Background

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With a decade of double-digit economic growth behind it Ethiopia is now in the early stages of the second Growth and Transformation Plan (GTP ll, 2015-2020). Rapid economic growth over the previous development period (GTPl) has enabled significant reductions in poverty, from 39 percent in 2005 to below 22 percent in 2015, representing one of the fastest rates of poverty reduction in the world. At the same time Ethiopia has managed to achieve one of the lowest levels of income inequality in the world and continues to have among the lowest levels of emissions in the world as a consequence of using hydro and other renewable sources of energy for electricity generation. Public sector investment into infrastructure has been a major driver of demand-side growth during GTP 1 as evidenced by the country having one of the highest public investment to GDP ratios in the world.

Accelerated industrial development with improved growth of the manufacturing sub-sector is a key part of the strategy for transforming the economy into Middle Income status by 2025. An integral part of this strategy is to ensure both balanced regional industrial development and integration of Ethiopian industries into regional and global markets. This will require capacity building of regional areas and of Small and Medium Enterprises (SMEs), many of whom are located in regional areas. Capacity building requires investment, both public and private including domestic and foreign sources. This requires a critical review of the GTP targets on industry/manufacturing including the challenges faced and the required policy interventions.

Ethiopia’s population and employment is widely distributed over 11 regions accounting for over 80 percent of the employment. MSME’s account for over 50 percent of employment though the number of formal SMEs is relatively low and the income per capita relatively low. SMEs play only a minor role in the Ethiopian economy but the potential to improve that contribution is significant. Skill deficiencies, small scale, lack of experience, weak technology transfer and coordination failures may be contributing to under-performance of SME through poor productivity and lack of competitiveness. Among the solutions for improving regional and MSME performance are industry clusters and other coordinating network structures. Ethiopia is ranked very poorly on the state of cluster development (127 out of 144 countries in 2014, by the World Economic Forum). 

Accelerated Regional Growth and Enterprise Transformation

GTPll seeks to consolidate the positive development outcomes attained over GTPl to bring about broad-based and transformative structural changes required to continue the rapid growth path toward becoming a middle income country by 2025. This development goal is especially anchored on stimulating rapid growth and structural transformation in regional areas.

GTPll emphasizes the need to create conditions that will enable the industrial sector to play a key role in the regional economies and promote the establishment, and growth of export-oriented and strategic import-substituting industries: textiles & garments, leather and shoes, agro-industries (including sugar), petro-chemical and chemical products (including cement and plastics), pharmaceuticals, steel, metals & engineering and new industries. Development of SMEs along value chains of priority sectors and their diversification including aquaculture for regional areas is one of the key areas of industrialization for the GTPII period. Regional areas offer the real potential of accelerating structural change in these sectors and creation of increased employment with higher levels of productivity and resource value addition. Interventions are envisaged at three levels: i) the development of small and medium enterprises (for which a comprehensive Small Enterprises development strategy has been developed and the responsible federal executive agency reorganized and strengthened during GTPl); ii) the strengthening of Medium and Large Scale manufacturing enterprises and industries to bring about accelerated growth and structural transformation in the economy through improved productivity; and use of regional coordinating structures (including clusters and business parks). GTPll aims to achieve the interventions through the balanced participation of the public and private sectors with the market economy playing an important guide to investment confidence and direction of resource allocations.

Furthermore, under GTPll it’s anticipated the structural transformation of enterprise sizes will be accelerated, especially the movement of SMEs into medium and larger scale domestic enterprises. This is expected to expand capacity of the country’s industrial base and increase foreign exchange earnings through increased investment and emergence of new enterprises and improved capacity to generate exports and strategic import substitution. This is in line with the Country’s Agricultural Development -Led Industrialization strategy. GTPll, whilst continuing to consider agriculture as the main source of growth and job creation, envisages the manufacturing sector will play the lead role in economic growth.

To support the Government of Ethiopia's strong commitment to realize these transformative goals indicated in GTPll, UNDP is providing its support to contribute to the diversification of industrialization and organizational capacity development efforts that would enable accelerated industrial growth.

