A collaboration between Ethiopian and Chinese investors, a groundbreaking steel production industry, valued at 6 billion birr, is set to be established in Mekelle city.
The project, slated for completion within ten months, marks a pivotal moment in the efforts to revitalize the region’s and country’s economy.
The interim administration head of the Tigray Region, Mr. Getachew Reda, emphasized the positive impact of the Legend Steel Industry on job creation for the local youth. This private association is spearheading the development, and its commitment to generating employment opportunities has garnered support from both private and associational investors.
Engineer Yared Tesfaye, an Ethiopian investor, will contribute 75 percent of the steel production endeavor, with the remaining 25 percent funded by Chinese investor Mr. Li Yun, as revealed by project coordinator Mr. Samsom Gebremedehin.
The resulting enterprise, Legend Metal Manufacturing Industry, is anticipated to provide employment for approximately 6,000 individuals, contributing significantly to the region’s economic growth.
The Mayor of Mekelle city, Mr. Yitbarek Amha, affirmed the city administration’s unwavering support for Legend Steel Industry, extending their commitment beyond the construction phase. This collaborative effort is poised to bring about positive change and development in the region.
Despite these economic strides, the Ministry of Finance reported a staggering loss of more than 1.5 trillion birr due to the prolonged war in northern Ethiopia, including the Tigray region and other affected areas.
The war has resulted in the destruction of crucial infrastructure, funded by loans and public funds over the years, amounting to a total loss of $28 billion for the country.
The repercussions of the war have been profound, directly impacting one-third of the population in conflict-ridden areas.
In its annual report, the Ministry of Finance highlighted that three million citizens have plunged into extreme poverty as a direct consequence of the war. The destruction is on par with the total foreign debt Ethiopia accumulated for economic development in previous years, which remains unpaid.
To address the aftermath of the conflict, the Ministry of Finance estimates that $20 billion is required for the Tigray, Amhara, and Afar regions to recover and return to the pre-war state.
This investment is crucial to reverse the damage caused by the conflict and rebuild the affected regions’ infrastructure, setting the stage for economic recovery and stability.