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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
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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
Pharmaceuticals Manufacturing
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)
S.N Occupation Level 2021 2022 2023 2024 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
Pharmaceuticals Manufacturing
Supervision IV 1004 1264 1520 1820 2124
5
Pharmaceuticals Manufacturing
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)
S.N Occupation Level 2016 2017 2018 2019 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)
S.N Occupation Level 2021 2022 2023 2024 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
5 Mechanical Engineer BSC 108 135 162 196 231
6 Mechanical Engineer MSC 65 86 105 128 149
7 Industrial Engineer BSC 66 87 106 130 151
8 Industrial Engineer MSC 63 84 103 127 148
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
6 26/1 100% Cotton Yarn
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
11 36/1 100% Cotton Yarn
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
S.N Occupation Level 2016 2017 2018 2019 2020
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
Textile Technology and
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
10 Mechanical Engineer BSC 435 481 511 625 752
11 Industrial Engineer BSC 234 380 411 425 452
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)
S.N Occupation Level
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
Textile Technology and
Production Supervisor IV 12697 15081 17723 20238 22718
9
Textile Technology and
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
Source: Estimated by the study team
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)
S.N Occupation Level
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
10 Mechanical Engineer BSC 779 806 933 1060 1387
11 Industrial Engineer BSC 479 506 531 558 585
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
Source: Estimated by the study team
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
Source: Estimated by the study team
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
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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
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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
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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
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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.
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Table 43: Footwear sub-sector HR projection for the year 2016-2020
No. Occupational Standard
Names
OS or
Education
level
2015
employee
profile
Projected No. of Employees
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
6 Accounting and Finance BA 187 463 876 1442 2062 2813
7 Accounting and Finance IV 345 854 1615 2659 3803 5188
8 General Mechanics IV 19 47 89 147 210 286
9 General Mechanics III 93 230 435 717 1025 1398
10 Electricity III 56 139 262 432 617 842
11 Mechanical Engineering BSC 19 47 89 147 210 286
12 Electrical Engineering BSC 19 47 89 147 210 286
13 Industrial Engineering BSC 19 47 89 147 210 286
14 HR expert BA 75 186 351 578 827 1129
15 Marketing and Sales
management expert III 56 139 262 432 617 842
16 Marketing and Sales
management expert BA 933 2310 4367 7191 10286 14031
17 Purchasing and Supplies
Management expert BA 187 463 876 1442 2062 2813
18 Purchasing and Supplies
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
22 Planning (economist) BA 28 69 131 216 309 421
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
Projected No. of Employees
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
3 Leather Garments and Goods
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
6 Accounting and Finance BA 82 260 477 775 1098 1490
7 Accounting and Finance IV 27 87 159 258 366 497
8 General Mechanics IV 14 43 80 129 183 248
9 General Mechanics III 41 130 239 387 549 745
10 Electricity III 27 87 159 258 366 497
11 Mechanical Engineering BSC 14 43 80 129 183 248
12 Electrical Engineering BSC 14 43 80 129 183 248
13 Industrial Engineering BSC 14 43 80 129 183 248
14 HR Management expert BA 27 87 159 258 366 497
15 Marketing and Sales