Scope of Work

In this regard, MoI is seeking to appoint an experienced Regional Industrial Development Adviser to act as Adviser to the Minister of Industry to provide formulation, effective implementation and coordination of top notch policies, strategies and transformational programme/projects on industrial transformation in the context of GTP II and  vision 2025  . The Industrial Development Adviser will on a regular basis advise the MoI on major policy and strategic developments in the industrial sector in Ethiopia and the region as a whole.. He/she will assess the impact and efficacy of the current policy, strategies and programmes, nuance the policies to the changing industrial dynamics and document lessons learned. He/she will support the MOI and Regional Governments to set up a relevant framework and systems to effectively formulate, implement and coordinate interventions at all levels of government to achieve accelerated industrial economic transformation. The Industrial Development Adviser will be institutionally placed in the Office of the Minister of Industry (MOI) under the overall guidance and supervision of the Minister of MoI and in coordination with the National Programme Coordinator (NPC).

 The objectives of the assignment are:

  • To undertake a comprehensive review the country’s  cross-industry ecosystem  and identify binding constraints towards an  accelerated expansion of the industrial sector and manufacturing sub-sector in Ethiopia, with strong  focus on SMEs  and  value-chain  clusters; .
  • To oversee and provide technical support in the preparation of the GTP II implementation Plan in collaboration with regional governments. The TA is expected to filter out strategic intervention in industry and manufacturing sub-sector that could be transformed into bankable projects;
  • To develop a  3 -year strategic programme document on capacity -strengthening to help  accelerating the  industrial transformation , including identifying  tools  and systems to transform the Ethiopian industrial sector. This will be achieved by building on 2  above and in close collaboration  with UNDP, MoI and regional industrial bureaus ;
  • To undertake a comprehensive assessment of   the coordination mechanisms for fostering industrial sector development at both national and regional level and recommend action;
  • To design and develop a knowledge framework that builds understanding and solutions for improving international competitiveness of the industrial sector in regions of Ethiopia and in particular among SMEs. 
  • Communicate the results of the study through a combination of stakeholder workshops, reports, and interactions with regional and national stakeholders including SMEs and large organizations including foreign and domestic investors.
  • To assess the donor landscape on industrial development and formulate a RM strategy that would in harnessing resources for the implementation of the programme. 

Duties and Responsibilities

The specific tasks of the Industrial Development Adviser include:

  • Provide top notch policy and strategic advisory services   to the Ministry on key issues in industrial development on emerging industrial policies, strategies and programme implementation challenges. This will be done  in the context of priority manufacturing sectors development, potentially requiring further attention at both National and Regional Government level;
  • Provide support to the development of a sectoral Implementation plan under the GTP II  inter-alia strategies for the growth of  manufacturing subsector, concept notes  and feasibility studies, including development of industrial clusters, along with actions to anchor the  implementation and  funding;
  • Provide substantive support to  the development of a comprehensive project document on capacity -strengthening for accelerated  industrial transformation, including supporting the development of an  industrial impact-output model of the Ethiopian economy by international consultants with  expertise in regional economic models;
  • Support for assessment of the performance and impact of various existing regional and SME policies and strategies, with focus on advice and support to put in place improved systems and structures. In this regard, the advisor will be required to periodically review and where necessary prepare assessments, highlighting potential strategic complementarities between planned and ongoing projects, policies and programmes at both a regional and national level;
  • Provide strategic and operational support for development of an industrial cluster in key regional centres, having regard to the basic economic requirements for a sustainable industrial cluster structure and raising of capital;
  • Provide strategic advice to enhance capacity of the  MoI and Regional Governments to effectively lead, support and monitor the performance of regional industrial development;
  • Identification of national and international best practices in effective orchestration of interventions to enhance regional industrialization;
  • Assess and identify constraints that affect increased private sector investment (both foreign and domestics) in industrial development and develop practical and implementable recommendations to remove or moderate constraints;
  • Provide support for  the capacity strengthening  of key MoI and Regional Government staff in supporting effective implementation and coordination in the area of regional industrial development including adaptation to the priority manufacturing sectors and application of the regional industrial model of the Ethiopian economy;
  • Support and oversee Adama Science & Technology University in the development of  GTP II implementation plan, analyse regional industrial development, identify and analyse constraints facing regional industrial development, transfer knowledge about regional industrial development and develop practical solutions and outcomes that have impact on commercial industrial enterprises, regional governments and productivity improvement at a regional level; and
  • The Adviser will perform any other similar or related duties and assignments requested by the Minister and NPC.

