The manufacturing sector plays a crucial role in Ethiopia's socio-economic development by generating employment and income, promoting industrialization, and contributing to exports. Ethiopia has made significant strides in improving its manufacturing sector, diversifying its industries, and creating value-added products.
Similarly, the service sector has emerged as a key driver of Ethiopia's economic growth and development. It has contributed to job creation, income generation, and poverty reduction, particularly in urban areas. The establishment of information and communication technology (ICT) services, tourism, and hospitality, and financial and insurance services has transformed the industry's landscape in Ethiopia.
Despite the significant contributions of these sectors to the country's socio-economic development, the manufacturing sector faces various challenges, including a lack of technological advancement, limited access to finance and credit, poor infrastructure, and inadequate access to raw materials. Similarly, the service sector faces challenges such as inadequate government support, low productivity, a lack of skilled labor, and insufficient infrastructure, particularly in rural areas. These challenges slow down the growth prospects of both manufacturing and service sectors in Ethiopia.
3, Briefly Explain the contribution of manufacturing and service sectors to the socio-economic developments of Ethiopia. What are the major challenges of manufacturing sectors in Ethiopia?
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