management expert III 27 87 159 258 366 497
16 Marketing and Sales
management expert BA 286 909 1667 2705 3834 5203
17 Purchasing and Supplies
Management expert III 68 217 398 645 915 1242
18 Purchasing and Supplies
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
22 Planning (economist) BA 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
Projected No. of Employees
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
5 Accounting and Finance BA 280 577 646 725 814 915
6 Accounting and Finance IV 58 119 134 150 168 189
7 General Mechanics IV 70 145 163 183 205 230
8 Auto Mechanics III 58 119 134 150 168 189
9 General Mechanics III 304 746 836 938 1053 1183
10 Electricity III 128 264 296 333 373 419
11 Mechanical Engineering BSC 47 95 107 120 135 151
12 Electrical Engineering BSC 35 72 80 90 101 114
13 Industrial Engineering BSC 35 72 80 90 101 114
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
18 Purchasing and Supplies
expert BA 163 336 377 423 474 533
19 Purchasing and Supplies
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
23 Planning (economist) BA 35 72 80 90 101 114
24 Quality control III 35 72 80 90 101 114
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
Projected No. of Employees
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
6 Accounting and Finance BA 187 3918 5037 6110 7328 8505
7 Accounting and Finance IV 345 7226 9291 11268 13515 15685
8 General Mechanics IV 19 399 513 622 746 866
9 General Mechanics III 93 1947 2504 3036 3642 4227
10 Electricity III 56 1173 1508 1829 2194 2546
11 Mechanical Engineering BSC 19 399 513 622 746 866
12 Electrical Engineering BSC 19 399 513 622 746 866
13 Industrial Engineering BSC 19 399 513 622 746 866
14 HR Management expert BA 75 1572 2021 2451 2940 3412
15 Marketing and Sales
management expert III 56 1173 1508 1829 2194 2546
16 Marketing and Sales
management expert BA 933 19543 25127 30474 36552 42421
17 Purchasing and Supplies
Management expert BA 187 3918 5037 6110 7328 8505
18 Purchasing and Supplies
Management expert III 47 985 1267 1537 1843 2139
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
22 Planning (economist) BA 28 587 754 915 1097 1273
23 Quality control III 37 774 995 1207 1448 1681
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.
Occupational Standard
Names
OS level
or
Educati
on level
2015
employee
profile
Projected No. of Employees
2021 2022 2023 2024 2025
Production Staff 79994 102553 124197 148791 172592
1 Leather Garments and Goods
Production Supervision IV 68 1720 2205 2670 3199 3711
2 Advanced Leather
Goods/garment Production III 259 6520 8358 10122 12126 14066
3 Leather Garments and Goods
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
6 Accounting and Finance BA 82 2064 2646 3204 3839 4453
7 Accounting and Finance IV 27 688 882 1068 1280 1484
8 General Mechanics IV 14 344 441 534 640 742
9 General Mechanics III 41 1032 1323 1602 1919 2226
10 Electricity III 27 688 882 1068 1280 1484
11 Mechanical Engineering BSC 14 344 441 534 640 742
12 Electrical Engineering BSC 14 344 441 534 640 742
13 Industrial Engineering BSC 14 344 441 534 640 742
14 HR Management expert BA 27 688 882 1068 1280 1484
15 Marketing and Sales
management expert III 27 688 882 1068 1280 1484
16 Marketing and Sales
management expert BA 286 7207 9240 11190 13406 15551
17 Purchasing and Supplies
Management expert III 68 1720 2205 2670 3199 3711
18 Purchasing and Supplies
Management expert BA 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
22 Planning (economist) BA 27 688 882 1068 1280 1484
23 Quality control III 14 344 441 534 640 742
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
products Industry 5420 6122 7314 17329 22367 23262 24192 25160 26166 27213
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
products Industry 9390 10799 12418 14281 16423 18887 21720 24978 28724 33033
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
General Metal Fabrication and
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
1 Mechanical Engineer BSC 3903 4034 4270 4049 5410
2 Mechanical Engineer MSC 291 302 321 373 407
3 Manufacturing Engineer BSC 1967 2043 2167 2522 2753
4 Manufacturing Engineer MSC 197 206 218 254 277
5 Industrial Engineer BSC 675 701 744 866 945
6 Industrial Engineer MSC 163 169 180 209 228
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 Standard
Occupational
Level
Year (Eth. Cal.)
