Food and beverage sector by major industries ......................................... 148

List of Figures

Figure 1: Cooperative training delivery................................................................................................. 24

Figure 2: Comparison of TVET supply trend and Manufacturing sectors demand .............................. 29

Figure 3: Trends of graduates from Higher Education .......................................................................... 30

Figure 4: Basic Demand Side Forecast Framework .............................................................................. 36

Figure 5: Phases of manufacturing sector development ........................................................................ 43

Figure 6: HRD Development Direction of Manufacturing Sector ......................................................... 46

Figure 7: Textile and Garment Value Chain ......................................................................................... 66

Figure 8: Supply Chain of Textile and Garment products ..................................................................... 67

Figure 9: Leather sector GDP rate and productivity in value of money ................................................ 81

Figure 10: Leather sector value chain.................................................................................................... 87

Figure 11: TVET graduates trend (2011-2014) and leather sector projected demand for 2016 ............ 88

Figure 12: Number of workforce, Chemical and Construction Inputs Sub sectors for the year 2016-

2025 .................................................................................................................................................... 114

Figure 13 summary of skill mix of the Chemical and construction inputs sector .............................. 115

Figure 14: Number of workforce, metal & engineering sub sectors year 2016-2020 ....................... 127

Figure 15: Number of workforce, metal & engineering sub sectors year 2021-2025 ........................ 131

Acronyms/abbreviations

ADLI Agricultural Development-Led Growth

ASDC Automotive Skill Development Council

CAD/CAM Computer Aided Design / Computer Aided Manufacturing

CAGR Compounded Annual Growth Rate

CIDI Chemical Industry Development Institute

COMESA Common Market for east and southern Africa

CSA Central statistics Agency

DD Demand

SS Supply

EDB Economic Development Board

EFY Ethiopian Fiscal year

ESC Education Strategic Center

ESDP Education Sector Development Program

EU European Union

FAO Food and Agriculture Office

FBPIDI Food Beverage and Pharmaceutical Industry Development Institute

FDI Foreign Direct Investment

FDRE Federal Democratic Republic of Ethiopia

FeMSEDA Federal Micro and Small Enterprise Development Agency

GDP Gross Domestic production

GTP Growth and Transformation Plan

GVP Gross Value Production

HEIs Higher Education Institutions

HR Human Resource

HRD Human Resource Development

HRRP Human Resource Requirement Plan

ICT Information and Communication Technology

IoT Institute of Technology

LIDI Leather Industry Development Institute

MIDI Metal Industry Development Institute

MoE Ministry of Education

MoFED Ministry of Finance and Economic Development

MoI Ministry of Industry

MoLSA Ministry of Labor and Social Affairs

MoST Ministry of Science and Technology

MoUDC Ministry of Urban Development and Construction

MRP Manpower Requirement Approach

MSE Micro and small Enterprise

NCSD National council for Skill Development

NGO Non-Governmental Organizations

NIDC National Industry development Council

NQF National Qualification Framework

NSDC National skill development council

NSDC National Skill Development Corporation

PLC Programmable Logic control

PPP Public Private Partnership

R&D Research and Development

SDC Skill development council

SLOT Strength Limitation Opportunity and Threats

SS Supply

STI Science and Technology Innovation

STUs Science and Technology Universities

TIDI Textile Industry Development Institute

TTLM Training and Teaching Learning Materials

TVET Technical and Vocational Education and Training

USD US Dollar

VET Vocational Education and Training

VTB Vocational Training Boards

VTC Vocational Training Council

WDA Workforce Development Agency

Executive Summary Realizing Ethiopia‟s vision of becoming a middle-income country undoubtedly requires the

availability of globally competitive workforce. The industry sector is expected to contribute

28% of the national GDP and the manufacturing sector 18% by 2025 and this could not be

achieved with the required HR. The experiences from fast developing countries also show

that proper HRD plan at national level have significant impact for the success of workforce

effectiveness.

Based on Ethiopian the Industry development Road map, strategy plan, and institutional set

up study (2013-2025) this study is conducted to develop a 10-year plan for the human

resource requirement of the manufacturing sector focusing on selected priority

manufacturing industries.

The Ethiopian manufacturing sector, which envisages “to attain the highest manufacturing

capability in light manufacturing industry in Africa by 2025”, has shown growth during the

first GTP period. The sector has registered an average growth rate of 20% compared to that

of 10.2% in 2002. The industry sector contribution to the national GDP has also

increased from 13.2 % in 2002 EC to 16.9% in the first GTP performance. Furthermore ,

the sector capacity to earn foreign exchange earning has significantly increased from 256

Million USD in 2002 EC to 2.2 Billion USD , and created an employment opportunities for

more than 4 million citizens.

In terms of the human resource of the manufacturing sector, currently the sector employs

more than 305,000 employees with diverse occupations and levels. The development of

industrial parks in the country is expected to boost further in second and third GTP. Apart

from huge job opportunities for the citizen, the development of industrial parks will play

notable role in paving the way to knowledge- based economy through technology transfer.

However, results from the current situation analysis of the sector reveals that there are a

number of critical issues that need to be addressed to create and avail globally competitive

workforce for the sector. These strategic issues include

Mismatch between industry workforce skill demand and supply

Low labor productivity

Limited HR capacity for technology transfer

Limited implementation of the National Occupational Standard

Weak University/TVET-Industry Linkage and weak collaboration for cooperative

training

Limited National Skilled Workforce Database and labor market information

This study has formulated a number of strategic objectives to address the critical issues and

clearly articulate the human resource requirement of the manufacturing sector in the coming

ten years.

Strategic Objective 1: To align of manufacturing industry workforce skill demand and

supply

Strategic Objective 2: To enhance labor productivity in manufacturing industries

Strategic Objective 3: To strengthen the existing institutional coordination for national skill

development

Strategic Objective 4: To enhance HR capacity for technology transfer

Strategic Objective 5: To improve University/TVET-Industry Linkage

As the light manufacturing industries are the mainstay industries in the coming ten years in

Ethiopia, the human resource requirement plan for the manufacturing sector is focused on

these industries that often require semi-skilled to skilled workers.

The HRRP has been developed after a thorough analysis of the current situation of the

sector, review of the current HR supply, the role of TVET and HE institutions as well as

best international practices in the HRD for the manufacturing sector.

A number of HR forecasting approaches have been considered and among these, the

Manpower Planning Approach (MPA) method of forecasting is opted for this study. The

MPA mainly uses three important variables: the base year workforce, the GDP growth rate,

and the rate of change of productivity in the sector. The GDP targets set in the industry

development road map provides the data for the GDP growth and the share of the sector to

the national GDP, and the study survey provided the base year 2015 workforce in the

priority sectors. The productivity, particularly the labor productivity, is regressed from past

data on the productivity of the sector.

The HRR plan spans in two phases segmented with 5 years where phase I covers from 2016

to 2020 and phase II from 2021 to 2025 G.C. The HRR forecast is based on the provision of

the required semi-skilled, skilled workers and professionals to achieve the share of the GDP

targets set in the Ethiopian industrial development road map for each of the manufacturing

sector priority areas.

The HRR forecast is made by considering 2015 as a base year, and the total workforce

required by the priority sectors for the coming ten years using MRA. Accordingly, the

forecasts are made for the major occupations in the production process, engineering and

technical services, as well as the support staff. Table (i) summarizes the aggregate forecasts

in the respective sectors. The detail forecast for each of the priority sectors are presented in

chapter 5.

It is forecasted that the total number of employees in the six sectors in the light

manufacturing sector reaches over 12 million by the year 2025. The detail is presented in

table I below.

Table i) HR Requirement Forecast for the Priority Manufacturing Sectors for the year 2016-2025

The total job opportunities to be created within MSE, Industrial parks and other investment outside industrial parks will reaches 3.65 million at the end of

GTP II. At the end of 2025, the job creation scenario will grow more than threefold and will create about 12 million employment opportunities at national

level. Therefore, in the coming ten years, supply side institutions need to provide a minimum about 5,000,000 of TVET graduates, and about 830,000

graduates from HEIs to satisfy the skilled HR need of manufacturing sector. About 50% (6,000,000) of job opportunities go to MSE where this sector

supported by technical and short term trainings like basic marketing, entrepreneurship, bookkeeping, communication etc. The TVET graduates demand

for manufacturing sector accounts 77% and those of professionals from higher education accounts about 12% of the total workforce requirement. The

remaining 10% of the workforces are covered by clerical and general service workforce.

Sector

HR Forecast for the selected Manufacturing Sectors for the year 2016-2025

2015

(base

year)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Leather 24023 123260 223926 327015 444447 529949 716561 842932 1071376 1222066 1,374,377

Textile 59019 213935 412170 581526 747486 960055 982223 1286443 1882369 2679695 3,673,325

Metal & Engineering 33000 113784 195285 292597 423825 533723 652743 780059 909805 1051653 1,199,507

Chemical &

Construction inputs 118842 171275 228022 289500 361070 452687 575172 738510 962519 1272592 1,701,661

Pharmaceutical 3365 5846 8908 13478 18870 25840 35558 44531 53337 63872 74667

Food and Beverages 61052 170700 349784 600797 894095 1145395 1802700 2332891 2698805 3427432 3,984,633

Total 277150 800816 1420112 2106931 2891812 3649669 4766978 6027388 7580234 9719334 12,010,195

Table ii and table iii below summarize the skilled workforce and professionals mix required

for the coming ten years in the priority manufacturing sector.

Female Employment Opportunities in the Priority Manufacturing Sector

Manufacturing sector will play significant role in creating job opportunities for female. In

the coming ten years, on average 1.2 million job opportunities per annum will be created by

the priority manufacturing sectors. From these new job opportunities, the share of female

employees will rise to more than 50%. This reveals that new job opportunities equated to

600,000 per year will be the share of female employees in the sector. Specifically, the

leather sector engage about 55%, Chemical and construction inputs 53%, Pharmaceutical

47%, Food and Beverages 65%, Garment and textile 62% and Metal and engineering about

20% female employees. This reveals that the priority manufacturing industry sectors will

have remarkable impact in the economic empowerment of female employees at national

level.

0

Table ii below reveals the need of skilled workforce from TVET for the coming ten years. The needs for skilled workforce rise from

318,528 at starting of the plan period (2016) to about 1,600,000 at the end of GTP II which is about five fold. This shows that in the

coming five years, TVET is expected to provide 320, 000 skilled workforces per annum. At the end of second plan period (2025), the

needs for skilled workforces from TVET increase to about 5.2 million.

Table ii): Summary of Selected Manufacturing Sectors Skilled Workforce Demand from TVET

Selected

Manufactu

ring

Sectors

Summary of Priority Manufacturing Sectors Skilled Workforce Demand from TVET graduates for the year 2026, 2020, and 2025 (OS + support staff with TVET level)

2016 2020 2025

I II III IV V Sum I II III IV V Sum I II III IV V Sum

Textile 30948 41398 12459 3910 2760 91475 108668 143111 38411 13560 10337 314087 258877 354955 214112 49183 38229 915356

Leather 3327 20251 10582 2595 ** 36755 19845 102003 50335 12427 ** 184610 59791 297589 145065 32155 ** 534600

Metal &

Engineerin

g

6666 7405 10464 647 529 25711 9329 11620 15912 906 739 38506 15368 21263 28377 1492 1218 67718

Food and

Beverages 2228 15916 27307 25005 1488 71944 29679 207824 364883 285753 20199 908338 100027 1040612 1221891 957625 67499 3,387,654

Chemical

&Construc

tion inputs

49806 15677 12343 9094 717 87636 69467 27411 20905 14070 1094 132947 99056 42965 33150 22529 1551 199251

Pharmaceu

tical 2682 1311 692 164 158 5007 11982 4882 3179 706 426 21175 36055 15028 10483 2124 816 64506

Sum 95657 101958 73847 41415 5652 318528 248970 496851 493625 327422 32795 1599663 569174 1772412 1653078 1065108 109313 5169085

** Leather sector has no level V in the occupational standard

1

Table three below reveals that at the end of 2020 the need for professional from higher education will reach about 300,000 that

require on average the provision of 60,000 graduates per annum. This amount will grow to 830,000 at the end of 2025 with

diversified field studies as identified.

Table iii): Summary of Selected Manufacturing sectors Demand for Higher Institution graduates

Selected Manufacturing

Summary of Priority Manufacturing sectors Demand for Higher Institution Graduates for the year 2016, 2020 and 2025

Sectors 2016 2020 2025

BSc BA MSC MBA BSc BA MSc MBA BSc BA MSc MBA MSc/PhD

Textile 11133 4840 33935 3532 29480 5868 11225 11683 65887 6054 24518 25518 11248

Leather 1038 5650 182 183 5089 30880 920 932 14757 91574 2700 2710 2015

Metal & Engineering

9127 2883 733 13554 4668 1026 28572 8714 2506

Food and Beverages

8133

5682 3471 72734 47531 29781

228961 173259 100028

Chemical

&Construction

inputs 3387 7888 557 489 5230 11286 677 811 6651 15591 732 1194

Pharmaceutical 636 79 664 2408 234 3124 5733 607 7295

33454 27022 39542 4204 128495 100467 46753 13426 350561 295799 137779 29422 13263

0

The implementation plan, detailed in chapter six, shows the major activities that need to be

performed to set the direction for the provision of the required workforce for the manufacturing

sector. However, such long term plan should be reviewed annually to consider the various

dynamics in the industry and the labor market. As changes occur at global and national level,

updating the HRRP accordingly will be necessary. Furthermore, urgent interventions that need

to be implemented are identified and presented in this plan. These tasks call for immediate

actions to pave the way for future development activities. These urgent actions include

HRD as a national agenda requires the commitment and leadership at the highest political level.

As in the case of the industry sector development, the National Industry Development Council

(NIDC) is considered to provide such leadership. This study strongly recommends that NIDC

need to oversee and supervise the National Council for Skill Development (NCSD). The overall

governance and institutional setup to ensure the provision of the required workforce for the

manufacturing sector calls for the strengthening of the Technical and Vocation Education

Training center to address the emerging need of manufacturing industry and MSE sectors.

These are considered to be relevant as the experience of fast developing countries customized

to the existing local context.

Most of the Activities in the implementation plan require the collaboration and joint planning

of various stakeholders from the public and private institutions. Evidently, neither the HRD

issue of the manufacturing sector nor its monitoring nor evaluation is to be left for a single

institution. Therefore, this study strongly suggests that the M&E activities need to be led

through the joint collaboration of at least four major actors: the MoI, NPC, MoST, and MoE.

1

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

This study mainly focuses on human resource requirement planning for the selected

manufacturing sectors that impact national development. Manufacturing sector in Ethiopia is at

its infant stage that needs intervention in all aspect to make the sector globally competitive.

Over the past decades, there has been an encouraging effort to enhance the performance of the

sector but the success achieved in this regard was still less than the expectation despite the

government‟s ambition to strengthen the industry in general and manufacturing sector in

particular. Government mainly dedicated in the development of manufacturing sector as a

priority issue because manufacturing supplement and complement other sectors in boosting the

economy.

The Federal Government is committed through the establishment of National Manufacturing

Competitiveness Council that led by Prime Minister and tasked to help jump start for the

manufacturing sector. The Ministry of Industry has developed a roadmap in recognition of the

strategic importance of industry to the economy. Besides, good progress has been made

towards the establishment of sector development institutes for the selected priority areas to

build the capacity of industries.

At present, the potential resource for economic and employment growth is further limited

by the existence of mismatches between supply and demand of skilled workforce and the low

level of labor productivity in the manufacturing sector can be considered as an issues that

need to be address in next planning phase.

To realize the national vision of achieving middle income country by 2025, the contribution of

manufacturing sector is noteworthy. To this effect, creating competitive advantage for industry

in general and manufacturing sector in particular at national level is paramount. Government

has realized that inadequate human resources development was a serious obstacle for

sustainable economic development. The ultimate objective of skill projection is to keep the

balance between the supply and demand in the labor market so as to meet the need of industries

and achieve full employment in the growing economy.

The experiences from fast developing countries reveal that proper HRD plan at national level

have significant impact for the success of workforce effectiveness. The East Asian tigers used

precisely the national development plan for their success. For instance, from 1960 onward

South Korean Republic prepared HRD system, policy and the contribution of HRD to

economic growth that put them at the top of developed countries. The other fast developing

country India, has mapped human resource skill gap for the duration that covers between 2008

and 2022 (NSDC, 2007). In similar manner South Africa and Namibia from Africa have

developed long term perspective plan for National skill development up to 2030 to realize their

national vision.

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The demand for skilled human resources is significantly high and will become even more sever

if not properly aligned with the fast economic growth. The scarcity of skilled labor limits the

effective and efficient delivery of operational activities in the manufacturing sector. Therefore,

this Human Resources Requirement forecast was designed to provide a comprehensive

overview of the human resource requirement in selected manufacturing industries; HR

projection for the year 2016-2025, implementation modalities, monitoring and evaluation

frameworks.

The Ethiopian Industrial Development Road Map(2013-2025) indicate that, to build a middle

income country, the economic growth momentum should be maintained and the share of the

industry sector to GDP has to reach at least 28% by the year 2025. Likewise, the contribution

of the manufacturing sector is expected to grow and has to attain 18% of GDP by the same year

so that the industry sector will ultimately take-over the leading role from Agricultural sector in

the coming period of GTP II .

Moreover, achieving the vision of becoming a middle-income country by 2025 demands not

only the development of light and medium industries, but also the establishment of high –tech

industries, which call for the TVET and higher education system of the country to produce

highly competent workforce as per the requirement of the industry sector. It also demands the

establishment of R & D and other support institutions to promote high-tech industries and build

technology transfer capabilities.

To speed up Ethiopia‟s industrial development process and compete in today's global market,

the availability of required human resource for the manufacturing sector is mandatory. The

Ethiopian government has been making a great effort in order to expand the education and

training system so as to respond to the need of the industry sector in terms of skilled workforce

for the last two decades. However, it was observed that the skill of graduates from HE and

TVET institutes and the need of the manufacturing sector are not well matched. This is due to

the fact that the manufacturing sector so far did not clearly reveals workforce demand to the

education and training institutes.

In view of industrial sector long term development direction, it deemed necessary not only to

reveal sector‟s workforce requirement for the existing industries but also it is necessary to

clearly identify the workforce demand for future industries which are expected to come in 10

years‟ time.

Underlining this fact, this study has attempted to investigate the workforce requirement of the

manufacturing sector for the coming 10 years so that the education and training institutes will

base their education and training programs in accordance with the felt need of the

manufacturing sector and coordinates all necessary activities related to human resource

development programs.

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1.2 Rationale of the study

Projection of future workforce requirement is an ongoing process, because the workforce and

the labor market are constantly changing. Human resource planning ensures that the sector will

have the workforce to reach its goals. HRRP of the manufacturing sector involves a process of

systematically reviewing human resource requirements to ensure that the required numbers of

employees, with the required skills, are available when and where they are needed by the

sector.

The HRRP development project emanates from the national industry development roadmap

(2015-2025), strategic plan and institutional setup document. The industry development

roadmap indicated how the priority-manufacturing sectors would develop till 2025 from where

it stands today. The manufacturing sector targets to reach to 17% of GDP contribution at the

end of 2025.

Some other rationale for human resource planning includes:

Matching the skilled supply of workforce for the manufacturing sector based on the

demand anticipated by the sector over a medium to long term period;

Attracting FDI requires a work pool with diversified knowledge and skill; and the

competition to attract FDI also among others depends on the availability of trained

workforce in different manufacturing sectors;

The newly emerging industry sectors at the latter phase of development demand in

advance preparation of skilled workforce by TVET and higher education institutes;

The development of HRRP for the manufacturing sector help ensure that training and

education offered by the HE and TVET institutions are demand-driven

Providing the forum for coordination and collaborations among the demand and supply

side in HRD for the manufacturing sector.

1.3. Objectives of the study

The main objective of this macro level study is to conduct human resource requirement plan for the

manufacturing industry envisioning the goal of 2025 for the sector. The study is expected to induce a

significant impact on the Ethiopian manufacturing industry in a way to drive towards competitiveness

both at national and international level through the provision of skilled workforce for the next 10

years.

1.4 Scope of the study

The scope of this study focuses on planning the skilled workforce requirement and professional

mix for the priority manufacturing sectors for the coming 10 years. The study covers the

demand side of the HRRP and does not address the supply side delivery of the workforce to the

manufacturing sector. The HRRP address the priority manufacturing sectors which include:

Metal and Engineering Industry;

4

Textile and garment industry;

Footwear, Leather, Leather goods and Articles industries;

Chemical industry; and

Food and Beverage

Pharmaceutical Industries.

Deliverable of the Study

The deliverable of this study is a document entitled "Human Resource Requirement Plan

(HRRP) for the Ethiopian Manufacturing Industry (2015- 2025) ". This document is consistent

with the national industry development direction of the country as well as to the national

economic development. The HRRP summary document is complemented with separate sector‟s

HRR projection six priority areas identified.

1.5 Limitations of the Study

This study is limited by a number of factors that influence the outcome of projecting the

workforce demand for the next ten years. Some of these limitations include

Lack of National HRD Fframework 2025

The availability of a national HRD plan envisioning 2025 and articulating major HR

interventions in agriculture, industry and the service sector would have provided directions

for the HRD for the manufacturing sector. Hence, it has constrained absence of the

development of HRRP.

Absence of Technology Development Roadmap for each of the sector

The identification and forecast of the skill required for the future mainly relies on the

technological development in the sector. Absence of a clear technological development

roadmap will make the HRRP difficult to pinpoint the specific competence requirement for

the sector.

Lack of up-to-date and complete data at macro and enterprise level related to HRD.

The HRRP depends on the quality of data obtained in the study. The absence of timely and

accurate data will severely affect the results of the study. In this study, the lack of timely

and accurate data is evident at macro (manufacturing sector) level as well as at micro (firm)

levels.

Limited awareness of the National OS in the manufacturing sector

In most of the companies where data were sought, it is observed that the organizations either do

not have awareness about the national occupational standards or do not implement these

standards in there organizational structure. On the other hand, even though the national

occupational standard has developed the standards for many jobs, there are a number of

occupations whose standards are yet to be established. The absence of data from the

manufacturing sector as per the national occupational standards will result in data to be non-

5

uniform, and vulnerable to errors when trying to convert into the corresponding equivalence by

the study team

1.6. Ethiopian Manufacturing Sector Development

The agricultural sector always played a leading role as a major source of economic growth to

ensure food security and enhancement of industrial sectors development. However, it is

expected that economic structural transformation that will be realized in the future requires the

industry sector to play the leading role in the national economy. This structural transformation

is dependent on a number of factors including

Creating favorable conditions for industry development

The industrial sector has acknowledged as a potential sector to generate foreign exchange and

create job opportunities. Hence, in the plan period:

The industry sector will receive utmost emphasis by way of encouraging export based

and import substituting industries.

The linkages between agriculture and industrial sector will be promoted.

Focus on strengthening the small-scale manufacturing enterprises, as they are the

foundation for the establishment and intensification of medium and large scale industries

besides creating employment opportunities and accelerating urbanization.

The government encourages medium and large scale industry expansion.

Enhancing expansion and ensuring quality of infrastructural development: Expansion and

maintenance of infrastructure such as road, power and water supply need to be related with job

creation, initiating domestic industrial development thereby contribute for poverty eradication

effort of the country. Infrastructure Development is expected to create the opportunity for

diversified industrial growth and reduce dependence on foreign currency through substituting

imports of materials and services by domestic suppliers. Hence, Telecommunication, railway,

road, and energy and irrigation development will receive sustained support during the plan

period.

Strengthen Micro and Small Enterprises (MSE)

Particular emphasis is given to the promotion of micro and small enterprises as well as

supporting the development of medium and large scale industries. The report from FEMSEDA

reveals that about 2% of MSE will promote to medium level enterprise annually. It was

expected that this trend will continue with well-organized and wired support to the sector.

6

Industrial Park Development

The development of industrial parks will take significant share in the development of

manufacturing sector. These Industrial Development strategic directions for which policy

support was provided focused on industries which are labor intensive and having wide market,

broad linkages with the rest of the economy; use agricultural products as input, export-oriented

and import substituting, and industries that can contribute for faster technology transfer.

Effective implementation of the industry policy and strategy

The industry policy is designed within the framework of the world environment and the free

market economy philosophy with the following underlying principles:

Accept that the private sector is the engine of the industrial development strategy.

Following the direction of Agriculture- led Industrialization

Following Export-led Industrialization

Focus on Labor Intensive Industries

Using Coordinated Foreign and Domestic Investment

Strong State Control

Mobilizing the whole society for industrial development.

The 2002 (2009/10) industry policy has identified priority sectors that deserve attention to build

the platform for the industry to take its key leading role in the economy. These sectors include

1) Textile and Garment industry

2) Leather and leather products manufacturing

3) Agro - processing including sugar industry

4) Chemical-including cement /and pharmaceutical industry

5) Metal and Metal engineering

6) Food and Beverages

The industry policy has continued to be the cornerstone for future industrial development in

Ethiopia.

Industry Sector Development Direction

The share of the industrial sector to GDP has shown a slight improvement and it has increased to

18.73% in 2015. Currently the economy structure is dominated by service sector with the

average GDP share of nearly 46.5% followed by Agriculture with the share of 42.9% in year

2013/14 (MoFED 2014). The industry sector contribution is expected to reach 28% at the end of

2025.

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Although, the composition of the economy has changed in favor of industry and service sectors

over the last three years, the process need to be accelerated to bring about a significant shift in

the structure of the economy. Particularly to set the economy on a rapid process of

industrialization and structural transformation, the growth of the industrial sector and particularly

the manufacturing industry has to be accelerated even further.

To achieve the vision of becoming a middle income country by the year 2025, the industry

should take the leading role from the agriculture and its contribution to GDP should grow from

the current 12% to 28% by the end of 2025. The manufacturing sector significantly grows and

gradually takes the Lion-share in the industry sector and expected to attain 67% share of the

industry sector by the year 2025.

To attain the targeted growth of the manufacturing sector, the following development directions

are considered.

1) Upgrading and increasing the capacity of existing industries

2) Diversification of manufacturing sector

3) Enterprise cultivation

4) Private and public sector investment

5) Industrial park development

1.7 Human Resource in the Manufacturing Sector in Ethiopia

The development of human potential is one of the key strategic pillars of Growth and

Transformation Plan (GTP) of the country. The plan focuses on educating and/or training the

workforce that is demanded by industry, particularly the growing manufacturing industry, at all

levels. GTP planned to ensure equitable access to quality education at general, TVET and

higher education levels.

The plan strongly adheres that the country‟s skilled human resource can play a crucial role to

enhance productivity of the manufacturing industry. In the absence of a work force that is

equipped with the necessary knowledge and skills, it is impossible to make industrial products

to be competitive in global market. The skill level of the labor force is considered a major

economic growth driver.

In addition, the industrial transformation requires diversification and introduction of new

manufacturing industries so as to assure the leading role of the sector in the economic growth

of the nation, which requires the education system to produce adequate and technically skilled

local experts in science and engineering fields. Moreover, the education and training system,

capacity building and technology transfer programs need to be aligned with and be dynamic

with the demand of the new key manufacturing industries.

8

The government took various measures to improve the skills and productivity of Human

resources in the country. Various policy, strategies and programmes were implemented so as to

achieve the target objectives of the GTP. The major initiative that was undertaken was

improving access to good quality higher education and adult education, very wide access to

good quality primary and secondary education.

The TVET system continue and strengthened as a means to technology transfer, and

occupational standards were established in collaboration with industries. TVET institutes

become a center of accumulation for skills and technology demands of Small and

Microenterprises, which become one of the major areas and key instrument for job opportunity

and job creation. Short term trainings, skill upgrading programs were designed and so as to fill

the skill gaps and current demands of the manufacturing sectors and increase the productivity

of labor in the existing manufacturing industries. A number of measures were taken to create

conducive working environment should be created to retain and motivate the existing skilled

labor force.

The education system and training program as so far, however, has not been able to produce the

type of manpower that believes in the respectability of [physical] work and that has the

diligence and sense of hard work comparable to that of the workers who compete with us in the

global market. Although the recently started professional and technical training program may

solve some of the problems in this respect, the education system still have not been able to

create such manpower as required by our project of industrial development. What our

manpower-training program has so far managed to supply in terms of manpower has not been

able to match the size and type of manpower that our industrial development program demands.

We do not as yet have an educational and a training system that is capable of producing the

manpower that is both professionally and ethically capable of carrying and sustaining the

responsibility of seeing to it that our industrial development program will have achieved its

goals

1.8 Medium and Large-Scale Manufacturing Industry Development

In the manufacturing industries priority focus has been given by the GTP to textile and apparel,

leather and leather product development, agro-processing, chemical and pharmaceutical, metal,

food and beverage sectors. Accordingly, concerted efforts were exerted during the last three

years of GTP implementation to support medium and large scale manufacturing industries play

vital role in industrialization of the economy and to sustain and enhance the high rate of

industrial growth registered so far in the sector. Apart from being labor intensive and forming a

strong linkage with agriculture, these medium and large industries are key for both export growth

and import substitution.

The medium and large scale manufacturing industry grew at 14.5 percent in 2012/13. Over the

last three GTP years, medium and large scale manufacturing on average grew at 14.9 percent per

9

annum. The medium and large scale manufacturing sub-sector however still remains very small

accounting for less than 3 percent of GDP. Thus the sub-sector has to grow much faster to drive

industrialization and transformation of the economy.

Concerning employment past trends of the manufacturing sector, annual reports of MoI and

Industry Development Institutes revealed that there were 267421employees in the sector in

2005 E.C, 279221employees in 2006 E.C and 305122 employees in 2007 E.C. As it can be

easily understood from these past three years data, the number of new employees joining the

sector each year is increasing on average by 38099 employees. The summary of aggregate

employment in the manufacturing sector indicated in the table below.

Table 1: Number of employees in manufacturing sub-sectors

Sectors

Total Number of Employees in the sector Budget Year (E.C)

2001 2002 2003 2004 2005 2006 2007

Metal & Engineering 26,577 28,632 30,823 33,000

Textile 24,316 30,754 19,256 44,303 44,384 47,019 59,019

Leather 10707 14019 15126 16183 18443 21039 24023

Pharmaceutical 1784 2416 2681 2859 3365

Food Beverage, and

Pharmaceutical

45199 50632 44283 48618 52818 61052

Chemical &Construction

inputs 57,220 63,960 57,922 66,890 85,532 98,807 118,842

Source CSA, 2014 and trend analysis

1.9. Overview of International Experience in Industrial Human Resource Development

It is found important to overview the experience of other countries how their development is

related to the HR and skill planning at national levels. One of the important experiences can be

learnt from the rapidly grown East Asian countries nations which shared similar characteristics

of “macroeconomic stability, sustained growth in productivity and significant investment in

technology, and continued investments in human resource development”.

In reality each country followed their very own distinct development path, dictated by specific

national priorities and policies, pursuing their own vision of how to achieve a competitive

advantage in a global economy. To better understand what led to the „East Asian Miracle‟ it is

necessary to look the basic macroeconomic framework, and to understand those specific policies,

institutional structures and practices that contributed to significant GDP growth and standard of

living increases.

10

Markets if left alone are unable to closely coordinate the processes of education, human resource

skills formation and economic sector development. This presents governments with a challenge

as each of these factors requires the other if there is going to be sustainable national growth.

Governments must find innovative and situation-specific ways to guide these factors and ensure

that the demand from employers for skilled workers is met with an appropriate supply from the

workforce. This matching is necessary in order to avoid critical shortages of skills that would

slow down a country‟s economic growth while at the same time encourage standard of living

increases.

The continual development and application of skills in this context is an important policy tool

and a necessary ingredient for development. Skill and human resource development is not a

simple task, however, nations that ignore it become trapped in a low skill trap where their initial

advantage of a low-wage workforce is never built upon through a higher skilled workforce. Not

only is it essential to raise current skill levels, it is vital to plan for those skills that are needed in

the future, taking into account what skills will be needed by the more advanced sectors that will

drive future growth. Singapore, South Korea, Hong Kong SAR and Vietnam have all

successfully entered into high-growth progressions using coordinated sector and skill

development strategies.

1.9.1 HRD experience from Singapore

It would not have been possible to attract inward investments from sectors that utilize higher

capacity and technology into Singapore if they did not have people with skills to work in those

industries. Insufficient or lack of appropriate skills within the workforce can slow national

development. In order to overcome these challenges, the government of Singapore centralized

control of three important areas: industrial policy, education, and skill development.

Singapore‟s action to centralize guidance of industrial/sectoral policy was deemed necessary to

insure that industry grew towards higher-skilled, higher technology and higher value added

sectors and did not just take advantage of Singapore‟s existing base of low-skilled and low paid

labor. Education policy was guided to create a sense of national awareness, collective unity and

increase the skills of citizens moving through the education system and into the workforce.

Singapore also devised a skills formation mechanism so that the present and future skill needs of

new, developing and growing industries would be reflected into the changing skill sets of the

workforce. Singapore had to guide these three areas in a coordinated centralized manner, if the

system had been left to market forces it would have taken generations for the skill shortage needs

to filter down the education systems and to produce the necessary skills in the workforce.

Initially Singapore built on their existing competitive advantage, by focusing on their

preponderance of low-skilled labor by promoting the labor intensive manufacturing sectors.

However, the government of Singapore did not want to get stuck within this labor intensive

manufacturing sector, consequently they developed a clear industrial policy to push Singapore

11

towards higher skilled sectors over time.

To attract those corporations engaged in more technologically advanced sectors Singapore still

needed to further upgrade the skills of their workforce through investments in education and

training. To address these programs, the Ministry of Trade and Industry (MTI) was established as

a type of „Super Ministry‟ who would coordinate overall economic development that the other

ministries are required support.

This insures that the MTIs priorities are incorporated in to all Ministerial policies and are in fact

the key driving policies. Education and training was a big challenge for Singapore, they had to

provide workers with ever increasing skills to match anticipated employer needs. The

Multinational Corporations already operating in Singapore could not be relied upon to drive the

skill agenda as they would be narrowly focused on what their present needs were, while

Singapore wanted to fulfill those but also move up the value chain. To do so Singapore had to

focus skill development specifically on those skills deemed necessary for the specifically

targeted growth industrial sectors tied to future industrial development. By the late 1960s there

was already a shortage of highly skilled labor in Singapore just to meet the existing need, let

alone future demand. Consequently, in 1968 Singapore established the Ministry of Science and

Technology to develop and coordinate science policy, technology and technical manpower.

Singapore shifted their planning away from labour intensive sectors and towards manufacturing

intensive sectors. As this shift was made there was a significant shortage of skilled workers and

professionals. To address this worker shortage the government took a two-pronged approach.

The first short-term solution was to attract skilled foreign workers and Multinational

Corporations and the second longer-term solution was to promote science, technology and

research and development.

To satisfy the demands from higher technology and manufacturing intensive employers the

government needed to ensure the skills in demand, would be supplied by the education and

training system. This was addressed by strengthening, broadening and centralizing the education

system, and by introducing targeted training to upgrade the skills of those already in the

workforce.

In the 1990s Singapore again revamped their industrial strategy. Singapore would continue to

focus on attracting Multinational Corporations, but would target those growth sectors for the

future that focused on higher level skills, especially in the technology sectors. At the same time

the education system was also adjusted to focus on students‟ abilities especially in innovation,

creativity and entrepreneurship while previously the education system had been focused on

standardization.

Currently there are several organizations involved in supporting skills development in Singapore

including: the Ministry of Trade and Industry, the Ministry of Manpower, the Ministry of

12

Education, the Economic Development Board and various ministerial divisions. The Ministry of

Trade and Industry and its operational unit, the Economic Development Board (EDB), have a

strong influence on the activities of the others. Skills that are required for supporting sector

development are identified through a multi-faceted approach.

The Manpower Research and Statistics Division undertake econometric forecasting in order to

identify the country‟s skill needs for the medium, 3 to 5 years, and the long, 5 to 10 years, terms.

Decisions about which sectors to investigate are guided by the EDB and these forecasts are

supported by inputs from the different sector committees. This approach enables the Ministry of

Manpower (MoM) to produce a skills map delineating which skills are in demand and the degree

to which Singapore is producing the appropriate supply of skills.

The importance Singapore attaches to matching skill supply and demand is seen in the fact that

every six months a cross-Ministerial committee meets to identify the degree to which the

country‟s skill needs are being met. Skill needs are converted into the supply of skills through

the work of the EDB and the WDA. They do so through the use of the following strategies: an

expansion of pre-employment training, upgrading the skills of the existing workforce, and

attracting foreign manpower from overseas.

The Workforce Development Agency (WDA) plays an equally important role in upgrading the

skill levels of the workforce through the following three programs: skills conversion, skill

upgrading, and enhanced employability of lower skilled workers. The skill conversion program

is primarily targeted at workers who have been laid-off due to economic restructuring. The

program provides a worker with basic skills training in an area that has a high market demand.

The skill upgrading program is targeted at older people who already have jobs. The purpose of

this program is to help improve productivity within selected growth sectors. The third strategy is

targeted at enhancing the competencies of the lower skilled worker through a program called

Work Redesign. Under this program the WDA attempts to redesign jobs in targeted sectors so

that the person becomes more productive. Singapore was faced with a tough challenge, how to

catch-up to more developed economies when they had no natural resource base and a small low-

skilled population. They responded by initiating a decades long plan of state managed

interventions in industrial development, education and training.

1.9.2 HRD experience from Hong Kong SAR

Hong Kong has achieved high growth rates using a human resource development and export

sector growth strategy. Perhaps the most significant organization influencing skill formation in

Hong Kong is the Education and Manpower Bureau. The mandate of this Bureau is to (a)

provide a well trained workforce equipped to meet the demands of a dynamic economy and (b)

to contribute to the overall economic competitiveness of Hong Kong. The bureau is responsible

for manpower projections and for identifying the future demand for skills. The largest provider

of skills in Hong Kong is the Vocational Training Council (VTC). The VTC is a tripartite body

13

representing the interests of employers, employees and academics. Under the VTC there are 21

vocational training boards (VTB) covering all sectors of the economy, the composition of which

are tripartite meaning they include representatives from employers, employees and the

government. These boards meet every six months to review their sector and to provide feed-back

to the VTC on any important trends within their sector.

The Education and Manpower Bureau, in combination with the VTC, are responsible for

tracking skills that are in high demand. However, any study on the demand or supply of skills

must focus on sectors that are strategic to the country‟s development. The Education and

Manpower Bureau identifies broad macro requirements for the medium term (3 to 5 years). The

intention is to provide a general reference or signal to planners, but not specific details on the

numbers or specific type of occupations. The methodology involves a two pronged approach,

consisting of a number of quantitative projections and a series of qualitative studies.

The quantitative projections identify demand for broad occupational groups in specific sectors

and how they change over time. Attempts are made to match future supply by age, sex and

educational level. Each of these 22 VT Councils undertakes a survey of skill requirements in

their sector every two years. Additional studies are undertaken to provide qualitative information

about changes in the sector, including how global trends, information technology and other

factors are impacting on the sector. The VTC will also establish a committee to look at cross-

cutting issues that impact on each sector, such as disability or the role of ICT.

The provision of work visas is also used as a mechanism for obtaining skills not available

locally. Under this process a firm has to advertise locally, and if they are unable to recruit an

appropriate skilled person, they will have to approach the immigration board for a work permit.

In turn, the immigration board will approach the VTC to find out whether this skill is short

supply. If the application is approved the employer will be required to pay a levy. This levy will

be subsequently used to support the upgrading of local skills through the employees retraining

scheme

1.9.3 HRD experience from Republic of Korea

South Korea has been able to sustain rapid development for more than four decades, averaging

7% over that time. At the core of this growth was a government-led skills development strategy

coordinated with rapid technological change and equal income distribution. Since technological

skills and competencies are the main determinants of labor productivity, investments in new skill

development and capacity building have been crucial to Korea‟s competitiveness.

The basis of South Korea‟s growth has been an increase in skills and productivity coupled with a

guided economy that did not rely on its initial advantage in labor intensive low-wage industries,

but re-structured its industry into one which is capital, skill and R&D intensive. A key driving

force in the development process in Korea has been the upgrading of skills; a well-educated and

14

highly skilled workforce is complementary to the adoption of new technologies. The Korean

government also prioritized vocational and technical education (VET) within the formal school

system so that almost 40% of high school graduates came from a vocational or technical high

school.

In Korea the number of workers trained by firms has also increased from less than 100,000 in

1970 to almost 2 million in mid-2000. The rapid change in technology and the structure of

industry brought about increased job opportunities. These changes intensified incentives to invest

in education.

Rapid change in industry and employment in Korea favorably influenced the increasing demand

for education. The strategy of opening up markets also made its own contribution to the

expansion of the skill base. Investment in human capital has its maximum impact in a

competitive environment, the larger and more competitive these markets are, the greater the

prospects for using skills. As the economy opened itself to international markets, demand for

skills increased and provided incentives for education. Thus a cycle was created where education

and growth reinforced each other and both contributed to welfare.

Targeted investment at this level through the 1950s enabled emphasis on investment in middle

schools in the 1960s. This was followed by an expansion of high school education in the 1970s.

In parallel with the industrial policies of promoting heavy and chemical industrialization in

the1970s government spearheaded an increase in provision at vocational high schools and junior

colleges. Higher education expansion was limited to the areas of science and technology and, as

a result, there was no substantial growth in higher education until the mid-1980s when it was

strategically expanded. This sequential approach to the development of the education and

training levels contributed to a planned approach which prevented skill shortages or over supply

coupled to a phased integration of all sectors into economic growth.

The movement towards higher value-added industry was accomplished without major skill

shortages. In a rapidly growing economy it was important that labour supply should be congruent

with the demands of the economy. Because of the time-lag between skill investment and output

of skilled workers, prior forecasting of skill demand and investment priorities was necessary for

government. The strategies used for planning skill development made it possible to invest in

human resources earlier than the appearance of actual demand.

In the 1970s the major shift in economic policy to heavy engineering and chemical industries

was reflected in an expansion of vocational and technical courses at secondary and higher levels

and in the introduction of a vocational training system. In the 1980s the expansion of higher

education preceded the knowledge-based economy. In the 2000s the government made a

decision to base budget allocations on a forecast of strategic sector skill supply and demand. In

this way policy was driven by a planning model not merely based on past or current skills needs,

but on future expectations based on an interpretation of global markets. This was possible

15

because government had clear industrial policy targets.

