Ethiopia saved more than 1.08 billion US dollars in foreign exchange during the first quarter of the 2025/26 Ethiopian fiscal year, driven by stronger import substitution efforts across key manufacturing and agro-processing industries, according to the Ministry of Planning and Development.

Minister of Planning and Development Fitsum Assefa (PhD) said the import substitution initiative has begun to yield tangible economic results as more domestic factories replace imported goods with local production. She described the programme as central to improving Ethiopia’s industrial productivity and resilience amid persistent foreign currency shortages.

The ministry reported that 37 manufacturing industries began operations during the three-month period, marking a significant expansion in the country’s productive capacity. In parallel, ten factories within agro-processing industrial parks launched production, while an additional 31 are finalising preparations to begin operation soon.

Industrial parks also contributed 47.7 million US dollars in export earnings during the quarter, reflecting improved performance in both output and employment creation. The ministry noted that the number of participating farmers and cooperatives continues to grow, strengthening backward linkages within the value chain.

Data show that 272,635 farmers — including members of six unions and 67 cooperatives — are now integrated into supply networks with agro-industrial parks, providing consistent raw materials to local processors.