2021 2022 2023 2024 2025
Basic Metal Works I 9543 10907 11923 13633 15368
General Metal Fabrication and
Assembly (GMFA)
II
5404 6177 6752 7721 8704
General Metal Fabrication and
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
1 Mechanical Engineer BSC 7526 8577 9351 10679 12017
2 Mechanical Engineer MSC 568 649 710 812 915
3 Manufacturing Engineer BSC 3841 4390 4799 5487 6185
4 Manufacturing Engineer MSC 386 442 483 552 622
5 Industrial Engineer BSC 1318 1507 1647 1883 2123
6 Industrial Engineer MSC 318 364 398 455 512
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
Source: CSA (2000-2004EC), FBPIDI (2005-2007)
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
Source : CSA and FBIIDI (2015)
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
Source : CSA and FBIIDI (2015)
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
Source: CSA (2000-2004EC), FBPIDI (2005-2007)
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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167
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
Prepared and packed tea
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
Prepared and packed tea
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
plastic processing II 3243 3728 4395 5203 6471 8127 9522 10832 12316 13715
plastic processing III 541 622 733 867 1079 1355 1587 1806 2053 2286
Polymer processing supervisor IV 541 622 733 867 1079 1355 1587 1806 2053 2286
Polymer processing management V 135 155 183 217 270 339 397 451 513 572
Sub Total 8107 9322 10988 13009 16179 20319 23808 27084 30794 34290
Rubber Industry
Basic chemicals processing work I 132 138 139 147 164 171 173 195 224 260
Rubber processing II 224 233 235 249 278 290 293 330 380 441
Rubber processing III 15 16 16 17 19 19 20 22 25 29
Polymer processing supervisor IV 18 19 19 20 23 24 24 27 31 36
Polymer processing management V 3 4 4 4 4 4 5 5 6 7
Sub Total 394 409 412 437 488 509 514 579 666 774
Paint Industry
Basic chemicals processing work I 1042 1063 1071 1074 1082 1102 1106 1113 1120 1126
184
Paint processing II 240 244 246 247 249 253 254 256 258 259
Paint processing III 73 74 75 75 76 77 77 78 78 79
Paint processing supervisor IV 31 32 32 32 32 33 33 33 34 34
Paint processing management V 21 21 21 21 22 22 22 22 22 23
Sub Total 1407 1435 1446 1450 1461 1488 1493 1503 1512 1520
Soap and Detergent Industry
Basic chemicals processing work I 895 912 920 922 974 991 994 1001 1007 1012
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
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
Basic chemicals processing work I 790 889 1002 1089 1221 1231 1242 1252 1263 1273
Pulping and paper making operation II 424 476 537 584 655 660 666 671 677 683
Pulping and paper making operation Supervision III 130 147 165 180 201 203 205 207 208 210
Pulping and paper making operation IV 73 82 93 101 113 114 115 116 117 118
chemical products processing management V 16 18 21 22 25 25 26 26 26 26
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 operation II 849 853 862 865 872 890 893 894 895 896
Printing and Graphic Arts operation III 212 213 216 216 218 222 223 223 224 224
Printing and Graphic Arts Supervisor IV 265 266 269 270 272 278 279 279 280 280
chemical products processing management V 27 27 27 27 27 28 28 28 28 28
186
Sub Total 4323 4343 4391 4405 4440 4531 4548 4554 4558 4563
Glass and Glass products Industry
Basic chemicals processing work I 557 623 698 782 876 981 1099 1231 1378 1544
Glass Processing II 148 166 185 208 233 261 292 327 366 410
Glass Processing III 39 44 49 55 62 69 78 87 98 109
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
Basic chemicals processing work I 24539 25421 26092 27211 28279 28917 29321 29981 30631 31276
Cement product processing II 1026 1063 1091 1138 1183 1210 1226 1254 1281 1308
Cement product processing III 518 537 551 575 597 611 619 633 647 660
Cement Product Supervision IV 281 291 299 312 324 331 336 343 351 358
