The government is preparing a new law that will facilitate the establishment of dedicated chambers of commerce for manufacturing industries. This legislation will also outline the criteria and conditions for the growth and expansion of manufacturing sectors.
Under the new rules, chambers of manufacturing industries and sectoral associations will be allowed to form at the district and city levels. This departure from the traditional approach will separate trade businesses from manufacturing industries, giving them their own dedicated chambers.
Additionally, the legislation will introduce a system where manufacturing industries can “graduate” in size once a year, provided they meet specific requirements. A small manufacturing industry can achieve medium status by increasing its capital to a minimum of 10 million birr, employing at least 51 people, and having at least 40 percent of its assets in permanent property.
To be eligible for graduation, annual transactions of the manufacturing industry must exceed 10 million birr, with a net profit of at least 21 percent. Moreover, industries seeking to graduate will also need to meet capacity utilization and domestic input sourcing requirements.
Source: Reporter, May 4, 2024
