Addis Ababa, Dec 27 (IANS): The Ethiopian government said that recent efforts to tackle the challenges facing the country's manufacturing sector have significantly enhanced its production capacity and job creation potential.

Ethiopia's Industry Minister Melaku Alebel said various efforts and initiatives have led to a substantial increase in the manufacturing sector's production capacity, which has recovered from approximately 46 per cent to 60 per cent of the country's full capacity in recent years, Xinhua news agency reported quoting the state-run Ethiopian News Agency.

The minister also highlighted that these efforts have meaningfully improved the sector's overall annual employment generation capacity, with the manufacturing industry now contributing over 156,000 jobs, marking a notable rise compared to previous years.

With Ethiopia's domestic market historically relying heavily on imported goods, Alebel noted that improvements in the manufacturing sector have increased the share of domestically-made goods too, which has risen from 30 per cent to 40 per cent over the past few years.

During the past decade, the East African country has been engaged in the development of dozens of industrial parks across the country, aiming to become the manufacturing hub of Africa. A significant number of foreign investors have shown interest in engaging in the country's manufacturing sector.

According to recent data from the Ethiopian Industrial Parks Development Corporation, Chinese investments have greatly contributed to the advancement of Ethiopia's manufacturing sector, as Chinese investors currently represent the largest group of foreign investors across industrial parks in the country.

In a statement issued in October, the Ethiopian Investment Commission underlined the crucial role of Chinese investors in bolstering Ethiopia's economic development, injecting substantial capital, and creating jobs.

It said some 3,309 Chinese projects have invested more than 8.5 billion US dollars in Ethiopia over the past years, significantly contributing to the country's socioeconomic goals. These investments have also generated over 325,400 permanent and temporary job opportunities for Ethiopians.