Cement production technology Management V 122 126 130 135 140 144 146 149 152 155
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
Polymer processing operation II 1087 1228 1467 3475 4486 4665 4852 5046 5247 5457
Polymer processing operation III 193 218 261 618 797 829 862 897 933 970
Chemical products processing supervisor IV 121 137 163 387 499 519 540 561 584 607
Chemical Products processing management V 41 46 55 130 168 175 182 189 196 204
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
Equip/ machinery Operator II 1229 1291 1307 1326 1537 1614 1695 1780 1868 1962
production foreman III 202 212 215 218 252 265 278 292 307 322
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
Basic Chemicals Processing Works I 513 545 577 895 1250 1312 1378 1447 1519 1595
Ceramics II 161 171 182 282 393 413 434 455 478 502
188
processing
Ceramics processing III 26 28 30 46 64 67 71 74 78 82
Ceramics processing Supervision IV 16 17 19 29 40 42 44 46 49 51
Ceramics processing Management V 14 15 16 25 35 37 38 40 42 44
Sub Total 731 777 823 1276 1783 1872 1965 2063 2167 2275
wood and wood products Industry
Furniture making I 3890 4474 5145 5917 6804 7825 8999 10348 11901 13686
Furniture making II 966 1111 1277 1469 1689 1943 2234 2569 2955 3398
furniture making III 161 185 213 245 282 324 372 428 492 566
Furniture making management IV 134 154 177 204 235 270 310 357 410 472
Sub Total 3917 4505 5180 5957 6851 7879 9061 10420 11983 13780
Furniture Products Industry
Furniture making I 3901 4369 4894 5481 6139 6875 7700 8625 9660 10819
Furniture making II 572 640 717 803 900 1008 1129 1264 1416 1586
furniture making III 264 296 331 371 415 465 521 583 653 732
Furniture making management IV 323 361 405 453 508 568 637 713 799 895
Bamboo Harvesting and post harvesting work I 1305 1462 1637 1833 2053 2300 2576 2885 3231 3619
Bamboo furniture making II 396 443 497 556 623 698 781 875 980 1098
189
Bamboo Derivatives production II 220 246 276 309 346 388 434 486 545 610
Bamboo furniture making III 117 131 147 165 185 207 232 259 290 325
Bamboo processing supervision IV 73 82 92 103 115 129 145 162 182 203
Bamboo processing and management V 29 33 37 41 46 52 58 65 73 81
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
Basic chemicals processing work I 3648 4195 4945 5854 7281 9144 10714 12188 13858 15431
plastic processing II 3243 3728 4395 5203 6471 8127 9522 10832 12316 13715
plastic processing III 541 622 733 867 1079 1355 1587 1806 2053 2286
Polymer processing supervisor IV 541 622 733 867 1079 1355 1587 1806 2053 2286
Polymer processing management V 135 155 183 217 270 339 397 451 513 572
Sub Total 8107 9322 10988 13009 16179 20319 23808 27084 30794 34290
Rubber Industry
Basic chemicals processing work I 132 138 139 147 164 171 173 195 224 260
Rubber processing II 224 233 235 249 278 290 293 330 380 441
Rubber processing III 15 16 16 17 19 19 20 22 25 29
Polymer processing supervisor IV 18 19 19 20 23 24 24 27 31 36
190
Polymer processing management V 3 4 4 4 4 4 5 5 6 7
Sub Total 394 409 412 437 488 509 514 579 666 774
Paint Industry
Basic chemicals processing work I 1042 1063 1071 1074 1082 1102 1106 1113 1120 1126
Paint processing II 240 244 246 247 249 253 254 256 258 259
Paint processing III 73 74 75 75 76 77 77 78 78 79
Paint processing supervisor IV 31 32 32 32 32 33 33 33 34 34
Paint processing management V 21 21 21 21 22 22 22 22 22 23
Sub Total 1407 1435 1446 1450 1461 1488 1493 1503 1512 1520
Soap and Detergent Industry
Basic chemicals processing work I 895 912 920 922 974 991 994 1001 1007 1012
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
Soap and Detergent Manufacturing operation supervisor IV 383 391 394 395 417 425 426 429 431 434
191
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
Basic chemicals processing work I 790 889 1002 1089 1221 1231 1242 1252 1263 1273
Pulping and paper making operation II 424 476 537 584 655 660 666 671 677 683
