Ethiopia is set to establish a state-of-the-art tractor factory with a budget of $50 million, as announced by Suleiman Dedefo, the CEO of Ethio Engineering Group.
The proposed location for this venture is Mojo City in the Oromia region, eastern gate of Ethiopia.
Contrary to conventional tractor assembly plants, this innovative factory is designed to function independently, focusing on the manufacturing of tractor components rather than the mere assembly of complete units.
Suleiman Dedefo emphasized that the vision goes beyond acquiring tractors; instead, the goal is to cultivate a distinct Ethiopian agricultural brand. This ambitious initiative aims to establish a facility capable of producing millions of tractors, a move seen as pivotal for the modernization of Ethiopia’s agriculture sector.
In a strategic move, the factory will not only produce tractor parts but also manufacture tractor engines. Drawing a parallel with their ongoing development in the production of car interiors under the brand “Shansi,” Suleiman expressed confidence that transitioning to engine production positions them favorably to eventually manufacture complete vehicles, the CEO added.
Highlighting the current tractor shortage in the country, Suleiman noted that “the total number of tractors in Ethiopia is currently estimated at less than 100,000. To address this deficit and realize their vision, Ethio Engineering Group has initiated comprehensive activities aimed at achieving these ambitious manufacturing goals.”
Ethio Engineering Group, formerly known as Ethiopian Metallurgy and Mechanical Engineering, underwent a name change following the ascent of Prime Minister Abiy Ahmed in 2018.
The fully government-owned development company had initially undertaken significant agreements for construction projects, including involvement in the Great Ethiopian Renaissance Dam, with an estimated cost of $five billion.
However, despite promises of delivering mega projects, the organization faced challenges, including allegations of major corruption and misappropriation of public resources.
Former leaders were subsequently arrested for corruption, leading to the confiscation of their construction projects, which were then reassigned to alternative local and foreign contractors.
As Ethiopia strives for economic development, this tractor factory initiative stands as a testament to the country’s commitment to building domestic capacities and fostering innovation within its key industries.
The venture holds the promise of transforming the agricultural landscape and contributing to Ethiopia’s self-sufficiency in essential sectors.