South Korea‟s manpower planning was not successful in controlling education flows and was

abandoned in 1991. Centralized manpower planning of specific skill supply to meet estimated

demand is now generally discredited. Over emphasis on quantitative manpower planning and

coordination leads to a neglect of attention to specific skill qualities.

Skill development was led by government and complemented by the private sector. Government

played a leading role in directing skill development and ensured continual upgrading of the

workforce in order to move industrialization from low to high value-added sectors. Government

tightly controlled the education and training systems to ensure that output matched economic

needs. Government ministries controlled curriculum, standards and assessment at each stage; it

also supervised student quotas and entrance tests, staffing levels and resource allocation.

Specifically in the field of training the state played a leading role in channeling young people

into vocational schools to ensure adequate output. Despite this high level of state control of

education and training, the private sector played a major role in the expansion of the skill base.

The government has consistently expanded vocational skills training for the needs of industry.

VET programs, which were a central element in economic planning for capital intensive

industrialization, were initiated in the mid-1970s to meet needs for semi-skilled manpower in the

engineering and chemical industries.

The principal system of vocational training in South Korea was the system of mandatory in-plant

vocational training. It was obligatory for large companies to train their workforce or alternatively

to finance a public vocational training program. For this purpose a Levy was imposed if firms

failed to train a minimum percentage of their workforce.

In the 1990s but an increasing number of firms have a preference for paying the levy than

training their own workers. As the output of graduates from colleges increased, companies did

not see the need to develop training on their own. Government sees that high quality human

resources are a must to maintain continuous growth and for the knowledge-based economies of

the 21st century. While it is difficult to identify skills needs for the next generation of leading

edge industries it is possible to identify the qualities which will be required. Government

demands that graduates completing programs should best fit the industrial needs after graduation

without additional in-plant training; universities must, therefore, deliver custom-made skill

development programs to meet national strategic industries. The coordination between

government agencies, industry and academia makes these policies successful.

The experiences gained provide notable policy implications for other countries which aim to

transform their economies and industrial structure. These are:

1. There must be close congruence between skill development systems,

16

government‟s role and the stages in economic development;

2. While it is difficult and inefficient for government to directly control the

whole process of skill development, government does have a role to promote

behavior of stakeholders to the advantage of social and national goals;

3. Participation of social partnership between stakeholders is becoming more

important, skill development systems exclusively regulated by the state fail to

meet actual needs of firms;

4. Higher education for the masses was achieved without significant secondary level VET.

This illustrates that late specialization is possible and that a combination of general

education and in-plant training may be efficient models in a high growth economy; and,

5. Maintaining a balance between quantitative expansion of the skills base and issues of

equity and growth are possible.

These three countries did achieve rapid growth because of their deliberate and planned actions,

not by chance or accident and a significant part of those actions were skills formation policies

that were linked to sector development policies. The development progression for the Tiger

Economies has been one of investing in skills formation to attract investment in higher value-

added industries, moving up the value chain through growth from low to high technology

sectors, raising productivity, improving competitiveness and increasing exports.

Nations that ignore significant skill development for their workers become trapped in a low skill

trap where they remain stuck with low-wage and low value-added industries because the

workforce is never transformed through acquiring higher skills. Not only is it essential to raise

current skill levels, it is vital to plan for those skills that are needed in the near future, taking into

account what skills will be needed by the more advanced sectors that will drive future growth

1.9.4 HRD experience from India

For nearly 40 years, since its independence in 1947 until the beginning of the 1990s, India

largely remained a highly state controlled economy, as it followed socialistic democratic policies

where the state adopted the primary role of nation building. The failure of this policy was evident

in its infamous Hindu rate of economic growth which barely matched the population growth.

While the public sector languished in chronic inefficiency, the private sector was crushed under

the burden of state regulations that dictated where, when and how they operated, effectively

leaving them no room to grow and flourish, either domestically or internationally.

However, at early stage (1950/60) the industry development in India was supported by the

establishment of IIT and state engineering colleges in collaboration with such countries like

Germany and USA. 1980 demand for engineers increased and led to the establishment of large

numbers of engineering institutes, around 3000 and 90% of them are privately owned. The

focus was only on training and there was no formal certification. The skill training was

provided by the informal sector. Later (2011) the effort was made to make the training formal

17

and decided to be taken care of by the government. At the national level skill development

become a key strategic focus particularly to address the skill requirement of the rapidly

developing industry sector.

In general, In line with economic trends, the human resource function in India has evolved

rapidly since the 1920s with its focus shifting from labour welfare to industrial relations, and

personnel administration to strategic HRD (Budhwar and Varma 2010). It is influenced by

several structural variables at the macro and micro levels such as ownership type, industry

sectors, legislative framework, competitive forces, trade union membership, top management

orientation to people management and the level of HR professionalism (Rao and Varghese

2009).

One can see a combination of indigenous and global approaches to HRD in India both by

domestic and foreign firms (Chatterjee and Pearson 2001). Strategic HRD practices in

recruitment, compensation, performance and career management show a positive impact on firm

performance and employee perceptions in the Indian context, particularly in the manufacturing

industry sector (Sharma and Tripathi, 2011).

HR Planning

Manpower planning, at various levels of sophistication, has been integral to the economic

development plans in most developed countries for over half a century, while in developing

countries, the subject has started gaining interest and attention in the past few decades

(Willems, 1996).In the case of India, there was no well-organized planning of HR for a long

time. They simply follow the market demand. Forecasting was done by each company and

National Skill Development Corporation compiles at national level. Their approach reveals

that, demand comes first then supply will follow. Industries have also their own training

institutions. They train their own employees as per their skill requirement and government

support for in house training is significant that expressed by paying trainees. Colleges and

university students are encouraged to work on industrial problems and conduct joint research.

They are also provided double scholarship from the university and industry.

Through the coordination of the Department of Skill Development, skill gap analysis at

national level was made with in formal and informal sector. The confederations of Indian

Industries has a role in assessing the performance of skilled workforce and identify the institute

from where they are graduated and model the institute to disseminate and scale up their best

practice in other similar institutes. Need assessment survey was conducted with the

involvement of educational institutes and industries. Industries also involve in supporting the

survey cost in order to identify the gaps. They also actively involved in academic activities like

involving in TVET program development. Survey of skill gap analysis was organized in

different phases. The survey report reached its 4th

edition. The Ministry also engaged in

18

enhancing industry research capability. It was noted that NSDC has planned to offer skill

training for 500, 000 000 people was planned for the year 2022.

The government of India has recently established a new department called Department of Skill

Development which coordinates of 18 Ministries participating in skill development. The

Department is responsible for assessing the required skills, coordinating the supply of skilled

workforce and coordinates the development and implements the National Skill Qualification

Frame-work (NSQF).

Currently there are 79 frameworks for 40 sectors at 9 skill levels. These skill levels organized

and selected from the experience of Germany and Australia. Each level has its own

competences which are nationally and international recognized standards. Skill levels are

determined on the basis of the actual skill requirement of the industries.

The Ministry of Labor and Employment is responsible for the provision of Technical Skill

Development of the industry at national level, the existing universities and colleges under

MHRD are also participate in the skill development in such a way that they select one

specialization to offer training during their off time. The training modality is more training and

less education and certification is based on the level of training.

Support Institutions in HRD in India

At the national level, the Ministry of HRD in India needs to develop strategies and implement

appropriate HRD policies to develop the Indian workforce with the right skills and competencies

that adequately cater to the present and future needs of the Indian economy and indeed of the

world. In doing so, it needs to tackle the structural human capital challenges in terms of low

literacy levels, excessive dependence on agriculture, social and economic inequity (Rao and

Varghese 2009). The government cannot do this alone. For NHRD to become more meaningful

and purposeful, India needs to develop broader and deeper cooperative partnerships and

networks between various key stakeholders, such as private enterprises, industry associations and

non-government organizations (Rao 2004). For example, National Skill Development

Corporation (NSDC), India‟s first private-public partnership institution is a unique initiative that

is addressing the urgent need of skilling the country‟s 500 million strong workforce by 2022 by

creating an ecosystem that is scalable and sustainable, which is 30% the national target.

The mission of NSDC is to enhance, support and coordinate private sector initiate to skill

development through appropriate PPP model and upgrade skills to international standards

through significant industry involvement and develop necessary frameworks for standards

curriculum and quality assurance .

It is autonomous government institute established by PPP funded by both private and public

sector 51% and 49% contribution respectively. It is working with the industry sector and Center

19

Skill Development council with the motto of; Be skilled! Be Independent. These mottos helped

to attract youngsters to the skill development programs and enabled them, to get employed, to

be self-employed and to earn more in their current job.

NSDC works by involving private sectors and focuses mainly on establishing Skill Training

Centers, provide initial fund for the establishment of the skill development centers (Loan will

be given or private sectors entrepreneur) and enabling the training centers. Similarly, the

National Association of Software and Services Companies (NASSCOM, 2012), the trade body

of the Indian information technology (IT) industry in India, has set up Sector Skills Councils

(SSCs) which are national partnership organizations that bring together all the stakeholders –

industry, labor, and the academia, for the common purpose of workforce development of

particular industry sectors. Automotive Skill Development Council (ASDC) is one of the 31

SDC which are formed by the government and private sector representatives. ASDC

undertakes the following activities:

Serve as a platform for Automotive industries

Determine the skill required in the sector and set skill standard. Current around 190 skill

standards are set which are focused on manufacturing, assembly, logistic and driving.

Cooperate in the curricula development

Assess the training quality and trainees

o It Provides certification in the follow areas (Automotive Manufacturing,

Automotive R&D, Automotive Sales, Automotive servicing, Automotive supply

chain

The human resource requirement planning is made based on the national target and the

cascaded and sector plan. The human resource requirement projection is made at three levels,

which are projection by the industry, Projection based on government plan and projection based

on market survey. Combining the three approaches the future demand for the sector could be

estimated.

One of the newly developed institutes in India is the National Institute of Food Technology and

Entrepreneur Management is established by the government of India under the Ministry of

Agro-processing in 2012 based on the need to develop Agro-Industry. It was established bent

on creating world class education and management Center. It conducts research and Innovation

using well equipped laboratories. It focuses mainly on value addition. The institute focus is

70% on agriculture related with food quality and safety. It also works towards balancing the

benefit of both producers and consumers by doing so they make the market chain more

efficient. It is net worked with nine research institutes outside India. It provides education

services and is recognized by Ministry of HRD of India. It undertakes the following major

activities education up to the level of PhD and Bachelor and master of technology. The institute

has special program called Village adaptation program with the objective of

20

Learning from local technology (to learn from endogenous technology)

To learn from the community problem

Transferring new technology to the community

Every student doing his master thesis will be assigned in the village so that the research shall be

the one that addresses the community problem. They are establishing pilot plant where students

get practical knowledge and skill in the established plants.

Approach of HR Forecasting

A key component of HRP is forecasting the number and type of people needed to meet

organizational objectives. Since it‟s an open system that we exist in, a variety of organizational

factors, including competitive strategy, technology, structure, and productivity can influence

the demand for labor. For example, utilization of advanced technology is generally

accompanied by less demand for low-skilled workers and more demand for knowledge

workers. Human resource forecasting is a critical element in the process of human resource

planning, both at the micro (enterprise, etc.) and macro (regional, national, industrial, etc.)

levels. The forecasts of human resource demand and supply not only provide insight into the

right quantity and quality of the human resources required to maintain the desired growth of a

sector but also help in planning educational curricula commensurate with the labour market

needs. In the case of India, the forecasting starts by developing base line data. The major

sources of base line data are:

Identify formal and informal sector (Data on formal and informal employment)

Used organized formal sector data (secondary data)

Industry driven report

Import and export report

National survey by Statistics Agency of India

Sample survey25 employers considered from each sector for the sample. The sample

includes fair representation of large, medium & small enterprise.

Sample survey of companies (6 to 7) organizational structure to estimate the

percentage functional distribution of workforce

The data collected through different sources will finally be triangulated to ensure its accuracy

and expert opinion will also be used when necessary. Based on the agreed base line data % of

occupations (skill mix and ratio) will determined for each sector. Projection is made by

considering factors like macro policy specific to the sector regarding employment, Industry

growth rate, FDI flow rate, Labor elasticity and Productivity data, and other related factors.

21

CHAPTER TWO: OVERVIEW OF CURRENT HR SUPPLY

2.1. Education and Training Policy Supporting HRD for Manufacturing Sector

The education and Training policy (1994 E.F.Y) of Ethiopia clearly stipulated that one of the

specific objectives of the policy is “to satisfy the country's need for skilled manpower by

providing training in various skills and at different levels.” The various strategies developed

and implemented thus far reflect this basic essence.

The national TVET strategy (2008) envisions that “Technical and Vocational Education and

Training (TVET) in Ethiopia seek to create competent and self-reliant citizens to contribute to

the economic and social development of the country.” The focus on science and technology

education at the tertiary level of education also clearly point out that, the economic

development in general and that of the industry development hinges mainly at producing

university graduates in the fields of science and technology. Currently, seventy percent of the

higher education enrolment is in science and technology fields.

Evidently, the Ethiopian education policy and strategies clearly support the HRD for the

manufacturing sector. In addition to the formal training provided by public TVET and HE

institutions, numerous private and governmental training centers provide capacity-building

programs for broad spectrum of institutions ranging from MSEs to that of large manufacturing

industries. Based on education and training the policy and strategies, the private sector is also

providing training services and is making contribution to the overall human capital formation

for the industry sector.

The National Science, Technology, and Innovation Policy of the country is also provided

further opportunity for the HR capacity development for the manufacturing sector through the

establishment of TVET/ university- Industry zonal forums.

2.2. GTP Focus of HRD for Manufacturing Industries

GTP clearly kept the focuses on which education and/or training need to follow the demand of

industry, particularly the growing manufacturing industry, at all levels. The plan has also taken

into account the findings of the ESDP III review as an input for the review as its basis for

ESDP IV has been developed to ensure equitable access to quality education. TVET and higher

education was focused in the document to have a strong linkage with each other and industries.

Government in this regard has taken keen step for investment that strengthen cooperative

training to ensure provision of middle level human power that will satisfy the national

labor market

22

The GTP I document geared higher education institution to be compatible with the quantity,

type and quality of the human power demanded by the economy and /or national labor market.

Accordingly, the increase in enrolment in graduate and post graduate programs will be in line

with the 70/30 HE enrollment policy.

2.2.1. TVET Strategies

The existing TVET strategy is National Technical & Vocational Education and Training Strategy

adopted in 2008 in replacement of an older version adopted in 2002 with an overall objective to

create a competent, motivated, adaptable and innovative workforce in Ethiopia contributing to

poverty reduction and social and economic development through facilitating demand-driven,

high quality technical and vocational education and training, relevant to all sectors of the

economy, at all levels and to all people. It reflects an important paradigm shift of recent years

which places quality and relevance of TVET as its priority. Global experience has shown that the

mere expansion of TVET does not solve the problems of unemployment and low productivity of

the economy. TVET has to respond to the competence needs of the labor market and create a

competent, motivated and adaptable workforce capable of driving economic growth and

development.

To pursue its objective, demand orientation and flexibility is set as guiding principles to define

further development and implementation of the TVET system. By demand orientation, all TVET

in Ethiopia has to respond to the competence needs and qualification requirements in the labor

market. TVET is geared towards enhancing the competitiveness of all economic sectors through

a competent workforce and towards improving people‟s employability in the labor market and

with regard to self-employment. To respond to the changing occupational requirements and to

accommodate the different demands of the various target groups, the TVET system will allow

and encourage flexibility and dynamic development of the TVET offers. This applies to the

organization and delivery of TVET programs as well as to the way in which people can pursue

their individual occupational careers.

To accomplish the objectives set, the TVET System is led and uses different principles as start of

the next development. Making TVET Institutions Centre‟s of Technology Capability

Accumulation & Transfer, involvement of Stakeholders‟ and Outcome-Based Approach among

the principles.

Previously, TVET delivery did not consider the competence requirements of the labor market

as it should be in occupational standards; thus, it failed to appropriately address the ever-

changing demands of the labor market. Building an outcome-based TVET system is therefore

the center piece of the TVET reform that strives for enhanced quality and relevance of TVET.

An outcome-based TVET system design will also make it easier to recognize the wide range of

non-formal training and informal learning schemes available, opening access to previously

23

neglected target groups. In the outcome-based TVET system, the federal government will meet

its responsibility for ensuring quality and relevance of TVET by:

Facilitating the setting of National Occupational Standards which is fairly equivalent to

international standards and; organizing an occupational assessment and certification

system which offers National Occupational Qualification Certificates to those who have

proven, in an assessment, that they are competent in accordance with the defined

occupational standards.

In the process of an outcome-based TVET system, the government has the statutory

responsibility to set rules and regulations. It does so in cooperation with employers and

other experts with adequate knowledge about the requirements in the world of work

Currently Ethiopia is undergoing revision of its National TVET Strategy with an overall

objective of creating a competent, motivated, adaptable and innovative workforce in Ethiopia

contributing to poverty reduction and social and economic development through facilitating

demand-driven, high quality technical and vocational education and training, relevant to all

sectors of the economy, at all levels and to all people. The reason Ethiopia required to revise its

National TVET Strategy is due to the following reasons.

Ethiopia has considerably changed since the current strategy was formulated

The strategic framework for TVET needs to be aligned with the overall national

development framework (Ethiopian Renaissance, Growth and Transformation Plan)

While good parts of the current strategy have been implemented, new challenges have

occurred that require strategic discussion and consensus building

A revision of the current strategy is timely to guide the formulation of a mid-term TVET

Strategic Plan, due in 2015 as an input for the new GTP and ESDP

Challenges and issues that need to be addressed in the updated TVET Strategy are identified in

different strategic pillars. Outcome-based training system, Human resource development and

Cooperative training delivery, challenges and issues identified under these pillars are enumerated

as follows.

Outcome-based training system

• Implementation has shown mismatches between standards and workplace requirements

• Industry involvement in standard setting and assessment below expectations

• Further development of occupational assessments runs the risk of overburdening the

system

• Fee system for assessments not apt to ensure sustainability

Human resource development

• Deficient skills and competences of teaching and management staff

24

• Young, newly recruited C-Level teacher lack competencies and experience

• Huge work load for teachers due to additional responsibilities

• High fluctuation among teachers and TVET management staff

• Many more TVET teachers needed

• TVET teachers training capacities are below demand

• Shortage of experienced industry trainers

Figure 1: Cooperative training delivery

• Not enough companies participate in cooperative training

• Lack of ownership by companies, underdeveloped appreciation of cooperative training

• Shortage of competent industrial trainers

• Most TVET programmes do not reach the stipulated 70% workplace learning

2.3 Role of STU’s & IOTs (Science and Technology Cluster)

The first two objectives of Higher Education Proclamation No. 650/2009 favor the

manufacturing industry to get skilled graduates and these are:

Prepare knowledgeable, skilled, and attitudinally mature graduates in numbers with

Demand-based proportional balance of fields and disciplines so that the country shall

become internationally competitive;

25

Promote and enhance research focusing on knowledge and technology transfer

consistent with the country's priority needs;

The proclamation clearly stated in a way to solve the mismatch between industry need and the

provision of trained workforce at the inception of GTP 1. However, the practical effort in line

with the notion of this proclamation is not realized.

The FDRE Government issued its first National Science and Technology Policy in 1993

(1986 EC) to improve the science and technology capabilities for national development. This

policy was further reviewed and a new Science, Technology and Innovative (STI) policy was

adopted in February 2012.

The national STI vision of the country is “to see Ethiopia entrench the capabilities which

enable rapid learning, adaptation and utilization of effective foreign technologies.” Moreover,

its mission is “to create a technology transfer framework that enables the building of national

capabilities in technological learning, adaptation and utilization through searching, selecting

and importing effective foreign technologies in manufacturing and service providing

enterprises.”

Among the number of National STI Policy implementation strategies identified STI strategy

document is the human resource development issue. Under the HRD key issue, four strategies

are clearly articulated. These are

Developing institutions that provide the HR demanded by the country‟s economy,

notably highly competent technicians, engineers , and scientists

Aligning the higher education enrolment in science and technology with the national

science and technology human resource demand and ensuring practice oriented education

and training in collaboration with the manufacturing sector

Increasing the enrolment of female students in institutions of the science, engineering,

and TVET

Developing HR with competent knowledge and skills in technology learning, adapting,

and appropriate utilization in the manufacturing and services sector.

Moreover, the strategy document for the implementation of STI policy has clearly formulated

the role of Universities, Research Institutions, TVET Institutions, and their linkage with the

Industry. The linkage between these institutions and the industry is critical to the HRD in

engineering and technology. To strengthen these linkages, four strategies have been formulated.

These are

Developing a system of to coordinate technology transfer activities among Industry and

the Universities, research Institutions TVET Institutions

Creative a conducive environment to enhance the active engagements of University staff

and student in Industry for technology transfer

26

Strengthening the link among University, Research institutes and the industry in terms of

technology adaptation

Developing a system that enable universities to consult and support heavy industries in

technology transfer

2.3 Linkage Forums of Universities, TVET Institution and the Industries

In September 2013, the Ministry of Science and Technology has developed procedural

directives that included the organizational structure for the linkage, responsibilities of the actors

in the linkage, and their obligations. Accordingly, the linkage has two levels of hierarchy.

These are the

National linkage forum under the national council of STI. This forum comprises state

ministers of those Ministries which are members of the national council of STI,

chairpersons of sector associations, and the Zonal forums. The council establishes this

forum in September 2013. The forum established a total of 17 Zonal forums in the

country in December 2013.

Zonal linkage forums based on the growth corridors of the country. The national

linkage forum has established 17 zonal linkage forums in the country. These forums are

categorized under broader economic activities including agriculture, Industry, Mining,

economic infrastructure, Trade, Health, and Culture and Tourism.

The coordinators of the zonal forums are the respective development institutes of the

economy and industry sector. Members of these 17 zonal forums are the senior

management members of Universities, TVET institutions, and industries under

development zones. The main focus of each of these zonal linkage forums is to facilitate

the University, TVET institutions and Industry linkage through joint research,

consultancy, internship, and development of marketing capabilities. A university shall

be a member to any number of forums in the area or field of expertise identified as its

center of excellence.

Since December 2013, the process of establishing these Zonal forums has begun and some

forums are being formed. Other Zonal linkage forums are yet to be formed.

2.4 Current Supply of HR for the Manufacturing Sector

TVET and HE graduates

The table below reveals the trends of graduates from higher education and TVET. The

graduates for the year 2013/14 are expected to be received at the time of this study completion.

Table 2: Graduates of public higher education and TVET

Graduates 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

UG 55770 66990 70317 77489 79786 96980

27

PG 3257 4724 6041 6162 6424 8021

Total 59027 71723 76358 83651 86210 105001

TVET

Level I - - 3546 7958 12510 12510

Level II - - 8587 24783 25644 25644

Level III - - 44205 51427 34388 34388

Level IV - - 52295 56161 52756 52756

Level V - - 1220 32 440 440

Total 109,853 140,461 125,738 125738

Source: MoE and TVET agency (2014)

TVET Supply

Achieving the vision of becoming a middle-income country by 2025 demands includes the

development of light and medium industries and establishment of high -tech industries, which

call for the TVET and higher education system of the country to produce highly competent

workforce at global level as per the demand of the economic sector. Furthermore, it requires the

establishment of R & D and other support institutions to promote high - tech industries and

build technology transfer capabilities. To compete in today's global market and speed up

Ethiopia‟s industrial development, it should be recognized that the availability of the required

human resource for the manufacturing sector plays a crucial role.

The level of qualified workforce capable of transforming the manufacturing sector is inadequate

and unable to effectively handle the technology transfer in the sector. The Industrial

Development Strategy (The Ethiopian Industrial Development Road Map and Strategic Plan and

Institutional Setup (2013-2025) document) for human Resource Development clearly indicated

the need to identify and focus on producing highly qualified technicians, engineers and scientists

in line with the demand of the manufacturing sector.

The Ethiopian government has been making a great effort in order to expand the education and

training system so as to respond the demand of the industry sector in terms of skilled workforce

for the last two decades. Yet there is no clear workforce requirement forecast for the

manufacturing sector for the coming 10 years.

Trainee acceptance trend and assessment result are shown in table 3 and 4 for the year between

2003-2006 E.C. As can be seen from table 3, the number of certified trainee is increasing from

time to time this is an indicator of producing competent labor force for industries.

28

Table 3: Trainee Enrollment Trend

2003 2004 2005 2006

Total Total Regular Short training Regular Short training

371,347 314,159 220,714 681,674 222,113 1,955,826

Source TVET Agency, 2006

Table 4: Trainee Assessment Result

2003 2004 2005 2006

Ass

esse

d

Cer

tifi

ed

In %

Ass

esse

d

Cer

tifi

ed

In

%

Ass

esse

d

Cer

tifi

ed

In %

Ass

esse

d

Cer

tifi

ed

In %

38158 10875 28.49 53484 21511 40.2 79917 44849 56.12 180772 129044 71.38

Source: TVET Training development office, 2006

2.5.2 Comparison between TVET supply and manufacturing sectors demand

The table below reveals that supply trend of three manufacturing sectors (Metal, Textile and

Leather) and the demand of selected manufacturing sectors demand for the year 2016, 2020,

and 2025

Table 5: TVET graduates trend for three manufacturing sectors and Manufacturing Skilled

workforce demand

Levels

TVET enrollments

from 2010-2013 for

Leather, Metal and

Textile sectors

TVET

graduates in

manufacturing

sectors by 2016

TVET graduates in

manufacturing

sectors by 2020

TVET graduates in

manufacturing sectors

by 2025

I 3767 95657 248970 569174

II 13731 101958 496851 1772412

III 10495 73847 493625 1653078

IV 4844 41415 327422 1065108

V 352 5652 32795 109313

29

Figure 2: Comparison of TVET supply trend and Manufacturing sectors demand

Fig 2 above reveal that the trend of priority manufacturing sectors demand for the TVET

graduate is significantly rising for the coming two GTP periods.

2.5.3 The comparison between HE graduates trend and manufacturing sectors demand

The figure below shows that the number of graduates from HE can satisfy the need of

manufacturing sectors in terms of numbers required. At present, about 100,000 professionals

will graduate from HE where this amount may satisfy the need of manufacturing sector with

the future growth expectation.

30

Figure 3: Trends of graduates from Higher Education

31

CHAPTER THREE: HUMAN RESOURCE REQUIREMENT FORECASTING

METHODOLOGY

In this part of the document an attempt is made to clarify the methods and tools of data

gathering, different models, and approaches and techniques of data collection for HR forecasting.

The descriptions and rationales to employ the methods and models in HR forecasting in

Ethiopian manufacturing sector were spelt out.

3.1. Method of Data Collection

The study has secured different types of data from various sources so as to make the forecast up

to the standard. The major data related to HRD policy and strategy, skill development policy and

strategy, HR requirement for the manufacturing sector, occupational standards, and current status

of HR in the manufacturing sector, current supply status of HR to the manufacturing sector and

other relevant information were collected from both primary and secondary sources.

The study employed different methods and tools to collect the data from the relevant sources,

which includes document analysis, in-depth interviews, focus group discussions, workshop,

industrial visits and lessons learned from international best experiences and practices.

Document Analysis: Different Documents were analyzed as secondary sources of data to get

the required information. Various and relevant industrial policies and strategies, and programs of

national and international documents were selected and thoroughly reviewed and accordingly

used to enrich the study document. Different studies on the manufacturing industry development,

manufacturing industry manpower development, skill development strategies and many other

study documents relevant to the study were also investigated to benefit the HR forecasting

document(see annex …).

In-depth Interview: A total of 93 in-depth interviews were conducted with purposefully

selected industrial leaders and stakeholders at macro and micro level. Different ministries,

agencies, corporations, chamber of commerce and sectorial associations, professional

associations, experienced and resourceful experts and professionals from each public and private

manufacturing industrial sector were involved.

Focus Group Discussions: Two Focus Group Discussions for each sector were held with

selected participants who had plenty of experience in the sector and important contribution to the

development of the industrial development road map and other related documents. More than ten

FGD forums were arranged at macro and micro level and conducted intensively to get the

primary data. It was used as a primary data collection method about the current business

environment and status of the manufacturing Industry related to Human resource planning and

development. The participants on the focus group discussions include Core Sectoral Directorates,

experts in Ministry of industry and private sector actors in the industrial development including

32

Industry owners, managers, and technical staffs from each sector and other resource persons

(refer annex at the end of the document)

Questionnaire

A checklist was developed and distributed to all industries through respective institutes.

However the homogeneity nature of the sectors had allowed the team to rely on sampled

representative companies for historical information required. Experts from each manufacturing

industry and institutions were employed considering their experience and knowledge of the

national occupational standards during data collection from the companies.

Industrial Park Visit: Valuable information has been collected through personal observation of

different industries and industrial zone/complex visits in Ethiopia.

International visit: The study team has conducted a ten days exposure and experience sharing

visit in Skill Development Corporations and different Skill development center of different

manufacturing sectors in India. This visit enabled the study team members to get full-fledged

insight how the industry skill and knowledge can be developed along with related and different

support services and packages needed to be established in the development process to support the

countries manufacturing industry development process.

The study team members have conducted seven working days and experience sharing visit to the

Republic of Korea related to HRD was gained from Science and Technology institute about

formation of HR science and technology for HRD and building up skilled workers. Good

experience has gained about research trends in workforce demand and supply projection, labor

market projection system, methodology for workforce demand and supply projection and Korean

labor market projection models from Korean research Institute for Vocational Education

Training (KRIVET). The history of industrial strategies and policies and history of education

system development were part of the experience acquired. HR planning of science and

technology from science and technology policy institute was among the experience learned.

Those experiences sharing visit helped the team to select the right model for the manufacturing

sector HRRP

Survey Data: Forecasting the human resource requirement for the manufacturing sector

requires using historical as well as current data on the number of workforce in the manufacturing

companies and its skill mix. Since such data is not readily available it called for collecting them

from the existing industries. For that purpose a checklist was developed and distributed to all

industries through the MoI. In addition enumerators were employed and involved to gather five

years human resource data from 95 selected and sampled manufacturing industries. Experts from

each manufacturing industry and institutions were employed as enumerators of the checklist

considering their experience in the sector and knowledge about the national occupational

standards in TVET curriculum.

33

3.2. Method of HRR Forecast

Manpower planning, at various levels of sophistication, has been integral to the economic

development plans in most developed countries for over half a century, while in developing

countries, the subject has started gaining interest and attention in the past few decades (Willems,

1996; Ozay Mehmet, 1977; Psacharopoulos, 1984; 1991). In the developing countries, there is a

strong urge to match the skills required with the skills available and put efforts in human

resource development thereof.

The emergence of interest in human resource planning has led to methodological advances as

well as debates about the relevance and efficacies of alternative methodologies under various

conditions. This implies the fact that, the human resource requirement planning demands the

application of various approaches and methods which can be broadly categorized into qualitative

and quantitative approaches and are briefly summarized hereunder.

i. Qualitative Method

The qualitative approach to Human resource requirement planning uses experts‟ opinion to

predict manpower requirement. This method relies on the judgment of experts to translate

qualitative information into quantitative estimates. There are different qualitative methods that

can be used to forecast human resource requirement. The most commonly used are Delphi

technique, and Employers‟ Survey techniques.

Delphi technique: This method involves converting the views of a group of experts, which do

not interact directly to each other, into a forecast through an iterative process. This involves

sending questionnaires by mail or by some convenient means to the group of selected experts so

that they will express their view about the future HR demand. The responses collected from each

of them are summarized and sent back to the experts, along with questionnaire meant to provide

further reason for the their view expressed in the first round. The process may continue two or

more rounds till a reasonable agreement emerges in the view of experts. This approach is

suitable to manpower planning at the firm level.

Employers’ Survey: This is a qualitative method which will try to transform the employers‟

opinion in to quantitative figure. It is a straight-forward method of ascertaining the anticipated

needs of human resources over the forecast period directly from the employers.

ii. Quantitative Method

These methods use quantitative data which can be historical or cross sectional data to forecast

human resource requirement. There are different methods in this category. Some are relatively

simple and direct forward. On the other hand there are also methods which are more

sophisticated and challenging. Some of the methods relevant to human resource requirement

planning are summarized below

34

Norm-based Forecasts: This method uses the ratios between human capital and tasks, as a norm

for estimating the required human resources. These ratios are based on either the existing

situation or the desirable situation of the forecast period.

Time-series Analysis: Time-series analysis to forecast the human resources requirement on the

basis of trend, i.e. the historical pattern of changes. This approach is on the basis of the

assumption that the future can be extrapolated from the past. It works by projecting trends of the

past and present into the future. Trend analysis incorporates certain business factor that includes

units produced, revenue and other relevant variables.

In the labor demand, changes can be forecasted by forecasting changes in the business plan and

productivity ratio. It involve

Determining the appropriate business factor that relates to the size of the workers

Identify the historical record in relation to the size of the workforce

Calculating labor productivity ratio

Determining the trend

Make necessary adjustment in the trend

Projecting to the target year

This method requires long term historical workforce data by different occupations which are the

major challenge to use this method.

Work-Study Techniques: This technique is based on the volume of operation and work

efficiency of the existing workforce. This approach can be employed when it is possible to apply

work measurement to know how long operations should take and the amount of labor required.

Volume of operation is obtained from the organizational plan document. Productivity or work

efficiency is measured by time and motion study which specifies standard output per unit of

time, say per hour. Thus, the number of operatives required to complete specified volume of

operation is determined using the following relationship:

However, standard output per hour is not always a constant factor but, generally it increases over

the period of time because of learning which may be through trial and error, learning through

observation.

The Aggregate Labor Demand Projection

The aggregate labor demand projection is handled in two steps:

Step 1 Projection of value added by industry

35

Step 2 Projection of employment coefficient (employment/value added) by industry. The

method uses different models from simple linear equation y = a+bt to y = a+b1 t+b2 t2

where,

y (employment coefficient), t (trend)

This approach was not selected as a result of data limitation to complete the formula.

Manpower Requirement Approach (MRA): This method of estimating and forecasting

demand requires estimating and forecasting future output and productivity of labor force. The

logic behind such approach is that labor is one of the factors of production and hence it has a

direct impact on the level of output. This implies the fact that, if the output has to grow to certain

target the labor input should also grow accordingly and the growth could be non-linear. In

addition to labor input, the output produced is also affected by labor productivity. As the labor

become more productive, the demand for labor goes down. Labor productivity can be enhanced

not only by education and skill improvement but also it will be significantly enhanced by

technological progress. Thus, labor productivity reflects both skill and technological change in

the manufacturing sector.

Therefore, it becomes reasonable to assume that the expected future level of output (may be

measured by GDP ) along with the expected growth rate of labor productivity are two important

factors or determinants of manpower requirement. From this it can be worked out the

relationship between demand for labor force, level of output measured by GDP and labor

productivity with the following relationship.

Lt = Lo (1+gt)/(1+pt)

Where Lt = Labor demand at time period t

Lo = The labor force in the previous year in value of money

gt = The estimated growth rate of output at time period t

pt = The estimated labor productivity growth rate at time period t. In case if it is not

possible to estimate the growth rate of labor productivity, the initial labor productivity

can be used by compounding it at the time period t.

Selected Method to forecast HRR for the Manufacturing Sector

In this study, the human resource requirement forecast is made for each priority manufacturing

sector in accordance with national occupational standard. This means, the forecasting approach

should be an occupational demand side forecasting which calls for selection of an appropriate

model that serves the purpose. The forecasting follow the step depicted in figure 2 below

36

Figure 4: Basic Demand Side Forecast Framework

After thoroughly examining their applicability with the available data and its suitability to demand side occupational skill forecast of

HRR in the manufacturing sector, the Manpower Requirement Approach is selected and used to forecast the manpower requirement.

The target of the manufacturing sector in terms of its GDP contribution up to the year 2025 is clearly projected in the industry

development Road map. The selected method qualifies to forecast the human resource requirement plan using the target GDP

contribution to the manufacturing sector, productivity of each sector, and the current baseline employment level. The HRR for the six

priority manufacturing sectors (Textile, leather, metal, construction and construction inputs, food and beverages, and pharmaceutical)

was then projected as follows.

Estimating the

Educational

Distribution

by Occupation

Estimating Separations

or Replacement demand

Estimating the

Future Level of

Aggregate GDP or

Output

Estimating the

Occupational

Distribution

by Industry

Estimating

Future

Employment by

Industry

Estimating

Future Output

by Industry

Projected

Occupational

Demand

37

CHAPTER FOUR: HR DEMAND ANALYSIS OF THE MANUFACTURING SECTORS

(2016-2025)

The human resource requirement plan for manufacturing industries is basically dependent on the

future development direction of the industries and their current status. The future development

direction and the target for each manufacturing industries recaptured from the industry

development roadmap (2013-2025). The current status of the industries make known through

interview, focus group discussion, expert consultation and enterprise secondary data analysis. In

this regard, the SLOT analysis was conducted to identify these determinants factors to boost the

growth of the manufacturing sector.

4.1. SLOT Analysis

Based on the situational analysis of the manufacturing sector, the sectors major internal

strength and weaknesses are identified. The external opportunities and thereat that impact on

the development of the manufacturing sector are also pointed out. The list below indicates the

detail analysis of the SLOT.

Table 6: SLOT of the manufacturing sector with respect to of HR

Strengths

Creation of huge employment opportunities

to citizens

Expansion and diversification of light

manufacturing sector

Increased contribution of foreign exchange

earnings and import substitution effort

Involvement and commitment of Industry

Development Institutes (TIDI, LIDI,

MIDI,…) in the skill development

activities

Growing role of the private sector in

training and education

Availability of twining program in the

sector

Interest of industries to engage in

upgrading of training programs

Growing capacities of industry

development institutions (like, TIDI, MIDI,

LIDI)

Increasing trend of technology transfer in

Limitations

Limited capacity of the existing Institutions to

offer skill training

Attitudinal problem, work culture and work

discipline

Low awareness and ineffective implementation

of the national occupational standard in the

sector

Low labor productivity and capacity utilization

Weak University industry linkage

Limited appropriate technology transfer

(technology, adaption and adoption) and

application of indigenous technology

Limited collaboration of industries to support

cooperative training.

Less recognition of HRD as an integral part of

industries and companies management

Few professionals in the industry management

and support services

Lack of skill to make machinery maintenance

Low involvement of industries to support

38

industries

The development long term industry

development road map and strategy for

selected priority sectors

Development of Industrial parks

education and training

Absence of medium to long term plan for HRD

Inadequacy of R & D culture to the industrial

development

Weak collaboration among MoI and other

stakeholders‟.

Lack of specialized and high skill training

institutes

Lack of quality management

Opportunities

Existence of stable and peaceful socio-

political environment and supportive

macroeconomic policies

Emphasis on Science and Technology in

Higher education and outcome based

TVET system

Establishment of STUs and IOTs

throughout the country

Availability of clear target and effort to

create industry-led economy

Expansion of educational infrastructure

(Universities, and TVET colleges) and

higher public budget for education sector

Expansion and development of information

technology

Availability of national standard

framework for occupations in the industry

Availability of easily trainable workforce

Threat

Lack of labor market information system

Lack of skills and attitudes by many TVET and

HE graduates

Employers perception of the labor law to fever

employees

Limited capacity of the existing HEI,TVET,

and R&D Institutes, to train qualified

professionals and specialists

Poor alignment of the training system with the

demand of the manufacturing sector

Lack of technology road map at national level

Competition of employment opportunities by

expatriates

Fluctuation in global economy

Source: Survey Data

4.2. Strategic Issues

Key stakeholders of the manufacturing sector are assessed in terms of their expectations and

importance to the sector human resource development. The results of these analyses helped to

identify the strategic issues relevant to human resource development in the manufacturing

sector. The following five strategic issues that need to be addressed in the future plan of the

sector are identified.

o Mismatch between industry workforce skill demand and supply

o Low labor productivity

39

o Strengthening Institutional set-up for National Skill Development

o Limited HR capacity for technology transfer

o Weak University/TVET-Industry Linkage

The above listed strategic issues are critical for the HR capacity development and are briefly

outlined below.

4.2.1 Mismatch between industry workforce skill demand and supply:

The mismatch between the level of skill available in the labor market population and the demand

by the manufacturing sector in the coming years will be a critical factor to be considered.

Particularly, as the industry structure changes through expansion and diversification, there will

be an increase in the demand for more skilled workforce. Manufacturing industries demand a

well –trained and skill workforce with increasingly greater technical proficiency. Any potential

mismatch will put the industry development into a halt.

Both Higher Education and TVET institutions in the country produce significant number of

graduates each year. This is a noteworthy achievement as compared with the limited number of

graduates in the past decades. However, the number and types of HR needed by the

manufacturing industries and what is being supplied from these institutions does not match the

labor force requirement. Specifically, the skills and attitudes of the graduates are not to the

satisfaction of the industry sector. From the supply side, the institutions will provide education

and trainings relevant to the industry, which help them, become more efficient and enable their

services to be market- and outcome- based system.

This mismatch between the demand and supply need to be strategically addressed as to

minimize or alleviate the problem. In particular addressing these strategic issues will pave the

way for joint planning among the manufacturing sector, education and training providers, and

other stakeholders. Matching the demand and supply ensure that the required workforce, both

in number and occupational mix, is available in the labor market. Such condition further helps

the industries to reduce their overall costs of production through the provision of appropriate

workforce, which in turn contributes significantly to their competitiveness.

4.2.2 Low labor productivity

Labor productivity measures the efficiency of a country with which inputs are used in an

economy to produce goods and services and it offers a measure of economic growth,

competitiveness, and living standards of its citizens. Economic growth in a country can be

attributed either to increased employment or to more effective work by those who are

employed. Labor productivity is, therefore, a key measure of economic performance. The

understanding of the driving forces behind it, in particular the accumulation of machinery and

equipment, improvements in organization as well as physical and institutional infrastructures,

improved health and skills of workers (“human capital”) and the generation of new technology,

40

is important for formulating policies to support economic growth. Such policies may focus on

regulations on industries and trade, institutional innovations, government investment programs

in infrastructure as well as human capital, technology or any combination of these factors.