Pulping and paper making operation Supervision III 130 147 165 180 201 203 205 207 208 210
Pulping and paper making operation IV 73 82 93 101 113 114 115 116 117 118
chemical products processing management V 16 18 21 22 25 25 26 26 26 26
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 operation II 849 853 862 865 872 890 893 894 895 896
Printing and Graphic Arts operation III 212 213 216 216 218 222 223 223 224 224
192
Printing and Graphic Arts Supervisor IV 265 266 269 270 272 278 279 279 280 280
chemical products processing management V 27 27 27 27 27 28 28 28 28 28
Sub Total 4323 4343 4391 4405 4440 4531 4548 4554 4558 4563
Glass and Glass products Industry
Basic chemicals processing work I 557 623 698 782 876 981 1099 1231 1378 1544
Glass Processing II 148 166 185 208 233 261 292 327 366 410
Glass Processing III 39 44 49 55 62 69 78 87 98 109
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
Basic chemicals processing work I 24539 25421 26092 27211 28279 28917 29321 29981 30631 31276
Cement product processing II 1026 1063 1091 1138 1183 1210 1226 1254 1281 1308
Cement product processing III 518 537 551 575 597 611 619 633 647 660
Cement Product Supervision IV 281 291 299 312 324 331 336 343 351 358
193
Cement production technology Management V 122 126 130 135 140 144 146 149 152 155
Sub Total 26486 27439 28163 29371 30523 31212 31648 32360 33062 33758
chemical and chemical products Industry
Basic chemical processing work I 942 1064 1272 3013 3889 4044 4206 4374 4549 4731
Polymer processing operation II 1087 1228 1467 3475 4486 4665 4852 5046 5247 5457
Polymer processing operation III 193 218 261 618 797 829 862 897 933 970
Chemical products processing supervisor IV 121 137 163 387 499 519 540 561 584 607
Chemical Products processing management V 41 46 55 130 168 175 182 189 196 204
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
Equip/ machinery Operator II 1229 1291 1307 1326 1537 1614 1695 1780 1868 1962
production foreman III 202 212 215 218 252 265 278 292 307 322
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
Basic Chemicals Processing Works I 513 545 577 895 1250 1312 1378 1447 1519 1595
Ceramics processing II 161 171 182 282 393 413 434 455 478 502
Ceramics processing III 26 28 30 46 64 67 71 74 78 82
Ceramics processing Supervision IV 16 17 19 29 40 42 44 46 49 51
Ceramics processing Management V 14 15 16 25 35 37 38 40 42 44
Sub Total 731 777 823 1276 1783 1872 1965 2063 2167 2275
wood and wood products Industry
Furniture making I 3890 4474 5145 5917 6804 7825 8999 10348 11901 13686
Furniture making II 966 1111 1277 1469 1689 1943 2234 2569 2955 3398
furniture making III 161 185 213 245 282 324 372 428 492 566
Furniture making management IV 134 154 177 204 235 270 310 357 410 472
Sub Total 3917 4505 5180 5957 6851 7879 9061 10420 11983 13780
Furniture Products Industry
Furniture making I 3901 4369 4894 5481 6139 6875 7700 8625 9660 10819
Furniture making II 572 640 717 803 900 1008 1129 1264 1416 1586
furniture making III 264 296 331 371 415 465 521 583 653 732
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
Furniture making management IV 323 361 405 453 508 568 637 713 799 895
Bamboo Harvesting and post harvesting work I 1305 1462 1637 1833 2053 2300 2576 2885 3231 3619
Bamboo furniture making II 396 443 497 556 623 698 781 875 980 1098
Bamboo Derivatives production II 220 246 276 309 346 388 434 486 545 610
Bamboo furniture making III 117 131 147 165 185 207 232 259 290 325
Bamboo processing supervision IV 73 82 92 103 115 129 145 162 182 203
Bamboo processing and management V 29 33 37 41 46 52 58 65 73 81
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
Soap and Detergent Industry
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
Electrical 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
Pulping and paper making Industry
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
Printing and Graphic Arts Industry
Electrical Eng. Bsc 27 27 27 27 27 28 28 28 28 28
