Ethiopia’s industrial growth is proving to grow at the fastest rates ever in Africa.
The government began the construction of Mekelle Engine Production Factory in 2015 and was completed after one year. It’s located in Meqelle has an annual production of 20, 000 engines. The government reserved 350 million Br for the establishment of the first engine manufacturing plant in Ethiopia. Thanks to Ethio-Metal and Engineering International Exhibition where the idea of creating such a company in Ethiopia was initiated. According to Mossa who commented on exhibition, the companies which were involved in metal and engineering activities was importing of spare parts. As a result, the government was persuaded by the recommendation to set up an industry. Mekelle Engine Production Factory is one of the 15 subsidiary companies under the Metal & Engineering Corporation (MetEC), the Ethiopian Power Engineering Industry (EPEI).
Currently, the company is piloting production and has 400 permanent workers. The industry will provide more employment opportunities for citizens as more revenues will be generated for the government. Mekelle Engine Production Factory produces heavy, medium and small engines for water pumps, vehicles, and power generators. The company is situated on a 30 ha land and intends to explore iron ore in Bikiltu, Wolega, Oromia Regional State where it has also secured a land. The factory aims at delivering their finished products to 18 local operational assemblers, and the state has licensed 104 local and international assemblers, but some are not operational.
Most often, the heavy engines are used for construction machinery such as excavators while small engines are for pumps, walking tractors and power generators. The medium engines are used in trucks and buses. Ashenafi Biru who is the head of promotion and advertising at EPEI, approximately 60% of inputs used in the company are locally produced by the subsidiary companies.
The company is finalizing a deal with Bishoftu Automotive to supply engines for the vehicles assembling. Bishoftu Automotive's deputy general manager for marketing and sales, Metafer Beshahwured (Maj.) expressed his joy saying the engines will add the rate of value on the vehicles being assembled by the company.
As the company aims at maintaining the quality of output and responding appropriately to any complaints raised. Ethiopia had imported $ 515.2 million in 2016, but with the establishment of Mekelle Engine Production Factory is likely to capture a large share of the market. EPEI recorded 1.6 billion Br turnover in 2016 and has 2500 employees.