In addition to the above mentioned driving forces for labor productivity increase, considering

the working culture, work discipline, and employees attitude are very important. Poor work

culture, work discipline and attitudinal problems of employees are cited as one of the major

challenges in the manufacturing sector. Increasing labor utilization is one of the factors that

plays great role for productivity growth and this cannot be achieved unless and otherwise the

issue of work culture, discipline, and attitudinal problems are well addressed. As labor

productivity is a key measure of economic performance, it will be a challenge for the country to

attain its vision of becoming a middle income country by the year 2025 without addressing

these problems.

4.2.2Strengthening Institutional set-up for National Skill Development:

The people factor in any organization is arguably the most important factor that brings business

success. However, it is one of the least effectively managed functions especially specific to

industries. The development of human capital at national level is very critical to ascertain

competitiveness of industries. The key challenge facing many companies at present and even

for the next decade will be the strategic management of workforce. Identification of

manufacturing sectors future potentials for global competitiveness and their problems with HR

skill required is a timely issue need to be addressed as a key factor to enhance sector

competitiveness. International experience from fast developing countries like India support the

establishment of separate institution to be structured that develop and coordinate the nationwide

skill based on industry demand. Founding such government structure that lead the national skill

development with sense of ownership and accountability is paramount important. This structure

essentially solves the bottlenecks in the sector like:

Limited capacity development opportunities for employees: On -job and off –job-training

opportunities for the manufacturing sector employees are very limited. The absence of such

opportunities implies that the competence development of the workforce will be hampered.

Therefore, the institute is responsible to fill such a gap and implement other modalities that

enhance workforce skill development industries in general.

Limited facility and infrastructure to offer standard training: The other drawback of the

current training institutes is the limitation of required facility and infrastructure to offer

standard training. The skill development institute fundamentally solves those problems in

filling the gaps.

Weak collaboration for cooperative training: The existing situation reveals that there is no

collaborative efforts that enhance employee skill development. All stakeholders for employee

skill development can be initiated and play their respective role through this national

41

framework. The more organized establishment of skill development organ impacts the existing

limitation of practical skill.

Weak implementation of the National Occupational Standard: In almost all manufacturing

companies, the national occupational framework is not implemented and even not known.

Many companies do not adhere to the framework, and this adversely affects the quality of

workforce in the sector.

Lack of active engagement of professional associations in training and accreditation:

Currently most Professional Associations are not actively engaged in the planning, of HRD for

the manufacturing as well as in making decisions on training quality, certification and

accreditation. The manufacturing sector development would be more facilitated when

professional associations play their critical role in the HRD. The establishment of the National

Skill Development center will serve as a forum to bring together these Association to actively

involved in the workforce skill development for industries

Absence of National Skilled Workforce Database: Getting information about skilled

workforce at national level for different purpose is not easily accessible or at most not possible.

The institute radically solves the problems of database about skilled workforce and creates

access through electronic media.

4.2.4 Limited HR capacity for technology transfer:

The main purpose of technology transfer is to aid the industry sector by making the

manufacturing products and processes more competitive in the market. It is essential that HR

capacity in realizing the transfer of knowledge, skills and technology should be available for the

success of technology transfer. Technology transfer requires both resources and competence to

be effectively carried out and influence the industry development.

Evidently, there are a number of technology transfers within the manufacturing sector.

Adaptations of appropriate technologies as well as the transfer of new technologies and

processes through FDI are to be witnessed on a number of manufacturing companies. However,

the need to further build the HR capacity in technology transfer has become critical for the

future development of the sector. To this end, developing both human and institutional capacity

need to one of the strategic interventions towards maximizing the benefits of technology

transfer.

Building the capacity for technology transfer helps to obtain a better method of manufacturing

processes and technology, which in turn leads to be more competitive. Moreover, the capacity

for Technology Transfer will open up the potential to improve and innovate work processes and

products. A multitude of benefits to companies, Education and research institutions, and the

42

manufacturing industry, and the economy could be realized through the acquisition of capacity

to transfer technology.

Therefore, the development HR capacity for technology transfer using Higher education,

TVET, and research institutions is a key to the sector development. The collaboration between

the industry and these institutions is very important to realize the building of technology

transfer capabilities.

4.2.5 Weak University/TVET-Industry Linkage:

As clearly indicated in the National Science, Technology and Innovation (STI) Policy of

Ethiopia, the ability of a country to sustain rapid economic growth in the long run is highly

dependent on the effectiveness with which its institutions and policies support the knowledge

generation, technological transformation and innovativeness of its enterprises. Universities are

the prime source of ideas and innovation that are increasingly being translated into viable market

commodities in the shape of products, processes, and procedures. Universities are increasingly

considered central actors in the process of economic development of countries and regions. In

recent times, their involvement in research and innovation has increased and policies have been

designed at national level to promote innovation and technology transfer.

A number of empirical studies support the hypothesis that the use of academic knowledge is

beneficial to technological change, innovation and growth in the private sector through new

theoretical insights, new techniques and new skills of a kind that industrial firms find it difficult

to provide themselves. Expanding and accelerating technology transfer and eventual

commercial use approach bridges the traditional technology transfer gap between the single

university investigator/innovator and industrial adopters or end users of the innovative results.

Successful technology transfer enables the transfer of new knowledge out from the university;

source of new innovative ideas for industry; opportunities for income generation by industry

and the university; generates positive social and economic impacts. In a similar situation,

universities benefit from the practical knowledge that is acquired from the industries. For this

successful technology transfer, there should be good university- industry linkage.

Therefore, appreciating the work done so far in creating university- industry linkage, more

awareness creation and the involvement of industries in the education and training program

should be encouraged.

4.3 Strategic Objectives

From the strategic issue identified, the following strategic objectives are derived:

1. Alignment of manufacturing industry workforce skill demand and supply

2. Enhancement of labor productivity in manufacturing industries

3. Strengthening institutional coordination for proper national skill development

4. Enhancement of HR capacity for technology transfer

43

5. Enhancement of University/TVET-Industry Linkage

4.4 HRD Direction of the Manufacturing Sector

As per the Ethiopian Industry Development Roadmap, the industry sector should grow and take

over the leading role from the agricultural sector and its share to the GDP should reach 28% by

the year 2025.

This HRR plan covers two phase where phase I is from the year 2016 to 2020) and phase two

covers from 2021 to 2025.

Figure 5: Phases of manufacturing sector development

From the above figure it can be noted that, to ensure fast and sustained development of the

industrial sector, favorable conditions should be created so that the manufacturing sector will

ultimately play a key role in the industrial development. As framed in the industrial policy and

strategy the balanced growth of labor intensive industries, the industries with broad sectoral

linkages, export oriented and import substitution sectors are planned to be established and

expanded; followed along with introduction of high tech and heavy industries in the coming

planning periods.

Therefore, the HRD direction of the manufacturing sector should be in line with the above

mentioned Ethiopian Manufacturing sector development direction and phases of the industrial

development.

Accordingly the required manpower resource to the sector must be developed and made ready

to plays a crucial role for manufacturing industries to be competitive in today's global market

and speed up industrial development. The availability of the required talents and expertise in

the manufacturing sectors become more important, as industries and services move towards a

more knowledge-based operating environment. Accordingly higher emphasis is given for

quality of education and training system to grant the supply of technically-skilled, knowledge-

intensive and ICT-trained workforce matching with the manufacturing industry requirements.

Hence manpower planning or forecasting as per the demand and development of the

manufacturing sector development found to be imperative.

Phase II (2021-2025

Light Manufacturing

Industries +Further

Development of heavy metal

and chemical industries

Phase I (2016-2020)

Light Manufacturing

Industries + foundation for heavy

metal and chemical industries

44

4.3.1 Phase I HRD (2016-2020)

In this phase, in addition to existing light industries, heavy metal and chemical industries are

expected to be developed and enhanced to ensure the sector growth target. Hence, country‟s

ability of technology transfer and adoption should be well developed and grownup as the long-

term industrial development comes from technological changes that improve productivity and

lead to new products, processes, or industries. Hence at this stage of the manufacturing industry

development phase, the main focus will be on producing manpower that can handle the

technology transfer and copying of the existing technology with practice oriented trainings with

the active involvement of the industry itself.

In the absence of a work force that is equipped with the required knowledge and skills to copy

and transfer technology, it is impossible to build heavy metal and chemical industries and even

to expand the existing light manufacturing industries which are competitive in local, regional

and global market. Hence, technical and vocational trainings, short term trainings, skill

upgrading programs should be designed so as to fill the skill gaps and demands of the

manufacturing sectors. Therefore, in this phase of industrial development the focus of human

resource development should be on producing adequate number of low and semiskilled labor

force capable of transferring and copying existing technology. In addition, capacity building

effort for high-tech industries will takes place in this phase and hence high skilled human

resource development along research and development capability will be part and parcel of

human resource direction as well.

4.3.2 Phase II HRD (2021-2025)

Achieving the vision of becoming a lower middle income country demands not only the

development of light and medium industries, but also the establishment of high Tech- and

heavy industries. This phase of industrial development focus is the emerging of High tech

industries and deepening and expansion of heavy metal and chemical industries with strong

linkage with other sectors. Along the building of heavy metal and chemical industries; due

continuation will be given to major medium and light Industries which are identified as priority

sectors, which calls for TVET and higher education system of the country to produce middle

level and high caliber engineers and specialist‟s as per their demands. Furthermore, it requires

the establishment of R & D and other support institutions to promote high tech - industries and

build technology transfer capabilities.

In this phase of manufacturing sector development, due prominence will be given on a higher

level of creativity, innovation and other enabling skills in the higher education, and technical

and vocational training systems which will be enhanced by strong collaboration between

training and higher education institutes with research institutions and parks and industries and

industrial training institutes.

45

The strong industry and educational institutes‟ linkage will be supported for optimum

utilization of available resources and facilities. The Science and Technology Universities and

IOT (Institutes of Technology) will focus towards the creation of critical mass of local experts

in science and engineering fields to meet R&D requirement of industries. Collaborations

among government research institutes, industrial training institutions, institutions of higher

learning, science and technology parks and industries should be fostered. Promoting the greater

utilization of ICT and other technologies in all areas along the value chain; improving the

access to knowledge on ICT and other enabling technologies should be promoted. The growth

of R&D activities by the private sector will also be encouraged.

In this stage of industrial development, Technology transfer, innovation and development is

highly demanding which requires human resources who can exercise the practice of technology

adoption and adaptation, enhancement of indigenous technology, apply reversing engineering

and set foundation for innovation. The linkage between the industry development direction and

manpower development direction is described in the following figure.

46

Figure 6: HRD Development Direction of Manufacturing Sector

Semi-skilled and skilled

workforce (TVET) +

Professional workforce from

higher education

2016-2020

Light Manufacturing

Industries +

Foundation for heavy metal

and chemical industries

Industrial

Development Phase

Human Resource

Development Direction

Capability

Building Main focus on technology

transfer (Adoption and

Adaptation)

2021-2025

Light Manufacturing

Industries + Further

development of heavy metal and

chemical industries

Semi-skilled and skilled

workforce (TVET) +

professionals with specialized

R&D capabilities

Main focus on technology

transfer + foundation for

technology innovation

47

CHAPTER FIVE: HUMAN RESOURCE REQUIREMENT OF THE

MANUFACTURING INDUSTRY (2016-2025)

The human resource requirement for the manufacturing priority industries for the coming ten

years has been estimated on the basis of National Occupational Standard and Higher Education

qualification frame work. During the forecast of the human resource requirement, the growth

potential of each sector and labor productivity has been considered. The Human resource

requirement plan also considered the industries which are expected to come in the coming ten

years as per the Ethiopian Industry Roadmap. The projection for the priority manufacturing

sectors was built up from three major areas. The Micro and Small enterprise (MSE), Industrial

parks and other investments are the major source of job opportunities in the manufacturing

sector. The human resource requirements are projected for each priority sectors and are

presented hereunder.

The following table 7 shows the allocation of workforce in the industrial parks for the priority

manufacturing sector where the food and beverages sector shares the majority (61% )of the

IAPI park employment opportunity. Table 7: Distribution of job opportunities at Agro Industrial parks for the priority manufacturing sectors

Manufacturing

Sectors Ratio

Manufacturing sectors employment opportunities at industrial parks for the year (2017-2025)

2017 2018 2019 2020 2021 2022 2023 2024 2025

Leather 10% 24937 60341 103450 154273 234077 313931 388782 473907 554122

Textile 15% 37406 90511 155175 231409 351115 470897 583173 710860 831183

Metal &

Engineering 1% 4987 12068 20690 30855 46815 62786 77756 94781 110824

Chemical &

construction

inputs

1% 2494 6034 10345 15427 23408 31393 38878 47391 55412

Pharmaceutical 1% 2494 6034 10345 15427 23408 31393 38878 47391 55412

Food and

Beverage 61% 152116 368079 631046 941063 1427868 1914982 2371571 2890830 3380144

Total 90% 249371 603408 1034501 1542727 2340767 3139314 3887821 4739065 5541219

MSE in the manufacturing sector

Micro and Small Enterprise (MSE) as a center of economic development and creation of local

investors, significant achievement has made during the first GTP and beyond. Except the

pharmaceutical sector, MSE operators engaged in almost all other manufacturing sectors. The

structure of MSE and other companies‟ arrangement will differ in size and type. As a result, the

occupational standard and professional mix are not identified for the operators in MSE. Rather,

the skill training required in short and long term were identified as follows.

48

Skill Training Requirement for SME’s

People involving in the MSEs will have different qualification ranging from university graduate

to literate level. MSE operators will get technical skill training by TVET in their neighborhood

at proximity. In addition to the technical skill needed for respective production type, MSE

operators need different skills to manage and develop their enterprises. Our practical evidence

reveals that MSE‟s are becoming competitive and promoted to medium and large level

enterprise. According to FEMSEDA, each year 2% of the existing MSE enterprise will

graduate to medium level enterprise. In addition to the technical skill, the following basic skills

are required for MSE operators.

Entrepreneur

Book keeping

Basic marketing knowledge

Communication

ICT related skills

Management

Customer handling and the like skills

5.1HR Requirement for Pharmaceutical Sector

5.1.1 Overview of the Pharmaceutical sector

Ethiopia is one of the heavily populated countries in Africa and demands for pharmaceutical

products are very high in the country. The first and oldest pharmaceutical formulation plant

was established in Addis Ababa in 1964 called EPHARM, owned by Ethiopian government.

Latter on Addis Pharmaceutical Factory was established in 1997 in Adigrat town in Tigray

Regional state. These are the two main factories supplying part of the essential drug

requirement of the country. In addition during the last ten years, some other pharmaceutical

factories have been established in the country, especially in Addis Ababa.

The manufacturing of pharmaceutical products in Ethiopia however, is still quite small and

covers between 15 and 20 percent of the domestic market. The rest of the market is satisfied

through imports. The market study shows that there is sufficient market demand for

pharmaceutical products in the country. The total volume of domestic market in the

pharmaceutical products, which is around 400 -500 million USD, is expected to grow in the

future. However, the industrial base is not well developed and the pharmaceutical

manufacturing companies have relatively low production capacities (Survey of pharmaceutical

industry, 2011).

In the past decades, the situation of the Ethiopian pharmaceutical and medical supplies industry

sub sector was dreadful. This has been partly because of the government industrial policy and

strategy, which was mainly tuned to labor intensive & export oriented manufacturing sectors

49

rather than knowledge and technology based sectors like pharmaceutical manufacturing.

Nevertheless, since the production of pharmaceuticals has pushy association with public health

issue, government made a decision to pay a particular attention for the pharmaceutical industry

sector. The decision was based on the recognition that local manufacturing of pharmaceuticals

and medical supplies deserve policy and strategy support in view of the decisive roles

pharmaceutical industries play in the national development and in addressing health policy of the

government as well. This led the government of Ethiopia to clearly identify the sector as one of

its strategic sector in the last decade.

5.1.2 Major Categories of the Pharmaceuticals

According to the proclamation of establishment of the Food, Beverage and Pharmaceutical

Industry Development Institute(FBIDI), Pharmaceutical is inclusive of the drug formulation,

medical supply and instruments manufacturing, personal care products and herbal medicine.

Hence, the sub-sector classification can be of three main categories: drug formulation, medical

supply and instruments and cosmetics/personal care.

Drug formulation: traditionally known as pharmaceuticals, drug processing companies are

those which are engaged in the production of generic medicines that are taken in the form of

tablets, injections and other ways. From the 23 pharmaceuticals and medical supply

manufacturing industries in Ethiopia, generic drug producers are 9 in number.

Medical Supply and Instruments Manufacturing: Medical supply and instruments

manufacturing includes surgical dressing and antiseptic disinfectants, Malaria Rapid Diagnostic

Kits, Disposible Syring, Hospital Beds, Absorbent Cotton, Orthopedic Cushions and Pillows

,Surgical meshes, IV bags, Empty hard gelatin capsules, Mouse serum and Diagnostics

reagents for laboratories.

Personal Care (Cosmetic) Products Manufacturing: Traditionally named as cosmetics –

personal care products include hair care, body care, oral care and other categories. The

Ethiopian personal care products demand is a fast growing one that it has an average growth

rate of 20% per annum. Local cosmetics manufacturers contribute 66% of the total market

share, and the rest is imported. More than 90% of the local production is hair care (hair oil, hair

pomade, hair jell, shampoo, conditioner, relaxer etc.) More than 95% of body care products are

imported. There is little, if not nil, production of body care products such as body lotions, body

creams, anti-aging formulas, lipsticks, chap sticks, mascara, nail polish and other beautifying

formulations (FBIDI, 2014).

The leading cosmetics industry in Ethiopia is called Zenith Gebs Eshet Ethiopia PLC that take

more than 50% of the local market share. It is also the only cosmetics company in the country

engaged in exporting its products particularly to the Sudan, USA, Kenya, Israel, Saudi Arabia

and other countries. In 2014, the company has generated a foreign currency close to 2 million

USD by exporting mainly its hair care products.

50

Table 8: Number and Types of Pharmaceutical Products

Source: FBPIDI, 2014

5.1.3 Market Share of the pharmaceutical Sector

Today in Ethiopia there are 23 pharmaceutical and medical supplies operational manufacturing

industries. But yet, the Ethiopian pharmaceutical industry sector has to be labeled as infant.

Local manufacturers contribute only 15-20% of the total market share while the rest of generic

drugs & medical devices are imported. There is no production of active pharmaceutical

ingredients (API) in the country. Almost all pharmaceutical inputs are imported from other

countries except some packing material (FBPIDI,2014).The lowest market share of

pharmaceutical products can be attributed to lack of infrastructure, absence of consistent

binding law for procurement of pharmaceutical products, custom problems while importing

pharmaceutical input materials, weak pharmaceutical industry association to support the sector

and absence of organized information centre (FBPIDI, 2014).

5.1.4 Export and Import Performance

Although Ethiopia is net importer of pharmaceuticals inputs and pharmaceuticals, some local

firms export their products. East African pharmaceuticals have been exporting to neighboring

African (Sudan) and Middle East markets since 2004.The firm shows that 55% of its outputs, in

the medium term, is consumed domestically and 45% is exported. Sino-Ethiope- associate

exports 30% of its products to Africa (Zambia, Kenya and DRC) and middle-east countries like

Yemen. The Central Statistic Agency (2011) survey depicted that out of the total annual

revenue of Ethiopia that the pharmaceutical industry generated in 2009/2010 fiscal year was

Type of Product 2009 2010 2011 2012 2013 2014

Medical equipment and supplies 3 4 4 5 8 11

Animal vaccine 1 1 1 1 1 1

Empty Capsule 1 1 1 1 1 1

Human drug 7 7 8 9 9 9

Cosmetics - - - - - 14

Total 12 13 14 16 19 36

Growth (%) - 10 7 14 35 -

51

about 1.5% was earned from export. In 2013 budget year, government planned to get 10 million

USD in export of pharmaceuticals. But the performance was 3.2 million USD which is only

32% of the planed (FBPIDI-2014).

Among the pharmaceutical products that are exported; cosmetics, animal vaccine and empty

hard Gelatine capsule take the major share. These products have huge demand from the African

market side, although we are not utilizing the potential with the required level. This is because,

export companies do not have well organized marketing departments to focus on export and

also government is not assertively supporting them with regard to exploiting the African market

potential (FBPIDI, 2014).

Recently more number of Pharmaceutical companies are engaged in the export market like:

National Veterinary Institute, Zeneth Gebis Eshet Cosmetics, Cadila pharmaceuticals, access

bio link, and Sino Ethiop Associate Africa. These pharmaceutical and cosmetic companies have

been facing problems in the process of exporting their products. Some of the major problems

are, low export market promotion, focus on local market, lack of capacity to follow up new and

expansion projects, shortage of working capital and foreign currency, weak financial and

banking structure to support the export market, power interruption, dalliances in the

importation of raw material inputs, counterfeiting, shortage of locally produced packaging

materials and unable to deliver transport facilities (FBPIDI-2014).

Table 9: Export Performance of Pharmaceutical Sector (000 USD)

Source: FBPIDI-2014

The import and distribution of pharmaceutical product is done through public sector, private

sector, NGO and international organizations. There are around 250 importers and whole sellers

registered by the Food, Medicine, and Healthcare Administration and Control Authority

Type of

Product

2010 2011 2012 2013 2014

Plan Perform

ance

Plan Perform

ance

Plan Performa

nce

Plan Performa

nce

Plan Performa

nce

Cosmetics 3000 3060 6000 3644 6000 2832.7 6,000 2002.9 7800 1486.8

Animal

vaccine

2000 1663 2000 1157 2000 901.2 2,000 796.7 2600 1061.4

Empty

Capsule

1000 316 810 333 810 475.3 1,400 398.24 1888 729.2

Human Drug - - - - 600 302 780 143

Malaria Kits - - - - 72 34.95 189 113.4

Others 1149 73.2

Total 6000 5039 8810 5134 8810 4209.2 10,072 3539.79 15406 3620.77

Growth (%) +1.8 (18) (16)

52

(FMHACA) and 3433 drug retailers (Pharmacies and drugstores) registered in the country.

Pharmaceutical Fund and Supply Agency (PFSA) is responsible for importation and

distribution of the pharmaceutical products to the public sector. The public procurement is done

through international and local tenders as well as by direct purchasing or negotiation. Private

companies import directly but have to abide by the list of authorized products. The larger buyer

of pharmaceuticals is the governments PFSA, which is reporting to the ministry of Health.

Table 10: Local and Import Products

Local products (Billion Birr) Imported products(Billion Birr) Share of local

products (%)

2009 0.59 4.80 10.86

2010 0.65 6.30 9.35

2011 0.65 6.70 8.84

2012 0.72 7.08 9.24

2013 0.80 6.16 11.5

2014 0.85 7.00 - 14

Source: Revenue and Custom Authority-2014

The trend of Ethiopian government procurement for pharmaceutical products in US dollar was

27 million in 2007 to 310 million dollar in 2014. In general, there has been a considerable

growth in importation of generic drugs and pharmaceutical raw materials to Ethiopia and this

import market is growing on average by 36% per cent per annum. However the local

production of pharmaceuticals has only had a gradual increment of about 14%. The figure

attests the fact that local manufacturers are producing far below the anticipated amount, even

though the capacity and amount of their sales is increasing the amount of import is also

increasing in a significant proportion. The rate of importation of pharmaceutical and medical

supply devices has a higher significance for the local market share. This shows that there is a

huge supply gap which can be filled through increasing the capacity of local manufacturers and

attracting new investments to the pharmaceutical sector (WHO, 2015).

5.1.5 Production Capacity and Major Products

Production of medicine in Ethiopia is limited to secondary manufacturing that involves

combining various active ingredients and processing bulk medicines in to dosage forms. The

majority of inputs used for producing pharmaceuticals are imported. Approximately 90 % of the

raw materials are imported. A few inputs, such as Sugar (used for syrup production) and starch

are procured locally. Ethiopian pharmaceutical firms have imported inputs from Europe, China

and India. Most packaging such as PVC and bottles are also imported except for carton packaging

53

which is manufactured locally. With the exception that ASMI industry PLC produces bottles for

its own use.

Considering the present population size and the growing number of public and private clinics and

hospitals in the country, it is evident that there is a shortage of drugs. The local industry serves

only a small part of the domestic market, less than 20%. To meet this growing demand, the

country is forced to import drug in which case the annual expenditure on importing drugs, on

average, increased by nearly 29% yearly for the last decades. The performance evaluation of the

production capacity of pharmaceutical and medical supplies industry depicted that it is low in

general and they are not producing in their full capacity.

Table 11: Major Products of Pharmaceutical Industry in Ethiopia

Therapeutic Group Generic Name

Gastrointestinal Drugs

Aluminum Hydroxide+ Magnesium, Aluminum Hydroxide,

Promethazine, Chlorpromazine, Magnesium Sulphate Crystal,Oral

Rehydration, Oral Rehydration Lemon Flavored.

Cardiovascular Drugs Furosemide

Antihistamines and Anti-allergics Diphenhydramine HCL

Respiratory Drugs Dextromethorphan HBr, Ephedrine, Ephedrine+ Theophyline,

Nervous System Acetylsaicylic Acid , Paracetamol, Dipyrone, Phenobarbitone

Anti bacterials

Ampicillin , Amoxicillin, Cloxacillin, Penicillin G Benzanthine,

Penicillin G.SodiumCrystaline, Chlorampenicol, Ciprofloxacillin,

Tetracycline, Metronidazole, Sulphamethoxazole + Trimethorphain,

Antihelmintics, antidiabetic,

antideressannts etc. Mebendazole, Niclosamide, Piperazine Citrate etc…..

Drugs used in Endocrine Disorders

and Contraceptives‟ Prednisolone

Drugs for corrective water, electrolyte

and acid-base disturbances Dextrose 5%, Normal Saline 0.9%, Ringer Lactate

Vitamins Ascorbic Acid(Vitamin C) , Vitamin B Complex, Multivitamin

Tablet

Dermatologicals Agents

Sulphur 10%, Benzoic Acid + Salicylic Acid Ointment(White Field),

FlucinoloneAcetonide 0.025%, Zinc Oxide 15%, Ichtamol 10%,

White Petrolatum, Methylsalicylate 25%.

Medical supplies and equipment Syringes, hospital beds, orthopedics, gloves, bandages, I V bags.

Cosmetics Hair care, body lotions, body creams, anti-aging formulas, lipsticks,

chap sticks, mascara, nail polish etc…

54

Source : FBPIDI - 2014

5.1.5 Future Growth Expectation of pharmaceutical sector

In the first Growth and Transformation Plan (GTP-I), one of the objectives of the

pharmaceutical sector was to reach 20 million USD in export of pharmaceutical products by the

end of the planning period. However, this does not seem to be practical for the export

performance of the pharmaceutical sector is declining from time to time. The cause for the

export performance turn down in the pharmaceutical sector can be justified by many reasons,

but since the Ethiopian pharmaceutical industry has been an infant one, the main objective of

the government toward the industry was to solve the problems of the existing pharmaceutical

industries thereby increasing their capacity of production. In other words, pharmaceutical

industries have been tuned and supported by the government such that they will, to some

extent, contribute in import substitutions. As a matter of fact, exportable products of

pharmaceuticals are cosmetics and medical supply products including empty hard gelatin

capsule.

As of today, there is no exportation of generic drugs for it requires a stringent product

registration process in other countries which mostly takes extended period of time between 2 –

3 years. In the second growth and transformation plan, the government is committed to:

Establish 25 new drug manufacturers based on market need and essential drugs.

Increase the capacity utilization of existing companies from the current 80% to full

capacity utilization in 2020.

Reach local pharmaceutical market share to 100% in the end of the GTP II in 2020.

Reach, with export performance, to 110 million USD in the end of the GTPII in

2020(GTP-II Draft Document 2015).

Creating job opportunity for 7382 workforces

The second Growth and Transformation Plan (GTP) of the Pharmaceutical manufacturing

sector has forecasted the following Human resource required to attain the targets set for the

pharmaceutical sector. Table 12: HR forecast for GTP II

Pharmaceuticals HR projection 2016 2017 2018 2019 2020

1 Higher Degree (First degree and above) 1400 1648 1940 2283 2687

2 Medium and semi-skilled (TVET) 600 706 831 978 1151

3 Below first degree 500 589 693 816 960

4

Managerial, marketing and general

service

347

408

480

565

665

5 Laborers 1000 1177 1385 1630 1919

Total 3847 4528 5329 6272 7382

Source: FBPIDI - 2014

55

Moreover, the pharmaceutical sector is expected to diversify and introduce specialty medicines,

indigenous medicines and food supplements, contribute 1.6% of the GDP share in 2025, which

requires skilled manpower in the areas of pharmaceutical basic manufacturing operators,

manufacturing supervision, management, R and D and quality control.

5.1.6 Human Resources in the pharmaceutical Industry in Ethiopia

Access to quality medicines and competent, capable healthcare professionals are fundamental

aspects of any healthcare system. Pharmaceutical human resources should ensure the

uninterrupted supply of quality medicines to the population, as vital components in improving

the health of nations.

The pharmaceutical industry requires specialized skills in a number of disciplines, including

pharmacy, chemistry (analytical, organic, synthetic, medicinal), the biological sciences

(biochemistry, microbiology, molecular biology), engineering (mechanical, electrical,

chemical, industrial, process), the life sciences (medicine, pharmacology, toxicology), and

management (strategy, financial and management accounting, operations, logistics, commercial

law, etc.) and Information and Communications Technology.

The modern global pharmaceutical industry is a technologically dynamic sector and the

dynamics of the new technological requirements are mainly driven by increased customer

expectations, environmental pressures and changing manpower requirements.

The diversity of the sub sector requires skilled manpower in diverse specialization and skill to

satisfy the specific needs of the different segments in the sub sector.

The pharmaceutical industry sub sector in Ethiopia is technologically much behind the frontier

as far as competition is concerned and barriers in the process of attaining full capacity

utilization. The sector needs adequate number of professionals in diversified fields. However

the existing and ever increasing higher learning institutions in the country do not provide job-

oriented professionals, which meet the requirement of the pharmaceutical industries. The

professionals in the existing few industries do not get on the job training and consecutive and

continuous short-term trainings. Thus, the existing pharmaceutical industries have a shortage of

competent and skilled manpower, which can make the sector products competitive in the

international market (FBIDI,2014).

Most of the graduates are graduated in the field of (B. Pharma), which is totally oriented

towards patient care and treatment. It calls to introduce new curriculum and revision of the

existing one in the coming GTP. Thus, the factories lack skilled manpower to make the

pharmaceutical industry Products competitive in the global market (FBIDI,2014).

An adequate pharmaceutical workforce (in number and appropriate skills) is essential for an

effective medicine supply chain and rational medicines use in a country. One of the problems

observed in pharmaceutical manufacturing projects in Ethiopia is lack of reliable and feasibility

56

studies which ultimately lead to poor project performance; the major cause being shortage of

qualified manpower in the different areas of specializations in pharmaceuticals and experienced

managerial human resources (FBIDI,2014). Table 13: HR for pharmaceuticals in GTP-I

Budget year

Manpower (skilled & unskilled) 2011 2012 2013 2014 2015

1784 2416 2681 2857 3365

Source- FBPIDI - 2014

As observed in the table, the average increment in the manpower is 17.7 %, from 2011 up to

2015. But, still there is shortage in the manpower of pharmaceutical sector. Looking at the

profile of existing skilled manpower in the pharmaceutical sector, 1% has MSc degree, 15%

have BSc degree, 22% have diploma, 35% have certificates, and 27% are below secondary

school level. Women are 47.9% of the manpower in the pharmaceutical sector while 52.1% of

the workforces are males (FBPI, 2014).

5.1.7 HR Forecasted for the pharmaceutical Sector (2016-2025)

The HR forecasting for the pharmaceutical sector is categorized under the following to major

professional classifications. The number of HR forecast is determined based on the selected

method of forecasting which is clearly described in the HR forecasting methodology part of this

document. The data gathered from the sample existing companies was used to determine the

ratio of TVET and Higher education institute graduates being forecasted. The HR forecast has

also considered the establishment of Agro- industrial park in the near future and the demands of

pharmaceuticals skilled workforce for the industrial park.

Table 14: HR Forecast for Basic pharmaceutical Manufacturing (2016-2020)

S.N Occupation Level 2016 2017 2018 2019 2020

1 Basic Pharmaceuticals Manufacturing I 2682 4147 6226 8801 11982

2 Pharmaceuticals Manufacturing II 1093 1690 2536 3586 4882

3 Pharmaceuticals Manufacturing III 692 1082 1636 2324 3178

4

Pharmaceuticals Manufacturing

Supervision IV 158 244 367 518 706

5


Management V 164 231 332 351 426

6 Chemist BSC 121 140 400 618 698

57

7 Biochemist MSC 18 30 45 51 667

8 Cosmetic Chemist MSC 128 196 278 376 496

9 Dermatologist MSc 12 20 30 43 59

10 Biomedical Engineer MSC 31 44 64 86 114

11 Pharmacist (B. Pharma. ) BSC 301 424 595 784 849

12 Micro Biologist BSC 92 142 213 301 409

13 Laboratory Technicians BSC 24 37 56 78 107

14 Pharmaceutical Engineer MSC 13 22 33 47 63

15 Industrial pharmacist MSC 158 236 351 478 640

16 Pharmaceutical Analyst MSC 65 97 144 201 271

17 Pharmacologist MSC 42 51 65 82 101

18 Sanitarian Engineer MSC 31 44 64 86 114

19 R&D

MSc-

PhD 21 31 43 59 78

Grand Total 5846 8908 13478 18870 25840

The following HR forecast for Basic pharmaceutical Manufacturing industry for the third GTp,

in which the number of skilled manpower required is assumed to increase due to the increasing

number of pharmaceutical industries in the country. Table 15: HR Forecast for Basic pharmaceutical Manufacturing (2021-2025)


1

Basic Pharmaceuticals

Manufacturing I 17050 21458 25816 30896 36055

2 Pharmaceuticals Manufacturing II 6943 8739 10513 12581 14683

3 Pharmaceuticals Manufacturing III 4750 5989 7217 8650 10110

4


Supervision IV 1004 1264 1520 1820 2124

5


Management V 431 528 618 719 816

6 Chemist BSC 847 969 1012 1327 1734

7 Biochemist MSC 112 132 156 234 358

8 Cosmetic Chemist MSC 477 588 696 818 937

58

9 Dermatologist MSc 213 282 348 423 492

10 Biomedical Engineer MSC 121 154 184 218 251

11 Pharmacist(B. Pharma) BSC 906 1025 1110 1235 1345

12 Micro biologist BSC 579 728 877 1049 1223

13 Laboratory technician BSC 171 218 263 315 368

14 Pharmaceutical engineer MSC 81 104 126 152 176

15 Industrial pharmacist MSC 712 853 1061 1249 1454

16 Pharmaceutical Analyst MSC 318 398 476 567 659

17 Pharmacologist MSC 194 246 295 351 405

18 Sanitarian Engineer MSC 270 354 432 520 604

1 R&D

MSc-

PhD 379 502 617 748 873

Total 35558 44531 53337 63872 74667

The pharmaceutical manufacturing industry require HR not only from basic professional skills

but also from engineering field of study and other administrative support in the area of

management and finance. Hence the following table shows the HR requirement for support

service of the sector from 2016-2020. Table 16: Administrative and Engineering Support HR forecast (2016-2020)


1 Electrician Engineer MSC 9 9 20 33 47

2 Electrician Engineer BSC 15 12 23 35 48

3 Manufacturing Engineer MSC 15 12 22 34 48

4 Manufacturing Engineer BSC 15 17 29 44 61

5 Mechanical Engineer BSC 24 27 42 60 82

6 Mechanical Engineer MSC 10 9 19 31 44

7 Industrial Engineer BSC 12 11 21 33 46

8 Industrial Engineer MSC 8 8 18 30 43

9 Process engineer MSC 88 103 134 174 227

10 Electrician II-III 87 102 133 172 225

11 General Mechanic II 88 102 134 173 225

12 Machinist II-III 32 34 48 64 83

59

13 Welder II 11 12 23 37 52

14 Mechantronics BSC 19 15 25 37 51

15 ICT BSC 13 15 26 41 57

16 Industrial Managers MBA 13 15 26 41 57

17 Marketing and sales BA 57 66 89 119 156

18

Accounting and

Finance MSC 112 132 169 217 282

19 Purchasing/Procurement BA 22 25 39 57 78

Grand Total 650 726 1040 1432 1912

The pharmaceutical manufacturing industry require HR not only from basic professional skills

in the area of pharmaceutical science, but also from engineering field of study and other

administrative support in the area of management and finance. Accordingly the following table

shows the HR requirement for support service of the sector from 2021-2025. Table 17: Administrative and Engineering Support HR forecast (2021-2025)


1 Electrician Engineer BSC 69 91 111 135 158

2 Electrician Engineer MSC 68 89 108 131 152

3

Manufacturing

Engineer MSC 68 89 108 131 152

4

Manufacturing

Engineer BSC 85 109 132 160 188





9 Process engineer MSC 271 321 377 449 532

10 Electrician II-III 268 318 419 444 527

11 General Mechanic II 270 319 375 446 529

12 Machinist II-III 105 131 155 185 214

13 Welder II 75 97 119 145 169

14 Mechantronics BSC 71 92 111 134 155

60

15 ICT BSC 80 104 126 153 180

16 Industrial Managers MBA 80 104 126 154 180

17 Marketing and sales BA 192 231 273 326 385

18

Accounting and

Finance MSC 333 391 459 544 646

19

Procurement

/Purchasing BA 103 130 156 189 222

Grand Total 2440 3008 3631 4307 5068

5.2 HR requirement for Textile and Garment Sector

The textile and clothing industry has traditionally been a stepping stone for

industrialization for all developed countries. The industry has continuously relocated itself to

low cost locations. The key attributes of new locations being raw material, manpower,

energy and water. Product leaders USA and Europe gave a way to Japan in early

sixties. The Asian Tigers i.e. Korea, Hong Kong, Indonesia and Taiwan increased their

shares during the seventies. Subsequently, the industry has now major concentration in

China, India, Pakistan, Brazil, Bangladesh, Sri Lanka Vietnam, and Thailand.

Textile & clothing industry continues to migrate to "Alternate-low-cost-Manufacturing-

Location" seeking sustainable competitive advantage. A recent study on the factors

affecting the decision of the entrepreneurs while considering a location for manufacturing

shows that cost is the most important factor followed by quality and product

development. Ethiopia appears very attractive on the cost factors. The same study also analyzed

the response of the industry on prioritizing the various countries for manufacturing

activities. The future global market for textile and apparel is expected to witness

expansion based on multiple growth factors. With growing trend towards relocation of the

industry to areas where cost of production is lower, interest in African nations has

intensified. Ethiopia as a low-cost destination qualifies as a potential destination for setting up of

textile and apparel industry base

The Textile Sector has a longstanding tradition in Ethiopia. The first industrialized textile factory

was established 1939 in Dire Dawa. The garment industry dated back to the 1960s, with the

establishment of Addis Garments. The development of the Textile and Garment industries are

given priority and are getting necessary support by the government. There are several reasons for

supporting the textile sector: It has high employment, growth and market potential and it has

already attracted relatively big local investment as well as international investors. Export

61

opportunities have increased due to the fact that Europe and the US abolished trade restrictions

for cotton products for the SSA countries (ecbp 2009).

From the point of view of potential investors, the Ethiopian textile sector offers wider range of

opportunities including, a very low wage level, a huge labor force, market potential within the

country as well as for export production, different business models for investments (commission

production, brown field, green field) and good framework conditions (political stability, safety,

investment incentives, etc.)

This is the very reason for the government of Ethiopia to define the textile and garment sector as

a priority sector in the industrial development package of the country

The sector is playing a major role in the strategy of Agricultural Development Led

Industrialization (ADLI), as it is closely linked to the agricultural sector in terms of raw material

supply (backward integration) and taps into the huge global textiles and garment market (forward

integration).

Ethiopian government has put and implemented short and medium term plan to bring about rapid

and viable economic growth and development bent on the ultimate objective of eradicating the

acute poverty of the nation. To this end, the government has prepared the policy for the textile &

garment industry listed below;

Accepting the development of industry based on the private investor

Industry led development strategy replaces Agriculture led industry development

Focusing on labor intensive industries

Integration of domestic and foreign investor

Government plays a leading role in the economic development

Broad based public participation in the industrial development

The government exit strategy from industrial investment is through transfer of the state

owned companies to the private investors. However, government continue to participate

in the industry sector development by participating as a shareholder in the joint venture to

initiate the indirect investor (especially foreign investor)

For the successful implementation of the plan and policy, the government of Ethiopia has

established Textile Industry and Development Institute (TIDI) to provide all necessary support

for the industry. The support mainly focuses on building up the capacity of the industries, to inter

chain the factories in terms of input, to support project under investment and to help the factories

inter into local and international market.

62

5.2.1 Major Products of the Textile and Garment Sector

The major products of textile and garment sector can be categorized into three categories

namely, Yarn, Fabric and Garment and apparel products and are summarized below in table 14.