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
Glass and Glass products Industry
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
Cement and cement products Industry
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
chemical and chemical products Industry
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
non metallic minerals Products Industry
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
wood and wood products Industry
Mechanical engineering BSC 27 31 35 41 47 54 62 71 82 94
Environmental science BSC 0 0 0 0 0 0 0 0 0 0
Sub Total 27 31 35 41 47 54 62 71 82 94
Furniture Products Industry
Mechanical engineering BSC 44 49 55 62 69 78 87 97 109 122
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
Environmental science 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
General mechanic II 406 467 550 652 810 1018 1193 1357 1543 1718
General mechanic III 946 1087 1282 1517 1887 2370 2777 3159 3592 3999
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
Auto mechanic III 7 7 7 8 9 9 9 10 12 14
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
General mechanic II 30 31 31 33 37 39 39 44 50 59
General mechanic III 55 58 58 61 69 72 72 81 94 109
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
General mechanic III 42 43 43 43 43 44 44 45 45 45
machinist III 10 11 11 11 11 11 11 11 11 11
Auto mechanic III 21 21 21 21 22 22 22 22 22 23
Electricity III 10 11 11 11 11 11 11 11 11 11
Sub Total 83 85 86 86 87 88 88 89 90 90
Soap and Detergent Industry
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
Pulping and paper making Industry
Auto mechanic II 21 24 27 30 33 33 34 34 34 35
Auto mechanic III 51 58 65 71 79 80 81 82 82 83
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
General mechanic II 132 148 167 182 204 205 207 209 211 212
General mechanic III 243 274 309 335 376 379 382 386 389 392
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
Printing and Graphic Arts Industry
Auto mechanic II 21 21 21 22 22 22 22 22 22 22
Auto mechanic III 32 32 32 32 33 33 33 33 33 33
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
General mechanic II 63 64 64 65 65 67 67 67 67 67
General mechanic III 95 96 97 97 98 100 100 100 100 100
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
Glass and Glass products Industry
Electricity III 57 64 72 80 90 101 113 126 141 158
General mechanic III 39 44 49 55 62 69 77 87 97 109
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
Auto mechanic III 143 148 152 158 164 168 171 174 178 182
Electricity II 26 27 28 29 30 31 31 32 33 34
Electricity III 59 61 63 66 68 70 71 72 74 76
General mechanic II 25 26 27 28 29 30 30 31 32 32
General mechanic III 60 63 64 67 70 71 72 74 75 77
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
chemical and chemical products Industry
Auto mechanic II 2 3 3 7 9 10 10 10 11 11
Auto mechanic III 6 6 8 18 23 24 25 26 27 28
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
General mechanic II 37 42 50 119 154 160 166 173 180 187
General mechanic III 68 77 91 217 280 291 303 315 327 340
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
non metallic minerals Products Industry
Auto mechanic II 45 47 48 49 56 59 62 65 69 72
Auto mechanic III 84 88 89 90 105 110 115 121 127 134
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
General mechanic II 213 224 227 230 267 280 294 309 325 341
General mechanic III 318 334 338 343 398 418 439 461 484 508
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
Auto mechanic III 14 15 16 25 35 37 38 40 42 44
electricity II 5 6 6 10 13 14 15 15 16 17
electricity III 11 12 12 19 27 28 30 31 33 34
General mechanic II 25 27 28 44 62 65 68 71 75 79
General mechanic III 44 47 49 77 107 112 118 124 130 137
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
wood and wood products Industry
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
General mechanic III 107 123 142 163 188 216 248 285 328 378