 Key Deliverables:

  • Draft report  outlining  the country’s  cross-industry ecosystem   and the  binding constraints towards an  accelerated expansion of the industrial sector and manufacturing sub-sector in Ethiopia;
  • A comprehensive assessment report and action plan on coordination mechanisms for fostering an inclusive industrial sector development at both national and regional level;
  • A draft 3- year project document on capacity strengthening for accelerated industrial development as per UNDP project development criteria and format. (Guidelines and format will be provided);
  • Policy Notes  and Briefs to the Minister/and  Regional Governments   on key strategic and emerging   issues for fostering  i  industrial development and robust manufacturing sub-sector  ,including  policies, plans, strategies and programmes for implementation of an inclusive industrialization strategy in the context of GTP II and SDGs  agenda;
  • A draft RM strategy and donor mapping of the industrial and manufacturing sub-sector in Ethiopia.

Competencies

Problem Analysis: 

  • Demonstrates analytical capability to analyze impacts of priority industrial and national policies in the areas of regional industrial development; and identifies, defines, and analyzes operational problems and situations, and designs sustainable solutions to find practical ways around roadblocks. Simplifies complex problems, understands causal links and impact of interventions, and generates solutions to problems based on sound judgment and awareness of the potential implications of these solutions; generates original ideas, and/or utilizes existing solutions/ideas in new and innovative ways supported by high quality advice for the Minister and NPC on remedial measures.

Technology and Innovation:

  • Understands role and potential of new operational and communication technology at a regional level in facilitation development of networks and clusters and enabling improved growth in productivity at a regional industrial level.

Leadership:

  • Is able to advise the Minister and NPC on how to translate the national and regional industrial development goals of GTP II into achievable targets and work plans.

Team Work:

  •   Works collaboratively with others, demonstrating commitment to achieve group objectives, understanding the needs and goals of others and adapting own views and behavior when appropriate.

Communication:

  • Demonstrates outstanding communication skills, verbal and written, in English;
  • Expected to be able to present information clearly and persuasively;
  • Seeking out the ideas and views of others at both a regional and national level;
  • Is adaptable but consistently professional, concise and engaging; and ensures that messages are understood and that input from others has been heard.  

Results / Quality Orientation: 

  • Is able to set high standards and maintain the commitment, motivation and energy to achieve them while at the same time ensuring high quality of industrial programme coordination and advisory services.

Decision Making:

  • Confident in his/her capabilities and judgment and take decisions or make choices while ascertaining the risks and being conscious of his/her responsibilities.

Adaptability / Behavioural Flexibility: 

  • Adjusts strategies and behaviors as new information becomes available and as priorities change.

Required Skills and Experience

Education

  • University Masters degree or PhD in the area of regional industrial development, industrial clusters development and diversification, commercially oriented development studies, or related disciplines. 

Experience:

  • Senior person with a minimum of 10 years of relevant work experience in advisory services in an international or national organization that has allowed her/him exposure to a range of successful regional industrial development programmes;
  • Alternatively, senior person with a minimum of 10 years of experience in policy advice, industrial research, and coordination of major industrial development programmes or development corridors preferably in a developing country with demonstrated success in developing industrial clusters;
  • Proven experience working with or in industrial clusters in particular is an asset;
  • Understanding of formulation of national plans, sector strategies and regional industrial economic models would be an advantage;
  • Familiarity with bureaucratic requirements in a national and/or regional government ministry as well as exposures to coordination of development programmes will be an advantage.

Language Requirements:

  • Fluency in English (written and oral).

Contract Type:

The Contract will be issued by Ministry of Industry.