Table 18: Major products of the textile and garment sub-sector

S.N Yarn

Fabric

Garment

1 16/1 100% Cotton Yarn Gray Abujedid T-shirt

2 14/2 100% Cotton Yarn Dyed Abujedid Polo shirt

3 20/1 100% Cotton Yarn Polyester Blend Suit

4 20/1 100% Cotton Open End

Yarn

French twill 1.40m

printed

Men‟s Long Sleeve Shirt 100 %

cotton

5 24/1 100% Cotton Yarn

French twill printed

1.64m Overall 100 % cotton


Twill full white Overcoat (100%cottton) 100 %

cotton

7 30/1 100% Cotton Yarn Twill dyed Jacket & Trouser pair 65/35 pc

8 30/1 100% Cotton

Yarn(open end) Cretonne Coat & trouser(pair) 65/35 pc

9 30/1 100% Combed cotton Mattress cases (fabric) Big Apron 65/35 pc

10 30/1 Combed Cotton Yarn

(CMIA) on Cones for

Knitting Curtains (Fabrics) Overall 65/35 pc


20/1 100% Cotton

Jersey fabric Basic Shirt 65/35 pc

12 40/1 100% cotton yarn

30/1 100% Cotton

Jersey Knitted Fabric

Girls long Sleeve Shirt & Skirt

Tetron 6000

13 40/1 100% Combed cotton Bed Sheet

Boys Long Sleeve Shirt &

Trouser Tetron 6000

14 40/1 100% Combed Cotton

Yarn

Shirting printed Bed Sheet 2.10*2.50 pair

15 100% polyester yarn

100D/144F

Abay shema, 150cm

(Plain fabric)

Bed Sheet 1.50*2.50 pair

16 Combed cotton waste

Abay shema,

75cm(Plain fabric)

Dyed Towel 100*200

17 Ne 24/1, 100% CMIA

Cotton Carded, Ring spun,

Weaving twist, Electric

Cleaned, Spliced, auto coned

Kuta, 150cm Dyed Towel 70*140

63

S.N Yarn

Fabric

Garment

18 Ne 30/1 100% combed

cotton Ethiopian yarn, Ring

spun, hosiery twist, waxed

Kuta, 91cm Sport Clothes

19 Ne 30/1 100% Ethiopian

Cotton, Combed, Ring spun,

Hosiery twist, Waxed,

Electric Cleaned, Spliced,

auto coned

Printed sheet, 150cm Work wear

20 Ne 20/1 100 % Super

Carded Ethiopian Cotton

Yarn, Ring spun, Weaving

Twist,ABT.730

Printed sheet, 160cm

21 30/1 100% Ethiopian

Combed Cotton Yarn neutral

seaworthy stable pallets and

carton box.

Source: TIDI

5.2.2 The Textile and Garment Sector Size and Growth

For the past few years the growth of the Textile and Garment sub-sector is remarkable. For

example during, the last three GTP years, medium and large scale manufacturing textile and

garment industries on average has grown annually by 14.9%. Despite its significant growth rate,

the sector contribution to GDP still remains very small accounting for less than 1%.

New investments which are coming to the industry enabled the sector to yearly increase the

production capacity. If we look at the gross value product of textile and garment industries in

year 2006, it has increased to 7, 085 million Birr from Birr 1,735 mil in 2003.The share of the

sub-sector to GDP has shown a significant improvement. Based on the information obtain from

CSA, the share to GDP has doubled (0.68%) in year 2006 as compared to year 2003 which was

only 0.34%. The share of the textile and garment sector to the manufacturing sector has also

exhibited an increasing trend. In the year 2006 it has reached to about 26%. Table 15 presents the

trends of value of output produced in the textile and garment sector.

64

Table 19: Share of Textile and Garment Sector to the Industry and Manufacturing sector

Item 2003 2004 2005 2006

Value In Million Birr

GDP (at current market price) 515,079 747,327 864,673 1,047,393

All Industries 49,800 59,600 73,900 89,600

Manufacturing Industries 18,968 21,207 24,798 27,595

Large and medium Industries 12,324 14,284 17,741 20,321

Textile and Garment Industries (GVP) 1,735 4,671 5,878 7,085

% Share of Textile and Garment

% Share of Textile and garment to GDP

(at current market price) 0.34 0.63 0.68 0.68

% Share of textile and garment to

Industry sector 3.48 7.84 7.95 7.91

% Share of textile and Garment to

Manufacturing Sector 9.15 22.03 23.70 25.67

% Share of Textile and Garment from

Large and medium Industries 14.08 32.70 33.13 34.87

Source: TIDI

If we look at the trend of capacity utilization of the textile and garment sub-sector during the last

four GTP years, year 2003 seems a year where the textile sub-sector efficiency reached

maximum. After 2003, the capacity utilization shows a decreasing trend. However, garment sub-

sector efficiency in terms of capacity utilization has increased from year to year moderately. It

can be concluded that the sector efficiency is much lower than the average manufacturing sector

capacity utilization. Table 20 shows efficiency trend of the sector in comparison to the

manufacturing sector average value.

Table 20: Trends of capacity utilization in %

Sub-sector 2003 2004 2005 2006

Textile 60.8 51.6 51.3 51.2

Garment 41.3 47.5 47.5 47.5

Sub-sector Average 55.3 50.7 50.5 50.3

Manufacturing Industry

Average

66.9 65.9 67.0 67.8

Source: TIDI

65

5.2.3 Export Performance of the Textile and Garment Sector

For the last four GTP years the sector export performance has shown an increasing trend.

It has increased from 23.2 million USD in 2002 E.C to 112 million USD in 2006 E.C

and this is about 96 % growth as compared to year 2002 E.C. The major sources of export in

the sector are yarn, fabric, garment and traditional cloths. These products are mainly exported

to Germany, Turkey, Italy, Djibouti, Sudan, USA, Netherlands and England. The export

performance by major export items are summarized in table 17.

Table 21: Export performance (2003-2006) in thousands of USD

SN Product type Year in E.C

2003 2004 2005 2006

1 Yarn 9.1 8.9 23.5 28.2

2 Fabric 22.9 8.3 9.6 6.3

3 Garment 26.8 63 61 72.2

4 Traditional cloth 3.4 4.4 4.9 4.7

Total 62.2 84.6 99 111.4

Source: TIDI

5.2.4 Value Chain of the Textile and Garment Production

The value chain of the sector starts from getting the right raw material for the product to be

produced. The raw material can be vegetable fibers or animal fibers and manmade fibers. The

vegetable fibers include Cotton, Flax, Jute, Hemp and Bamboo, etc. Animal fibres can be Wool,

Camel, Goat, Horse, Silk, etc. Manmade fibre includes Polyester, Polyamide, Acrylic, Elastane,

Viscose, etc.

Spinning process will convert the cotton to the yarn. Weaving & Knitting process converts the

yarn to fabric. Then the grey fabric will add value by dying or printing it by the process called

chemical treatment. More value addition is done in the garment section. The overall value chain

is depicted in figure 8.

66

Figure 7: Textile and Garment Value Chain

5.2.5 Description of the Textile and Garment Production sub-Sectors

The textile and garment products are widening from time to time. The complexity of the products

is increasing. Moreover, the value addition of cotton based products is increasing and the product

ranges is also improved. Most of the products are cotton based product. Woven and knitted

fabric is two major types of product. Yarn, fabric, dyed fabric and garment is in the form of

finished products. The lists of products that are produced as an intermediate and finished product

are enumerated above in table 20.

The textiles and garment sector supply chain comprises of a number of discrete activities. The

supply chain from sourcing of raw materials via design and production to distribution and

marketing is increasingly being organized as an integrated production network where the

production is divided into specialized activities and each activity is located where it can

contribute the most to the value of the end product. When the location decision of each

activity is being made, costs, quality, reliability of delivery, access to quality inputs and

transport and transaction costs are important variables to be considered.

67

The supply chains starts from ginning, continue to spinning, weaving & knitting, chemical

processing and garment. Then the produced product will be sent to the customer. The supply

chain of the sector is presented in figure 9 below

Figure 8: Supply Chain of Textile and Garment products

Ginning

Ethiopian Ginning mill is improved from time to time in technology wise. There are two types

of ginning Viz a Viz, saw gin and roller gin. 19 Ginning companies are existed. Among them

three of them is double roller Gin having Companies. Their annual manufacturing capacity is

150 thousands ton and their existing performance capacity is 65 thousands ton. A 15% value

addition is expected from ginning factories in converting raw cotton to lint cotton

Spinning

Spinning is one of the subsectors in the textile value chain. There are 292,852 ring

spindles and 18,708 Rotors in manufacturing of various counts of yarn starting from 6

Ne up to 80Ne. Annual yarn manufacturing capacity is 82,029 ton. A 31% value addition is

expected from spinning factories in processing lint cotton to yarn

Weaving and Knitting

The next textile process following spinning is weaving and knitting fabric manufacturing

process. 20 weaving and 9 knitting companies exists. Four companies have both weaving and

knitting facility. Five of them are companies making fabric with traditional looms. The

companies are producing 170 gsm woven fabric and 200 gsm. of knitted fabric. Average capacity

utilization of weaving factories is 65% and 70 % for knitted factories. In general 1820 looms,

306 circular knitting and 24 flat knitting machines is existed. A 49% value addition is

expected from knitting and weaving factories in processing lint cotton to yarn

Finishing

Textile dyeing and finishing companies are 25. Average capacity utilization of finishing

manufacturing is 62.5%. A 91% value addition is expected from finishing factories.

68

Garment

Garment next to textile value chain is used in converting finished fabric in the form of

cloth. The factories can be either woven garment or knitted garment. There are 60 garment

factories of their average efficiency of is 54%. A 120% value addition is expected from

garment factories.

5.2.6 Current Employment Pattern of the Textile and Garment Sector

It appears very difficult to get precise information about the number of workers in the sector for

the last few years. The available data obtained from different sources are not consistent with each

other. The data which shows the number of workers in the sector from 2001 to 2005 E.C as

recorded by Central Statistics Agency (CSA) is presented in the table 18. The number of workers

for the remaining years is estimated by adding new job created in year 2006 and 2007 from

recent reports (2007 E.C) report of TIDI.

Table 22: Number of workers by major sub-sectors

S.N

Name

Year in E.C.

2001 2002 2003 2004 2005 2006 2007

1 Textile Production 16,494 21,389 13,436 32,624 35,361 36,415 41,215

2 Garment and

Apparel

7,822 9,365 5,820 11,679 9,023 10,604 17,804

Total 24,316 30,754 19,256 44,303 44,384 47,019 59,019

Source : CSA and TIDI report

The data obtained from Central Statistics Authority shows that the number of people working in

the sector has an increasing trend and by the year 2006 EFY it has reached 47,019. The Textile

Industry Development Institute has estimated this number to further increase to 59, 019 by the

end of 2007. Unfortunately there is no as such record at the national level that shows the number

of workers by occupational level as well as by major subsectors.

5.2.7 Occupational Mix of Workforce in the Textile and Garment sector

The study has tried to look at the profile of people employed in the textile and garment sector on

the basis of National Occupational Standard (NOS). However, most industries, if not all, are not

aware of the national standard and hence the National Occupational Standard is not largely

implemented. In order to determine the profile of people employed in the sector by National

Occupational Standard (NCS), sample companies are selected and their number of employees by

their company naming were surveyed and finally translated into national occupational standard.

Here the assumption is that as long as there is no significant technology difference, the work

process in a particular operation is not different from one organization to another and hence the

69

profile of the selected industry represents the profile of other similar industries. Accordingly, in

the textile industries in almost all operations except finishing the majority of workers‟ profile are

TVET Level II and I. The size of low skilled workforce with Level I & II TVET qualification in

all operation makes around 65% of all workers in the industry. The middle skill manpower

makes 20% and the remaining are high skill professionals (7%), engineering service personnel

(6%) and other supporting staffs (2%).

Currently (2007 E.C.) there are a total of 59,019 people working in textile and garment sector.

Majority of them (62%) are working in textile subsector and 30% of them are working in the

garment and apparel production. Even if the garment sector is the one expected to create more

job in the sector, so far its contribution in job creation is lagging behind the textile production

sub-sector. The number of people providing engineering and other supporting service constitutes

8% of the total workforce in the textile and garment sub-sector. The available workforce in the

base year (2007 E.F.Y) by the national occupational standard and by major subsector as worked

out by the study team and is presented in table 19 and 20. This number of workers is used as a

base year number of workers and used to forecast the human resource requirement up to the year

2025.

Table 23: Current workforce in the Textile Production (2007 E.F.Y)

S.N

Occupation

Level

Number of

workers

1 Basic Textile operation I 3735

2 Ginning and Spinning Operation II 12292

3 Ginning and Spinning Operation III 3297

4 Weaving and knitting operation II 3429

5 Weaving and knitting operation III 2698

6 Textile chemical processing operation II 3410

7 Textile chemical processing operation III 3369

8 Textile Technology and production Management IV 1560

9 Textile Technology and production management V (BSc) 1080

10 Textile Engineer BSc 1082

Total 35952

Source: Categorized based on CSA and survey data

As indicted in the above table (table 19) out of the total workers employed in the sector, 10% is

Managerial, 26% is professional, 64 % is skilled and semiskilled.

70

Table 24: Currently Workforce in Garment Sub-sector by NOS in 2007 E.F.Y

S.N

Occupation

Level

Number of

workers

1 Basic Apparel Operation (B10operator) I 2016

2 Intermediate Apparel Production Junior Operator II 13158

3 Advanced Apparel Production Operator III 1966

4 Apparel Fashion Designing and Technology

Supervisor

IV

287

5 Apparel Production and Technology Management V (BSc) 138

6 Garment Engineering BSc-MSc 349

Total 17914

Source: Categorized based on CSA and Survey data

The currently available workforce providing engineering services and other supporting services

is also estimated based on the CSA data and is presented in table 21

Table 25: engineering and other supporting staff 2007 E.F.Y

S.N Occupation Level Number of workers

1 Electrician II-III 951

2 Mechanic II-III 1533

3 Industrial Engineer BSC 191

4 Electrical Engineer BSc 176

5 Mechanical Engineer BSC 175

6 Automation and Control BSc-

MSc

122

7 Mechatronics MSc 0

8 ICT BSc 154

9 Industrial Leaders MBA 56

10 Marketing BA 308

11 Accounting and Finance BA 509

12 Procurement BA 212

13 HR BA 482

14 Import & export Logistics BA 208

15 Health & safety workers BA 39

16 Compliance and training expert BA 37

Total 5153

Source: Categorized on the basis of CSA and survey data

71

5.2.8 HHR Forecast for the Textile and Garment Sector

The sector as one of the priority sector expected to play vital role in the Ethiopian economy

development in general and in manufacturing sector development in particular. Textile and

garment sub-sector as one the priority manufacturing sector expected to contribute to new jobs

creation as well as to foreign currency earning. By the end of GTP I (2015) the sector expected

to generate one Billion USD from export of textile and garment products. The sector share to

GDP is expected to grow from time to time. The Ethiopian Industry Development Roadmap has

clearly set out the future growth direction of the sector up to 2025. The textile and garment

industry sector development targets along with the Ethiopian industry and manufacturing sector

development targets is presented in table 22.

Table 26: Projected Sector Growth Target

Indicator

Year in G.C

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

GDP in Mil USD 59,858.7 67589 76317.4 86294.2 97685.4 110680 125494 142080 160934 182356 206695

Industry Share to

GDP

18.73 19.4 20.08 20.82 21.58 22.37 23.22 24.12 25.07 26.16 27.33

Industry in Mil

USD

11211.5 13112.3 15324.5 17966.5 21080.5 24759.1 29139.7 34269.8 40346.1 47704.4 56489.7

Textile Share to

GDP

0.45 0.55 0.65 0.76 0.8 0.9 1 1.1 1.2 1.3 1.4

Textile in Mil

USD

269.4 371.7 496.1 655.8 781.5 996.1 1254.9 1562.9 1931.2 2370.6 2893.7

Source: Industrial Development Roadmap (2013)

As indicated in table 22 the textile and garment sub-sector expected to grow and ultimately its

contribution to GDP has to reach 1.4 % by the year 2025. This implies that the sector is expected

to create value of about 3 Billion USD by the end of year 2025. The sector to achieve its growth

target, the needed manpower is projected using the forecasting method explained in the

methodology part and presented in three categories in two phases.

5.2.9 HRR Forecast for Textile and Garment Sector (2016-2020)

According to the Ethiopian Industry Development Roadmap (2013), year 2016-2020 is a period

of diversification. In this phase, the sector expected to diversify its production in addition to the

existing one. Accordingly, demand for highly skilled professionals expected to increase

significantly. During this period the total number of workforce demand in the textile production

is estimated to be 521,059. Out this 35% which is 177, 378 workforce demands come from

Agro Industry Parks that will be established at different part of the country.

72

Table 27: Human Resource Requirement in the Textile Production


1 Basic Textile operation I 4084 7771 9960 12866 15668

2 Ginning and Spinning Operator II 13439 25574 32778 41049 50266

3 Ginning and Spinning Operator III 3605 6860 8793 10875 13447

4 Weaving and knitting operation II 3750 7135 9147 11095 13668

5 Weaving and knitting Operator III 2950 5614 7195 9473 11496

6

Textile chemical processing

Operator II 3728 7094 9093 11032 13439

7

Textile chemical processing

Operator III 3683 7009 8983 11002 13428

8

Textile Technology and

production IV 2706 3639 4908 7170 8937

9


production management V 1981 2782 3848 5003 6290

10 Textile Engineer BSc 2183 3544 4594 5751 7158

11 Textile Engineer MSc 411 686 910 1242 1533

12 Textile Technologist MSc 469 898 1153 1417 1752

13 Textile Manufacturing MSc 391 749 961 1182 1460

14 Textile Chemist MSc 489 935 1201 1478 1826

15

R&D (Yarn Technology, Textile

Design, Clothing and

Merchandizing) MSc/PhD 195 374 480 591 730

Total 44064 80666 104004 131226 161099

Source: Estimated by the study Team

From table 23 it can be observed that the number of highly skilled manpower has increased from

6119 in 2016 to 20719 by the end of 2020, and this is an increase nearly by 239% and this is in

accordance with the direction of the industrial development direction.

The manpower requirement for garment and apparel production has been forecasted by

considering many factors such as the sectors potential to job creation and other factors in

addition to the sector‟s growth and change in the labor productivity which is an indicator of

technological change. In the garment and apparel production, in this period the total workforce

demand amounts 983,145. From this amount 337,124 workforce demand which is about 35%

of the total work force demand comes from the Agro Industry Park like in the textile production

case. Table 24 presented the manpower requirement of garment and apparel production.

73

Table 28: Human resource requirement in the textile production

S.N Occupation Level

Year in G.C.

2016 2017 2018 2019 2020

1 Basic Apparel operation I 26864 50367 62808 76782 93000

2

Intermediate Apparel production junior

operator II 36565 68557 91404 111786 135222

3 Advanced Apparel Production operator III 8242 15453 20350 26043 31226

4

Apparel fashion designing and

technology Supervisor IV 1204 2258 2980 3752 4623

5

Apparel production and Technology

Management V 779 2144 2832 3367 4048

6 Garment Engineer BSc 1764 2834 3875 5042 6161

7 Fashion Designer BSc 1411 2236 2995 3827 4326

8 Garment Technologist BSc 1843 2527 3205 4237 5569

9 Garment Engineer MSc 1349 1892 2549 3385 4399

10 Garment Technologist MSc 960 1512 1958 2567 3307

11 Clothing and Merchandizing personnel MSc 80 152 173 224 287

12 Fashion Designer MSc 1349 1892 2549 3385 4399

13

R&D (Textile design, Clothing and

Merchandizing) MSC 911 1489 2039 2517 3316

Total

83321 153314 199717 246912 299881

Source: Estimated by the Study Team

The sector potential to value addition, export and new job creation is very high. To tap the

potential of the sub-sector, the sector requires middle and highly skilled manpower. In addition,

the sector‟s ability in the research and development capacity has to be built starting from this

period. Hence, the sector demands for high skilled manpower will be very high as compared to

the previous planning period (GTP I). In accordance with this HRD direction, the garment and

apparel sector manpower demand estimated to increase by about 6 fold which is more than

500% increase as compared to year 2007 (2015) as presented in table 24 above.

The sector growth should also be supported with adequate number of well qualified engineering

service providers as well as other support providers. Accordingly, demand for manpower in

engineering service is estimated and presented in table 28

74

Table 29: Engineering and Support Service Manpower Requirement of Textile and Garment

Sub-sector

S.N Occupation Year in G.C

Level 2016 2017 2018 2019 2020

1 Electrician II 764 1238 1337 1380 1469

2 Electrician III 509 825 891 921 980

3 Mechanic II 1129 1830 1976 2040 2172

4 Mechanic III 924 1497 1617 1670 1776

5 Welder II 55 74 86 97 129

6 Welder III 22 36 39 41 44

7 Machinist II 130 148 153 154 257

8 Machinist III 45 74 78 81 87

9 Electrical Engineer BSc 256 414 447 462 492



12 Automation and Control BSc 305 495 534 552 588

13 Automation and Control MSc 163 264 285 294 314

14 Mechatronics BSc 76 125 134 138 147

15 Mechatronics MSc 45 72 78 81 86

16 ICT BSc 406 535 762 974 1198

17 Industrial Leaders MBA 75 122 132 137 144

18 Marketing BA 412 668 722 746 794

19 Accounting and Finance BA 682 1106 1194 1233 1311

20 Procurement BA 284 461 497 513 546

21 HRM BA 694 1125 1215 1251 1328

22 Import & Export Logistics BA 278 450 486 503 534

23 Import & Export Logistics MBA 75 122 131 135 144

24 Health & safety workers BA 52 84 92 95 101

25 Environmental Engineer BSc 75 122 132 137 144

26 Environmental Engineer MSc 45 72 78 81 86

Total

8,170 12,820 14,018 14,766 16,075

Source: Estimated by the study team

.

75

5.2.10 HRR Forecast for Textile and Garment Sector (2021-2025)

According to the Ethiopian Industry Development Roadmap, year 2021-2025 is a period in

which in addition to diversification, knowledge intensive industries expected to emerge and

hence the human resource development should be aligned with this development direction.

Similar to the pervious phase, highly skilled manpower capable of developing new product as a

result of research development activity is needed in adequate number. Accordingly, in this

period demand for highly skilled professional will be intensified. In this period total amount of

workforce requirement is estimated to be 1,676,429 and the larger percentage which is, about

61% (1,016,074) of workforce demand will come from Agro Industry Park. Table 26-28

presented human resource requirement in the textile and garment sectors

Table 30: Human Resource Requirement in the Textile Production (2021-2025)


Year in G.C

2021 2022 2023 2024 2025

1 Basic Textile operation I 23885 28248 32347 36952 41304

2 Ginning and Spinning Operator II 72246 85532 98008 112022 125263

3 Ginning and Spinning Operator III 21406 25312 28981 33107 37001

4 Weaving and knitting Operator II 19384 22960 26319 30090 33653

5 Weaving and knitting Operator III 18299 21529 24653 28171 31491

6

Textile Chemical Processing

Operator II 22041 26065 29843 34093 38104

7

Textile Chemical Processing

Operator III 21815 25796 29535 33739 37710

8


Production Supervisor IV 12697 15081 17723 20238 22718

9


Production Manager V 8876 11472 12969 14756 16548

10 Textile Engineer BSc 11656 13822 15860 18148 20913

11 Textile Engineer MSc 2265 2789 3288 3935 4860

12 Textile Technologist MSc 2988 3942 4864 5453 6009

13 Textile Manufacturing MSc 2320 2759 3173 3639 4079

14 Textile Chemist MSc 2653 3155 3630 4162 4665

15

R&D (Yarn Technology, Textile

Design, Clothing and

Merchandizing) MSC/PhD 1660 1973 2270 2602 2917

Total 244192 290436 333462 381106 427233


76

The human resource requirement in the garment and apparel production has increased

proportionally in this phase as well and it has reached a total of 3,089,768. From this majority

of workforce demand which is 63% (1,931,153) comes from Agro Industry Park which is

expected to flourish in the second phases of the planning period. Table 30 summarizes

manpower requirement by OS

Table 31: Human Resource Requirement in the Garment and Apparel Production (2021-2025)


Year in G.C.

2021 2022 2023 2024 2025

1 Basic Apparel Operator I 127051 149518 170888 195235 217573

2

Intermediate Apparel Production

Junior Operator II 198165 235978 270479 310325 347066

3

Advanced Apparel Production

Operator III 55275 66205 77396 89006 100725

4

Apparel Fashion Designer and

Technology Supervisor IV 14086 16689 19833 23089 26466

5

Apparel Production and

Technology Management V 11186 13762 16013 18714 21681

6 Garment Engineering BSc 9634 11366 12985 14817 16911

7 Fashion Designer BSc 5309 6359 7652 9063.1 10092

8 Garment Technologist BSc 6594 7950 9132 10464 11704

9 Garment Engineer MSc 5569 6706 7782 8981 10089

10 Garment Technologist MSc 4469 5353 6191 7091 7975

11 Clothing and Merchandizing MSc 717 872 1026 1235 1375

12 Fashion Designer MSc 5627 6754 7839 9049 10167

13

R&D (Textile design, Clothing

and Merchandizing) MSC/PhD 4743.8 5595.1 6395 7402 8332

Total 448425 533106 613611 704471 790155

Source: Estimated by the Study Team

The highly skill manpower demand with qualification MSc and above has increased nearly by

more than 100% as compared to year 2020 and this is in accordance with the direction of

industrial development.

77

Table 32: Engineering and Support Service HRR of Textile and Garment Sub-sector (2021-2025)

S.N Occupation Level Year in G.C

2021 2022 2023 2024 2025

1 Electrician II 1667 1833 2299 2364 2428

2 Electrician III 1557 2644 2731 3218 3905

3 Mechanic II 2674 2867 3262 3955 4248

4 Mechanic III 2511 2652 2792 2931 3071

5 Welder II 230 332 435 536 638

6 Welder III 57 68 71 84 96

7 Machinist II 262 295 368 472 575

8 Machinist III 92 98 102 107 113

9 Electrical Engineer BSc 522 551 581 609 638



12 Automation and Control BSc 623 657 693 728 762

13 Automation and Control MSc 332 351 369 387 407

14 Mechatronics BSc 156 165 173 182 191

15 Mechatronics MSc 92 96 101 107 111

16 ICT BSc 1220 1444 1768 1892 2515

17 Industrial Leaders MBA 153 162 171 179 188

18 Marketing BA 840 888 935 981 1028

19 Accounting and Finance BA 1391 1469 1545 1623 1700

20 Procurement BA 579 611 644 675 708

21 HR BA 1356 1389 1463 1536 1608

22 Import & Export

Logistics BA 567 599 630 662 693

23 Import & Export

Logistics MBA 153 161 170 179 186

24 Health & Safety Workers BA 107 113 119 125 131

25 Environmental Engineer BSc 153 162 171 179 188

26 Environmental Engineer MSc 92 96 101 107 111

Total 18,644 21,015 23,158 25,436 28,211


As shown in the above table (table 28) the human resource requirement in the engineering

service is expected to increase proportionally to the sector growth. Hence demand for

engineering service and for other support service has grown nearly by 30% from the year 2020.

78

Job created by MSEs

In addition to medium and large industries, larger amount of job is expected to be created by

Micro and Small Enterprises (SMEs) which are the source of economic growth and job creation

in the years to come. In the coming five years (GTP II) a total of 483, 000 job is expected to be

created in the textile and apparel sub sector as presented in table 29.

Table 33: New job created by MSEs

Description

Year in G.C

2016 2017 2018 2019 2020

Total workforce 78,380 165,370 263,787 354,582 483,000

New Job created

each year

78,380

86,990

98,417

90,795

128,418

Source: FESMEDA

In the year beyond 2020 the job creation by micro and small enterprise will be intensified and

by the end of 2025 a total of 2,427, 726 new jobs will be created

Table 34: New job created by MSE’s

Description

Year in G.C

2021 2022 2023 2024 2025

Textile and

Garment

New Job

Created each

year

142544

299342

470252

656544

859044


Skill Training Requirement for SME’s

People involving in the MSEs may have different qualification ranging from university

graduate to literate level. In addition, to the skill needed in their respective production

activities, MSE operators need different skills to manage and develop their enterprises so that

their enterprise will be competitive and promoted to medium and large level of enterprise

development. In addition to the skill needed in their operation the following skills are required.

Entrepreneur skill

79

Book keeping skill: They need to know how to record their financial transaction. So

they should be able to understand and know at least a sing accounting system

Basic marketing knowledge

Soft Skills like

o Communication skill

o Language skills (international language)

o ICT related skills

Customer handling and the like skills

Females Participation in the sector Workforce

Regarding the participation of female workers in the sub-sector, the sub-sector is characterized

by high female participation as compared to any other sub-sector. In the first period (2016-

2020), in textile production female workers represents 49% of the total workforce. Whereas in

the garment and apparel production, the workforce is dominated by female workers which

represents about 68% of the total work force of the garment and apparel production. The female

participation in the sub-sector will be intensified in the second planning period (2021-20250).

In the textile production, the female workers participation will increase to 67% which is an

increase by almost 20%. The dominance of female workers in the garment and apparel

production will be intensified in this planning period and it will account nearly 75% of the

workforce in the garment and apparel production. In this regard it can be argued that the textile

and garment sector is the one that empower women in the country‟s economy.

5.3 HR Requirement for the Leather Sector

5.3.1 Overview of the Leather Sector

Leather industry in Ethiopia was introduced by Armenians mainly in response to the growing

local market demand for leather shoe. Due to this the Ethiopian leather industry is a relatively

older industry with more than 90 years of involvement in processing leather and producing

leather products. The Ethiopian leather industry encompasses three major industrial sub-sectors

or components: the tanneries processing and producing the leather, the footwear manufacturers

(shoe producing), and the leather goods and garments manufacturers. According to FAO world

report on livestock in 2013, Ethiopia is 6th

for cattle, 10th

for sheep and lambs and eighth for

goats. This enormous population of livestock in the country provides passable opportunity for

the development of the leather industry in the country. In Addition to resource potential, the

leather and leather products industry in Ethiopia gets relatively high stage of development and

become reputable as a producer of good quality leather, recognized in international markets

The Government has taken steps both in terms of legislation and creation of the necessary

institutional support (LIDI) to provide appropriate services and create enabling environment for

industrial development along with devising different incentive schemes. Among the effort

80

made, the Industrial Development Strategy (Industry development Roadmap) can be cited as a

means to transform the sector in leading position in the national economy. The strategy is

centered on the creation of enabling environment for the private sector as the driving force for

national economic development.

Major products of Leather sector

Leather is used for various purposes including clothing (e.g. shoes, hats, jackets, skirts, trousers

and belts), bookbinding, leather wallpaper, and as a furniture covering. It is produced in a wide

variety of types and styles and is decorated by a wide range of techniques. The Leather Industry

holds a prominent place in the Ethiopian economy. The production centers for leather and

leather products in Ethiopia are located in Addis Ababa, Oromia, Amhara and Tigray region.

Tanning Sector- There are 29 enterprises currently in operation. The tanning sub-sector was

directed by government to focus on value adding finished leather. The annual production in

2015 was planned to produce 161.81 Sq.ft. where on average 77% goes to foreign market.

Footwear Sector – There are 21 footwear factories where 20 of them are in operation and

planned to produce 13.8 million pairs of shoes in 2015. The footwear factories produce leather

and non- leather shoe products. However, the production of non-leather shoe accounts very low

share that need due attention in the next plan period (LIDI, 2015).

Leather Garments and Goods Sector – Leather goods and garments produces gloves, bags,

coat and dress, wallet etc. The 2015 report from LIDI reveal that 2550040 gloves, 33180

garments and 1229080 goods are produced in the current year. Export performance report reveal

that the export pattern of the sector is only 13.4 % that require more effort to trigger the sector

to play better role in a global market. It is one of the promising sectors for export earnings and

growth potential of the national economy.

The Government of Ethiopia (Ministry of Industry) had identified the Leather Sector as a

priority area in the Ethiopian export earning considering its immense potential for export

growth prospects and employment generation. Accordingly, the Government is also

implementing various special focus initiatives under the Foreign Trade Policy for the growth of

leather sector. The implementation of various industrial developmental programs, export

promotional activities, support to imitate technology, and increasing industry compliance to

international standards from government side benefited the sector to be competitive in a global

market

5.3.2 GDP and productivity Trends in the leather sector

The Ethiopian Industry Development Roadmap clearly identified the growth rate of some key

manufacturing sectors in the document. Leather sector has got priority concern among others to

http://en.wikipedia.org/wiki/Bookbinding

81

be treated with due attention. The growth rate for the year 2016 to 2020 increasingly grows with

10% and reached 0.9 contributions to the GDP growth at the end of plan period. Consequently,

in the third phase (2021-2025) the contribution will continue increasing the national GDP and

moves from 1% to 1.4% share for the GDP national growth.

Regarding the access to the values for different products of leather sector productivity, there is

critical problem to get real-time available data on productivity both at company and industry

level. Specifically productivity at product level like garments and goods is nowhere available and

even difficult to get input data to make computation. As a result, the productivity in terms of

value of production both for local and export market was computed. Then, based on the total

value of production and number of employees computation was made.

Table 35: Leather sector share of GDP and value Productivity in USD (000)

Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Leather sector

GDP growth

share

0.55 0.65 0.75 0.8 0.9 1 1.1 1.2 1.3 1.4

Productivity

in (000 USD) 10 10.36 10.72 11.08 11.44 11.8 12.16 12.52 12.88

13.24

Source: Industry Development Roadmap and computation from historical data

Figure 9: Leather sector GDP rate and productivity in value of money

5.3.3 Production Trends of Enterprises in the leather sector

The enterprises operating in the leather and leather products industry show an increasing trend

over time. At present the sector total enterprises at medium and high scale level reached 169

enterprises in 2012/13 with the average annual growth rate of 19.86%. Tanneries are producing

82

on average 76.73% (LIDI, 2013) of their capacity. The production volume of 160 million sq. ft.

in 2009 had get reduction of production for the next two subsequent years and steadily grown up

for the succeeding years and reached 185 million sq. ft. with annual growth rate of 12.17% in

2013. Majority of tanneries finished leather (77%) exported to global market (LIDI, 2013)

With regard to shoe manufacturing the volume of 1.6 million pair‟s production in 2009 grew

faster for the past 5 years to 2.8 million pairs per annum. The policy of the government to

encourage tanneries to shift to finished leather production supported the industry to be

sustainable.

Table 36: Trends of production of Tanneries and Footwear industries

Year Finished leather

Footwear

Quantity (in

000‟Sq.ft) Growth rate (%) Quantity (in pairs) Growth rate (%)

2009 160,018.03 1,606,725

2010 105,665.81 956,908

2011 140,358.78 32.83 2,127,862 122.37

2012 165,688.29 18.05 2,184,969 2.68

2013* 185,858.66 12.17 2,851,307 30.50

CSA, 2014

5.3.4 The Export trend in Leather Sector

The trade in leather has been increasing with the support from the government side and strong

participation of private sectors and foreign direct investment. The total export of the leather

sector reached 98.5 million USD in 2013 which is twofold as compared with the export value

in 2009 which was 49.9 million USD.

The table below reveals that the finished leather export grew at cumulative average annual

growth rate of 11% while footwear grew with cumulative average annual growth rate of 29%

per annum. With regard to leather goods and garment the export value grew dramatically from

0.5 million in 2009 to 4.2 million in 2013 with cumulative annual growth rate of 53% per

annum. The leather footwear industry is considered as prominent sub-sector that introduces and

leads modernization in the sector. The leather footwear industry has been chosen as a result of

its potential to make a significant impact on the national economy, employment generation and

strong trade export earnings. The footwear enterprises provide 58% of their product to the

export while the remaining for the local market (LIDI, 2013).

83

Table 37: The trend of leather sector export in (USD, 000)

Year

Leather

sector total

export

Tanning Share from

total (in %) Footwear

Share

from total

(in %)

Leather goods

and garment

Share from

total (in %)

2009 49,878.00 42,769.00 85.75 6,611.00 13.25 498 1

2010 75,801.00 67,199.00 88.65 7,962.00 10.5 640 0.84

2011 132,026.00 122,713.00 92.95 8,637.00 6.54 676 0.51

2012 103,018.00 85,608.00 83.1 14,400.00 13.98 3010 2.92

2013 98,536.00 70,838.00 71.89 23,522.00 23.87 4176 4.24

2014 132,947.91 97,692.32 30,543.73 4,711.86

CAGR 15% 11% 29% 53%

Source CSA, 2014

Global Market Share of Ethiopian Leather

The world‟s leather industry has changed significantly over the past two decades. Currently,

global trade in leather sector is estimated at 225 billion US dollar. The global market (import

value) grew from 154 billion USD in 2009 to 225 billion USD in 2013. Accordingly the share

of Ethiopian export of leather industry shows a fluctuation trend in the past five years. The

share of Ethiopian leather sector export is insignificant that needs more attention in the

subsequent years as compared with the availability of potential resource.

Table 38: Global share of Ethiopian leather export

Year/country 2009 2010 2011 2012 2013

World leather trade (000‟USD) 154457483 183373595 212723719 214798446 225216975

Growth rate (%) -14.15% 18.72% 16.01% 0.98% 4.85%

Ethiopia‟s Export (000‟USD) 49,878.00 75,801.00 132,026.00 103,018.00 98,539.00

Growth rate (%) -51% 52% 74% -22% -4%

Share of Ethiopia‟s from global

market (%) 0.0003 0.0004 0.0006 0.0005 0.0004

Sources: International Trade Center Based on UN COMTRADE Statistics

5.3.5 Twinning Program in the leather sector

The leather sector performed an exemplary effort in addressing twinning program. The major

areas covered under twinning programs are strengthening the academic programs of LIDI,

providing industrial consultancy in the area of leather products through applied research,

establishing testing services, and human resource development for the companies through

vocational programs.

84

The LIDI institutional capacity was addressed through institutional system improvement

including structural changes and internal management systems. The achievements were

encouraging in establishing new management structure that approved by Ministry of Civil

Service. LIDI applied quality management system (ISO 9001-2008) and certification on the

process and new information communication infrastructure (new data base management

system, new web site and new intranet and video conferencing) were installed. To capacitate

LIDI‟s HRD, in collaboration with Addis Ababa university and CLRI 32 LIDI professionals

attended a master‟s degree while currently 6 LIDI professionals are attending a 3rd degree

(PHD) in India.

The other stream of human resource capacity building were through short term training ranging

from one month the to six months duration. Accordingly, more than 100 LIDI professionals and

experts from leather industries (factories) were attended a training both locally and in abroad

(India). With regard to widening the impact of the twinning program in human resource

development the partner institutes developed a training, teaching and learning materials

(TTLM) in collaboration with LIDI experts which enables to expand leather sector training to

regional levels for technical and vocational education training centers.

In terms of R & D effort, the twinning program resulted in good achievement for LIDI. As a

result of training pertaining to research and development and fulfillment of facilities benefited

the research purpose. Four research outputs are published and product development centers were

established in LIDI. This center has performed different product development works in leather

technology, footwear and leather goods and garment technology (LIDI, 2015)

5.3.6 Leather Sector Current Employees Occupational Profile

Leather sector enjoyed significant comparative advantages owing the country‟s abundant

resource of raw materials. Besides, the competitive advantage that based on human capital

brings sustainable development. As a baseline for projection, the current employee

occupational standard gives clear picture of the existing profile. The occupational classification

in the leather sector can be categorized as production staff and technology and supporting staff.

The employees in tanning, footwear and leather goods and garments are estimated 9656, 11191

and 3176 respectively in 2015 based on CSA historical data and computation of employment

growth ratio.

Tanning sub-sector

The occupational standard for leather sector was developed and gets approved in 2012.

However, companies didn‟t replace the previous job title with the new occupational standard.

The tanning sector occupational standard starts from level II. Based on the current year

employees statistics, leather processing equipment operation that equated level II in the

occupational standard covers 44.4% of the total employees in tanning sub-sector. The leather

85

processing technical operation, level III accounts 24.2%. The leather processing supervision,

level IV covers 6.1%. In general, the production staff shares the majority of the workforce

(75%) where the supporting staff contributes the remaining share.

Footwear sub-sector

The footwear sub-sector is the fast growing sub-sector with quality and size of enterprises. The

production staff overall accounts 69% of the total employees in footwear where the technology

and supporting staff cover the remaining part. The footwear sector occupational standard

includes level I-IV. From the production staff, majority of the employee (39.25%) are working

in footwear production level II. Next advanced footwear production level III takes 19.33% of

the total employees in the sub-sector. Basic footwear production operation and footwear

production supervision which is Level I and IV respectively in combination covers only

11.42% of employees in the sub-sector.

Leather Goods and Garments

The leather goods and garments sub-sector is the fast growing both in quality and size of

enterprises. Similar to footwear enterprise, the production staff overall covers 69% of the total

employees in goods and garments where the technology and supporting staff cover the

remaining value. The goods and garments sub-sector occupational standard includes level I-IV.

From the production staff, majority of the employee (48.5%) are working in Leather

Garments/Goods production level II. Next Basic Leather Garments & Goods Production

Operations level III takes 10.3% of the total employees in the sub-sector. Advanced Leather

Goods and garments production and Leather Garments and Goods Production Supervision

which is Level I and IV respectively jointly covers only 10.3% of employees in the sub-sector.

The leather sector has limitation of getting skilled workforce that have both management and

engineering knowledge, operation with maintenance skill, and designers in footwear, garment

and goods product. The following occupational standards are found to be equipped with

sufficient hands on education and training to fill the existing gap

Machine operators/ Perform Mechanized Lasting (Level III)

Advanced footwear production (Level III)

Advanced Footwear Production (Level III)

Industrial manager (MSC)

Procurement analyst (BA/Level IV)

Advanced Footwear Production / Quality control (Level III)

Advanced Leather goods Production /Improve Business Practice (Level III)

Footwear Production Supervision / Prepare Design and Pattern Using (Level IV)

Footwear Production Supervision/ Participate in Product Engineering (Level IV)

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Footwear Production Supervision/ Migrate to New Technology (Level IV)

Leather Processing Supervision/ Implement Continuous Improvement (Level IV)

The Leather Value Chain

According to COMESA Regional Strategy for the Leather Sector Value Chain (2011), Ethiopia

is found among the six countries with high level of development of the leather value chain. The

leather industry uses the by-products of slaughterhouses and transforms the raw material into

various types of leather and manufactured goods and garments. The leather production value

chain has three processing stages, each requiring different combinations of materials, inputs,

labour and capital. The first stage is the retrieval of raw materials that has direct links with

animal production activities. Hides and skins are retrieved from dairy, draught animals or

animals from slaughter houses. The second stage is leather tanning and finishing, which

involves capital intensive operations. The third stage is the production of leather products, which

is a labour intensive activity. These three processing stages are linked to key commercial

components of the chain, such as the marketing of intermediate inputs, components and end

products, trade and consumption. The various inputs to the chain without which the chain cannot

operate competitively are qualified labour, design and art centers, components production, access

to chemicals, technical and administrative support institutions, research and development,

training and a set of adequate policies

87

Slaughtering

Figure 10: Leather sector value chain

88

5.2.7 The trend of leather sector trained workforce need and TVET graduates

The average graduates of TVET form the year 2011-2014 reveal that level II covers about 75%

of the total leather technology graduate within the period. Level IV accounts nearly 14%% of

the total graduates. The remaining percentages shared by Level I, III and V. On the other hand,

the leather sector workforce demand for the year 2016 reveals that level II and III are found the

dominant covering 82% of the production staff. There is significant demand and supply

difference for levelI, II and III skilled workforce. Figure 13 reveals that the demand curve lies

above the supply trend. The graph didn‟t include the skilled workforce that trained by LIDI

LIDI has trained skilled workforce for the leather sector since 2011 with average capacity of 73

trainees per year with level I-IV.

