The Kaizen Implementation in Ethiopia

| THE KAIZEN IMPLEMENTATION IN ETHIOPIAINTRODUCTIONAs the World Bank currently stated, Ethiopia has enjoyed a high Gross Domestic Product (GDP) growth rate of more than 10 percent on average in recent years. Although, Ethiopia is this economic growth, its industrial development is still at a nascent stage and has a very narrow base. If we look at each sector growth, there has only been around a 10 percent share of GDP in the secondary industry; particularly the ratio of manufacturing to over all GDP is around 5 percent which is relatively low when compared with countries with similar income levels. Micro and small enterprises still account for a high proportion with low productivity. The sluggish development of the private sector is also another issue in Ethiopia.The industrial sector in Ethiopia is relatively small, heavily dependent on import, and it is quite susceptible to foreign exchange shortages. Thus, the sector needs greater attention and diversification to sustain high growth in the long run and that requires increased private investment in the export sector and in import substituting industries, and more public investment in developing infrastructure.Low level of quality and productivity among private enterprises is another barrier to the promotion of exports, import substitution and attraction of both domestic and foreign investment. Therefore, in order to realize sustainable economic growth, it is essential to bolster competitiveness through developing the private sector. Data reveals that Ethiopian private sector contributes almost 85% share to the GDP and 95% employment in Ethiopia.Enhancing quality and productivity in the manufacturing industry is the panacea for low industrial output of the country, according to this writer. As part of Ethiopia’s industrialization program, options are being sought that would improve the management and efficiency of enterprises. KAIZEN is one of the tools believed to be capable of promoting involvement of all

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