Addis Ababa February 09/2018 The Ethiopian Metal and Engineering Industry Development Institute (MEIDI) said it has prepared schemes that could solve the problems the metal and engineering industry sector has been facing.
MEIDI Director-General, Workneh Delelegn told ENA that price increase and scarcity of metal is among the major problems of the sector.
He said one of the causes of the scarcity is the hoarding retailers and wholesalers have been exercising following the recent devaluation.
In this regard, he said the institute has established task forces in the capital that control the unfair price hike.
Workneh said the institute is also engaged in solving the problem over time by making extensive researches on iron ore resources in the country as means of producing iron products both for market and for the consumption of local industries.
The Director-General added that the country cannot afford to depend only on metal resources imported from abroad and stressed the need for import substitution in the sector.
In line with this iron ore resources in Bikila, Western Wollega Zone, and in Sekota, Amhara Region, are for instance under exploration, he said.
Investors engaged in the sector on their part urged the government to control and solve the problems as soon as possible.
East Still PLC Marketing Manager, Tewlode Sisay said his company is facing problems due to the price increment of metal products.
The government is expected to take measures to control retailers and wholesalers who artificially inflate the price of metal, he stressed.
Ethiopian Association of Basic Metal and Engineering Industries General Manager, Solomon Mulgeta said there is huge demand of metal due to scarcity of raw materials that has to be addressed urgently by the government.
The General Manager added that the problem is affecting the construction sector which is highly involved in creating jobs.