Table 39: Average ratio of TVET graduates and leather sector 2016 HR need

Levels

TVET graduates with leather

technology (2011-2014)

Leather sector projected

production staff for 2016

ratio ratio

I 28 0.0024 3327 0.09

II 8853 0.754 20251 0.42

III 1183 0.101 10582 0.40

IV 1606 0.137 2595 0.09

V 79 0.007

11749 17184

Figure 11: TVET graduates trend (2011-2014) and leather sector projected demand for 2016

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5.2.8 The Leather Sector Human Resource Requirement forecast for the year 2016-2025

The leather sector as having potential local resource will get competitive advantage if properly

managed and nurtured. This sector could create about 530 000 new job opportunities at the end

of second GTP. Among the jobs created, MSE shares about 48% of the total jobs opportunities

followed by industrial parks that constitute 40% and the remaining goes to other companies

outside of these arrangements. Among the new jobs created, tanning sub-sector absorbs 40%

female workers in the respective sector. Similarly, Footwear sub-sector engages about 66% of

the workers within the sector while the Goods and Garments absorb about 71% of the new jobs

created within the same sector. Hence, the leather sector will play significant role in the

economic empowerment of female at national level. The jobs that could be created at the end of

third GTP (2025) will reach about 1.4 million.

5.2.9 Human Resource Requirement Forecast for the leather sector (2016-2020)

The central focus of Human Resource Requirement Forecast in leather companies is to identify

the future demand of the workforce by the sector. The basic rationality of HR forecast is to

enable the provision of skilled workforce with the required quality and quantity at the right time.

HR demand forecast simplifies prior planning of education and vocational training by supply

side. It is an effort to ensure the availability of educated and trained people as required. HR

forecast helps to keep the essential balance in the labour market in line with the national growth

of the economy. Therefore, this plan assumes the Ethiopian fast growing economy that will

absorb in the next decade with more semi-skilled and skilled workforce from TVET, respective

training institutes centers and professionals from higher education.

Table 40 below reveals that among the total job opportunities, MSE accounts 48% followed by

industrial parks (Central Eastern Oromia (Gende-Arba IAIP), South West Amhara (Bure

IAIP), Eastern SNNPR (Weynenata Hida kaliti IAIP) and Western Tigray (Ba‟eker IAIP)

accounts 40% where the remaining goes to other companies outside the industrial parks. As a

result of structural difference, the required manpower for MSE is not presented in detail with

skill and professional mix. However, the required skill training for the sector was addressed in

summary

90

Table 40: Leather sector HR projection for the year (2016-2025)

Table 41 below reveals that at the end of GTP II (2020) the leather sector will create about 530,000 job opportunities. This amount

will rise nearly to 1.4 million at the end of 2025 (2025). The secondary data survey from LIDI reveals that the leather sector will

benefit for about 55% female employees from the new job opportunities created. Hence, the sector has significant role in the female

economic empowerment. The new job opportunities from MSE contribute 48% (286000) at the end of GTP II (FEMSEDA GTP II

plan) and reach about 660,000 at the end of 2025 (from trend analysis). The job opportunities from Industrial park shares 40% of the

total employment opportunities in the leather sector. The Agro-Industrial Park will create nearly 212,000 job opportunities at the end

of GTP II where this amount grows to closely 550,000 at the end of 2025. The share of other investment in the sector accounts 12%

job creation. Other investment other than industrial parks will contribute 89,000 at the end of GTP II and rise to 159,000 in the

completion of 2025.

The distribution of job in the leather sector reveal that graduates from TVET (level II) cover about 42% followed by level III that

accounts about 20% of the new jobs. The involvement of graduates from higher institution in the leather sector covers 16%of the

total employment. The other workforce goes to security, messenger, sanitary etc. where this workforce accounts for about 9% of

employment in the sector.

Segment of job

opportunities Sub-sectors 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Share

in %

Companies

Outside parks

Tanning 9656 10084 11356 13828 15453 17758 19884 22287 25001 28069 31538

Footwear 11191 27732 33728 41071 45895 52741 59057 66192 74253 83365 93669

Goods & Garments 3176 10084 12265 14935 16689 19178 21475 24070 27001 30315 34061

Sum 24023 47900 57349 69834 78037 89677 100417 112548 126255 141749 159268 12%

Industrial Parks Footwear

18703 45256 77588 115705 175558 235449 291587 355430 415591 40%

Goods & Garments

6234 15085 25863 38568 58519 78483 97196 118477 138530

Micro & Small Enterprise (MSE)

75360 141640 196840 262960 286000 382067 416453 556340 606410 660987 48%

Total employment opportunities in

leather sector 24023 123260 223926 327015 444447 529949 716561 842932 1071376 1222066 1374377

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Table 41: HR projection of the leather sector with occupational standard and professional mix

N

o

Classification

of job

opportunities

Educational

level

HR projection of Leather sector for the year (2016-2025) with occupational standard and professional mix

2015

(base

year)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Rati

o

In %

1 Job

opportunities

from Industrial

park and other

companies

Level I 1250 3327 6231 10214 14570 19845 27595 35448 42974 51527 59791 8.4

Level II 10217 20251 34591 54580 75963 102003 139708 178023 214922 256848 297589 41.7

Level III 5819 10582 17544 27320 37683 50335 68548 87075 104955 125268 145065 20.3

Level IV 1427 2595 4317 6732 9298 12427 15215 19318 23277 27774 32155 4.5

BA 2531 5650 10080 16207 22832 30880 42619 54530 65974 78976 91574 12.8

BSc 529 1038 1754 2745 3803 5089 6952 8844 10668 12742 14757 2.1

MBA 176 365 626 989 1378 1852 2538 3236 3907 4669 5410 0.8

MSc/PhD 42 112 211 345 492 669 931 1195 1449 1737 2015 0.3

**Others

2032 6932 11043 15468 20849 30387 38810 46911 56115 65034 3980

9.1

24023 47900 82286 130175 181487 243949 334493 426479 515037 615656 713390 100

2 MSE 75360 141640 196840 262960 286000 382067 416453 556340 606410 660987

Total job

opportunities in

leather sector

123260 223926 327015 444447 529949 716561 842932 1071376 1222066 1374377

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HRR Forecast for Tanning Sub-sector

The skill required during the first phase mainly focused on semi-skilled and skilled workforce.

The forecast for tanning sub-sector is projected for the coming ten years in alignment with GTP

II and 2025. The report was based on occupational standards that have been approved in 2012

and professional mix from higher institutions. The tanning sector occupational standard starts

from level II. It holds three occupational standards for operational/production staff and twenty

three summary of technology and supportive staff. The production staffs were forecasted to

increase from 7204 in 2015 to 13249 at the end of the 2nd

GTP. The trend for production staffs

with occupational standard reveals that level II is the dominant category with 44.4% of the

workforce in the tanning sector. The tanning sub-sector will show almost double growth of

employment opportunities within the coming five years (9656 employees in 2015 to 17758 in

2020).

Based on the current pattern of existing employees, the tanning sub-sector will absorb 40%

female employees out of the total job opportunities in the sector. The majority (75%) of the

forecasted workforce belongs to the operational/production staff (TVET graduates). For the

technology and supportive occupations, a mix of occupational standard (TVET) and educational

level has used in the forecast. The technology and supportive staff that categorized under

occupational standard with different TEVT levels and professionals from higher education are

expected to grow from 2275 employees in 2015 to 4615 in 2020. This trend reveals that during

GTP II new employment opportunity for professionals from higher education in tanning sub-

sector will increase by 72%. The professionals based on educational level in the tanning sector

accounts 10% of the total workforce. For the details refer table 42 below.

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Table 42: Leather Tanning sub-sector HR projection for the year (2016-2020)

No Occupational Standard Names

OS level

or Edu.

level

Existing

profile of

employee

(2015)

Projected No. of Employees

2016 2017 2018 2019 2020

Total 9656 10084 11356 13828 15453 17758

Production Staff

1 Leather Processing Supervision IV 584 610 687 837 935 1074

2 Leather Processing Technical

Operation III 2335 2438 2746 3344 3736 4294

3 Leather Processing Equipment

Operation II 4285 4475 5040 6137 6858 7881

Sum 7204 7524 8473 10317 11529 13249

Technology and Support staff

4 Industrial Manager MA 70 74 83 101 113 130

5 Accounting and Finance BA 280 292 329 401 448 515

6 Accounting and Finance IV 58 61 68 83 93 107

7 General Mechanics IV 70 74 83 101 113 130

8 Auto Mechanics III 58 61 68 83 93 107

9 General Mechanics III 304 378 426 519 579 666

10 Electricity III 128 134 151 184 206 236

11 Mechanical Engineering BSC 47 48 55 66 74 85

12 Electrical Engineering BSC 35 36 41 50 56 64

13 Industrial Engineering BSC 35 36 41 50 56 64

14 Chemical engineering BSC 47 48 55 66 74 85

15 HR Management BA 70 74 83 101 113 130

16 Marketing and Sales expert III 23 24 27 33 37 43

17 Marketing and Sales expert BA 105 110 124 151 168 194

18 Purchasing and Supplies expert BA 163 170 192 234 261 300

19 Purchasing and Supplies expert III 35 36 41 50 56 64

20 Designer

21 Nursing BSc 58 61 68 83 93 107

22 Lab. Tech. +Druggist BSC 23 24 27 33 37 43

23 Planning (economist) BA 35 36 41 50 56 64

24 Quality control III 35 36 41 50 56 64

25 IT expert III 12 12 14 17 19 21

26 R & D 0

27 Others 584 793 893 1087 1215 1396

Sum 2275 2618 2951 3593 4016 4615

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HRR Forecast for Footwear sub-sector

The footwear sub-sector is characterized by its labour intensive nature. The sector has promising

market both at domestic and globally. Locally, as the country leaps to middle income, the

purchasing capacity of citizen will rise. There is an encouraging effort at government, firm, and

leather industry development institute level to make the sector competitive. However, different

respondents underlined the challenges facing the sector to get finished leather to produce at their

full capacity. As one solution and source of emerging product for the sector, the introduction of

polymer synthetic is a timely solution raised during the in-depth interview with the sector.

The forecast for footwear sub-sector has also presented in two phases from 2016-2020 and from

2021-2025. Four occupational standard and summaries of technology and supportive staffs with

educational level are identified. Similar to tanning, the trend within footwear occupational

standard reveals that level II is the dominant category covering 39% from the total occupations

and educational level within the sub-sector. The footwear forecast reveals that the majority

(69%) of the forecasted workforce belongs to the operational/production staff where the

remaining accounts to technology and supportive staff. The TVET graduates average ratio

analysis from the year 2011-2014 reveals that majority of the graduates (43%) grouped under

level IV followed by level III (33%) of the total graduates. The majority of industry workforce

demand is dominated by level II followed by III of the occupational standard. This variation

reveals that an intervention is required to keep the balance between the industry demand and

supply of TVET‟s.

The current pattern of existing employees reveals that the footwear sub-sector will absorb 66%

female employees from the total job opportunities will be created in the sector. The footwear

sub-sector plays significant role in generating about 71% of the job opportunity created in the

leather sector. The footwear sub-sector increase from the current (2015) 7722 employees to

116227 employment opportunities at the end of GTP II. This trend reveals that within five

years, employment opportunity for TVET operational/production staff will increase by fifteen

fold. Similarly, the technology and support staff from TEVT and professionals from higher

institution category increase from 3469 in 2015 to 52252 at the end of 2nd

GTP period.

95

Table 43: Footwear sub-sector HR projection for the year 2016-2020

No. Occupational Standard

Names

OS or

Education

level

2015

employee

profile


2016 2017 2018 2019 2020

Total employee 27732 52431 86326 123482 168445

Production Staff

1 Footwear Production

Supervision IV 242 602 1138 1873 2680 3655

2 Advanced Footwear

Production III 2164 5361 10135 16687 23869 32560

3 Footwear Production II 4392 10885 20579 33883 48467 66115

4 Basic Footwear Production

Operations I 923 2288 4326 7122 10187 13897

Sum for production staff 7722 19135 36177 59565 85203 116227

Tech. and support staff

5 Industrial manager MBA 65 161 304 501 716 977





10 Electricity III 56 139 262 432 617 842




14 HR expert BA 75 186 351 578 827 1129

15 Marketing and Sales

management expert III 56 139 262 432 617 842


management expert BA 933 2310 4367 7191 10286 14031

17 Purchasing and Supplies

Management expert BA 187 463 876 1442 2062 2813


Management expert III 47 116 220 363 519 707

19 Footwear Designer BSc 37 92 173 285 407 556

20 Nursing BSc 47 116 220 363 519 707

21 lab. Tech.+ Druggist BSc 19 47 89 147 210 286


23 Quality control expert III 37 92 173 285 407 556

24 IT expert BA 19 47 89 147 210 286

25 R &D MSc/PhD 28 69 131 216 309 421

26 Others 1138 2820 5332 8779 12558 17131

Sum for tech. & support staff 3469 8602 16264 26778 38304 52252

Table 44

96

HRR forecast for Goods and Garments

The production of goods and garments are the other promising line of growth in the leather

sector. The challenges identified above could be a deterrent for the growth of this sub-sector

too. The distribution between Operational/production and supportive staff show that the

operational staff is found threefold (69%) of the technology and support staff. The forecast that

base on existing employee profile tells that leather goods and garments production

(occupational standard level II) contributes 48% of the workforce in the sub-sector. The

operational workforce in the leather garments and goods industry similar to other sub-sectors is

dominated by level II based on the new occupational standard. However, the larger sizes of

graduates of TVET are categorized under level II and IV occupational standard.

The current pattern of existing employees in goods and garment sub-sector reveals that the

footwear sub-sector will absorb 71% female employees from the total job opportunities in the

sector. The forecast for operational/production staff shows significant growth for the year

2016-2020. The job opportunity for production staff will grow from 2195 employee in 2015 to

39903 new job opportunities at the end of GTP II. The technology and support staff from

TVET and higher education professionals will increase from 981 in 2015 to 17861 in 2020.

97

Table 45: Goods and Garments sub-sector HR projection for the year (2016-2020)

N

o. Occupational Standard Names

OS level or

Education

level

2015

employee

profile


2016 2017 2018 2019 2020

Production Staff 10084 18499 30020 42552 57747

1 Leather Garments and Goods

Production Supervision IV 68 217 398 645 915 1242

2 Advanced Leather

Goods/garment Production III 259 822 1508 2447 3468 4706


Production II 1540 4891 8972 14560 20638 28007

4 Basic Leather Garments &

Goods Production Operations I 327 1039 1905 3092 4383 5948

Supporting staff

2195 6968 12783 20744 29403 39903

5 Industrial manager MA 41 130 239 387 549 745





10 Electricity III 27 87 159 258 366 497




14 HR Management expert BA 27 87 159 258 366 497









19 Goods & Garment Designer BSc 14 43 80 129 183 248

20 Nursing BSc 27 87 159 258 366 497

21 Lab. Tech. + Druggist BSc 27 87 159 258 366 497


23 Quality control expert III 14 43 80 129 183 248

24 IT Expert BSC 14 43 80 129 183 248

25 R & D MSc/PhD 14 43 80 129 183 248

26 Others 136 433 794 1288 1825 2477

Total 981 3119 5722 9285 13161 17861

98

The 2nd

phase (2021-2025) is the time where skilled workforce prevails significantly in the

industry operations. It is also the time where technology adaption enhanced and preparation

needs to begin that pave the way to innovative technologies.

The leather industry as one of the comparative advantages, it is expected to enhance the HR

capacity building in the year 2021-2025. Based on the analysis of the forecast till 2025, it was

expected that the leather industry would employee about 713390 by 2025 from the current level

of 24023. This growth covers about thirty fold increase in employment generation at the end of

third 2025 (2025). Footwear would be the largest employer of the leather sector accounting for

about 71% of employment opportunities in the sector.

According to the discussion made with some employers of the company, the skill requirement

gap will be in the areas of designing, supervision, maintenance, leadership and information

technology. Employers in the leather sector have good awareness about the use of technology

for their business. As customers become more fashion-conscious, the footwear, goods and

garment products are strongly influenced by the ever increasing need to improve the skills for

management, fashion designing and technical people. The HR requirement ( 2021-2025) was

presented below.

Tanning

The tanning sub-sector as capital intensive generates limited number of job opportunities in the

sector. In the third GTP, the production staff in tanning sub-sector is expected to embrace 14836

job opportunities in 2021 and increase to 23531 at the end of 2025 for semi-skilled and skilled

TVET graduates. This trend reveals that the job opportunity will grow for about 59%. The

technology and support staff with skill level I-IV from TVET and professional from higher

education will increase from 2275 in 2021 to 8206 at the end of 2rd

GTP. Among the total job

opportunities projected, 40% will be covered by female employees. Hence, the sector will play

crucial role in economic empowerment of female in the next decade. For detail see table 46

99

Table 46 : Tanning sub-sector HR forecast for the year (2021-2025)

N

o Occupational Standard Names

OS level

or Edu.

level

Existing

profile of

employee


2021 2022 2023 2024 2025

Total 9656 19884 22287 25001 28069 31538

Production Staff

1 Leather Processing

Supervision IV 584 1203 1348 1513 1698 1908

2 Leather Processing Technical

Operation III 2335 4808 5389 6045 6787 7626

3 Leather Processing

Equipment Operation II 4285 8825 9891 11095 12457 13997

Sum 7204 148366 166288 186533 209422 235311

Technology and Support staff

4 Industrial Manager MA 70 145 163 183 205 230




8 Auto Mechanics III 58 119 134 150 168 189


10 Electricity III 128 264 296 333 373 419




14 Chemical engineering BSC 47 95 107 120 135 151

15 HR Management BA 70 145 163 183 205 230

16 Marketing and Sales expert III 23 48 53 60 67 90

17 Marketing and Sales expert BA 105 217 243 273 306 344


expert BA 163 336 377 423 474 533


expert III 35 72 80 90 101 114

20 Designer

21 Nursing BSc 58 119 134 150 168 189

22 Lab. Tech. +Druggist BSC 23 48 53 60 67 76



25 IT expert III 12 24 27 30 34 38

26 R & D

27 Others 584 1563 1752 1965 2206 2479

Sum 2275 5165 5788 6496 7288 8206

100

Footwear

The footwear sector as a labor intensive, both local and foreign direct investment is expected to

increase ever than before in the third GTP phase. In line with the huge job opportunities, the skill

required for will grow synonymously to make the sector globally competitive. Some specific

skills like designing, maintenance, IT expert, R & D are expected to grow in quality as well as

quantity to meet the need of emerging global and local markets. Designing skill is expected to

imitate effectively during the plan period and at the same time will pave the way to innovation.

At the end of the plan period (2025), semi-skilled and skilled operational/production staff

employees are forecasted to reach 509260. The share of production/operational workforce

accounts 69% (351389) of the total employees within the sub-sector. The technology and support

staff from TVET and higher institution is forecasted 72777 in 2021 and grows to 157871 at the

end of at the end of the 3rd

GTP period (2025). Similar to the second GTP period, the job

opportunities created will benefit dominantly (about 66%) female employees in the sector.

101

Table 47: Footwear sub-sector HR projection for the year (2021-2025)

N

o

.

Occupational Standard

Names

OS level or

Education

level

2015

employee

profile


2021 2022 2023 2024 2025

Total employee 234614 301640 365839 438795 509260

Production Staff

1 Footwear Production

Supervision IV 242 5091 6546 7939 9522 11051

2 Advanced Footwear Production III 2164 45351 58307 70717 84819 98440

3 Footwear Production II 4392 92086 118394 143592 172227 199885

4 Basic Footwear Production

Operations I 923 19356 24885 30182 36201 42014

Sum of employee in production

(TVET) 7722 161884 208132 252429 302769 351389

Technology and support staff

5 Industrial manager MBA 65 1361 1750 2122 2545 2954





10 Electricity III 56 1173 1508 1829 2194 2546













19 Designer BSc 37 774 995 1207 1448 1681

20 Nursing BSc 47 985 1267 1537 1843 2139

21 Lab. Tech.+ Druggist BSc 19 399 513 622 746 866



24 IT expert BA 19 399 513 622 746 866

25 R &D MSc/PhD 28 587 754 915 1097 1273

26 Others 1138 23860 30677 37206 44625 51690

Sum Tech. & support staff 3469 72777 93569 113483 136114 157871

102

Leather Goods and Garments

Goods and garments sub-sector has variety of products where those products need to grow in

best fit designs and quality of products. A skill like designing is expected to grow to make the

sector competitive similar to footwear sector. In the production staff 55276 operational semi-

skilled and skilled employees are expected to be pulled from TVET by the sector in 2021 where

these workforces are expected to increase to 119261 at the end of 2025. Regarding the

technology and support staffs from TVET and higher education professional create 24,742 job

opportunities in 2021where this amount increase more than double to 53,331 at the end of third

GTP (2025) (For details refer table 40). Considering the current baseline employee profile in the

sector about 71% job opportunities will go to female employees. This reveals that Goods and

garment leather sub-sector plays significant role in the economic empowerment of female both at

national and regional level.

103

Table 48: Goods and garments sub-sector HR projection for the year (2021-2025)

N

o.


Names

OS level

or

Educati

on level

2015

employee

profile


2021 2022 2023 2024 2025

Production Staff 79994 102553 124197 148791 172592


Production Supervision IV 68 1720 2205 2670 3199 3711

2 Advanced Leather

Goods/garment Production III 259 6520 8358 10122 12126 14066


Production II 1540 38797 49738 60235 72164 83707

4 Basic Leather Garments &

Goods Production Operations I 327 8239 10563 12792 15326 17777

Supporting staff

2195 55276 70864 85820 102815 119261

5 Industrial manager MA 41 1032 1323 1602 1919 2226





10 Electricity III 27 688 882 1068 1280 1484













19 Designer (goods & garment) BSc 14 344 441 534 640 742

20 Nursing BSc 27 688 882 1068 1280 1484

21 Lab. Tech. + Druggist BSc 27 688 882 1068 1280 1484



24 IT Expert BSC 14 344 441 534 640 742

25 R & D MSc/PhD 14 344 441 534 640 742

26 Others 136 3432 4400 5328 6383 7353

Total 981 24742 31719 38414 46021 53331

104

5.4 HR Requirement for Chemical and Construction Inputs sector

5.4.1 Overview of the Chemical and Construction Inputs Sector

The manufacturing industry in Ethiopia began to appear in the 1950‟s much earlier than in much

of Sub-Saharan African countries. Modern industry commenced to emerge mainly in the second

half of the 1950‟s and 1960‟s with import substitution as the main goal. Prior to 1957, when

Ethiopia initiated a series of five year development plans, cottage and handicraft industries met

most of the population's needs for manufactured goods such as clothes, ceramics, machine tools

and leather goods.

The chemical industry in Ethiopia are established both by government and investors individual

effort with different size, technology, political period, production and market strategies.

Chemical input industry development sector comprises of two main sectors. These are (i)

Chemical and chemical products industry and (ii) Construction inputs industry. These industries,

includes such as Basic chemicals, , paint and varnish, Plastic and Rubber, Paper, Pulp and

printing, soap and detergent, cosmetics, Glass, Cement and Non-metal construction materials.

The chemical industry is central to the world economy. In Ethiopia the sub sector is at a very

low level of development with little contribution to the national economy. There are very few

basic chemical industries that could serve as part of the foundation for development of the sub

sector. Most of the other establishments in the sub sector produce chemical products by further

processing (adding value to) imported chemical products.

Chemical and construction inputs industry sector was not given due attention so that the sector

is surrounded with so many problems. Currently, the Chemicals inputs sector has been given

great attention from the government and to solve the sector problems and provide support,

Chemical inputs industry development institute has been established. The main objective of the

sector is to produce locally and substitute inputs required for textile, leather and food

industries; to produce chemical products used to increase productivity of agriculture locally;

and to produce raw materials that the chemical industries used as inputs.

Enabling Environment for the sub sector development

The enabling environment for the sub sector developments are listed below

o Existence of stable and peaceful socio-political environment and supportive

macroeconomic policies

o Sustainable industry development strategy

o Government investment in capital intensive sectors

o Transformation of the agricultural economy to industrial -led economy

o The shift of labor intensive manufacturing factories from developed to less developed

countries

o Vast international and Preferential market access to EU, USA and regional market

105

o Availability of resources.

Number of Establishments in Chemical inputs Sector

The total number of medium and large establishment in the sector reaches 817 (CSA,

2005E.C). Addis Ababa city administration contributes a share of 42.2 % of total number of

establishments where as Oromiya and Tigray regions contributes 21.0 and 11.9 percent

respectively (MOI, 2014). Establishment trend of the industrial groups both Public and

government are shown in table 49

Table 49: List of Industrial groups of public and private and their establishments

Industrial Group Number of Establishments `

2000 2001 2002 2003 2004

2005

Manufacture of Paper, paper products and

Printing

143

127

123

122

122

125

Manufacture of Chemicals and Chemical

products

80

75

96

75

99

147

Manufacture of Rubber and Plastic

Products

82

87

139

106

135

154

Manufacture of other Non-Metallic

Mineral products

488

608

482

409

531

559

5.4.2 Gross Value Production (GVP) of Chemical sector

Actual value of production as percentage of yearly capacity by industrial group for 2005 E. F.Y

is as shown in Table 50 From 2007/08(2000 E.F.Y) – 2012/13 (2005E.F.Y), the average annual

GVP growth rate of the chemical sector was 33.8%, with total actual production of 30.9 billion

Eth. Birr, whereas the average annual value added growth rate for the chemical sector was

28.2% with an amount of 6.6 billion Ethiopian Birr in 2010/11. In general the Ethiopian

Chemical input Industry sub sector is at a very low level of development and the sector is

among those that are at the bottom list of the manufacturing industries in contribution to GDP

in which the export of the sector is negligible.

106

Table 50: GVP trend by Industry groups- public and private (In ‘000 Birr)

INDUSTRIAL GROUP Gross Value of Production

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Manufacture of Chemical

and Chemical products

1,733,375 2,598,736 3,773,839 4,422,353 6,875,044 9,664,263

Manufacture of Rubber

and Plastic products

1,484,548 1,912,133 3,053,071 3,123,061 5,079,403 7,039,829

Manufacture of paper and

paper products

1,236,481 1,281,657 1,735,414 2,310,775 2,551,646 3,515,255

Manufacture of none

Metallic products

3,068,948 3,496,772 4,311,743 5,501,636 11,179,083 10,668,627

TOTAL 7,523,352 9,289,298 12,874,067 15,357,825 25,685,176

30,887,974

Source: CSA, 2005

5.4.3 Major products of the chemical and construction inputs sector

Chemical input industry is basic industry that converts natural, agricultural, and mineral

resources in to Chemical in put products that are raw materials for broad range of industries and

other sectors. The chemical industry involves the use of chemical processes such as chemical

reactions and refining methods to produce a wide variety of solid, liquid, and gaseous

materials. In the current context, the chemical industry includes industries such as Basic

chemicals, paint and varnish, Plastic and Rubber, Paper , Pulp and printing , soap and

detergent, cosmetics, Glass, Cement and Nonmetal construction materials. According to CSA

(2003 E.C), Industrial group and the major products produced by the sub sector is shown in

table 51

107

Table 51: Industrial groups and Major products of the sub sector

Industrial Group Major products

Manufacture of Paper, paper

products and Printing

Manufacture of paper and paper products

Publishing and printing services

Manufacture of Chemicals and

Chemical products

Manufacture of basic chemicals, except fertilizers and

nitrogen compounds

Manufacture of paints, varnishes and mastics

Manufacture of soap and detergents cleaning and

polishing, perfumes and toilet preparations

Manufacture of chemical products

Manufacture of Rubber and

Plastic Products

Manufacture of rubber products

Manufacture of plastic products

Manufacture of other Non-

Metallic Mineral products

Manufacture of glass and glass products

Manufacture of structural clay products

Manufacture of cement, lime and plaster

Manufacture of articles of concrete, cement and plaster

Manufacture of non-metallic mineral products

Manufacture of wood and of

products of wood and cork,

except furniture

Plywood, board, particle board, lumber, door and window

and their frame, wall panels, etc…

Manufacture of furniture

Wooden House furniture, wooden office furniture,

bamboo furniture etc…

CSA, 2005

5.4.4 Employment trend of the chemical and construction inputs sector

According to CSA (2005) data, the number of employees in selected Chemical and construction

inputs sector is shown in table 52 During plan for accelerated sustainable development and

eradicating poverty (PASDEP) period (2005/06-2009/10), the chemical and construction inputs

sector employment shows an annual average growth of 15.55%. Employee number for 2006

and 2007 is estimated based on historical data of past employee trend and reports obtained from

institutes.

108

Table 52: Employment Trend by Industrial group- public and private sector

Industrial Group

Number of Employees

2001 2002 2003 2004 2005

2006

2007

Manufacture of Paper, paper products and Printing

8,822

9,998

10,076

9,013

9720 9997 10282

Manufacture of paper and paper products

2,374

3,615

3,150

1,786

3320 3415 3512

Publishing and printing services

6,448

6,383

6,926

7,227

6400 6582 6770

Manufacture of Chemicals and Chemical products 6,594 9,109 7,374 8,457 10963 12450 20468

Manufacture of basic chemicals, except fertilizers and

nitrogen compounds

1,257

2,849

1,553

1,806

2206 2866 3722

Manufacture of paints, varnishes and mastics 976 944 955 1,197 1593 1752 3752

Manufacture of soap and detergents cleaning and

polishing, perfumes and toilet preparations

3,662

4,547

4,143

5,250

6189 6808 11919

Manufacture of chemical products 699 769 723 204 975 1024 1075

Manufacture of Rubber and Plastic Products 11,958 13,859 10,984 12,745 63527 17986 18489

Manufacture of rubber products 905 846 769 803 401 830 788

Manufacture of plastic products 11,053 13,013 10,215 11,942 63126 17156 17701

Manufacture of other Non-Metallic Mineral products 19,790 19,482 17,230 24,278 37172 40367 49054

Manufacture of glass and glass products 489 637 679 704 754 844 944

Manufacture of structural clay products 1264 1328

109

Source: CSA 2005 & Trend analysis

565 497 244 1,219 1,204

Manufacture of cement, lime and plaster 3,706 4,440 5,093 6,452 2,412 4421 4421

Manufacture of articles of concrete, cement and plaster 10,049 8,133 7,725 8,611 24821 24821 32179

Manufacture of non-metallic mineral products 4,981 5,775 3,489 7,292 7985 9017 10183

Manufacture of wood and of products of wood and

cork, except furniture

2,111 3,261 3,988 4,055 5,577 6,748 8,165

Manufacture of furniture 7,945 8,251 8,270 8,342 10,235 11,259 12,384

Total 57,220 63,960 57,922 66,890 85,532 98,807 118,842

110

5.4.5 GDP share of the Chemical sector

According to roadmap (2013), The Ethiopian economy is targeted to grow annually at the

average rate of 11.2 per cent during the planning period (2013-2025). This is in accordance

with the Growth and Transformation Plan of the Ethiopian Government which assumed to

maintain at least an average real GDP growth rate of 11.2 %. The GDP share of the chemical

and allied industry is estimated in three phases as indicated in the following tables.

Table 53: Chemical and allied industry growth target in phase one

Sector 2013 2014 2015

Industry Sector in % GDP 15.25 16.99 18.73

Manufacturing industries in % GDP 5 6 7

Chemical and Pharmaceutical industry (%) 1.3 1.5 1.6

Source: Roadmap, 2013

Table 54: Share of chemical and allied Industry ( in %) for the period 2016-2020.

2016 2017 2018 2019 2020

Manufacturing industries in % GDP 8% 9 % 10% 11 % 12%

Chemical and Pharmaceutical

industry (Total) 1.3 1.45 1.6 1.65 1.8

Chemical and allied industry 1.03 1.16 1.28 1.32 1.44

Petrochemical Industry 0.16 0.18 0.29 0.36 0.36

Source: Roadmap, 2013

Table 55: Share of chemical and allied Industry for the period 2021-2025

Sector 2021 2022 2023 2024 2025

Manufacturing 13

%

14% 15% 16% 17%

Chemical and Pharmaceutical Industry

(Total) 2 2.1 2.25 2.4 2.55

Chemical and allied industries 1.8 1.89 2.025 2.16 2.295

Petrochemical Industry 0.39 0.5 0.65 0.75 0.9

Source: Industry development roadmap (2013)

111

5.4.6 Export /Import Substitution of the sector

In terms of the Export and local market, competition has become very intense due to penetration

of low priced Chinese and other countries products in the Ethiopian and neighboring countries

market. The internal trade environment is faced with multiple challenges such as:

Low productivity of the industries;

Competition of imported / illegal imports goods;

Elimination of the subsidies ;

Limited product mix and low quality of products ;

Low purchasing power of majority of the population and, as the result, limited local

demand ;

As indicated in table 9, Export trade performance of 2003 E.F.Y has grown from 6.9 million

dollar to 10.8 million dollar in 2006 E.F.Y with an average annual growth of 17 %. The total

production size available in 2002 E.F.Y was increased from 13.1 billion dollar to 27.5 billion

dollar in 2004 E.F.Y with an average annual growth of 47.3 %.

The country chemical and related industry sector (include chemical, petrochemical and

pharmaceutical and other sectors). Out of the total production size of manufacturing sector, the

share of the chemical and related industry was 0.81 % in the year 2004 E.F.Y and the share is

expected to grow to 1.5% for the year 2007/2008 E.F.Y (2015 G.C). In the year 2012/13 (2020)

and 2017/18 E.F.Y (2025 G.C) share of the chemical and related is expected to grow to 2.8 and

3.4% respectively.

Based on information‟s‟ obtained from central statistics agency (CSA) and sector institute, sub

sector performance, export trade, general product and productivity, share of the sector, job

created in the sector are presented in table 56

Table 56: performance evaluation of the sub sector

Performance measure 2002

2003 2004 20

05

2006 Average yearly

growth (%)

Export trade performance (

million dollar) * 6.9 7.01 7.9 10.8 17

Total production size (In billion

Birr) 13.1 15.8 27.5 - - 47.3

Average capacity usage (%) 55 57.5 66.1 - - 9.7

Chemical and related industry 30 35 66.2 - - -

Construction industry 80 80 66.0 - - -

Product Share of the sector (%) 31.1 30.1 29.6 - - -2

Chemical and related industry 20.4 18.8 15.6 - - -

Construction and inputs industry 10.7 11.3 14.0 - - -

112

Performance measure 2002

2003 2004 20

05

2006 Average yearly

growth (%)

Job opportunity (employees in

number) 57,785 52,022 61,119 - - 3.8

Chemical and related industry 35,042 30,804 32,786 - - -

Construction and inputs industry 22,743 21,218 28,333 - - -

Salary (Birr per_capita) 13,149.0 14,926.3 20,978.6 - - 27

Chemical and related industry 13,502.0 14,580.8 18,768.47 - - -

Construction and inputs industry 12,605.2 15,427.9 23,536.09 - - -

Source: CCIDI GTP 2 plan

5.4.7 Skill requirement and skill gaps of the chemical and construction inputs sector

The Chemical and construction input sector demands engineers in various fields and skilled

technician. In this regard there is no gap between demand and supply. The only problem is the

issue of quality. TVET training systems has not been effective at producing practical

knowledge rather than theoretical knowledge. In order to solve this problem the Government

designed quality improvement package and is under the process of implementation with a view

to enhancing the quality of education in the country.

The level of industrial technology and its workforce of Ethiopia are described as follows:

Low productivity

Lack of industrial culture

Low quantity of skilled workers, technicians, and experience engineers

5.4.8 HRR forecast for the Chemical and Construction Inputs sector

Chemical sector comprises variety of sectors which are discrete in process and technology. In

supplying the required skilled workforce, TVET plays a vital role in producing and meeting the

demand of middle level skill of the sector. The estimate of the workforce is done using

occupational standards developed on the past and updated in the fiscal year. However, some

sub sector does not have occupational standards and some are under revision process. For these

sectors, factory naming is used.

As indicated on the methodology part, the estimate of the workforce required is based on the

Chemical sector growth rate indicated on roadmap and the productivity rate of the sector. In the

estimate, base year employee data of the recent year is considered and the data was interpolated

based on historical data of employee trend and reports obtained from institutes. The estimate of

workforce listed here under represents the total workforce required in the Chemical and

construction inputs sector for the year 2016-2025.

113

The estimate is also identified as the workforce that directly involve in the production process,

engineering and natural science supportive workforce, technology TVET supportive staff,

social science supportive staff, social science TVET staff, and others.

Table 57 shows total job created in the chemical and construction inputs sector. As it can be

seen from the table, jobs created in sector comprises, micro and small enterprise (MSE), share

of the sector from industrial park, and light and heavy industry of the chemical and construction

inputs manufacturing sector. Assuming plastic industry plays great role in the packaging of

agro processing, 1% of the jobs created under the industrial park is considered. Job creation of

the MSE contributes about 83%, Industrial park 3% and sector manufacturing industry 14%.

Table 57 job opportunities created in Chemical and construction inputs sector for the year 2016-2025

Job opportunity

area

Chemical and construction inputs job creation opportunities for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Micro and

small

enterprise

(MSE) 41053 88092 138764 188041 256300 360450 506994 713218 1003475 412069

Industrial Park

(1%) 0 2494 6034 10345 15427 23408 31393 38878 47391 55412 Chemical and

Construction

inputs sector 130222 137437 144702 162684 180959 191314 200123 210423 221727 234179

Total 171275 228022 289500 361070 452687 575172 738510 962519 1272592 1,701,661

Table 58 shows the estimate of workforces required in 13 sub sectors of the Chemical and

construction inputs manufacturing Industry. The HRR forecast for the Chemical and

construction inputs sector shows that the number of employees in the sector will grow from

130,222 to about 289,591 in the coming ten years. The estimate shows steady average growth

rate of 10.7 % during the first phase (2016-2020) and grows at average growth rate of 8.1%

during the second phase (2020-2025). High pick of the estimate in plastic industry is due to 1 %

share assumed from industrial park.

Table 58: Number of workforce, Chemical and Construction Inputs Sub sectors for the year 2016-2025

Sub Sectors

Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry 18918 21753 25640 30356 37753 47414 55556 63199 71856 80012

Rubber Industry 907 943 950 1007 1124 1174 1184 1334 1534 1784

Paint Industry 4044 4123 4157 4168 4198 4275 4290 4319 4345 4368

Soap and

Detergent

Industry 12846 13099 13204 13240 13986 14232 14278 14370 14452 14525

114

Pulping and paper

making Industry 3765 4232 4774 5185 5815 5865 5915 5965 6015 6065

Printing and

Graphic Arts

Industry 7161 7194 7274 7296 7355 7505 7534 7543 7551 7558

Glass and Glass

products Industry 1057 1184 1326 1485 1664 1863 2087 2337 2618 2932

Cement and

cement products

Industry 40180 41625 42723 44556 46304 47349 48010 49091 50155 51211

chemical and

chemical


nonmetallic

minerals Products

Industry 11204 11773 11916 12093 14018 14719 15455 16228 17039 17891

Ceramics

Industry 1458 1549 1641 2545 3554 3732 3919 4115 4320 4536

wood and wood


Furniture

Products Industry 13870 15535 17399 19487 21825 24445 27378 30663 34343 38464

Total 130222 139930 150736 173029 196387 214722 231516 249301 269118 289591

Figure 12: Number of workforce, Chemical and Construction Inputs Sub sectors for the year 2016-2025

Table 59 Shows summary of total workforces required in the chemical and construction inputs

sub sector. As clearly shown in the summary table and figure 14 large percentage of the

workforce required is in the Chemical sector are Production staffs. The next higher percentage

115

is Social sciences and administrative staffs and the lower percentage goes to Engineering and

Natural Sciences supportive staff.

Table 59: summary of skill mix of the Chemical and construction inputs sector for the year 2016-2025

workforce

Total Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Production staff 66278 70985 76132 86578 97423 105954 113808 122240 131617 141365

Eng. And Natural scie. 3944 4156 4380 5205 5907 6217 6474 6758 7068 7384

TVET Technical staff 12239 13548 15124 18279 21577 24331 26907 29567 32561 35650

Social & Admin staff 45994 49288 52941 60580 68823 75273 81061 87110 93843 100715

Total 130222 139930 150736 173029 196387 214722 231516 249301 269118 289591

Figure 13 summary of skill mix of the Chemical and construction inputs sector

Estimate of workforces that are involved in the production of Chemical and construction inputs

sub sector for the year 2016-2025 is shown in Table 60 here under. The HRR forecast of

production staff shows that the number of employees in the sector will grow from 66,278 to

about 141,365 in the coming ten years. The Estimate shows a steady average growth rate of

12.5 % during the first phase (2016-2020) and grows at an average growth rate of 7.7 % during

the second phase (2020-2025). Detail production workforces required in specific sector is

annexed.