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
Furniture Products Industry
Auto mechanic III 411 460 515 577 646 724 810 908 1017 1138
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
Business Administration MBA 135 155 183 217 270 339 397 451 513 572
Finance and Accounting BA 568 653 769 911 1133 1422 1667 1896 2156 2400
Management BA 122 140 165 195 243 305 357 406 462 514
Purchasing and procurement BA 57 65 77 91 113 142 167 190 216 240
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
purchasing and procurement III-IV 151 174 205 243 302 379 444 506 575 640
marketing and sales III-IV 173 199 234 278 345 434 508 578 657 732
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
Business Administration MBA 1 1 1 1 1 1 2 2 2 2
Finance and Accounting BA 34 35 35 38 42 44 44 50 57 67
Management BA 7 8 8 8 9 9 9 11 12 14
Purchasing and procurement BA 3 4 4 4 4 4 4 5 6 7
marketing and sales BA 4 4 4 4 5 5 5 6 7 8
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
purchasing and procurement IV 3 3 3 3 3 4 4 4 5 6
marketing and sales IV 3 3 3 4 4 4 4 5 5 6
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
Finance and Accounting BA 547 558 562 564 568 578 580 584 588 591
Management BA 117 120 121 121 122 124 124 125 126 127
Purchasing and procurement BA 55 56 56 56 57 58 58 58 59 59
Marketing and sales BA 63 64 64 64 65 66 66 67 67 68
Accounting III-IV 336 342 345 346 349 355 356 359 361 363
Management III-IV 72 73 74 74 75 76 76 77 77 78
purchasing and procurement III-IV 34 34 35 35 35 35 36 36 36 36
marketing and sales III-IV 38 39 39 40 40 41 41 41 41 41
others 1021 1041 1050 1053 1060 1080 1084 1091 1097 1103
sub total 2283 2328 2346 2353 2370 2413 2422 2438 2453 2465
Soap and Detergent Industry
Business Administration MBA 64 65 66 66 70 71 71 71 72 72
Finance and Accounting BA 940 958 966 968 1023 1041 1044 1051 1057 1062
Management BA 201 205 207 207 219 223 224 225 226 228
Purchasing and procurement BA 94 96 97 97 102 104 104 105 106 106
marketing and sales BA 107 109 110 111 117 119 119 120 121 121
Accounting III-IV 1432 1460 1472 1476 1559 1586 1592 1602 1611 1619
HR management III-IV 307 313 315 316 334 340 341 343 345 347
purchasing and procurement III-IV 143 146 147 148 156 159 159 160 161 162
marketing and sales III-IV 164 167 168 169 178 181 182 183 184 185
others 2940 2998 3022 3030 3201 3257 3268 3289 3307 3324
sub total 6392 6517 6570 6588 6959 7081 7104 7150 7191 7227
208
Pulping and paper making Industry
Business Administration MBA 41 46 52 56 63 63 64 65 65 66
Finance and Accounting BA 359 404 456 495 555 560 565 569 574 579
Management BA 77 87 98 106 119 120 121 122 123 124
Purchasing and procurement BA 36 40 46 49 56 56 56 57 57 58
marketing and sales BA 41 46 52 57 63 64 65 65 66 66
Accounting III-IV 131 148 167 181 203 205 206 208 210 212
HR management III-IV 28 32 36 39 43 44 44 45 45 45
purchasing and procurement III-IV 13 15 17 18 20 20 21 21 21 21
marketing and sales III-IV 15 17 19 21 23 23 24 24 24 24
others 465 522 589 640 717 724 730 736 742 748
sub total 1206 1356 1529 1661 1863 1879 1895 1911 1927 1943
Printing and Graphic Arts Industry
Business Administration MBA 80 80 81 81 82 83 84 84 84 84
Finance and Accounting BA 650 653 660 662 667 681 684 684 685 686
Management BA 139 140 141 142 143 146 146 147 147 147
Purchasing and procurement BA 65 65 66 66 67 68 68 68 69 69
marketing and sales BA 74 75 75 76 76 78 78 78 78 78
Accounting III-IV 371 373 377 378 381 389 390 391 391 391
HR management III-IV 79 80 81 81 82 83 84 84 84 84
purchasing and procurement III-IV 37 37 38 38 38 39 39 39 39 39
marketing and sales III-IV 42 43 43 43 44 44 45 45 45 45
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
Finance and Accounting BA 27 30 33 37 42 47 53 59 66 74
Management BA 6 6 7 8 9 10 11 13 14 16
Purchasing and procurement BA 3 3 3 4 4 5 5 6 7 7
marketing and sales BA 3 3 4 4 5 5 6 7 8 8
Accounting III-IV 7 8 9 10 11 12 14 16 17 20
HR management III-IV 2 2 2 2 2 3 3 3 4 4
