📋 Tender Overview
Project ID
240388
Thematic Priority
Advancing Economic Competitiveness
LocationEthiopia
Project ManagerAnders ISAKSSON
Donor
Regular Programme Of Technical Cooperation
Fund
Regular Programme of Technical Cooperati
The Homegrown Economic Reform Agenda (HGER) of the Government of Ethiopia suggested adapting the policy framework (Ministry of Industry, 2022). Although many industrial policy instruments have been applied, they appear to have been ineffective due to poor coordination between government institutions, lack of information dissemination, frequent policy changes, and weak government service delivery. The goal is to develop Ethiopia's manufacturing productivity capabilities to lead in Africa, but this requires a more organized and coherent policy framework.Incoherent definitions and implementation have limited Ethiopia's ability to upgrade, learn, and innovate. While the government uses industrial policy to boost output and achieve temporary growth, insufficient emphasis on innovation, in particular technology transfer, has restricted the shift from low- to high-value-added activities. The second Growth and Transformation (GTP) policy, introduced in 2015, attempted to address these issues by fostering links between local and foreign firms to encourage knowledge and technology transfer. However, bureaucratic challenges and a lack of understanding of technology have hindered the implementation of these mechanisms. Though technology transfer agreements exist, they are rarely used, and programs to bring foreign experts into domestic firms are sporadic and poorly executed.Policymakers must develop the capacity to implement policies that effectively support innovation and technology transfer, especially in key sectors. This presents an opportunity for this project to help stimulate knowledge transfer between policymakers. UNIDO will use capacity building and support in the formulation of policies and policy roadmaps to tackle these challenges and ensure that Ethiopian Industrial Policy is inclusive and sustainable.The Center of Excellence can then be used as a platform for other African policymakers to showcase and disseminate lessons learned as well as solutions that were developed in Ethiopia
