Empowering Manufacturing SMEs for National Economic Transformation and Societal Prosperity !
Established in 1942, Ethiopian Enterprise Development (EED) leads the national effort to foster robust manufacturing enterprises capable of driving the country’s economic growth. Over its more than 84-year history, the institution has been at the forefront of modernizing national production and business practices—pioneering the transition from traditional handicrafts to advanced manufacturing technology and cultivating a strong base of domestic investors.
To fulfill its mandate of supporting small and medium manufacturing enterprises (SMEs), EED collaborates closely with regional governments, city administrations, and key stakeholders to deliver comprehensive financial, technological, and training support. The institution also works to establish input supply and market linkages, develop structured industrial cluster centers, and formulate conducive policies, regulatory strategies, and operational frameworks that ensure long-term enterprise sustainability.
As of October 2026, Ethiopia is home to 24,462 small and medium manufacturing enterprises, comprising 17,964 small and 6,498 medium-sized enterprises. Together, these enterprises generate an average of $36 million in annual export revenue and make a substantial contribution to the national economy through import substitution, saving the country $3 billion annually.
Expanding the development of manufacturing enterprise is essential to put Ethiopia’s economy on a strong base and to insure a fair distribution of wealth.
From this point, our institution is providing various supports for small and medium-sized enterprises to be created, strengthened and transferred to the next level. Through these efforts, we are creating enabling conditions for the development of the sector by strengthening the manufacturing sector through financial, technological and production cluster centers provision, input and market linkages, training, industrial extension and business development services.
In order to implement these favorable conditions consistently, we have been able to create a strong development of the manufacturing sector by preparing various support and operational frameworks, guidelines and regulations and by strengthening the structure in various ways so that the development of the sector can be done effectively.
We respectfully request that all Ethiopians to support us to take these results to a higher level and to achieve the efforts we have started!
• To ensure the expansion and strengthening of manufacturing SMEs and support the efforts to ensure fair distribution of wealth and resources; by doing so establish the base for large manufacturing industries
•Provide support to enable enterprises to be effective and competitive through developing and administering infrastructures needed to strengthen and expand manufacturing enterprises
To substitute imports, boost export capacity, expand job creation, increase the sector’s contribution to the national economy, and ensure citizens’ benefit through: preparing and implementing support frameworks that accelerate sector development, building the capacity of stakeholders and manufacturing enterprises, providing comprehensive and effective support, and building a competitive, expanding small and medium manufacturing sector.
To see a small and medium manufacturing sector built by 2030 that is a model of competitiveness in Africa and holds a leading share in our country’s economy.
1/ Make policy, strategy, program and project recommendations to the Ministry that help expedite the development of enterprises and transformation; upon approval of same, the Development shall embark on implementation;
2/ Prepare support frameworks, procedures and plans that help the development of enterprises; and shall implement and coordinate implementation of same;
3/ Ensure bottlenecks that hinder the competitiveness and effectiveness of enterprises, especially enterprises engaged in import substitution or export production, are identified and overcome;
4/ Engage in investment promotion of the sector in order that citizens will engage in Enterprises and provide support so citizens will establish their own Enterprises;
5/ Build the capacities of Regional Institutions, stakeholders, employees and sectoral associations that support and coordinate the development of enterprises; shall work in integration with other Institutions working on capacity building;
6/ Coordinate the efforts of support providing institutions that assist with training, research and development, finance, manufacturing equipment’s, technology, consultancy services, working premises and infrastructure, inputs, market networking and other similar supports to enterprises where the support is based on gaps and growth level;
7/ In collaboration with the Ministry, provide and make available as well as coordinate industrial extension services that enable the development and productivity of enterprises and coordinate such support;
8/ Identify, formulate and scale up best practices from within the country and abroad which will help in expediting the Enterprises Development and which assist in competitiveness;
9/ Ensure that project profiles, model business plans and specifications beneficial to enterprises are prepared and distributed to users;
10/ Provide trainings to Enterprises and citizens interested in joining the sector using infrastructures in the possession of the institution; Shall develop spare parts and prototypes of products and technology that are problem solving; Shall transfer proto types through trainings and provide support to citizens that come up with innovative ideas to realize those ideas to actual products; shall work in coordination with the concerned bodies.
11/ Culture of Enterprises would develop and hence secure financial loan and lease as working capital and manufacturing equipment; shall, in collaboration with concerned organs, establish a system of alternative financial sources for Enterprises.
12/ Shopping structures with appropriate infrastructure to be used by enterprises in the regions;
13/ Design and apply ways in which enterprises are interconnected and linked with large manufacturing Enterprises, other institutions and companies in terms of inputs, market and technology;
14/ Organize nationwide, Regional and International exhibitions; shall facilitate so that Regions and Private Institutions Organize exhibitions separately and jointly; shall provide support so that Enterprises will participate on local and international exhibitions;
15/ Work with concerned bodies so that research-based incentive systems are in placed to encourage the competitiveness of Enterprises and promote citizens to join the sector; shall ensure its implementation;
16/ Work in collaboration with concerned Institutions to establish and operationalize one stop service centers for Enterprises;
17/ Facilitate standards to be established and certificate of competence is issued to quality manufactured by enterprises;
18/ Shall enter into products cooperation agreement with local and Foreign Governmental and non-Governmental Institutions of similar objectives to support Enterprises; shall work for implementation of the cooperation;
19/ Work for the development of information communication technologies that are helpful for growth of the sector; shall organize, analyze and disseminate data using modern technology;
20/ support and monitor enterprises to meet the requirements set for environmental protection;
21/ Collect income from services it provides in accordance with a Regulation to be issued by the Council of Ministers;
22/ Support the development and transition of micro manufacturing enterprises in collaboration with Ministry of Labor and Skills; shall emplace appropriate systems;
23/ Own properties, enter into contracts, sue and be sued;
24/ Engage in other related activities that help in meeting its objectives.