116

Table 60: Production staff workforce, Chemical and Construction Inputs Sub sectors for the year 2016-2025

Occupation level

Production Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Bamboo Harvesting and post harvesting work I 1305 1462 1637 1833 2053 2300 2576 2885 3231 3619

Basic Chemicals Processing Works I 39642 41630 43575 47913 52586 55754 58341 61143 64174 67151

Furniture making I 6750 7676 8732 9934 11303 12864 14642 16669 18980 21614

Bamboo Derivatives production II 220 246 276 309 346 388 434 486 545 610

Bamboo furniture making II 396 443 497 556 623 698 781 875 980 1098

Cement product processing II 1026 1063 1091 1138 1183 1210 1226 1254 1281 1308

Ceramics processing II 161 171 182 282 393 413 434 455 478 502

Equip/ machinery Operator II 1229 1291 1307 1326 1537 1614 1695 1780 1868 1962

Furniture making II 1538 1751 1995 2272 2589 2950 3363 3833 4370 4984

Glass Processing II 148 166 185 208 233 261 292 327 366 410

Paint processing II 240 244 246 247 249 253 254 256 258 259

plastic processing II 3243 3728 4395 5203 6471 8127 9522 10832 12316 13715

Polymer processing operation II 1087 1228 1467 3475 4486 4665 4852 5046 5247 5457

Printing and Graphic Arts operation II 849 853 862 865 872 890 893 894 895 896

Pulping and paper making operation II 424 476 537 584 655 660 666 671 677 683

Rubber processing II 224 233 235 249 278 290 293 330 380 441

Soap and Detergent Manufacturing operation II 1534 1564 1577 1581 1670 1699 1705 1716 1726 1734

Advanced Soap and Detergent Manufacturing operation III 639 652 657 659 696 708 710 715 719 723

Bamboo furniture making III 117 131 147 165 185 207 232 259 290 325

Cement product processing III 518 537 551 575 597 611 619 633 647 660

Ceramics processing III 26 28 30 46 64 67 71 74 78 82

furniture making III 425 481 544 616 697 789 893 1012 1146 1298

117

Glass Processing III 39 44 49 55 62 69 78 87 98 109

Paint processing III 73 74 75 75 76 77 77 78 78 79

plastic processing III 541 622 733 867 1079 1355 1587 1806 2053 2286

Polymer processing operation III 193 218 261 618 797 829 862 897 933 970

Printing and Graphic Arts operation III 212 213 216 216 218 222 223 223 224 224

production foreman III 202 212 215 218 252 265 278 292 307 322

Pulping and paper making operation Supervision III 130 147 165 180 201 203 205 207 208 210

Rubber processing III 15 16 16 17 19 19 20 22 25 29

Bamboo processing supervision IV 73 82 92 103 115 129 145 162 182 203

Cement Product Supervision IV 281 291 299 312 324 331 336 343 351 358

Ceramics processing Supervision IV 16 17 19 29 40 42 44 46 49 51

Chemical products processing Supervision IV 121 137 163 387 499 519 540 561 584 607

Furniture making management IV 457 516 582 657 742 838 947 1070 1209 1366

Glass processing Supervision IV 26 29 33 37 41 46 52 58 65 73

Paint processing Supervision IV 31 32 32 32 32 33 33 33 34 34

Polymer processing Supervision IV 559 641 752 888 1101 1379 1611 1833 2084 2322

Printing and Graphic Arts Supervision IV 265 266 269 270 272 278 279 279 280 280

production supervision IV 128 135 137 139 161 169 177 186 195 205

Pulping and paper making operation IV 73 82 93 101 113 114 115 116 117 118

Soap and Detergent Manufacturing operation Supervision IV 383 391 394 395 417 425 426 429 431 434

Bamboo processing and management V 29 33 37 41 46 52 58 65 73 81

Cement production technology Management V 122 126 130 135 140 144 146 149 152 155

Ceramics processing Management V 14 15 16 25 35 37 38 40 42 44

Chemical Products processing management V 275 286 300 377 429 440 448 457 466 475

Glass processing V 7 7 8 9 10 12 13 15 16 18

118

management

Paint processing management V 21 21 21 21 22 22 22 22 22 23

Polymer processing management V 139 159 187 221 274 343 401 456 519 578

production management V 110 116 117 119 138 145 152 159 167 176

Total 66278 70985 76132 86578 97423 105954 113808 122240 131617 141365

Table 61 shows the estimate of Engineering and Natural sciences Supportive professional

workforces‟ requirement in Chemical and construction inputs sub sector for the year 2016-

2025. Engineering and Natural sciences professional workforces required in the sector shows

to grow from 3,944 to about 7,384 in the coming ten year which accounts only 2.6 % of the

total workforce required in the sector. Detail Engineering and natural science supportive

profession required in specific sector is annexed.

Table 61: Engineering and Natural sciences supportive professional workforces‟ requirement,

chemical and Construction inputs sector for the year 2016-2025

Field of Study Qual.

Eng. and Natural scince Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Chemical Engineering MSC 480 493 502 520 557 568 571 576 581 585

Electrical engineering MSC 15 16 18 21 23 26 29 32 36 41

environmental Science Msc 9 9 9 10 10 10 10 11 11 11

printing Technology Msc 28 28 28 28 28 29 29 29 29 29

Chemistry Msc 8 9 11 25 33 34 35 37 38 40

Applied Chemistry BSC 101 113 135 315 405 422 438 456 475 495

Auto mechanic Bsc 37 39 39 40 46 48 51 53 56 59

Bio Chem./Chemistry Bsc 128 130 131 132 139 142 142 143 144 145

Chemical Engineering Bsc 331 346 362 452 514 528 538 552 568 586

Chemistry Bsc 305 315 325 394 433 445 453 464 476 489

Civil Engineering BSC 175 183 189 224 256 265 273 281 290 299

Design and graphics Bsc 24 27 31 34 38 38 38 39 39 39

Electrical engineering BSC 593 624 654 787 887 918 945 979 1015 1053

Environmental science BSC 37 42 47 52 59 64 71 78 86 94

Geologist Bsc 28 30 31 37 47 49 52 54 57 60

Industrial Chemistry BSC 46 52 58 77 90 92 94 97 100 104

Industrial Engineering Bsc 163 185 214 253 314 385 446 503 568 629

IT Bsc 182 190 197 220 239 245 250 255 261 267

IT Bsc 19 20 22 23 25 26 26 26 27 27

Mechanical engineering BSC 1168 1235 1305 1488 1683 1800 1899 2004 2120 2237

119

Public health Bsc 3 4 4 4 4 4 5 5 6 7

Stat Bsc 18 19 20 20 23 24 25 27 28 29

Water resource & environment. Bsc 46 48 49 51 53 54 55 56 58 59

Total 3944 4156 4380 5205 5907 6217 6474 6758 7068 7384

The estimate of TVET Technical workforces required for Chemical and construction inputs sub

sector for the year 2016-2025 is shown in Table 62. These workforces‟ covers 12.3 % of the

total workforces required in the sector and are very important workforces that keep industry

ruining. The estimate shows that TVET Technical workforces grow from 12,239 to about

35,650 in the coming ten years. Detail TVET technical workforces required in specific sector is

annexed. Table 62: Number of TVET Technical workforces, chemical and construction inputs sector for the year 2021-

2025

Occupation Level

TVET Technical Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Auto mechanic I 54 62 71 82 94 108 124 143 164 189

Electricity/Electronics I 271 311 356 408 468 537 616 707 811 931

General mechanics I 1181 1346 1534 1745 1989 2259 2567 2919 3320 3779

machinist I 288 324 365 411 463 521 587 661 745 839

Metal work I 85 97 109 123 139 157 178 201 227 257

Auto electricity II 8 8 8 9 9 9 9 9 10 10

Auto mechanic II 169 177 184 200 222 228 234 241 248 255

Bricks Laying II 8 9 11 25 33 34 35 37 38 40

Carpentry II 146 150 151 152 162 166 167 170 172 174

drafting II 16 16 16 16 16 17 17 17 17 17

Electricity/Electronics II 855 942 1055 1382 1660 1847 2009 2168 2344 2515

General mechanic II 1015 1122 1257 1616 1968 2217 2433 2644 2880 3109

IT II 107 114 120 130 150 155 160 165 171 177

machinist II 253 289 336 403 496 607 703 794 897 995

Masonry II 116 121 123 125 145 152 159 167 176 184

Metal work II 85 97 109 123 139 157 178 201 227 257

Plumber II 148 152 153 155 167 171 173 176 178 181

welder II 125 138 154 202 246 279 307 335 367 397

Auto electricity III 11 11 12 12 13 13 13 13 14 14

Auto mechanic III 768 835 905 1001 1115 1207 1305 1417 1541 1679

carpentry III 21 23 27 43 52 54 55 57 59 61

construction technology III 8 9 11 25 33 34 35 37 38 40

drafting III 46 48 49 50 52 53 53 54 54 54

Electricity III 1710 1886 2116 2750 3312 3719 4067 4409 4791 5162

General mechanic III 2650 2921 3257 4016 4803 5430 5982 6533 7151 7763

120

IT III 138 154 173 220 255 281 309 342 380 423

machinist III 769 870 1004 1184 1448 1773 2048 2309 2605 2887

Masonry III 231 243 248 253 293 306 321 336 353 370

Nursing III 80 93 106 122 141 162 186 214 246 283

Painter III 3 4 4 4 4 4 5 5 6 7

plumber III 26 29 32 35 39 40 40 40 41 42

Surveying III 2 2 2 3 3 3 3 3 4 5

welder III 219 240 266 351 425 477 521 565 614 662

Auto mechanic IV 54 62 71 82 94 108 124 143 164 189

Electricity/Electronics IV 183 208 235 267 302 343 389 441 500 568

IT IV 242 273 309 349 395 446 505 571 646 730

machinist IV 59 66 74 82 92 103 116 130 145 163

pestering IV 29 33 37 41 46 52 58 65 73 81

Textile and garment IV 29 33 37 41 46 52 58 65 73 81

Water technologist IV 29 33 37 41 46 52 58 65 73 81

Total 12239 13548 15124 18279 21577 24331 26907 29567 32561 35650

Table 63 shows the estimate of workforces required in the Chemical and construction inputs

sub sector for the year 2016-2025. The estimate shows that Social Science and Admin staff

grows from 45,994 to 100,715 in the coming ten years and covers 35% of the total workforces

required in the sector. Detail social Science and administive workforces required in specific

sector is annexed.

Note: others include the following: nurses, lawyer, security guard, messenger, secretary,

gardener, janitor, tele operator etc

Table 63: Number of Social Science and administrative staff, Chemical and construction inputs sector for the

year 2016-2020

Profession Qual./ Level

Social Science and admin Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Economics PhD 5 6 6 6 6 6 7 7 7 7

Business Administration MBA 483 521 570 692 804 890 962 1033 1111 1187

Finance and Accounting BA 5258 5580 5934 6688 7485 8039 8523 9034 9601 10182

management BA 1308 1399 1499 1688 1889 2042 2184 2336 2506 2684

Marketing and sales BA 631 672 716 807 903 972 1034 1099 1172 1247

Purchasing and procurement BA 691 744 801 902 1009 1096 1179 1270 1370 1478

Accounting I 54 62 71 82 94 108 124 143 164 189

Accounting II 154 162 164 166 193 202 212 223 234 246

HR management II 66 69 70 71 83 87 91 96 100 105

121

Accounting I-II 92 103 116 130 145 163 182 204 229 256

purchasing and procurement I-II 92 103 116 130 145 163 182 204 229 256

marketing and sales I-II 79 89 99 111 125 140 156 175 196 220

Accounting III-IV 5543 5995 6543 7466 8567 9643 10589 11540 12610 13682

Management III-IV 1180 1276 1393 1589 1824 2053 2255 2457 2684 2911

marketing and sales III-IV 882 963 1059 1202 1370 1540 1701 1868 2056 2253

purchasing and procurement III-IV 606 658 720 820 939 1056 1162 1269 1390 1513

Accounting IV 259 272 275 281 324 340 356 376 399 424

HR management IV 56 58 59 60 69 73 76 81 86 91

marketing and sales IV 30 31 31 32 37 39 41 43 46 49

purchasing and procurement IV 26 27 28 28 32 34 36 38 40 42

others 28498 30497 32670 37631 42779 46586 50009 53615 57613 61693

Total 45994 49288 52941 60580 68823 75273 81061 87110 93843 100715

122

5.5 HR Requirement Projection in Metal & Eengineering Sector

5.5.1 Overview of the metal and engineering sector

The Metal and Engineering sub sector has focused objectives in line with enhancement of

product quality and productivity, manufacturing of products to substitute imports of components

and machines for different industries and developing of design and manufacturing capability and

supporting other industries demand by locally producing metals, parts and machines.

Major products in metal and engineering sector

Metal and Engineering Industry produces a vast range of products, from simple structures to

production of machinery and equipment with different level of technologies which are used by

different industries. The sector products address not only for metal & engineering sector itself

but also other major manufacturing and construction sectors. Some of metal and engineering

industry major products are indicated in table 62

Table 64: Engineering industry’s Major products

S/N Major Products Detail Description of products

1 Machine tools assembly Assembly of Lathe, Milling, etc

2 Agricultural Machineries Tractor

3 Agricultural tools Sickles, Mattock, Spade etc

4 Spare Parts Different types and sizes of spare parts for industries,

vehicles etc

5 Automotive Assembles of Automobile

6 Dry and liquid Cargo body

trailers

Different types and sizes

7 Textile Machinery Components and aggregates

8 Transformer Assembles of Different Capacity of Transformer

9 Different construction

machineries assembly

Dozer, Mixers, crusher, elevators

10 Refrigerator Different sizes and types of refrigerator

GDP share and Value additions in metal and engineering sector

123

The situational analysis of the current industrial sector was carried out and the result shows that

the GDP share of industry sector is 13%. Similarly the current GDP share of manufacturing

sector is 4%. the current GDP share of metal and engineering sub-sector is 0.4 % and expected to

contribute 2.55% by 2025 where the share of GDP of manufacturing industry sector is to be 17%

(source: Ethiopian Industrial Development Roadmap 2013 – 2025).

As one of nationally prioritized sector and as a sector which is highly linked to other

manufacturing industries and other sectors of national economy it exhibited substantial growth

in the GTP period. The gross value of production (GVP) from year 2003-2006 was 6.65; 12;

19.02 and 30.14 Billion Birr. Likewise the annual per capita metal consumption shows gradual

increment of 9.73 KG; 14.6KG; 17.75KG and 20.36 KG. Based on the recent data (MIDI 2008-

2012Plan) it is expected in 2007 the GVP to reach to 49.73 billion birr.

Production Capacity and Market Share of the Sector

Basic metal and engineering sector is working in the manufacturing strategic direction focusing

on import substitution of metal and machinery products to the sector itself and for other

manufacturing and other economic sectors of the country. The sector is working towards the

achievements of the national target. As a result, there are improvements of the substitution of

metal and engineering products from time to time.

The following table shows that past trends of actual domestic production and imported products

of the sub-sector in billion Birr. It also indicates that future growth expectation of domestic

production and imported products of the sector in billion Birr in line with their percentage share

in a way of implementing import substitution which was set in the sub-sector developmental

strategy.

Table 65: Production capacity and market share of metal & engineering sector

Budget

Year

(E.C)

Imported

Products (Billion

Birr)

Domestic

Products

(Billion Birr)

Total of Domestic and

Imported Products

(Billion Birr)

Domestic

Products‟

share (%)

Imported

Products share

(%)

2003 74.29 6.65 80.94 8 92

2004 108.74 12.0 120.74 10 90

2005 127.37 19.02 146.39 13 87

2006 145 30.14 175.14 17 83

124

2007 165 49.73 214.73 23 77

(Source: MID2008-2012 plan-Draft)

5.5.2 Current Workforce pattern in metal and engineering sector

The effective development of disciplined and hardworking labor force has an important role to

play in ensuring efficient industrial development sector. To this effect, an appropriate

educational curriculum of professional and vocational system has been started. In addition to

this, the promotion of on the job training and apprenticeship has been undergoing.

Data collected by Metals Industry Development Institute shows that the number of employees

engaged in metals and engineering sub-sectors from year 2003 to 2007 are 22500, 26577, 28632,

30823 and 33000 in respective years. This data includes employees engaged in those factories

under Metals and Engineering Corporation.

5.5.3 Workforce Requirement planning for metal and engineering sector

The role of coordinated HR requirement planning and development is fundamental for

sustainable development of the manufacturing industries. Human resource requirement planning

serve as a tool to determine the demand for human resources by metal and engineering industries

to achieve their strategic goals. HR requirement planning will determine the qualifications,

competencies, and numbers required to realize the industries goals and objectives.

It is also used to study the supply of human resources available from internal and external

sources which may be tapped to meet the sector needs. Internal supply refers to the human

resources existing within an industry which may be strategically reallocated via promotions,

transfers and trainings to meet requirements and external supply refers to all human resources

available outside of the industries who may be recruited based on their level of competencies,

qualifications and experience.

The human resource requirement plan serve as main input for developing quality and critical

mass of human capital which is highly demanding for the development of metal and engineering

sector. In particular, the human resource requirement plan for metal and engineering sector

focuses on the following HR intervention areas:

125

(i) Addressing shortage, mismatch and quality of human resources in the areas of skilled and

high skilled occupations as well as professional demand of the sector; (ii) Enhancing labor

productivity across metal and engineering manufacturing sector;

(iii) Facilitating full employment and job satisfaction among trained and educated youths;

(iv) Striving for excellence in education with emphasis on enhancing quality of education at all

levels;

(v) Provision of increasing in-country education and training facilities through partnership with

industry, TVET and higher educational institutes.

Major Assumptions in workforce requirement planning

The following major assumptions are valid in projecting and developing the workforce

requirement for metal and engineering sector.

Grand assumption is that the target indicated for manufacturing industries in general and for

metal and engineering sector in particular will be implemented. Accordingly the overall

productivity will be enhanced supported by skill improvements coming by experience and

trainings. The productivity will show the gradual improvement up to 2020 and leap frog after

2021 which is coming from technology.

Periodical monitoring of matching of work force demand and supply will be carried out and the

necessary adjustments will be effected whenever necessary and on time.

Seasonal HR demand related to new (additional) industry establishment also considered through

the GDP growth of manufacturing industries.

In light of the above to develop the workforce requirement plan for the sector following principal

sources of data are applied.

The GDP contribution of the metal and engineering sector as depicted in Industry development

roadmap. These are Employment Series data that is produced by the central Statistical agency

and ministry of industry annual reports during the GTP period about the sector employment.

The occupational and professional mix of the workforce mapping which basically relied on the

data sourced from different metal and engineering industries survey data. The focus group

discussion carried out with main steck holders from different industries, ministries and institutes

in the sector.

126

While the total level of employment within the metal and engineering industries constitutes the

foundation for the analysis of demand in this chapter, the data is broken down further to examine

other characteristics of employment demand. These include the occupational segmentation of

demand within industries of the metal and engineering sector as well as the educational levels of

the working population in these industries.

The other source of HR demand for metal & engineering sector is related to the establishment of

integrated agro-processing parks across the country. Based on the data provided by MoI four

integrated agro-industry parks to be established in four regions including Central Eastern

Oromia (Gende-Arba IAIP), South West Amhara (Bure IAIP), Eastern SNNPR (Weynenata

Hida kaliti IAIP) and Western Tigray (Ba‟eker IAIP).

The other source of HR demand is coming with micro and small scale industries demand.

Though the main focus of the study is on middle level and heavy industries skilled manpower

demand, it also included the employment absorption of MSE in metal industry sectors.

5.5.4 Human Resource Requirement Projection (2016-2020)

According to the industry development roadmap this planning phase is characterized in terms

of metal and engineering manufacturing sector by upgrading and expansion of the sector. It

includes among others expansion of agricultural machinery industries; Establishment of

machinery and equipment industry for common equipment and machinery, and construction

machineries; expansion of tools and components of manufacturing industry.

The growth of gross value of the product will tremendously grow from the current base year 49

billion to 256 billion at the end of planning phase which demand a high increase of the

workforce in the sector. Number of industries in this phase will increase from the current 272

industries to 604 metal & engineering industries at the end of the planning year. The industries

among others include expansion of agricultural machinery industries; tools, parts and

components of manufacturing industry; Establishment of machinery and equipment industry for

common equipment and machinery, and construction machineries. In light of the above projected

manpower demand for the period 2008 – 2012 indicated in the table 64

127

Table 66: Number of workforce, metal & engineering sub sectors year 2016-2020

Sub Sectors Workforce in sub-sector, fiscal Year (E.C)

2016 2017 2018 2019 2020

Basic metal industry 12263 12736 13507 15721 17164

Fabrication product Industry 28881 29994 31810 37024 40422

Machinery and Equipment product

industry 1539 3004 2677 3656 4664

Automobile and Trailer industry 6617 6872 7288 8482 9260

Total 49300 52606 55282 64883 71510

Figure 14: Number of workforce, metal & engineering sub sectors year 2016-2020

128

Table 67: Skilled Work Force Requirement of Metal & Engineering Sector for the year (2016-2020) by Occupational Standard and Level

Occupational Standard Occupational

Level

Year (Eth. Cal.)

2016 2017 2018 2019 2020

Basic Metal Works I 6666 6922 7342 8545 9329

General Metal Fabrication and

Assembly (GMFA)

II

3775 3921 4158 4839 5284


Assembly (GMFA)

III

5714 5934 6293 7325 7996

Machining II 2584 2785 3091 3734 4245

Machining III 2496 2693 2994 3621 4122

welding II 720 849 1038 1344 1635

Welding III 1232 1381 1603 2001 2353

Mill Wright II 188 195 207 241 263

Mill Wright III 23 24 25 30 32

Foundry Works II 138 143 152 177 193

Foundry Works III 634 659 699 813 888

CNC Machine Operation III 144 154 163 175 207

Tool and Die Making III 221 233 247 302 314

Metal engineering production

management

IV

647 672 713 830 906

Metal engineering technology

management

V

529 549 582 677 739

TVET Metal OS Total 25711 27114 29307 34654 38506

ELECTRICAL OS Total ALL 1830 1900 2016 2346 2561

AUTOMOTIVE OS Total ALL 2289 2377 2521 2289 2289

TVET Total 29830 31391 33844 39289 43356

129

Table 68: Engineering Professional Work Force Requirement for Metal & Engineering Manufacturing sector for the year (2016-2020) by Field of study and Qualification level

No Field of Study Qualification

level

Year (Eth. Cal.)

2016 2017 2018 2019 2020







7 Electrical Engineer BSC 1956 2031 2154 2507 2737

8 Chemical Engineer BSC 559 580 615 716 782

9 Material Engineer BSC 20 40 50 60 80

10 Automotive Engineer BSC 47 48 51 60 65

11 Automotive Engineer MSC 70 73 77 90 98

12 Metallurgical Engineer MSC 12 12 13 15 16

Total 9860 10239 10860 11721 13798

From the employment point of view the metal & engineering sector shall absorb significant

number of workforce in the planning year 2016-2020 (Eth. Cal) as indicated in table 67

Table 69: Total Number of employment in metal & engineering sub sectors year 2016-2020

HR demand Workforce in sub-sector, fiscal Year (E.C)

2016 2017 2018 2019 2020

Skilled workforce, TVET level 29830 30987 32864 37605 40844

Skilled workforce by IAIP - 406 982 1683 2510

Professional Engineers 9860 10239 10860 11721 13798

Middle level & Senior management

(Growth projected + IAIP demand) 2883 3051 3314 4404 4668

Unskilled labor demand

(Growth projected + IAIP demand) 6727 8138 10201 14508 17203

Job to be created in MSE 64484 142,464 234,376 353,904 454,700

Total 113784 195285 292597 423825 533723

130

5.5.5 Human Resource Requirement Projection (2020-2025)

In this planning period the metal and engineering industry will exhibit the introduction of

machine tool industries which are the backbone of the metal and engineering sector and the

national industry development as a whole.

Expansion and Diversification of the Metal and Engineering sector also included:

Machinery and Equipment manufacturing industries ,

Iron and Steel Industry,

Machine tool industry,

Automotive industries including agro machinery parts

Electrical and electronics equipment manufacturing industries

ICT hardware manufacturing Industries

In this relation the workforce shift is expected from component fabrication industries to these sub

sectors. The basic metal industry also will get momentum due to the introduction of metal

extraction and steel industries. Accordingly per the experts‟ judgment 50% of component

manufactures will meet the machinery industries, basic metal and automobile & trailer industries

with the ratio of 50%, 25% and 25% respectively. The following table 68 depicted this change of

metal and engineering sub sector industries.

131

Table 70: Number of workforce, metal & engineering sub sectors year 2013-2017 (Eth. Cal.)

Sub Sectors Workforce in the sub-sector Fiscal Year (E.C)

2013 2014 2015 2016 2017

Basic metal industry 24792 28334 30974 35417 39925

Fabrication product Industry 22554 25776 28178 32220 36321

Machinery and Equipment product

industry 17490 20743 23418 27255 31048

Automobile and Trailer industry 15973 18255 19956 22819 25722

Total

80809 93108 102526 117711 133016

Figure 15: Number of workforce, metal & engineering sub sectors year 2021-2025

132

Table 71: Skilled Work Force Requirement of Metal & Engineering Sector for the year (2020-2025) by Occupational Standard and Level


Occupational

Level

Year (Eth. Cal.)

2021 2022 2023 2024 2025

Basic Metal Works I 9543 10907 11923 13633 15368


Assembly (GMFA)

II

5404 6177 6752 7721 8704


Assembly (GMFA)

III

9088 10387 11355 12983 14636

Machining II 4652 5506 6205 7214 8212

Machining III 4526 5362 6046 7034 8009

welding II 1982 2455 2868 3400 3914

Welding III 2717 3294 3786 4450 5096

Mill Wright II 269 307 336 384 433

Mill Wright III 33 38 41 47 53

Foundry Works II 0 0 0 0 0

Foundry Works III 197 226 247 282 318

CNC Machine Operation III 27 31 34 39 44

Tool and Die Making III 137 157 171 196 221

Metal engineering production

management

IV

926 1059 1157 1323 1492

Metal engineering technology

management

V

756 865 945 1081 1218

TVET Metal OS Total 40257 46771 51866 59787 67718

ELECTRICAL ALL 2620 2994 3273 3743 4219

AUTOMOTIVE ALL 3278 3746 4095 4683 5279

TVET Total 46155 53511 59234 68213 77216

133

Table 72: Engineering Professional Work Force Requirement of Metal & Engineering Manufacturing Sector for the year (2020-2025) by Field of study and Qualification level

No Field of Study

Qualification

level

Year (Eth. Cal)

2021 2022 2023 2024 2025







7 Machine Tool Engineer MSc 40 60 80 100 120

8 Electrical Engineer BSC 3818 4364 4770 5455 6149

10 Chemical Engineer BSC 1091 1247 1353 1553 1752

12 Material Engineer BSC 40 60 80 100 120

13 Material Engineer MSC 30 40 50 60 80

14 Automotive Engineer BSC 91 104 114 130 146

15 Automotive Engineer MSC 136 156 170 195 220

16 Metallurgical Engineer BSC 40 50 60 70 80

17 Metallurgical Engineer MSc 23 26 28 32 37

Total 19266 22036 24093 27563 31078

134

From the employment point of view the metal & engineering sector shall absorb significant number of workforce in the planning year

2o21-2025 as indicated in Table 71.

Table 73: Total Number of employment in metal & engineering sub sectors year 2021-2025 (Eth. Cal.)

HR demand Workforce in sub-sector)

2021 2022 2023 2024 2025

Skilled workforce, TVET level 42347 48403 52909 60501 68199

Skilled workforce by IAIP 3808 5108 6326 7711 9016

Professional Engineers 19266 22036 24093 27563 31078

Middle level & Senior

management

(Growth projected + IAIP demand) 5163.825 6002.882 6669.129 7689.714 8713.516

Unskilled labor demand

(Growth projected + IAIP demand) 21622.9 26846.85 31462.92 37325.94 42995.74

Job to be created in MSE 560,535 671,662 788,345 910,862 1,039,505

Total 652743 780059 909805 1051653 1199507

135

5.6. The Food and Beverage Sector

5.6.1 Overview of the food and beverage sector

The food and beverage sector is the largest sector in the Ethiopian manufacturing industry both in

terms its relative contribution to the country‟s GDP and employment creation. A number of

factors have contributed for the creation of an environment for the sector‟s current and future

development. These include

Existence of conducive business Environment

Availability of Wide areas of investment opportunities

Attractive Investment incentives

Export incentive

There are plenty and diverse local resource potentials to rely on or support the food and beverage

processing industry development. Agriculture/natural resource endowments are basic resource for

agro processing industries. The agro industry sector in general and the food and beverage sector in

particular is endowed with

Arable land 51 million (45% of the total area of the country)

Cultivated land 20% of the available land

Irrigation areas 10 million ha, only 3% is irrigated

Variety of agro ecological zones (major 18) sub (45))

Produce diversified agricultural commodities (both crop & livestock)

Abundant water resources:- (vast potential for irrigation and Hyaro-power)

Higher institutions:- colleges & universities both private & public

Precisely Science & Technology Universities, TVETs that educate, train and Supply the

required human resources for the industries.

Presence of skilled of unskilled labor.

Private & public banks to access credit financing for the development of industry.

5.6.2 Major products in food and beverages sector

The main raw material required for the food and beverage sector include cereals (teff, wheat,

maize, barley) , Coffee , Oil seeds (Noug, linseed, Rape seed, cotton seed, ground nut, soya bean),

Essential oil plants , Ethanol (for alcohol drinks), Malt, Sugar, fruits (Mango, Avocado, Tomato,

Orange, Banana) , Spices (ginger, turmeric, chili pepper cumin ) , Meat and dairy products , fish,

Beer ,wine and the like.

Major Processing Products in the food sub-sector

Major Processing Products in the food subsector include

Flour and Flour Products(bread, pasta, macaroni, biscuits, famix)

Oil seed products: (edible Oil, oil cake, hulled sesame, roasted sesame, tahina, halva)

plumpy nut.

Processed spices:- (Chille pepper /pepper-powder/,Dried sliced and milled ginger,Ginger oil

/oleoresin/, Dried milled and packed turmeric.

Processed pulses and cereals:-

136

Fruits and vegetable processed products (Mango, orange, avocado, banana ,Tomoto sauee,

pinapple juices

Roasted & ground coffee

Prepared and packed tea

Major Processing Products in the beverages sub-sector include

Beer

Wine

Soft-drinks & mineral water

Alcohol drinks

Arekie

Tea & coffee

Major Processing Products in the Meat and Dairy sub-sector include

Meat and offal

Honey and wax

Fish

Milk and milk products

Poultry products

Animal feed

5.6.3 Industry size and growth in Food and Beverage sector

5.6.3.1 Food and Beverage subsector

According to FBPIDI (2015), currently there are about 683 Food industries and 109 beverage

industries. The distributions of food and beverage industries in the various subsectors between

2002EC- 2007EC are depicted in table 72 and table 73.

Table 74: Number of Food industries in Ethiopia

Industry types 2002E

C

2003E

C

2004E

C

2005E

C

2006EC 2007E

C

Flour factories 174 197 220 236 253 271

Bakeries 199 247 211 226 242 259

Pasta and Macaroni 16 20 16 17 18 19

Other food factories 13 29 30 32 34 37

Total 402 493 477 511 547 586

Growth (%) -4.3 22.6 -3.2 7.2 7.2 7.2

Processed sesame, Tahina, 2 4 4 4 5 6

Plumy nut 1 1 1 1 1 2

Edible oil and fats 34 34 33 38 45 54

137

Total 37 39 38 43 51 62

Processed fruits and

vegetable

10 19 19 19 19 21

Spices 2 2 2 2 2 2

Total 12 21 21 21 21 23

growth % 90 1 1 1 10

Honey 4 4 4 5 6 8

Wax 2 2 2 3 3 4

Total 6 6 6 8 9 12

growth % 1 1 25 13 33

Grand total 457 559 542 583 628 683

Source: CSA (2000-2004EC), FBPIDI (2005-2007)

Table 75: Number of Beverage industries

Type Years

2002 2003 2004 2005 2006 2007

Beer and malt factories 9 6 6 7 8 8

Wine factories 2 2 1 1 2 2

Alcohol 15 17 19 21 23 23

Soft drinks , mineral water 14 53 44 45 45 48

Roasted and grounded coffee 4 5 11 11 14 26

Processed and packed tea 2 2 2 2 2 2

Total 46 85 83 87 94 109

growth % 84 (29) 4.8 8 16


5.6.4 GDP share and Productivity in food and beverages sector

Volume of production trends and potential in FB sector

With regard to the volume of production of in the food subsector , it was 506,059 tons in 2010

and it reached 1,702,940 tons in 2014. It is expected that it would attain 2 million tons at the end

of the GTP period. The highest growth rate (108.7%) was recorded in the year 2012. However,

then after decreases to 22% and continued consistently same. Table 5.6.5 shows the volume of

production from 2010 to 2015.

138

Table 76: Volume of production from food industries (Ton)

Type of

product

2010 2011 2012 2013 2014 2015

Flour 365,668 386,340 737,634 899,938 1,097,924 1,339,467

Bread 70,816 86,930 297,784 363,296 443,221 540,730

Pasta &

makoroni

43,691 50,050 42,629 52,007 63,448 77,407

Other

foods

25,884 24,974 66,075 80,612 98,347 119,983

Total 506,059 548,294 1,144,142 1,395,833 1,702,940 2,077,587

Growth

rate (%)

40.1 8.3 108.7 22 22 22

Qil seeds 242,917 302,861 469,849 616,803 794,043 1,040,196

Growth

rate (%)

- 24 55.3 29 29 31

Source: CSA (2008-2012) and FBPIDI (2013-2015 )

As to the volume of production of the beverage sector, the brewery industry has has increased its

production from 2,938,466 hecto liter in 2010 to 4.9 million hector liter in the year 2014. The

wine production which was 57,337 HL in 2010 is expected to attain 756,000 hecto liter at the

end of the GTP Period. Tab 5.6.6. shows the volume of production in the beverage sector.

Table 77: Volume of production of Beverage Industry (thousand hector liter)

Type of

Industry

2010 2011 2012 2013 2014 2015

Brewery &

malt

2,938.4 4,015.6 4531 4,785.0 4,900.00 10,450.0

Winery 57,337 64.342 70.91 66.5 747.5 756.0

Alcoholic

drinks

(HL)

193,143 229.89 242.38 297.9 346.85 360.0

Soft drinks

& water

6,397.12 5,767.6 5,013.2 5,514.5 6,066.0 6,672.6

Processed

tea (Ton)

9.538 10,017 10.12 11.1 12.00 12.5

Roasted

coffee

1.708 1,407 19.6 2.0 3.8 4,182.56

Growth

(%)

- 23 (7) 10.3 7 15

139

Gross value of production (GVP) in food and beverages sector

The following tables show the GVP in the Food and beverage sector from 2002-2007 EC .

Table 78: Gross value production of the food sector ( in thousand Birr)

Industry 2002 2003 2004 2005 2006 2007

Flour 2,918,072 3,879,729 5,373,726 6,803,137 8,612,771 10,903,768

Bakery 1,049,162 1,144,101 2,942,617 3,725,353 4,716,297 5,970,832

Pasta macaroni 448,876 562,885 1,673,122 2,118,172 2,681,606 3,394,913

Othe rfood

products

241,312 517,757 1,133,264 1,434,713 1,816,347 2,299,496

Total 4,657,422 6,104,472 11,122,729 14,081375 17,827,021 22,569,009

Growth % 33.6 % 31 % 82 % 26.6 % 26.6 % 26.6 %

Source : CSA and FBIIDI (2015)

Table 79: oil seeds gross production value ( in thousand USD)

Industry

2002

2003 2004 2005 2006 2007

Processed sesame and

others

3,098.7 9,441.6 9,782.9 12,329 21,00

0

62,571

Plumy nut 14,346 6,864 16,441 9,097 10,47

0

4,5088

Edible oil and fats 17,351 21,634 33,560 52,019 80,62

9

11,1503

Total 34,795.7 37,939.6 59,783.

9

73,445 112,0

99

219,162

Growth % 9 57 22 52


Table 80: Beverage industry GVP (in thousand birr)

industry 2002 2003 2004 2005 2006 2007

Beer and malt 3,311,868 5,980,368 5,220,600 6,232,743 6530303

Wine

150,944 214,725 270,844

346,680 354,375 453,600

alcohol 420,587 658,885 1,657,049 2121022 2714908 3475082

Soft drinks

,water 2,457,694 3,636,354 6,974,810

8,927,756 11,427,52

7

14627234

Processed tea 9,538 281,886 117 76308 12000 12500

Roastd coffee 1,708 178,565 100 103,223 132138 36998

140

Total 6,352,339 10,950,783 14,123,520 18,258,869 23,196,312 29,556,280

Growth % 28 28 28 28


GDP Share in food and beverages sector

The food and beverage sector is the largest contributor for the GDP in the manufacturing sector.

According to the Industry development road map (2013) , the GDP share of the sector will

increase in the coming years and attain 6.3% of contribution in 2025. The table below shows the

share of the food and beverage sector GDP share from until 2025.

Table 81: The GDP share (%) of the Food and beverage sector

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Food &

Beverage 3.1 3.8

4 4.5 4.8 5 5.5 5.8 6 6.1 6.2 6.3

Value Addition

In the year 2012, a total of 5.3 Billion birr value addition was recorded from the food and

beverage sector. The food sector has contributed 3.6 billion birr, and beverage sector 1.7 billion

birr. In other word, this value addition (5.3 billion birr) accounts about 20% out the value addition

recorded by the manufacturing sector during the same year. At the end of GTP Period , The value

addition of thee food and beverage industry is expected to attain 11.3 billion birr .

Table 82: Value addition in the food and beverage sector (in thousand Birr)

Industry 2002 2003 2004 2005 2006 2007

Flour 453,449 633,144 742,260 979,783 1,293,313 1,707,173

Bakery 333,314 424,623 1,438,614 1,898,971 2,506,642 3,308,767

Pasta , macaroni 132,441 191,080 1,164,229 1,536,782 2,028,552 2,677,689

Other food products 94,743 197,994 328,269 433,315 571,976 755,008

Total 1 1,013,947 1,447,755 3,673,372 4,848,851 6,400,483 8,448,637

Growth (%) 27.7 29.9 153.7 32 32 32

Oild seeds 93,824 182,961 77,872 94,225 110,225 132,270

Beer and malt (HL) 155,646 1,785,852 1,006,815 1,212246 1,466,817 1,726,817

Wine (HL) 69,618 90,199 102,255 127,818 153,318 178,898

Alcohol (HL) 182,332 228,226 227,625 257903 276850 278400

Soft drinks,water 443,378 1,482,442 456,870 551,452 648,812 667,257.7

Total2 850,974 3,586,719 1,793,565 2,149,419 2,545,797 2,851,373

Growth (%) (50) 21 21 21

141

Grand total 1,864,921 5,034,474 5,466,937 6,998,270 8,946,280 11,300,010

Productivity in the food and beverages sector

The productivity of the sector is measured as the labor productivity obtained by dividing the total

annual GVP of the sector with the total number of employees. The table below shows the

productivity from 2002 to 2007 EC. Productivity has gradual increases 3.5 times in the last six

years.

Table 83: Labor productivity

TOT GVP

2002 EC 2003 EC 2004 EC 2005 EC 2006 EC 2007 EC

104,158,201 139,144,695 247,700,829 313,967,744 397,563,753 503,505,469

Total no.

employees 45,199 50,632 44,283 48,618 52,818 61,052

Productivit

y 2304 2748 5594 6458 7527 8247

5.6.5 Current employment pattern in food and beverages sector

5.6.5.1 Number of Employees

According to FBPIDI (2015), the total number of employees in the food and beverage sector is

about 61,000. The number of employees in the food and beverage sector is depicted in table 5.6.3

and 5.6.4.

Table 84: Number of employees in food industry

Industry types 2002 2003 2004 2005 2006 2007

Flour factories 11434 10,077 8,730 9,079 9,442 9,820

Bakery 15,374 14,917 8,420 8,757 9,107 9,471

Pasta and macaroni

factories

1,411 1,855 1,533 1,595 1,659 1,725

Other food products 1,912 2,522 2,585 2,688 2,796 2,908

Total 30,131 29,371 21,268 22,119 23,004 23,924

Growth % 52% -

.2.5%

-

27.6%

4 % 4% 4%

Processed sesame,

Tahina, halwa

160 311 325 368 393 600

Plumy nut 316 288 294 300 305 509

Edible oil and fats 1196 1153 893 1286 1608 1927

142

Total 1595 1752 1512 1954 2306 3036

Growth % 9 % -14.3% 29 % 18 % 31%

Processed fruits and

vegetable

120 2716 3759 4510 5412 5520

Spices 180 180 200 200

Honey and wax 200 280 320 320 320 320

Grand total (food

industry)

32,046 34,119 26,859 28,983 31,142 32,980


Table 85: Number of employees in the Beverage industries

Industry types

2002 EC 2003EC 2004 EC 2005 EC 2006 EC 2007 EC

Beer and malt

factories

4,776 6049 4647 4247 4417 6920

wine factories 655 294 300 959 1877 1,296

Alcohol factories 1365 1804 1741 1989 1741 2423

Soft drinks, mineral

water factories

6,042

7,981

10,332

11365 12501 16251

Roasted and

grounded coffee

80 150 169 175 198 240

Processed tea 235 235 235 900 942 942

Total 13,153 16,513 17,424 19,635 21,676 28,072

Source: CSA (2000-2004EC) , FBPIDI (2005-2007)

5.6.6 Overview of the Meat and Dairy subsector

Ethiopia has the tenth largest livestock inventory in the world. However, the country‟s current

share in the global export market for meat is quite small. In 2011, the volume of global meat

exports was estimated at USD 105 billion, and Ethiopia accounted for less than one percent of this

total, of which most is chilled sheep and goat carcasses. This ranked Ethiopia as the 43rd largest

meat exporter. Milk is almost exclusively used for domestic consumption with some camel meat

export. Currently, there are 9 meat export abattoirs and 32 milk processing industries in the

country. As to honey and wax producers and exporters, there are around 37 in their number. The

low productivity and consumption rates of meat is attributed to very low off-take rates, large

numbers of animals that by-pass abattoirs and are exported live, producers who are not

commercially oriented and sell only in need of cash or when draught animals get too old, lack of

143

certifications and acceptable international standards by meat processors, lack of traceability of

livestock and livestock products are some of the factors. Though, the meat export is at an

increasing rate year after year, the volume is far behind the potential. Through both formal and

informal trade channels, Ethiopia is a major supplier of live animals to Somalia, Djibouti, Kenya,

and Sudan as well as to Saudi Arabia. Ethiopia is the largest livestock exporter in Africa with a

value of formal exports of USD 190 million, followed by Namibia which exported USD 149

million in 2011. During the same period, Ethiopia exported 472,000 head of live animals, of

which 46% were cattle, 35% sheep, 13% camels and 6% goats. In terms of revenue, however,

cattle contributed 67% whereas camel contributed 26% and shoats brought together 7% of the

total revenue, demonstrating the value contribution live cattle exports have for the Ethiopian

economy.

