Ethiopia is strategic in identifying FDI. FDI should be productive and targeted on manufacturing. It should also seek to build domestic capabilities. A new center for building Covid-19 kits has been commissioned. In the long term it will also be used for other diseases
Lindsay Whitfield sees 2 risk of political capture for industrial policy (i)funds intended for one use being diverted to another (ii) funds used for the correct purpose but there are no reciprocal control mechanisms in place. Clear statements on what needs to be achieved are key.
Arkebe Oqubay on short term responses to covid-19. Ethiopia did not wait for donors and started dialogue with industrial park owners, reduced transport fees and led export firms to serve local market needs. The goal was to continue production and not lay off workers. #PEGNet2020
Export diversification is important, in order to achieve this investments in infrastructure and the quality of human capital are important. Domestic credit, integration and the right environment for FDI are also key. #PEGNet2020
He also states Government should prioritise health expenditure prioritised over tertiary. Tertiary education is oversupplied which compromises quality. #PEGNet2020
Augustin K. Fosu @UniofGh argues that the current crisis should be used an opportunity to boost domestic production. e.g. mandatory use of masks can lead to more demand for domestic producers. This way demand creates its own supply. #PEGNet2020