purchasing and procurement III-IV 2 2 2 2 2 3 3 3 4 4
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
Business Administration MBA 87 90 92 96 100 102 104 106 108 111
Finance and Accounting BA 959 994 1020 1063 1105 1130 1146 1172 1197 1222
Management BA 206 213 219 228 237 242 246 251 257 262
Purchasing and procurement BA 96 99 102 106 111 113 115 117 120 122
marketing and sales BA 110 114 117 122 126 129 131 134 137 140
Accounting III-IV 593 615 631 658 684 699 709 725 741 756
HR management III-IV 127 132 135 141 146 150 152 155 159 162
purchasing and procurement III-IV 59 61 63 66 68 70 71 72 74 76
marketing and sales III-IV 68 70 72 75 78 80 81 83 85 86
others 10235 10603 10882 11349 11795 12061 12229 12505 12775 13045
sub total 12544 12996 13338 13911 14456 14782 14989 15327 15659 15988
chemical and chemical products Industry
Business Administration MBA 41 46 55 130 168 175 182 189 196 204
210
Finance and Accounting BA 209 236 282 668 862 896 932 969 1008 1048
Management BA 45 51 60 143 185 192 200 208 216 225
Purchasing and procurement BA 21 24 28 67 86 90 93 97 101 105
marketing and sales BA 24 27 32 76 98 102 107 111 115 120
Accounting III-IV 164 185 221 523 676 703 731 760 790 822
HR management III-IV 35 40 47 112 145 151 157 163 169 176
Purchasing and procurement III-IV 16 18 22 52 68 70 73 76 79 82
marketing and sales III-IV 19 21 25 60 77 80 84 87 90 94
others 1313 1483 1772 4198 5418 5635 5860 6095 6338 6592
sub total 1886 2130 2545 6029 7782 8093 8417 8754 9104 9468
non metallic minerals Products Industry
Business Administration MBA 18 19 20 20 23 24 25 27 28 29
Finance and Accounting BA 385 405 410 416 482 506 531 558 586 615
Management BA 83 87 88 89 103 108 114 120 125 132
Purchasing and procurement BA 39 40 41 42 48 51 53 56 59 61
marketing and sales BA 44 46 47 48 55 58 61 64 67 70
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
purchasing and procurement IV 23 24 25 25 29 30 32 33 35 37
marketing and sales IV 26 28 28 29 33 35 36 38 40 42
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
Business Administration MBA 2 2 2 4 5 6 6 6 7 7
Finance and Accounting BA 50 53 56 87 122 128 134 141 148 155
Management BA 11 11 12 19 26 27 29 30 32 33
Purchasing and procurement BA 5 5 6 9 12 13 13 14 15 16
marketing and sales BA 6 6 6 10 14 15 15 16 17 18
Accounting III-IV 50 53 56 87 122 128 134 141 148 155
HR management III-IV 11 11 12 19 26 27 29 30 32 33
purchasing and procurement III-IV 5 5 6 9 12 13 13 14 15 16
marketing and sales III-IV 6 6 6 10 14 15 15 16 17 18
others 412 437 463 719 1004 1054 1107 1162 1220 1281
sub total 557 591 626 971 1357 1425 1496 1571 1649 1732
wood and wood products Industry
Finance and Accounting BA 282 324 373 428 493 567 652 749 862 991
Management BA 60 69 80 92 106 121 140 161 185 212
Purchasing and procurement BA 28 32 37 43 49 57 65 75 86 99
marketing and sales BA 32 37 43 49 56 65 74 86 98 113
Accounting I 54 62 71 82 94 108 124 143 164 189
Accounting III-IV 432 497 571 657 755 869 999 1149 1321 1520
HR management III-IV 93 106 122 141 162 186 214 246 283 326
purchasing and procurement III-IV 43 50 57 66 76 87 100 115 132 152
marketing and sales III-IV 49 57 65 75 86 99 114 131 151 174
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
Business Administration MBA 15 16 18 21 23 26 29 32 36 41
212
Finance and Accounting BA 249 279 313 350 392 439 492 551 617 691
Management BA 235 263 294 330 369 413 463 519 581 651
Purchasing and procurement BA 191 213 239 268 300 336 376 421 472 529
marketing and sales BA 59 66 74 82 92 103 116 130 145 163
Accounting III-IV 513 575 644 721 808 904 1013 1135 1271 1423
HR management III-IV 103 115 129 144 162 181 203 227 254 285
purchasing and procurement III-IV 103 115 129 144 162 181 203 227 254 285
marketing and sales III-IV 308 345 386 433 485 543 608 681 762 854
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
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