A lot of stakeholders are engaged in the meat value chain including producers, collectors, feedlots/

fatteners, live animal exporter, abattoirs/butchers, service providers which are the major players in

live animal and meat product markets. There are also several actors engaged in meat value chain

development. The meat value chain extends from animal husbandry to processed meat products

marketing and consumption while a lot of actors are embedded in it. These actors include public

institutions, the private sector, NGO‟s and Associations. Public institutions Actors are dominant,

playing a wide range of roles. Private sector actors are also active in the value chain of the sector.

They are engaged in input and equipment supply, veterinary, drug and service providers, and meat

product producers, processors and marketers. Among the government institutes, The Ethiopian

Meat and Dairy Industry Development Institute is one which facilitates the livestock products

processing and export.

The number of industries in the meat and dairy sector and their employment is shown in the table

below. In the 2007 EC, the sub sector had about 90 companies engaging in production and

processing having a total 3350 permanent and casual workers.

Table 86: Number of Industries and employees in Meat and Dairy sub sector (2003-2007E.C.

No. of

firm Number of employees

2003 2004 2005 2006 2007

M F M F M F M F M F

Meat export

abattoirs and Slaughter by- 12 797 556 945 543 697 435 799 447 1005 721

144

products (offal) processers

Milk and Milk product processers 32 121 95 177 120 211 140 302 191 437 307

Honey and Wax processers 24 31 20 37 22 43 22 52 30 62 42

Feed processers 19 54 11 59 16 65 18 67 24 78 30

Total 87 1938 2219 2016 2357 3350

Source : MDIDI

The types of products produced and the volume of production is summarized in the table below. Table 87: Type and Amount of product produced by year 2003-2007

Types of Industry Major product produced

Unit

Amount of product produced Amount of product supplied Annually

(on average) to:

2003

2004

2005

2006

2007

Domestic mark

et

Foreign market

Meat export abattoirs

And Slaughter by products (offal) processers

Mutton and Beef, green offal, bone and other related slaughter byproducts Tone 17035 17223 15694 15977 19051 298 16762

Milk and Milk product processers

Pasteurized milk, Cheese, Better

Litter "000" 25570 30250 66910 63520 84300 25570 30250

Honey and Wax processers

Processed honey and waxes Tone 3720 5690 5856 5468 7.43 1973 54110

Feed processers Feed for different animals

Quintal NA 278661 273777 273841 287952

All for domestic market

The overall performance of the Meat and Dairy subsector during the GTP I (July 2002 – June

2007) period is shown in the table below Table 88: Growth and Transformation Plan phase one (GTP 1) performances

No. Product type Unit

Achievements made during GTP I

2010/11 2011/12 2012/13 2013/14 2014/15

1 Meat and offal Quantity in tone 16738 16908 15410 15704 19051

Income (million USD) 63.013 76.779 74.155 76.156 94

2 Honey and

wax

Quantity in tone 901 1244 1224 1077 1195

Income (million USD) 3.536 5.409 5.567 5.198 7

3 Fish Quantity in tone 0.727 1.006 0.898 0.719 836

Income (Million USD) 0.364 0.503 0.453 0.360 0.43

4 Camel milk Quantity (million liter) 2.367 1.180 2.177 2.222 1.92

Income (Million USD) 0.176 0.146 0.192 0.12 0.343

Total income (million USD) 70.457 82.837 80.367 81.834 101.65

Source : MDIDI

145

5.6.7 Skill Gaps in the Food and Beverage sector

A number of problems have been identified in terms of the provision of the necessary workforce

for the food and beverage industry. These include

many of the current workforce do not have formal qualification as per the national

qualification framework

Many of TVET and HEI graduates employed in the sector demonstrate lack of competences

in production processes

Specific areas of training ( for example, edible oil technologist , turbine specialist, Tig/Mig

welder , powder milk processors, fish processing technologists etc …) are not easily

available in the labor market

Competence in using modern food and beverage production machineries is limited (for

example, limitation in the using electromechanical equipment

Skill gaps in maintenance and repair of food and beverage production machineries

Limited opportunity for skill development for existing workforce to upgrade their skills

Lack of skilled professionals limited the standardization of products and processes in the

sector

Skill shortage in the sector constrained product development and innovation

5.6.7 HRR forecast for the food and beverage sector

Occupational distribution of the Food and beverage HR

Based on the 2002 -2007 EC food and beverage employment data, and results from the sample

data collected, the occupational distribution of the food and beverage sector is depicted in tab

5.6.7. In general, 72% of the HR in the food and beverage sector is the skilled workforce, whereas

the remaining 38 % is distributed between the professional workforce (engineers and technologist)

, management and administrative staff.

Table 89: occupational mix of the food and beverage sector

Production staff

0.75

basic operations level I

0.1

processing /production II 0.2

processing /production III 0.2

processing /production Iv 0.1

Processing V

0.1

Technology /engineer production 0.05

engineering services

0.1

Engineers BSc/MSc

0.03

146

support tech TVET level 0.07

Management and admin staff

0.15

Management

BA/MA

0.05

admin levels TVET level 0.1

The projection of human resource requirement for the Food and beverage sector , including the

The summary of the HRR forecast for the food and beverage sector shows that the number of

employees in the sector will grow from the 66,000 in 2007EC ( 2015) to about 3.8 Million in

2025. The following table shows this development from 2016-2025.

The forecast took into account the data collected from the sector and the growth targets for the

sector based on the industrial development roadmap (2013) which stipulate the contribution of

each of the manufacturing sector to the GDP. Moreover , the major contribution for employment

creation in the coming ten years rely on the development and functioning of the 4 planned

Integrated Agro processing Industry Parks (IAIP) in four regions of the country. It is projected

that up to 3.4 employment opportunities in various Food and Beverage technical and vocational

professions will be required. In terms of the HRD, the skills and expertise of the employees in the

IAPI Park are wide spread across the existing skill profiles. Hence, the human resources

requirement id superposed with each of the TVET and Higher education fields of study.

Table 90: overall HRR forecast for the food and beverage sector

Sector 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Food 48236 60120 75806 95678 120759 140963 164389 192643 226163 264555

Beverage 29564 36848 46462 58641 74013 86397 100754 118072 138616 162147

Meat &

Dairy 4900 5700 6450 7730 9560 11472 13766 16519 19823 23787

Employment

in IAP Park - 152116 368079 631046 941063 1427868 1914982 2371571 2890830 3380144

Total HRR 82700 254784 496797 793095 1145395 1666700 2193891 2698805 3275432 3830633

Furthermore, workforce will enter into the sector through the development of micro and small

enterprises. Based on the data from FEMSEDA (2015), it is anticipated that the MSEs in the

food and beverage sector create job opportunities for about 520,000 citizens from 2016-2020. It is

also projected that the number of new jobs created in the agro processing and food preparation

will reach 728,000 from 2021-2025. The table below depicts the number of new SMEs jobs

created in the sector. Thus it is expected that the human resources requirement for the new jobs in

the agro processing and food preparation will be 1.25 Million in the coming ten years.

147

Table 91: Employments opportunities in the Agro processing and food preparation (2016-2025) in

000,s (in thousands)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

New

Jobs per year 88 95 104 101 132, 136 139 144, 152 154

Source: FeMSEDA (2016-2020) , and projection for (2021-2025)

The HRR forecast for the food and beverages sector is presented in detail in terms of the

occupational standards in ANNEX 1 at the end of this document. Furthermore, table 83, shows

the summary of HRR forecast by major industry types in the food and beverages sector

148

Table 92: HRR forecast of Food and beverage sector by major industries

Food sector 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

projected HRR 48236 60120 75806 95678 120759 140963 164389 192643 226163 264555

Flour and flour

products 34730 43286 54580 68888 86946 101493 118360 138703 162837 190480

oil seed and

products 2894 3607 4548 5741 7246 8458 9863 11559 13570 15873

processed spices 482 601 758 957 1208 1410 1644 1926 2262 2646

processed

cereals and

pulses 1929 2405 3032 3827 4830 5639 6576 7706 9047 10582

fruits and

vegetables 7718 9619 12129 15308 19321 22554 26302 30823 36186 42329

honey products 482 601 758 957 1208 1410 1644 1926 2262 2646

Total 48236 60120 75806 95678 120759 140963 164389 192643 226163 264555

Beverage sub

sector 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

projected HRR 29564 36848 46462 58641 74013 86397 100754 118072 138616 162147

Beer + alcohol 9460 11791 14868 18765 23684 27647 32241 37783 44357 51887

wine 1478 1842 2323 2932 3701 4320 5038 5904 6931 8107

soft drinks 17147 21372 26948 34012 42928 50110 58437 68482 80397 94045

Tea 1183 1474 1858 2346 2961 3456 4030 4723 5545 6486

Coffee 296 368 465 586 740 864 1008 1181 1386 1621

Total 29564 36848 46462 58641 74013 86397 100754 118072 138616 162147

149

Meat and dairy

sub sector

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

projected HRR 4900 5700 6450 7730 9560 11472 13766 16519 19823 23787

Meat and offal 1960 2280 2580 3092 3824 4589 5506 6608 7929 9515

Milk 1470 1710 1935 2319 2868 3442 4130 4956 5947 7136

Honey and Wax 245 285 323 387 478 574 688 826 991 1189

Feed 490 570 645 773 956 1147 1377 1652 198 2379

Poultry 490 570 645 773 956 1147 1377 1652 1982 2379

Fishery 245 285 323 387 478 574 688 826 991 1189

Total 4900 5700 6450 7730 9560 11472 13766 16519 19823 23787

Grand Total 82700 102668 128718 162049 204332 238832 278909 327234 384602 450489

In addition to the 450,000 workforce projected above , most of the workforce requirement will be derived from the establishment of the

Integrated Agro processing Industrial parks that accommodate as many as 3.4 Million Jobs. These workforce requirements are re-distributed

among the three subsectors of the Food and beverage sector. The overall human resource requirement projection for the Food, Beverages ,

Meat and Dairy subsectors , taking in to account the employment opportunities from the IAP Park beginning 2017,is presented below. This

sector will require about 3.8 Million workforces in 2025.

Sub sector 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Food 96471 151390 296653 474306 685397 997684 1313378 1615586 1960661 2292641

Beverage 29564 90089 175290 279507 403385 586151 770998 948122 1150407 1345197

Meat and dairy 4900 13306 24854 39282 56613 82865 109515 135098 164365 192794

FB sector total 130935 254784 496797 793095 1145395 1666700 2193891 2698805 3275432 3,830,633

The overall human resource requirement projection (2016-2025) for the Food and Beverage sector , segregated by major industry types, are

presented here below ted below.

150

Food sector 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Total projected for

food sub sector 48236 151390 296653 474306 685397 997684 1313378 1615586 1960661 2292641

Flour and flour

products 34730 109001 213590 341500 493486 718332 945632 1163222 1411676 1650702

oil seed and products 2894 9083 17799 28458 41123.8 59861 78802.7 96935.1 117640 137558

processed spices 482 1514 2967 4743 6854 9977 13134 16156 19607 22926

processed cereals and

pulses 1929 6056 11866 18972 27416 39907 52535 64623 78426 91706

fruits and vegetables 7718 24222 47465 75889 109663 159629 210141 258494 313706 366823

honey products 482 1514 2967 4743 6854 9977 13134 16156 19607 22926

SUM I 96471 151390 296653 474306 685397 997684 1313378 1615586 1960661 2292641

Total projected for

beverage sub sector

29564 90089 175290 279507 403385 586151 770998 948122 1150407 1345197

Beer + alcohol 9460 28828 56093 89442 129083 187568 246719 303399 368130 430463

wine 1478 4504 8764 13975 20169 29308 38550 47406 57520 67260

soft drinks 17147 52251 101668 162114 233963 339967 447179 549911 667236 780214

Tea 1183 3604 7012 11180 16135 23446 30840 37925 46016 53808

Coffee 296 901 1753 2795 4034 5862 7710 9481 11504 13452

SUM II 29564 90089 175290 279507 403385 586151 770998 948122 1150407 1345197

Total projected for

meat and dairy 4900 7606 18404 31552 47053 71393 95749 118579 144542 169007

Meat and offal 1960 3042 7362 12621 18821 28557 38300 47431 57817 67603

Milk 1470 2282 5521 9466 14116 21418 28725 35574 43362 50702

Honey and Wax 245 380 920 1578 2353 3570 4787 5929 7227 8450

151

Feed 490 761 1840 3155 4705 7139 9575 11858 14454 16901

Poultry 490 761 1840 3155 4705 7139 9575 11858 14454 16901

Fishery 245 380 920 1578 2353 3570 4787 5929 7227 8450

SUM III 4900 7606 18404 31552 47053 71393 95749 118579 144542 169007

Grand Total projected HRR For FB sector

130935

254784 496797 793095 1145395 1666700 2193891 2698805 3275432 3,830,633

The HRR forecast for the food and beverage sector in terms of the occupational title and occupational levels are detailed in the tables

presented as Annex to this document.

152

CHAPTER SIX: IMPLEMENTATION PLAN FOR HRR FOR THE

MANUFACTURING SECTOR

6.1 Implementation plan (2016-2025)

The implementation plan shows the major activities to be performed, the implementation

period, and the responsible bodies. As most of the activities involve multi-stakeholders, it

requires coordination among these stakeholders. These activities are not to be left out for

one organization. This plan helps mainly to bring together the various actors to draw a joint

plan of action to ensure the provision of the required workforce for the manufacturing

sector.

S

N

Major activities base

year

2015

Phase I

(2016-2020)

Phase II

( 2021-

2025)

Responsibly

body

16 17 18 19 20

1. Approval of the HRRP as a

national working document

for workforce development

x MoI , NIDC

2. Articulation of the HR

demand by both DD and SS

sides

x x x x x x x MoI , private

sector,MoE,

MoST, SDC,

NSDC, NCSD

3. Periodic review of the HRRP x x x x x x NIDC, NCSD,

NPC

4. Establishment of the

governance and institutional

set up for national skill

development including the

National council for

skill development

National skill

development

corporation

Skill development

councils

x x NIDC, NPC,

MoI

5. Awareness creation and

implementation of

occupational standards for

the NQF in the

manufacturing sector

x x NIDC, NCSD,

MoI, Quality

assurance

agencies

6. Implementation urgent

interventions in collaboration

x x MoI,

MoE,MoST,

153

with stakeholders NCSD, NSDC

7. Reviewing training and

education programs in line

with industry HR DD

including the development of

the Industrial parks

x x x x x X MoI , MoE,

MoST, NSDC

8. Actively engage

university/TVET- Industry

linkage through ST zonal

forums for HRD of the sector

x x x x x x x MoST, private

sector, NSDC

9. Development of roadmap for

TT and technology

development for the priority

sectors

x x MoI, MoST ,

NSDC

10. Strengthening cooperative

training through trust

building and shared

responsibilities

x x x x x x NSDC, private

sector , MoI

11. Increase ownership of the

private sector in industrial

skill development and TVET

x x x x x x NSDC, SDC,

private sector ,

MoE

12. Monitoring and evaluation of

the HRRP

x x x x x x MoI , NPC

154

6.2 Urgent intervention required in the Manufacturing sector

The following are some of the activities that require urgent actions as to speed up the industrial

development in general and the HRD of the sector in particular.

Implementation of Occupational standard at company level- it is more than three

years since the occupational standards are approved for various sectors and occupations.

However, its implementation in the manufacturing sector is very slow and in some cases

non existence. As the occupational standards have implication on the HRD, the

implementation of the OS should be of Paramount importance.

Identifying and defining the role of TVET and HE at Industrial parks Industrial

parks are the potential area in building the national economy and creating huge job

opportunities. Thus, the linkage between the HE and TVET institutions in the vicinity of

the industrial parks need to be considered.

Preparing modalities of incentives for in-company training- preparing short-term

hands- on training within the companies much benefit the companies to increase the

productivity and effectiveness of the factories. To make this effort effective , it is

essential to provide mechanisms of supporting those companies who engaged in

company level skill building and also for those whoa actively engage in cooperative

training

Adjusting Industry demand for semi –skilled workforce and TVET graduates

supply - the patterns of industry demand and TVET graduates brings some inconsistency

with some levels of qualification. In industry, level II occupational standard accounts the

majority of the workforce required. On the other hand, TVET graduates are more from

level III and IV of the occupational standard. At the period of GTP II where light

manufacturing industries becomes the prior attention, aligning the skill requirement with

the level of growth seems reasonable.

Development and provision of specific and specialized trainings with acute shortage

including

Certified welders for mega construction projects and expansion of metal industries.

Machining, rolling technology and foundry technology

PLC, CAD/CAM, tool and die, mold technology,

Mechatronics

polymer sciences ( specifically oriented to synthetic products)

Iron ore extraction technology and metallurgy

Developing capacity to copy useful technologies, designs and processes

155

Launching program in Technology Management

Designing and opening Industry development policy study programs

Preparing Technology Development Road maps for the priority sectors manufacturing

sector is required to plan the HR required for the emerging industries and technologies.

Development and implementation of effective food safety policy

Development of Labor Market Information Systems to monitor workforce demand and

supply

strengthen the link between the agriculture sector and food and beverage sector ( joint

planning and coordination)

6.3 Governance of national skill development initiative

6.3.1 Institutional Arrangements

Skills and knowledge are the driving forces of economic growth and social development for any

country. Countries with higher and better levels of skills adjust more effectively to the challenges

and opportunities of world of work. The training and education system need to well tune the

demand of the national economy and required to be adjusted periodically. The consent and

coordinated effort need to be in place in order to provide all rounded support to meet the national

demand and closely monitor and correct it while it deviated. In line with this the experience of

other countries including India and Korea which are covered under the development of HRRP

revel that there are institutional arrangements which provide this activities.

National Council for Skill Development ( NCSD)

This council is an apex institution for the provision of policy direction and review, which is

accountable to the National Industry Development Council (NIDC). The NCSD is chaired by

the commissioner of the National Planning Commission (NPC), and the head of the National

skill Development Corporation will serve as its secretary. Members of the NCSD includes, MoI

, MoFED, MoE, MoLSA , MoUDC, FeMSEDA, representatives of Manufacturing Employers‟

Associations , and other pertinent institutions and individuals as deemed necessary.

National Skill Development Corporation

The National Skill Development Corporation will be established with an appropriate governance

structure. Different sector skill councils in line with the priority manufacturing industries will be

established under the corporation to carry out sector specific skill related activities. The

Corporation would constitute Sector Skills Councils.

The NSDC could also coordinate efforts by various responsible stakeholders in

designing , developing and maintenance of NVQF which inter alia includes:

o Setting up a framework for competency standards, structure of courses, credit

structure, accumulation and certification.

o Setting up a framework for affiliation and accreditation of institutions.

o Quality control mechanism.

156

Labor market information system and dissemination of information at the national level.

Monitoring and evaluation on the effectiveness and efficiency of national skill

development efforts through appropriate reporting and communication mechanism.

Skill Development Councils (SDC)

The Sector Skills Councils are established for all the skills necessary in the manufacturing sector.

There will be skill development councils, for example, for automotive, construction, electronics,

electrical industrial wiring, and the like.

The SDC will have with following functions:

Identification of skill development needs including preparing a catalogue of types of

skills, range and depth of skills to facilitate individuals to choose from them.

Development of a sector skill development plan and maintain skill inventory.

Determining skills/competency standards and qualifications.

Participation in Affiliation, accreditation, examination and certification.

Establishment of a well-structured sector specific Labor Market Information System

(LMIS) to assist planning and delivery of training.

Plan and execute Training of Trainers.

Carry out promotion of academies of excellence.

6.3 2. Roles and responsibilities of stakeholders

6.3.2.1 Roles and responsibilities of Government Institutions

Various governmental institutions and ministries play critical role in regulating and providing

policy framework for the skill development in the manufacturing sector. These ministries and

institutions could be categorized as providing the necessary input for the industry sector HR

demand or supply side, or both. For instance, the Ministry of Industry, in collaboration with

other institutions, plays an important role in developing database or skill inventories that are

demanded in the near future and supervise the skill dynamics observed in the industry. Such

data could be important for the planning and provision of education and training by the

Ministry of Education. In general the following are some of the roles that could be played by

government institutions:

Setting up priority and policy planning

Providing regulatory framework and enabling environment for stake holders.

Devising financing mechanism, reward and promotional framework.

Capacity building of all stake holders.

Setting up of monitoring, evaluation and dissemination of information.

Facilitating international co-operation for twinning and skill development.

Setting up of a qualification framework and quality assurance mechanism.

Preparation of work plans to meet sector specific skill sets based on up-to-date data base

157

6.3.2.2 Roles and responsibilities of industries and employers:

The role of the private sector in general, and that of the industry and employers, in the national

skill development planning and implementation is very crucial. As the trends in the industry or

sector development and employment patterns are available with these stakeholders, it is

necessary to engage them in HRRP and ultimately give full responsibilities gradually. Some of

the roles that are industries and employers could play include

Owning Skill Development activities.

Identification of competencies and setting up of competency standards,

Engage in skill demand analysis and curriculum development.

Facilitating training of trainers.

Delivery of training, monitoring and evaluation.

Participation in examination and certification.

Sharing of work place experience, machinery and equipment.

Support by way of physical, financial and human resources.

Facilitating employment of trained graduates.

Supporting skill development initiatives of other public and private agencies.

Implementing apprenticeship schemes and internship programs.

6.3.2.3 The role of Quality assurance institutions

It is envisage that there will be various autonomous private quality assurance agencies that play

critical role in approving Skill trainers‟ license , training programs as well as making decisions

on the certification and accreditation of trainings.

Quality and relevance of skill development are key to the country‟s global competitiveness as

well as improving an individual‟s access to decent employment. For enterprises to compete in

the global economy, the quality of training must reach world standards and be relevant to the

needs of national and international markets. To increase the relevance with future employment

market including promotion of self-employment, soft skills and entrepreneurship skills will be

made integral part of skill development.

In general, the Quality Assurance is based on five key functions:

Validation of Qualifications for ensuring that qualifications reflect market needs and

workplace requirements and are expressed in the form of competencies with clear

assessment criteria;

Validation of Training Process for ensuring that proper tools, techniques, methodologies

and material, as suggested in the curriculum/standards are used by the resource persons;

Quality Assured Assessment of Learners for ensuring that assessment is based on

national standards (competencies) and uses valid and reliable assessment methods;

Accreditation of Training Providers and Training Institutions for ensuring that training is

delivered by competent and qualified trainers in well-resourced and managed institutions;

158

Research and Information for linking the supply of skilled workers to trends in well-

researched Labour Market Information (LMI) covering both the organised and

unorganised sectors of the economy. The objective of enforcing quality and relevance in

skill development will be realized through improving infrastructure, improving quality of

trainer and developing National Vocational Qualification Framework.

6.3.2.4 Roles and responsibilities of professional associations:

Strengthening the professional associations in the manufacturing sector is very important to

enable them play their role in the national skill development effort. Some of the roles these

professional associations play include

Assist in developing competency standards.

Assist in course designing, examination and certification.

Raising awareness about the benefit of training, skill development plans and activities

among the workers

Promote skill upgradation and lifelong learning among the workers.

Running special skill development institutes for skill development of workers.

Promoting investment on skill development among the employers.

Facilitate improving status of TVET trained graduates.

6.3.3 Institutional set up for Workforce Development for the Industry sector

The figure below shows the general structure for the institutional setup to govern the national

skill development. The duties and responsibilities of each of the key elements in the structure

have been defined in the preceding section in detail. However, a brief explanation of the

structure and the stakeholders is presented as follow.

National Industrial Development Council

The successes of national skill development plan depend on high-level political commitment

and support to bring the required industrial transformation. It is important to mobilize a

coordination and active involvement of many line ministries and institutes and relevant

stakeholders to bring create and maintain a globally competitive workforce.

As recommended in the Industrial development road map study (2013), to implement

industrial development plan and achieve industrial growth it is essential to ensure coordination

of public and private institutions through the National Industrial Development Council (NIDC

). Besides, the duties and responsibilities stipulated in the road map study, NIDC will have

additional wing for HRD for the industry development. NIDC essentially monitors the

performance of skill development and provide guidance to training involved TVET‟s.

.

159

The NIDC , which is chaired by the PM, will oversee the performance of the NCSD regularly

provide the necessary support to enhance national skill development. NIDC will also maintain a

strong work relationship with HR demand data providing institutions (for instance, MoI, MoST,

MoLSA, Manufacturing Associations, Professional Associations…) and HR Supply data

providing institutions ( for example , TVET , HE, Private training institutions , and others.)

6.4 Risk Management

Estimation of the workforce required for the manufacturing sector is based on the Industrial

development plan of the country. Thus, implementation of the industrial strategic plan has

direct relations with the estimation of workforce required. In this regard, several risks are

expedited in availing the required workforce as per the projection made. These risks should be

identified and measures should be considered to alleviate the risks so that their impacts are

minimized.

Among many risks, the following factors, listed here under, are considered as major risks that

are expected to implement the estimated number of work force required.

Low implementation of strategic plan

Estimation of the workforce required is made based on the industrial development plan. If the

implementation of this plan is not real, the estimated workforce will not be real. Therefore, as

the implementation of the indusial development has direct relation with estimated workforce,

low implementation of strategic plan is considered to be one of the major risk that need to be

addressed.

Skill gap of the workforce

Survival and expansion of the manufacturing sector is based on the availability of dedicated

skilled manpower. The current situation indicates that there is no gap between demand and

supply. The major problem is unavailability of well skilled workforce that suit Industry

demand. If this gap is not considered existence and expansion of the industry will be in

question. Thus skill gap is considered as a risk factor on attracting new business and needs to

be addressed.

Dependence of the industry sector on FDI

Being developing country, to be competent with other countries and enable to finance various

programs and projects, FDI attraction is an ideal option to achieve development goals and

targets of the industry development plan. Thus, the flow of FDI is considered as one of the risk

factors that affects the implementation of plan and in turn affects the estimated manpower

required. Therefore, parallel to enhancing the FDI attraction, alternatives should be looked to

effect the plan accordingly.

160

Low quality products/ services

Due to the recent globalization, completion from other countries is very tuff. The existence of

the manufacturing is based on the fulfillment of quality standards at global market. Unless and

otherwise the manufacturing sectors and development institutes work on manufacturing of

quality products/ service, the existence of manufacturing sectors and institutes will be in

question which has direct impact on the workforce required in the future.

Limited support from development institutes

Development institutes are established with the objective of solving sector problems and

providing support. These institutes play great role in the implementation of strategic plan.

Failure of the institutes to solve sector problem, and support, results in the failure of strategic

plan. Therefore, each sector institute should be capacitated in manpower, technology, training

facility, etc…

Unsatisfactory work culture and attitudinal case of manpower

For the development of industry sector, good work culture and attitude plays great role. The

situation in our country shows that there is poor work culture which has direct impact on the

productivity. If the sector is not productive there is no means for the sector to develop and this

has impact on the estimated manpower. Attitudinal problem of the manpower is also key

problem of the industry which creates communication barriers. Thus for stability of workforce

and productivity increase, action should be taken in this regard to make industrial development

plan successful.

Unsatisfactory technology transfer

Technology is one of the tools for faster industry development of any nation. Proper selection

and adoption of appropriate technologies enable to provide leverage for quick transition and

development of industry. This implies that achievement of the development objectives and

targets will be at risk if appropriate technology transfer is not effectively carried out and failure

to achieve the target has impact on the estimated workforce.

In order to moderate the risks for the likely to be happen, various measures need to be taken to

mitigate the risks. In the table hereunder, the major risk factors which are discussed above and

their mitigation mechanisms to reduce their likely impact in the estimation of workforce

required are discussed.

S.N Risks Mitigation factor

1 Low

implementation

of strategic

plan

Commitment of leadership

Shared vision of private sector, government, society etc…

161

2 Skill gap of the

work force

Revision of training system

Capacitating and strengthening of development institutes

Supporting manufacturing sectors to have their own training

center

3 Dependence of

the industry

sector on FDI

Focusing on domestic resources through mobilization of the

society, the private sector and government.

Crating a conducive environment to attract FDI in the aspect

infrastructure, logistics, custom, skilled workforce, etc…

Working on the effective utilization of the diplomatic missions

to attract FDI.

Supporting local industry to be competent on global market

4 Low quality

products/

services

Supporting manufacturing sector with technology transfer

Updating the skill level of worker from time to time

Benchmarking product standards

5 Limited

support from

industry

development

institutes

Capacitating development institutes with education, manpower,

laboratory facility etc…

Follow up of the contribution of the institutes

6 Unsatisfactory

working

culture and

attitude

Incorporating work culture as training package together with

education

Developing standard work cultures and discipline required in

manufacturing sectors and other

7 Unsatisfactory

technology

transfer

Strengthening of twining program

Selection and adoption of appropriate technologies

Strengthening science and technology universities and TVET

institutions in technology transfer

Optimum utilization FDI as technology transfer

Strengthening of development institutes to focus on R&D and

technology transfer

162

6.5 Monitoring & Evaluation framework

The possibility of achieving the contribution of manufacturing sector for vision -2025 and the

strategic objectives of HRD for the manufacturing sector identified depend on the effectiveness

of the implementation and monitoring and evaluation processes Human resource planning and

development as well as the right strategies being designed and decided upon.

In this respect, in addition to providing and maintaining internal consistency of the design of

the human resource planning for the manufacturing sector, it is also obligatory to develop a

mechanism which continuously monitors the effectiveness of the implementation of the plan in

fulfilling the required workforce for the manufacturing industry, proposed strategic objectives,

activities, regulations and measures, can identify major gaps and barriers for implementation on

time and recommend timely measures.

The continuous assessment of how well has the implementation of Human resource

development programes are been implemented provides the necessary information for leaders

and implementers and suppliers. A strong performance Monitoring and Evaluation plays a

critical role in assessing achievements and shortfalls in the HRD programs and HRRP

implementation, reliably recording changes over time, outputs, effects and outcomes, and also

indicate problems that may be resolved while the HRD project is ongoing in the educational

institutions of the country.

Monitoring should be conducted at every stage of the program, with data collected, analyzed

and used on a continuous basis. Evaluations are usually conducted at mid-term or at the end of

each of the two phases of HRD plan and focus mainly on how well the HRD programs have

met the workforce requirement of the manufacturing sector, and the extent to which changes in

outcomes can be attributed to the programs. Information from M&E helps key stakeholders

NPC, MoE,(ESC, HE and TEVET sectors) MoI, MOIST to make informed decisions on future

HRD strategies for the manufacturing sector and interventions in terms of the development

program relevance, effectiveness, efficiency, impact and sustainability.

The performance of the various HRD programs and projects for the manufacturing sector in

different educational institutions need to be monitored and evaluated as to ensure the

development to be one the right path to address the demand of the sector and take necessary

corrective actions whenever required. The Ministry of Education (TVET, HE), MoST,

Industrial training institutes, Skilled development centers and institutes and other stakeholders

163

need to take their share in contributing to the success of the HRRP. Each of the stakeholders

need to have clear roles and expected outputs. Accordingly, the monitoring and evaluation of

the implementation of HRRP will take place at national and institutional level levels.

At the national level, NPC, Ministry of Education, MoST, Ministry of industry will establish a

joint Forum which will be mandated and will monitor and evaluate focusing on the broad HRD

policy issues, strategic objectives, interventions areas and programs, expected outcomes and

performance indicators in the two phases of manufacturing industrial development. The

Education strategy center will coordinate the M&E activities at the national level. The M&E at

this level plays a critical role in setting the strategic level issues that need to be addressed at

national ministry of Education, MoST and industry levels. The results of the M&E at national

level provide the necessary support to implementers to ensure that national goals and targets are

met at educational and skills development institutional level. The joint forum will expedite the

M&E process, and make decisions as to the frequency of the evaluations to be carried. It would

be important to make an internal and external evaluation and the different consultative forums

under NPC, MOE and MOI could play significant role in this respect.

NPC, Ministry of Industry, MoST and Ministry of Education need to develop own M&E plans

and periodic review schedule and report accordingly on a regular basis. The overall M&E effort

focuses on building a system that encourages improvement and adaptation as to enable actors

achieve the implementation of the human resource requirement plan for the manufacturing

sector in the coming two manufacturing industry development phases.

164

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Annex: 1 Food and Beverages. Meat and Dairy sector Work Force Requirement for the year 2016-2025 G.C .by Occupations and training and educational levels

Flour and Flour Products (bread, pasta, macaroni, biscuits, famix….) sub sector

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

seeds clearing and hulling

I 868 2725 5340 8538 12337 17958 23641 29081 35292 41268

Steam/Hot water washing and pressing operation

II

868 2725 5340 8538 12337 17958 23641 29081 35292 41268

Milling operators II 1042 3270 6408 10245 14805 21550 28369 34897 42350 49521

Flour mixing and doughing operation

III 5209 16350 32039 51225 74023 107750 141845 174483 211751 247605

Baking II 3126 9810 19223 30735 44414 64650 85107 104690 127051 148563

Pasta, macaroni, and noodles production

III 3473 10900 21359 34150 49349 71833 94563 116322 141168 165070

Pasta, macaroni, and noodles production

IV 3473 10900 21359 34150 49349 71833 94563 116322 141168 165070

Filtration operation III 695 2180 4272 6830 9870 14367 18913 23264 28234 33014

Neutralization operation

II 695 2180 4272 6830 9870 14367 18913 23264 28234 33014

Bleaching operation II 695 2180 4272 6830 9870 14367 18913 23264 28234 33014

Deodorizing operation II 695 2180 4272 6830 9870 14367 18913 23264 28234 33014

168

Oil seeds and oil products: (edible Oil, oil cake, hulled sesame, roasted sesame, tahina, halva, plumpy nut.

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Seed sorting , cleaning , and hulling operation

I

145 454 890 1423 2056 2993 3940 4847 5882 6878

Seed sorting , cleaning , and hulling operation

II

289 908 1780 2846 4112 5986 7880 9694 11764 13756

Edible Oil Processing II 434 1363 2670 4269 6169 8979 11820 14540 17646 20634

Edible Oil Processing III 579 1817 3560 5692 8225 11972 15761 19387 23528 27512

Edible Oil Processing IV 376 1181 2314 3700 5346 7782 10244 12602 15293 17883

Edible oils and fats Processing

V 260 818 1602 2561 3701 5387 7092 8724 10588 12380

Edible Oil & Fat Technologist

V 87 273 534 854 1234 1796 2364 2908 3529 4127

Processed spices (Chille pepper /pepper-powder/, Dried sliced and milled ginger, Ginger oil /oleoresin/, Dried milled and packed turmeric.

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

sorting , cleaning , and hulling operation

I 48 151 297 474 685 998 1313 1616 1961 2293

sorting , cleaning , and hulling operation

II 48 151 297 474 685 998 1313 1616 1961 2293

Spice and Herbs Processing II 58 182 356 569 822 1197 1576 1939 2353 2751

Spice and Herbs Processing III 72 227 445 711 1028 1497 1970 2423 2941 3439

169

Processed spices (Chille pepper /pepper-powder/, Dried sliced and milled ginger, Ginger oil /oleoresin/, Dried milled and packed turmeric.

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Spice and Herbs Processing IV 96 303 593 949 1371 1995 2627 3231 3921 4585

Spice extraction technology IV 24 76 148 237 343 499 657 808 980 1146

Spice extraction technology V 14 45 89 142 206 299 394 485 588 688

Processed Pulses and cereals

Occupation TVET

level

Year (Eth. Cal.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

grading , cleaning , packaging I 193 606 1187 1897 2742 3991 5254 6462 7843 9171

grading , cleaning , packaging II 193 606 1187 1897 2742 3991 5254 6462 7843 9171

Grain and cereals Processing II 289 908 1780 2846 4112 5986 7880 9693 11764 13756

Grain and cereals Processing III 289 908 1780 2846 4112 5986 7880 9693 11764 13756

Grain and cereals Processing IV 193 606 1187 1897 2742 3991 5254 6462 7843 9171

Milling operation III 96 303 593 949 1371 1995 2627 3231 3921 4585

Pulses and cereals processing technologist IV 96 303 593 949 1371 1995 2627 3231 3921 4585

170

Processed Pulses and cereals

Occupation TVET

level

Year (Eth. Cal.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Pulses and cereals processing technologist V 96 303 593 949 1371 1995 2627 3231 3921 4585

Processed Fruits and vegetable products (Mango, orange, avocado, banana , Tomato sauce/paste, pineapple juices...

Occupation TVET

level

Year (Eth. Cal.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Fruits and Vegetables Processing II 1158 3633 7120 11383 16449 23944 31521 38774 47056 55023

Fruits and Vegetables Processing III 1544 4844 9493 15178 21933 31926 42028 51699 62741 73365

Fruit and veg, IV 868 2725 5340 8538 12337 17958 23641 29081 35292 41268

Pasteurization and Sterilization Operation III 386 1211 2373 3794 5483 7981 10507 12925 15685 18341

Cooling and Packing Operation III 386 1211 2373 3794 5483 7981 10507 12925 15685 18341

Fruits and Vegetables Processing technologist IV 772 2422 4747 7589 10966 15963 21014 25849 31371 36682

Fruits and Vegetables Processing V 386 1211 2373 3794 5483 7981 10507 12925 15685 18341

171

Processed Fruits and vegetable products (Mango, orange, avocado, banana , Tomato sauce/paste, pineapple juices...

Occupation TVET

level

Year (Eth. Cal.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

technologist

Honey products

Occupation TVET

level

Year (Eth. Cal.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Honey and Bee Wax Processing II 48 151 297 474 685 998 1313 1616 1961 2293

Honey Beverages Processing III 72 227 445 711 1028 1497 1970 2423 2941 3439

Honey Beverages Processing III 121 379 742 1186 1714 2494 3284 4039 4902 5732

Honey Beverages Processing IV 54 170 334 534 771 1122 1478 1818 2206 2579

honey processing technologist IV 24 76 148 237 343 499 657 808 980 1146

honey processing tech V 24 76 148 237 343 499 657 808 980 1146

Beer , and Alcohol drinks

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Basic beer /malt operators I 473 1441 2805 4472 6454 9378 12336 15170 18407 21523

Malt processing operators II 568 1730 3366 5367 7745 11254 14803 18204 22088 25828

Malt processing operators III 946 2883 5609 8944

12908

18757 24672 30340 36813 43046

Brewing processing III 1135 3459 6731 10733 1549 2250 2960 36408 44176 51656

172

Beer , and Alcohol drinks

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

operators 0 8 6

Brewing processing operators IV 946 2883 5609 8944 12908 18757 24672 30340 36813 43046

Fermentation and filtration operators III 946 2883 5609 8944 12908 18757 24672 30340 36813 43046

Decantation processing operation III 568 1730 3366 5367 7745 11254 14803 18204 22088 25828

Distillation processing operation III 568 1730 3366 5367 7745 11254 14803 18204 22088 25828

Filling and Bottling operators II 378 1153 2244 3578 5163 7503 9869 12136 14725 17219

Boiler operators IV 189 577 1122 1789 2582 3751 4934 6068 7363 8609

Brewing process technologist V 378 1153 2244 3578 5163 7503 9869 12136 14725 17219

Wine Products

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

wine Filling and bottling II 148 450 876 1398 2017 2931 3855 4741 5752 6726

wine Filling and bottling III 148 450 876 1398 2017 2931 3855 4741 5752 6726

173

Wine Products

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fermentation & filtration process operators III 296 901 1753 2795 4034 5862 7710 9481 11504 13452

Fermentation & filtration process operators IV 296 901 1753 2795 4034 5862 7710 9481 11504 13452

Fermentation & filtration process technologist IV 148 450 876 1398 2017 2931 3855 4741 5752 6726

Fermentation & filtration process technologist V 44 135 263 419 605 879 1157 1422 1726 2018

Boiler operator III 30 90 175 280 403 586 771 948 1150 1345

Soft-drinks ,mineral , and bottled water

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

soft drinks Mixing and Syrup-forming operation III 2572 7838 15250 24317 35094 50995 67077 82487 100085 117032

Mixing and Syrup-forming operation IV 1715 5225 10167 16211 23396 33997 44718 54991 66724 78021

Dilution processing III 1715 5225 10167 16211 23396 33997 44718 54991 66724 78021

174

Soft-drinks ,mineral , and bottled water

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

operation

Dilution processing operation IV 1715 5225 10167 16211 23396 33997 44718 54991 66724 78021

Filtration processing operat III 1715 5225 10167 16211 23396 33997 44718 54991 66724 78021

Filter processing operation IV 1372 4180 8133 12969 18717 27197 35774 43993 53379 62417

Filling and packing II 1715 5225 10167 16211 23396 33997 44718 54991 66724 78021

Production machine operator IV 343 1045 2033 3242 4679 6799 8944 10998 13345 15604


Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tea Processing operators I 118 360 701 1118 1614 2345 3084 3793 4602 5381

Tea Processing operators II 177 541 1052 1677 2420 3517 4626 5689 6902 8071

Tea Processing operators III 237 721 1402 2236 3227 4689 6168 7585 9203 10762

Tea Quality Control IV 24 72 140 224 323 469 617 759 920 1076

Packaging , weighing and labelling operations II 118 360 701 1118 1614 2345 3084 3793 4602 5381

175


Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Packaging , weighing and labelling operations III 118 360 701 1118 1614 2345 3084 3793 4602 5381

Tea Processing technologist IV 59 180 351 559 807 1172 1542 1896 2301 2690

Tea Processing technologist V 35 108 210 335 484 703 925 1138 1380 1614

Roasted and Grounded coffee

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

coffee Processing operators I 30 90 175 280 403 586 771 948 1150 1345

coffee Processing operators II 44 135 263 419 605 879 1157 1422 1726 2018

coffee Processing operators III 59 180 351 559 807 1172 1542 1896 2301 2690

coffee Quality Control IV 6 18 35 56 81 117 154 190 230 269

Packaging , weighing and labelling operations II 30 90 175 280 403 586 771 948 1150 1345

Packaging , weighing and labelling operations III 30 90 175 280 403 586 771 948 1150 1345

176

Roasted and Grounded coffee

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

coffee Processing technologist IV 15 45 88 140 202 293 386 474 575 673

coffee Processing technologist V 9 27 53 84 121 176 231 284 345 404

Meat and meat products

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Halal Maker II 196 304 736 1262 1882 2856 3830 4743 5782 6760

Lairage I 98 152 368 631 941 1428 1915 2372 2891 3380

Flankier I 98 152 368 631 941 1428 1915 2372 2891 3380

Deheader III 98 152 368 631 941 1428 1915 2372 2891 3380

Skinner III 490 761 1841 3155 4705 7139 9575 11858 14454 16901

Trimming II 39 61 147 252 376 571 766 949 1156 1352

Evisceration I 39 61 147 252 376 571 766 949 1156 1352

offal processor I 59 91 221 379 565 857 1149 1423 1735 2028

Carcass weigher I 59 91 221 379 565 857 1149 1423 1735 2028

Milk and milk products

Occupation TVET Year (Eth. Cal.

177

level 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Dairy technologist IV 147 228 552 947 1412 2142 2873 3557 4336 5070

Pasteurizer III 221 342 828 1420 2117 3213 4309 5336 6504 7605

Packaging III 147 228 552 947 1412 2142 2873 3557 4336 5070

Yogurt maker IV 221 342 828 1420 2117 3213 4309 5336 6504 7605

Cheese Maker IV 221 342 828 1420 2117 3213 4309 5336 6504 7605

Milk Lab Technician IV 147 228 552 947 1412 2142 2873 3557 4336 5070

Honey and Wax

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Apiary Technician IV 61 95 230 395 588 893 1197 1482 1807 2113

honey and wax processing technician

III 37 57 138 237 353 536 718 889 1084 1268

Honey and wax Production technician

IV 37 57 138 237 353 536 718 889 1084 1268

Lab technician IV 12 19 46 79 118 179 239 296 361 423

Feed production

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Feed Production technician

IV 147 228 552 947 1412 2142 2873 3557 4336 5070

178

Feed production

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Feed production workers

II 245 381 920 1578 2353 3570 4788 5929 7227 8451

Fishery

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fish processing technician III 74 114 276 473 706 1071 1436 1779 2168 2535

Fish Laboratory technician IV 25 38 92 158 235 357 479 593 723 845

Rendering and waste management technician

III

25 38 92 158 235 357 479 593 723 845

Cold chain technician IV 37 57 138 237 353 536 718 889 1084 1268

Fish prod packaging III 25 38 92 158 235 357 479 593 723 845

Poultry

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Poultry processing IV 98 152 368 631 941 1428 1915 2372 2891 3380

179

Poultry

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

technician

Poultry products packaging

III 74 114 276 473 706 1071 1436 1779 2168 2535

poultry hygine technician

IV 49 76 184 316 471 714 958 1186 1445 1690

Poultry reearing technicain

III 147 228 552 947 1412 2142 2873 3557 4336 5070

Science and Technology Professionals (University graduates )

Fields of study Educ

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Industrial engg BSc/MSc 262 510 994 1586 2291 3333 4388 5398 6551 7661

Chemical engineer BSc/MSc 786 1529 2981 4759 6872 10000 13163 16193 19653 22984

Mechanical engineer BSc/MSc 131 255 497 793 1145 1667 2194 2699 3275 3831

Electrical engineer BSc/MSc 131 255 497 793 1145 1667 2194 2699 3275 3831

Food processing technologist MSc 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Food process technologist BSc 786 1529 2981 4759 6872 10000 13163 16193 19653 22984

Food Lab BSc 1047 2038 3974 6345 9163 13334 17551 21590 26203 30645

180

Science and Technology Professionals (University graduates )

Fields of study Educ

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

technologist

Nutritionist MSc 262 510 994 1586 2291 3333 4388 5398 6551 7661

Nutritionist BSc 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

food Quality technologist MSc 393 764 1490 2379 3436 5000 6582 8096 9826 11492

Food Production technologist BSc 786 1529 2981 4759 6872 10000 13163 16193 19653 22984

Beverage Production technologist BSc 1047 2038 3974 6345 9163 13334 17551 21590 26203 30645

computer and IS engineer BSC/MSc 262 510 994 1586 2291 3333 4388 5398 6551 7661

Veterinary DVM 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Meat and dairy technologist

MSc 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Meat & dairy technologist

BSc 917 1783 3478 5552 8018 11667 15357 18892 22928 26814

Honey processing tech

BSc 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Poultry technologist BSc 786 1529 2981 4759 6872 10000 13163 16193 19653 22984

Fishery technologist BSc 262 510 994 1586 2291 3333 4388 5398 6551 7661

environmentalist BSC 131 255 497 793 1145 1667 2194 2699 3275 3831

181

Technical support staff

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Electrician III, IV 262 510 994 1586 2291 3333 4388 5398 6551 7661

Plumber III, IV 262 510 994 1586 2291 3333 4388 5398 6551 7661

Welder IV, V 262 510 994 1586 2291 3333 4388 5398 6551 7661

boiler technician IV 262 510 994 1586 2291 3333 4388 5398 6551 7661

waste management IV 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Water treatment tech IV 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

machinist IV 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

182

Management and administration staff

Occupation TVET

level

Year (Eth. Cal.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Business management MBA 524 1019 1987 3172 4582 6667 8776 10795 13102 15323

Business management BA 1047 2038 3974 6345 9163 13334 17551 21590 26203 30645

Financial management BA 1309 2548 4968 7931 11454 16667 21939 26988 32754 38306

Marketing and sales MA 393 764 1490 2379 3436 5000 6582 8096 9826 11492

Marketing and sales management BA 1047 2038 3974 6345 9163 13334 17551 21590 26203 30645

Procurement mgt BSc 262 510 994 1586 2291 3333 4388 5398 6551 7661

Logistics SC mgt BSc 786 1529 2981 4759 6872 10000 13163 16193 19653 22984

HRM BSc 131 255 497 793 1145 1667 2194 2699 3275 3831

Accounting and finance BA 1047 2038 3974 6345 9163 13334 17551 21590 26203 30645

Accounting/ bookkeeping IV 3142 6115 11923 19034 27489 40001 52653 64771 78610 91935

Personnel officer III, IV 131 255 497 793 1145 1667 2194 2699 3275 3831

Purchasers II,IV, 2619 5096 9936 15862 22908 33334 43878 53976 65509 76613

Storekeepers IV 1309 2548 4968 7931 11454 16667 21939 26988 32754 38306

Marketing and sales II,IV 2619 5096 9936 15862 22908 33334 43878 53976 65509 76613

Secretary III, IV, 2619 5096 9936 15862 22908 33334 43878 53976 65509 76613

vehicle drivers III IV 655 1274 2484 3965 5727 8334 10969 13494 16377 19153

183

Annex 2 Chemical and construction inputs

Production staff workforce, Chemical and Construction Inputs Sub sectors for the year 2016-2025

Industry Group level

Production Workforce in the sub-sector for the year 2016-2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry

Basic chemicals processing work I 3648 4195 4945 5854 7281 9144 10714 12188 13858 15431



Polymer processing supervisor IV 541 622 733 867 1079 1355 1587 1806 2053 2286


Sub Total 8107 9322 10988 13009 16179 20319 23808 27084 30794 34290

Rubber Industry






Sub Total 394 409 412 437 488 509 514 579 666 774

Paint Industry


184



Paint processing supervisor IV 31 32 32 32 32 33 33 33 34 34


Sub Total 1407 1435 1446 1450 1461 1488 1493 1503 1512 1520

Soap and Detergent Industry




Soap and Detergent Manufacturing operation supervisor IV 383 391 394 395 417 425 426 429 431 434

chemical products processing management V 192 196 197 198 209 212 213 214 216 217

Sub Total 3643 3715 3745 3755 3966 4036 4049 4075 4098 4119

Pulping and paper making Industry

185






Sub Total 1434 1612 1819 1975 2215 2234 2253 2272 2291 2310

Printing and Graphic Arts Industry

Basic Printing and Graphic arts Service I 2971 2984 3017 3027 3051 3113 3125 3129 3132 3135



Printing and Graphic Arts Supervisor IV 265 266 269 270 272 278 279 279 280 280


186

Sub Total 4323 4343 4391 4405 4440 4531 4548 4554 4558 4563

Glass and Glass products Industry




Glass processing supervisor IV 26 29 33 37 41 46 52 58 65 73

Glass processing management V 7 7 8 9 10 12 13 15 16 18

Sub Total 777 870 974 1091 1222 1369 1533 1717 1923 2154

Cement and cement products Industry






Sub Total 26486 27439 28163 29371 30523 31212 31648 32360 33062 33758

chemical and chemical products Industry

187

Basic chemical processing work I 942 1064 1272 3013 3889 4044 4206 4374 4549 4731



Chemical products processing supervisor IV 121 137 163 387 499 519 540 561 584 607


Sub Total 2384 2693 3217 7622 9838 10232 10641 11067 11509 11970

non metallic minerals Products Industry

prodn. Assistant/helper I 3613 3796 3842 3899 4520 4746 4983 5232 5494 5769



production supervisor IV 128 135 137 139 161 169 177 186 195 205

production manager V 110 116 117 119 138 145 152 159 167 176

Sub Total 5281 5549 5617 5700 6608 6938 7285 7649 8032 8433

Ceramics Industry


Ceramics II 161 171 182 282 393 413 434 455 478 502

188

processing




Sub Total 731 777 823 1276 1783 1872 1965 2063 2167 2275

wood and wood products Industry





Sub Total 3917 4505 5180 5957 6851 7879 9061 10420 11983 13780

Furniture Products Industry







189





Sub Total 6158 6897 7725 8652 9690 10853 12155 13614 15248 17077

Total 66278 70985 761322 86578 97423 105954 113808 122240 131617 141365

Industry Group level

Production Workforce in the sub-sector for the year 2016-2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry






Sub Total 8107 9322 10988 13009 16179 20319 23808 27084 30794 34290

Rubber Industry





190


Sub Total 394 409 412 437 488 509 514 579 666 774

Paint Industry




Paint processing supervisor IV 31 32 32 32 32 33 33 33 34 34


Sub Total 1407 1435 1446 1450 1461 1488 1493 1503 1512 1520





Soap and Detergent Manufacturing operation supervisor IV 383 391 394 395 417 425 426 429 431 434

191


Sub Total 3643 3715 3745 3755 3966 4036 4049 4075 4098 4119







Sub Total 1434 1612 1819 1975 2215 2234 2253 2272 2291 2310


Basic Printing and Graphic arts Service I 2971 2984 3017 3027 3051 3113 3125 3129 3132 3135



192

Printing and Graphic Arts Supervisor IV 265 266 269 270 272 278 279 279 280 280


Sub Total 4323 4343 4391 4405 4440 4531 4548 4554 4558 4563





Glass processing supervisor IV 26 29 33 37 41 46 52 58 65 73

Glass processing management V 7 7 8 9 10 12 13 15 16 18

Sub Total 777 870 974 1091 1222 1369 1533 1717 1923 2154






193


Sub Total 26486 27439 28163 29371 30523 31212 31648 32360 33062 33758


Basic chemical processing work I 942 1064 1272 3013 3889 4044 4206 4374 4549 4731



Chemical products processing supervisor IV 121 137 163 387 499 519 540 561 584 607


Sub Total 2384 2693 3217 7622 9838 10232 10641 11067 11509 11970


prodn. Assistant/helper I 3613 3796 3842 3899 4520 4746 4983 5232 5494 5769



production supervisor IV 128 135 137 139 161 169 177 186 195 205

194

production manager V 110 116 117 119 138 145 152 159 167 176

Sub Total 5281 5549 5617 5700 6608 6938 7285 7649 8032 8433

Ceramics Industry


Ceramics processing II 161 171 182 282 393 413 434 455 478 502




Sub Total 731 777 823 1276 1783 1872 1965 2063 2167 2275






Sub Total 3917 4505 5180 5957 6851 7879 9061 10420 11983 13780





195

Engineering and Natural sciences supportive professional workforces‟ requirement, chemical and Construction inputs sector for the

year 2016-2025

Field of Study Qualification

Eng. and Natural science Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry

Industrial Engineering Bsc 135 155 183 217 270 339 397 451 513 572

Mechanical Engineering Bsc 135 155 183 217 270 339 397 451 513 572

Sub Total 270 311 366 434 539 677 794 903 1027 1143

Rubber Industry








Sub Total 6158 6897 7725 8652 9690 10853 12155 13614 15248 17077

Total 66278 70985 761322 86578 97423 105954 113808 122240 131617 141365

196

Applied chemistry Bsc 3 4 4 4 4 4 5 5 6 7

Chemical Eng. Bsc 23 24 24 26 29 30 30 34 39 45

chemistry Bsc 15 16 16 17 19 19 20 22 25 29

Electrical Eng. Bsc 10 11 11 12 13 13 14 15 18 20

Industrial chemistry Bsc 6 6 6 6 7 7 8 8 10 11

Industrial Eng. Bsc 2 2 2 3 3 3 3 3 4 5

IT Bsc 2 2 2 3 3 3 3 3 4 5

Mechanical Eng. Bsc 21 22 22 23 26 27 27 30 35 41

Public health Bsc 3 4 4 4 4 4 5 5 6 7

Sub Total 86 90 90 96 107 112 113 127 146 170

Paint Industry

Chemical Eng. Bsc 10 11 11 11 11 11 11 11 11 11

IT Bsc 10 11 11 11 11 11 11 11 11 11

Chemistry Bsc 250 255 257 258 260 264 265 267 269 270

Sub Total 271 276 279 279 281 286 287 289 291 293


Chemical Eng. MSC 64 65 66 66 70 71 71 71 72 72

Chemical eng. & Chemistry MSC 383 391 394 395 417 425 426 429 431 434

Bio Chem./Chemistry Bsc 128 130 131 132 139 142 142 143 144 145

Chemical Eng. Bsc 192 196 197 198 209 212 213 214 216 217

Civil Eng. Bsc 64 65 66 66 70 71 71 71 72 72


Mechanical Eng. Bsc 575 587 591 593 626 637 639 643 647 650

Sub Total 1470 1499 1511 1515 1600 1628 1634 1644 1654 1662


Chemical eng. Msc 24 27 31 34 38 38 38 39 39 39

Chemical eng. Bsc 24 27 31 34 38 38 38 39 39 39

197

Design and graphics Bsc 24 27 31 34 38 38 38 39 39 39

Electrical eng. Bsc 24 27 31 34 38 38 38 39 39 39

environmental s. Bsc 8 9 10 11 13 13 13 13 13 13

Ind. Chemistry Bsc 33 37 41 45 50 51 51 52 52 53

IT BSC 23 26 29 31 35 36 36 36 36 37

IT MSC 10 11 12 13 15 15 15 15 16 16

Mechanical eng. Bsc 49 55 62 67 76 76 77 77 78 79

Sub Total 220 247 279 303 340 343 346 349 352 354



IT Bsc 53 53 54 54 54 56 56 56 56 56

printing Technology Msc 28 28 28 28 28 29 29 29 29 29

Sub Total 107 108 109 109 110 112 113 113 113 113


Chemistry Bsc 0 0 0 0 0 0 0 0 0 0

Industrial Eng. Bsc 0 0 0 0 0 0 0 0 0 0

IT Bsc 0 0 0 0 0 0 0 0 0 0

Sub Total Bsc 0 0 0 0 0 0 0 0 0 0


Chemical engineering Bsc 36 38 39 40 42 43 43 44 45 46

Civil engineering Bsc 36 38 39 40 42 43 43 44 45 46

electrical and electronics Bsc 128 133 137 142 148 151 153 157 160 164

Electrical Eng. BSC 170 176 181 189 196 201 203 208 212 217

environmental Science Msc 9 9 9 10 10 10 10 11 11 11

IT Bsc 65 67 69 72 75 76 77 79 81 83

198

IT MSC 9 9 9 10 10 10 10 11 11 11

Mechanical Eng. BSC 159 165 169 177 183 188 190 194 199 203

Water resource & enviro. Bsc 46 48 49 51 53 54 55 56 58 59

Sub Total 659 682 700 730 759 776 787 805 822 840


Applied Chemistry BSC 97 110 131 311 401 417 434 451 469 488

Chemical Engineering M.S.C 8 9 11 25 33 34 35 37 38 40

Chemistry Bsc 35 40 47 112 145 150 156 163 169 176

Chemical Engineering Bsc 45 51 61 144 187 194 202 210 218 227

Chemistry M.S.C 8 9 11 25 33 34 35 37 38 40

Civil Engineering BSC 16 18 21 51 65 68 71 73 76 79

Electrical eng. BSC 49 55 66 155 200 209 217 226 235 244

Electricity BSC 8 9 11 25 33 34 35 37 38 40

Industrial Chemistry BSC 8 9 11 25 33 34 35 37 38 40

IT Bsc 8 9 11 25 33 34 35 37 38 40

Mechanical Eng. BSC 64 73 87 206 266 276 287 299 311 323

Sub Total 346 391 467 1105 1427 1484 1543 1605 1669 1736


Stat Bsc 18 19 20 20 23 24 25 27 28 29

Geologist Bsc 18 19 20 20 23 24 25 27 28 29

Automotive Techno. Bsc 37 39 39 40 46 48 51 53 56 59

Electrical Bsc 73 77 78 79 92 96 101 106 112 117

Mechanical Bsc 92 96 98 99 115 120 126 133 139 146

Civil Bsc 55 58 59 59 69 72 76 80 84 88

Industrial eng. Bsc 18 19 20 20 23 24 25 27 28 29

IT Bsc 18 19 20 20 23 24 25 27 28 29

199

Sub Total 330 347 351 356 413 434 455 478 502 527

Ceramics Industry

Chemistry Bsc 4 5 5 8 11 11 12 12 13 14

Civil Bsc 4 5 5 8 11 11 12 12 13 14

Electrical Bsc 10 10 11 17 24 25 27 28 29 31

Geologist Bsc 10 10 11 17 24 25 27 28 29 31

Industrial eng. Bsc 8 8 9 13 19 20 21 22 23 24

IT Bsc 2 2 2 4 5 6 6 6 7 7

Mechanical Bsc 2 2 2 4 5 6 6 6 7 7

Sub Total 41 43 46 71 99 104 109 115 120 126




Sub Total 27 31 35 41 47 54 62 71 82 94



Electrical engineering MSC 15 16 18 21 23 26 29 32 36 41

Electrical engineering BSC 29 33 37 41 46 52 58 65 73 81


Sub Total 117 131 147 165 185 207 232 259 290 325

Total 3944 4156 4380 5205 5907 6217 6474 6758 7068 7384

200

Number of TVET Technical workforces, chemical and construction inputs sector for the year 2021-2025

Occupation Level

TVET Technical Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry



Electrician II 284 326 385 455 566 711 833 948 1078 1200

Electrician III 662 761 897 1062 1321 1659 1944 2212 2515 2800

Machinist II 203 233 275 325 405 508 596 677 770 858

Machinist III 608 700 825 976 1214 1525 1787 2032 2311 2573

Welder II 54 62 73 86 107 135 158 180 205 228

Welder III 81 93 110 130 161 203 237 270 307 342

Sub Total 3243 3729 4396 5204 6473 8129 9525 10835 12320 13718

Rubber Industry


carpentry III 1 1 1 1 1 1 2 2 2 2

drafting III 1 1 1 1 1 1 2 2 2 2

Electricity III 38 39 40 42 47 49 50 56 64 75



ICT III 10 11 11 12 13 13 14 15 18 20

machinist III 7 7 7 8 9 9 9 10 12 14

masonry III 3 4 4 4 4 4 5 5 6 7

Painter III 3 4 4 4 4 4 5 5 6 7

plumber III 1 1 1 1 1 1 2 2 2 2

Surveying III 2 2 2 3 3 3 3 3 4 5

Welder II 6 6 6 6 7 7 8 8 10 11

Welder III 7 7 7 8 9 9 9 10 12 14

Sub Total 173 179 181 192 214 223 225 254 292 340

201

Paint Industry


machinist III 10 11 11 11 11 11 11 11 11 11


Electricity III 10 11 11 11 11 11 11 11 11 11

Sub Total 83 85 86 86 87 88 88 89 90 90


Carpentry II 128 130 131 132 139 142 142 143 144 145

Electricity II 156 159 161 161 170 173 174 175 176 177

Electricity III 291 297 299 300 317 322 323 326 327 329

General Mechanic III 320 326 328 329 348 354 355 357 360 361

machinist III 64 65 66 66 70 71 71 71 72 72

Plumber II 128 130 131 132 139 142 142 143 144 145

Sub Total 1086 1108 1117 1120 1183 1204 1207 1215 1222 1228


Auto mechanic II 21 24 27 30 33 33 34 34 34 35


carpentry III 12 13 15 16 18 18 19 19 19 19

Masonry III 13 14 16 18 20 20 20 20 21 21

drafting III 8 9 10 11 13 13 13 13 13 13

electricity II 111 125 141 154 172 174 175 177 178 180

electricity III 206 231 261 283 318 321 323 326 329 332

General mechanic I 49 55 62 67 76 76 77 77 78 79



IT II 33 37 41 45 50 51 51 52 52 53

plumber III 24 27 31 34 38 38 38 39 39 39

Sub Total 904 1016 1146 1245 1397 1409 1421 1433 1445 1457

202


Auto mechanic II 21 21 21 22 22 22 22 22 22 22


drafting II 16 16 16 16 16 17 17 17 17 17

drafting III 37 37 38 38 38 39 39 39 39 39

electricity II 37 37 38 38 38 39 39 39 39 39

electricity III 69 69 70 70 71 72 72 72 72 73



IT II 12 12 12 12 12 12 12 12 12 12

IT III 16 16 16 16 16 17 17 17 17 17

Sub Total 398 400 404 405 409 417 418 419 419 420


Electricity III 57 64 72 80 90 101 113 126 141 158


IT III 13 15 16 18 21 23 26 29 33 36

Sub Total 109 123 137 154 172 193 216 242 271 304

Cement and cement product Industry

Auto electricity II 8 8 8 9 9 9 9 9 10 10

Auto electricity III 11 11 12 12 13 13 13 13 14 14

Auto mechanic II 71 74 76 79 82 84 85 87 89 91


Electricity II 26 27 28 29 30 31 31 32 33 34

Electricity III 59 61 63 66 68 70 71 72 74 76



welder II 25 26 27 28 29 30 30 31 32 32

203

welder III 60 63 64 67 70 71 72 74 75 77

Sub Total 490 507 521 543 564 577 585 598 611 624


Auto mechanic II 2 3 3 7 9 10 10 10 11 11


Bricks Laying II 8 9 11 25 33 34 35 37 38 40

carpentry III 8 9 11 25 33 34 35 37 38 40

construction technology III 8 9 11 25 33 34 35 37 38 40

electricity II 124 140 168 397 513 533 555 577 600 624

electricity III 229 259 310 733 947 984 1024 1065 1107 1152



IT III 16 18 21 51 65 68 71 73 76 79

Machinist II 6 6 8 18 23 24 25 26 27 28

Machinist III 10 11 14 33 42 44 45 47 49 51

Mechanic II 82 93 111 264 340 354 368 383 398 414

Mechanic III 151 171 204 484 625 650 676 703 731 760

welder II 18 20 24 58 75 78 81 84 87 91

welder III 31 34 41 98 126 131 136 142 147 153

Sub Total 804 909 1086 2572 3320 3453 3591 3734 3884 4039


Auto mechanic II 45 47 48 49 56 59 62 65 69 72


Carpentry II 18 19 20 20 23 24 25 27 28 29

electricity II 52 54 55 56 65 68 71 75 79 83

electricity III 77 81 82 83 96 101 106 112 117 123

IT II 55 58 59 59 69 72 76 80 84 88

Machinist II 13 14 14 14 17 17 18 19 20 21

204

Machinist III 23 24 25 25 29 30 32 33 35 37

Masonry II 116 121 123 125 145 152 159 167 176 184

Masonry III 215 225 228 232 268 282 296 311 326 343



plumber II 18 19 20 20 23 24 25 27 28 29

welder II 22 23 23 24 28 29 30 32 33 35

welder III 33 35 35 36 41 43 46 48 50 53

Sub Total 1302 1368 1385 1405 1629 1710 1796 1886 1980 2079

Ceramics Industry

IT II 8 8 9 13 19 20 21 22 23 24

Auto mechanic II 8 8 9 13 19 20 21 22 23 24


electricity II 5 6 6 10 13 14 15 15 16 17

electricity III 11 12 12 19 27 28 30 31 33 34



Machinist II 2 2 2 4 5 6 6 6 7 7

Machinist III 2 2 2 4 5 6 6 6 7 7

plumber II 2 2 2 4 5 6 6 6 7 7

welder III 3 3 4 6 8 8 9 9 10 10

welder III 4 5 5 8 11 11 12 12 13 14

Sub Total 130 138 146 226 316 332 348 366 384 403


Auto mechanic I 54 62 71 82 94 108 124 143 164 189

Auto mechanic IV 54 62 71 82 94 108 124 143 164 189

Electricity I 241 278 319 367 422 486 559 642 739 849

Electricity IV 80 93 106 122 141 162 186 214 246 283

205

General mechanic I 751 864 994 1143 1314 1511 1738 1998 2298 2643


IT IV 80 93 106 122 141 162 186 214 246 283

IT III 54 62 71 82 94 108 124 143 164 189

Nursing III 80 93 106 122 141 162 186 214 246 283

machinist I 54 62 71 82 94 108 124 143 164 189

Metal work I 27 31 35 41 47 54 62 71 82 94

Metal work II 27 31 35 41 47 54 62 71 82 94

Sub Total 1610 1851 2129 2448 2816 3238 3724 4282 4924 5663



Electricity/Electronics I 29 33 37 41 46 52 58 65 73 81

Electricity/Electronics II 59 66 74 82 92 103 116 130 145 163

Electricity/Electronics IV 103 115 129 144 162 181 203 227 254 285

General mechanics I 381 427 478 536 600 672 752 843 944 1057

General mechanics III 161 181 202 227 254 284 318 357 399 447

IT IV 161 181 202 227 254 284 318 357 399 447

IT III 29 33 37 41 46 52 58 65 73 81

machinist I 235 263 294 330 369 413 463 519 581 651

machinist II 29 33 37 41 46 52 58 65 73 81

machinist III 44 49 55 62 69 78 87 97 109 122

machinist IV 59 66 74 82 92 103 116 130 145 163

Metal work I 59 66 74 82 92 103 116 130 145 163

Metal work II 59 66 74 82 92 103 116 130 145 163

Textile and garment IV 29 33 37 41 46 52 58 65 73 81

Water technologist IV 29 33 37 41 46 52 58 65 73 81

pestering IV 29 33 37 41 46 52 58 65 73 81

Sub Total 1906 2135 2391 2678 2999 3359 3762 4214 4720 5286

206

Total 12239 13548 15124 18279 21577 24331 26907 29567 32561 35650

Profession Qual. /Level

Social Science and admin Workforce in the sub-sector for the year 2016-2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Plastic Industry



Management BA 122 140 165 195 243 305 357 406 462 514


marketing and sales BA 65 75 88 104 129 163 190 217 246 274

accounting III-IV 1513 1740 2051 2428 3020 3793 4445 5056 5749 6401

management III-IV 324 373 440 520 647 813 952 1083 1232 1372



others 4189 4817 5677 6722 8360 10499 12302 13994 15911 17717

sub total 7297 8390 9890 11709 14562 18288 21429 24377 27716 30862

Rubber Industry



Management BA 7 8 8 8 9 9 9 11 12 14



Accounting IV 28 29 30 31 35 36 37 41 48 55

HR management IV 6 6 6 7 7 8 8 9 10 12



207

others 162 169 170 180 201 210 212 239 274 319

sub total 252 262 264 280 312 326 329 371 426 496

Paint Industry


Management BA 117 120 121 121 122 124 124 125 126 127


Marketing and sales BA 63 64 64 64 65 66 66 67 67 68


Management III-IV 72 73 74 74 75 76 76 77 77 78



others 1021 1041 1050 1053 1060 1080 1084 1091 1097 1103

sub total 2283 2328 2346 2353 2370 2413 2422 2438 2453 2465




Management BA 201 205 207 207 219 223 224 225 226 228




HR management III-IV 307 313 315 316 334 340 341 343 345 347



others 2940 2998 3022 3030 3201 3257 3268 3289 3307 3324

sub total 6392 6517 6570 6588 6959 7081 7104 7150 7191 7227

208




Management BA 77 87 98 106 119 120 121 122 123 124







others 465 522 589 640 717 724 730 736 742 748

sub total 1206 1356 1529 1661 1863 1879 1895 1911 1927 1943




Management BA 139 140 141 142 143 146 146 147 147 147







others 796 799 808 811 817 834 837 838 839 840

sub total 2334 2344 2370 2378 2397 2446 2455 2458 2460 2463

Glass and Glass

209

products Industry


Management BA 6 6 7 8 9 10 11 13 14 16






others 123 138 155 173 194 217 243 272 305 342

sub total 171 192 215 241 270 302 338 379 424 475

Cement and cement product Industry

Economics PhD 5 6 6 6 6 6 7 7 7 7



Management BA 206 213 219 228 237 242 246 251 257 262







others 10235 10603 10882 11349 11795 12061 12229 12505 12775 13045

sub total 12544 12996 13338 13911 14456 14782 14989 15327 15659 15988



210


Management BA 45 51 60 143 185 192 200 208 216 225





Purchasing and procurement III-IV 16 18 22 52 68 70 73 76 79 82


others 1313 1483 1772 4198 5418 5635 5860 6095 6338 6592

sub total 1886 2130 2545 6029 7782 8093 8417 8754 9104 9468




Management BA 83 87 88 89 103 108 114 120 125 132



Accounting II 154 162 164 166 193 202 212 223 234 246

Accounting IV 231 243 246 249 289 304 319 335 351 369

HR management II 66 69 70 71 83 87 91 96 100 105

HR management IV 50 52 53 53 62 65 68 72 75 79



others 3172 3334 3374 3424 3969 4168 4376 4595 4825 5066

sub total 4291 4509 4564 4632 5369 5637 5919 6215 6526 6852

Ceramics Industry

211



Management BA 11 11 12 19 26 27 29 30 32 33







others 412 437 463 719 1004 1054 1107 1162 1220 1281

sub total 557 591 626 971 1357 1425 1496 1571 1649 1732



Management BA 60 69 80 92 106 121 140 161 185 212



Accounting I 54 62 71 82 94 108 124 143 164 189





others 1529 1759 2022 2326 2675 3076 3537 4068 4678 5380

sub total 2602 2993 3442 3958 4552 5235 6020 6923 7961 9155

Bamboo & Furniture Products Industry


212


Management BA 235 263 294 330 369 413 463 519 581 651







Accounting I-II 92 103 116 130 145 163 182 204 229 256

purchasing and procurement I-II 92 103 116 130 145 163 182 204 229 256

marketing and sales I-II 79 89 99 111 125 140 156 175 196 220

others 2141 2398 2685 3008 3369 3773 4225 4733 5300 5936

sub total 4179 4680 5242 5871 6576 7365 8248 9238 10347 11588

Total 45994 49288 52941 60580 68823 75273 81061 87110 93843 100715

213

Annex 3: Respondents for priority manufacturing sector

Macro Level Respondents

1. Ministry of Industry

2. Ministry of Education

3. National Planning Commission

4. Investment Agency

5. FEMSEDA

6. Leather Industry Development Institute

7. Textile Industry Development Institute

8. Metal and Engineering Industry Development Institute

9. Construction and construction inputs Industry Development Institute

10. Food, Beverages and Pharmaceutical Industry Development Institute

11. METEC Corporation Directors

12. CIC Corporation Directors

13. National Chamber of Commerce

14. Addis Ababa Chamber of Commerce

Respondents of Leather sector

No. Participants Name Name of the company Types of data

collection

1 Mr. Wondu Leggese LIDI Interview

2 Tigist H/giorgis COMESA/LLPI FGD

3 SALPI Nalbandian Bale PLC FGD

214

4 Ayele Admasu Ethiopian Tannary FGD

5 Tesfaye Beyene OK Jamaica Shoes FGD

6 Birhanu Churko Hafede PLC FGD

7 Tesfaye Kumsa Pittards product FGD

8 Simeneh Abebe Entoto TVET college FGD

9 Hailekiros LIDI FGD

10 Taye Tibebu LIDI FGD

11 Mr. Alemayehu Waliya Interview

12 Mr. Gebre Mojo Tannary Observation and

discussion

13 Huajian industry park Observation and

discussion

14 Bole Lemi Park Observation and

discussion

15 Mr. Urga Hora Tannery Interview

16 Mr. Shibru + MoI Interview

17 Tsegaye LIDI Interview

18 Awash Tannery (ELICO) (A.A) Secondary data

19 Ethiopian Tannery (Ejersa) Secondary data

20 Anbesa shoe (A.A) Secondary data

21 Tikur Abay (A.A) Secondary data

22 Pittadrs Global sourcing /product manufacturing Secondary data

23 Universal leather (ELICO) Secondary data

Pharmaceutical sector respondents

1. Ethiopian investment agency

2.FMHACA

3.PFSA

215

4. Ethiopian pharmaceuticals and Medical supplies association

5Ethiopian Cosmetics association

6. World Health Organization-Ethiopia Head Office

7. EPHARM

8. Cadila pharmaceuticals Coltd

9 Sino Ethiopia pharmaceuticals

10. Zineth Gebeshet Cosmetics company

11.Mekab pharmaceuticals

12. Ethiopian pharmacists association

13. Ministry of Health

14. Food, Beverage and pharmaceuticals industry development Institute

15. Pharmacure pharmaceuticals Coltd

16. Julphare Pharmaceuticals

17.FAl medicals supply Coltd

18 ASMi Plc

19. Dengel orthopedics plc

20 fanos Med.Tech PLC

21. National veterinary institute

22. East African Pharmaceuticals‟

23. Medisol PLC

216

Respondents for Metal and Engineering sector

S/N Macro Level Informants Description of their involvement in the sub-sector

1 Ministry of Industry (MOI) Leading the manufacturing sector

2 Metals Industry

Development Institute

(MIDI)

Capacity building, consultation, facilitation, Provide

practical training, conduct researchon the sub-sectors,

participates in revision and setting up of standards

3 Ethiopian Association of

Basic Metal and

Engineering Industries

(EABMEI)

Organizes and facilitates Bazaar and exhibition,

Consultation, Takes initiative

4 Ministry of Education

(MOE)

Providing skilled man power

5 Federal Technical,

Vocational and Educational

Training Agency

(FTVETA)

Providing technical training

6 Metal and Engineering

Corporation (METEC)

Manufactures spare parts (dies, machinery spare parts etc.)

7 Ethiopian Geological

Survey (EGS)

Regulates private ore explorers

Ore reserve calculations and metallurgical test work(bulk

sampling)

8 Private Ore Explorers

(POE)

Environmental base line study, impact on local, social and

environmental issues

Ore reserve calculations and metallurgical test work(bulk

sampling)

217

Organizing the geological data

9 Ethiopian Standard Agency

(ESA)

Prepares /sets standards

10 Ethiopian Conformity

Assessment Enterprise

(ECAE)

Checks/tests products against the standards

11 Ethiopian National

Accreditation Office

(ENAO)

Product Certification

12 Ministry of Trade (MOT) Regulating the merchandising activities such as pricing and

distribution channels, Just business ethics

Regulating the standard of the product

13 Chamber of Commerce Advocacy , market linkage ,consultation

14 Machinery and Equipment

Suppliers

Machinery and equipments Supply

Supply machines , measuring instruments, tools, coolants

oils and other accessories

Providing component parts.

Supply Instruments, chemicals, compressors etc.

15 Custom Authority Inspection , storing and Checking of the product for

clearance based on customs regulations

16 Ministry of Foreign Affairs Advocacy , market linkage, foreign investment attraction

Respondents of Textile and Garment

1. Micro level Interview

218

SN Company/Factory Name Type of Company/Factory Name of interviewee

1 Bahirdar Textile S.C. Integrated Ato .Abay Melaku

2 Bahirdar university University Ato Addisu Ferede

3

Department Directors of ETIDI Government office 1. Ato Yitbarek,

2. Ato Enawegaw,

3. Ato Fiker

4. Ato Seyum

2. Companies for the Checklist

SN Company/Factory Name Type of Company/Factory

1 Omo Valley Cotton Ginning P.L.C. Ginning

2 Shoa Cotton Ginning P.L.C. Ginning

3 Saygin Dima Textile Share Company Spinning, weaving and chemical processing

4 Ayka Addis investment Group Spinning, weaving and chemical processing

5 Knit To Finish P.L.C.(Garment Express) Garment

6 NovaStar Garment Factory P.L.C. Garment

7 Else Addis Industrial Development P.L.C. Integrated

8 Adama Development P.L.C. Spinning

219

SN Company/Factory Name Type of Company/Factory

9 Kombolcha Textile S.C. Chemical Processing

10 Bahirdar Textile S.C. Chemical Processing

3. Textile sector for Focus Discussion

SN Company Name Type

1 Almeda Textile P.L.C. Integrated

2 Ayka Addis Textile P.L.C. Integrated

3 Kombolcha Textile S.C. Integrated

4 Kebire Enterprise (Maa Garment and Textile)P.L.C. Integrated

5 Yirgalem Addis Textile P.L.C. Integrated

6 Saygin Dima Textile S.C. Integrated

7 Addis Garment S.C.(Augusta) Garment

8 Akaki Garment S.C. Garment

9 Ambassador Garment and Trading P.L.C. Garment

10 Concept International Ethiopia P.L.C. Garment

11 Eliyas Textile and Garment Factory P.L.C. Garment

220

12 Knit To Finish P.L.C.(Garment Express) Garment

13

NovaStar Garment Factory P.L.C. Garment

14

Ethiopian Sewing Thread Factory Accessory

1 Al-Asr Industries P.L.C. Textile/Fabric

2 D.H.Geda Blanket Factory P.L.C. Textile/Fabric

3 Ferke Factory P.L.C. Textile/Fabric

4 M.N.S. Manufacturing P.L.C. Textile/Fabric

5 Omo Valley Cotton Ginning P.L.C. Ginning

6 GebreSelam Cotton Ginning P.L.C. Ginning

7 Ture Cotton Ginning P.L.C. Ginning

8 Ato Shewaferaw Personal

9 Ato Kastro Jimma Association

10 Ethiopian Cotton Manufacturer, Exporter and Ginners

Association

Association

Respondents of Food and Beverage Sector

No Respondents of Food and Beverage Sector

1 Nigussie G/M

2 Amare Seifu

221

3 Muluneh G/Kidan

4 Feleke Sibhatu

5 FMHACA

6 A.A. University Food processing department

7 A.A. science and Technology University STU

8 Ethiopian Chamber of commerce

9 Hotel and Tourism College

10 Modjo Edible Oil (Ato Abraham

11 Kality Food Share company

12 Hora Food Complex ( Ato Ahmed

13 Fafa food Sc (Dr. Birhanu )

14 Zeratsion

15 Awash Winery

16 Abyssinia Water PLC

17 St. George Brewery

18 Pico-Juice plc

19 Ato Dandena Chmeada, Ministry of Industry

20 Ato Elias Genete, A.A Chamber of Commerce

21 Ato Aseged Adane , UNIDO

22 Ato Belete Beyene, Affairs diree

23 W/O Yehuale work, Ministry of Industry

24 W/O Misrak, UN Women

222

Respondents of Chemical and Construction Inputs sector

s/n Name Sctor

1 Ato Samuel Halala Chemical and construction Inputs

2 Ato Yonas Abate Chemical and construction Inputs

3 Ato Menigistu Gelan Chemical and construction Inputs

4 Ato Bogale Feneta Chemical and construction Inputs

5 Ato Bahilibi Demoz Chemical and construction Inputs

6 W/ro Birtukan Eshete Chemical and construction Inputs

8 Ato MuluGeta Debella Alkayed resign

9 Ato Birihanu Lema Repi soap and detergent

10 Ato Tadesse Tesfaye East cement

11 Ato Mehari Yalew Muger

12 Mr. Rajevee Shareman Anmol industry(paper)

s/n Name Sector

1 Ato Mekonene Zeregaw Chemical corporation

2 Ato Haile Assegeda Derba cement

3 Eng. Mesfin Abe Habesha

4 Ato Bekele Tsegaye Bekas chemicals

5 Ato Wondesen Teka Excell plastic

6 Mr. Xiao yong Hansom glass

7 Ato Teka Abadi Birhanina selam

8 Eng. Melaku Kebede Ethiopia pulp and paper

9 Eng. Baso Assefa National cement

10 Mr. Belay Debebe Sedal Marble production Plc

11 Ato Getachew Ekubai Mesobo Cement

223

12 Ato Tewolde G/michael Ethio polymenr

13 Ato Admasu Adane Addis foam and plastic

14 Ato Daniel Tsehaye Horizon tyre

15 Ato Endalkachew Teka The Bhere selam printing

16 Ato Fikadu Tafa Sara bottle

17 Ato Sinshaw Alamrew Chemical Corporation

18 Ato Adane Berhe Adal Industrial PlC

19 Wro Freweini B/Meskel Kadisco

List of sample industries selected for data collection

1. Awash Melkasa aluminium sulphate and sulphuric acid S.C

2. Caustic Soda Share Company

3. Zemili Paint Factory

4. Nifas silk paint factory

5. Repi Soap and Detergent .C

6. Stars Soap and Detergent PLC

7. Alkayed resign PLC

8. Ghion Industrial Chemical Sector PLC

9. Horizon Addis Tyre S.C

10. Excel plastic PLC

11. Oxford Amalgamated PLC

12. Addis Ababa Foam and Plastic Factory

13. Ethiopia Plastic Share Company

14. Geosynthetics Industrial work PlC

15. Ethiopian Pulp and Paper Share Company

16. Yekatit paper production

17. Burayu Packaging And Printing Industry

18. Berhanena Selam Printing Enterprise

19. Artistic printing enterprise

http://ethiopia.yellowpg.com/listings/et1427894-burayu-packaging-and-printing-industry

http://www.google.com.et/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&ved=0CEAQFjAI&url=http%3A%2F%2Fethioshoppingdirectory.com%2Fcompany.php%3Faction%3Ddetail%26cmpid%3D2354&ei=7GFiVJKsM-ea7gbp3YDIBQ&usg=AFQjCNEHQ4ihwlM8ASJy78M-mh1kwWXLjw&bvm=bv.79189006,d.ZGU

224

20. Bole Printing Enterprise

21. Addis Abeba Bottle & Glass Factory

22. Ethiopian Hansom International Glass Plc

23. Tabor Ceramics

24. Muger cement enterprise

25. Derba medirock cement plc

26. Mesobo cement factory

27. Zenebe Frew

28. Ethiopia marble PLC

29. National mining corporation

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