Ethiopian Defense Industrial Base

The Ethiopian Defense Industry sector is an office under the Ministry of Defense responsible for administering several defense industries. Its objective is to provide for and support the Ethiopian National Defense Force. Ethiopia began manufacturing modern weaponry in the 18th century during the era of Emperor Tewodros. Historical records show Emperor Tewodros built a huge cannon called Sebastopol in 1868, in Gondar Province at a village named Gafat, and took it to the mountain of Maqdala. Later, under the reign of Emperor Menelik, an ammunition factory was established in 1911, which started producing bullet for Wejigra and Wechefor rifles.

The foundation for the modern defense industry was laid with the establishment of the then Emperor Haile Selassie ammunition factory in 1953 with the cooperation of the government of Czechoslovakia. Its objective was to locally manufacture ammunition for light weapons. In 1984, it was expanded with newer technology and more capacity. Due to the serious attention given towards building a strong defense industry, the Derg regime set out to build various defense factories with support from the former Soviet Union and other eastern block nations. In 1986, the government issued a directive to form a Defense Industry Commission reporting to the council of ministers which would be responsible for administration, production and strategic direction.

During the Derg Regime (1974-1991) serious attention was given to the development of a domestic defense industrial base. With support from the Soviet Union and other Eastern Bloc nations several defense factories were established. The Dèrg règime had an ambitious plan to produce and overhaul heavy armored vehicles, tanks and many other medium and heavy weapons. That is why the Bishoftu complex was establish around 1987. The Debrezeit airforce complex has also overhauled MIG fighting jets for long. It was also interesting to know about the participation of North Korea on boosting the Ethiopian military industry during Dèrg règime. November 1985, North Korea provided Ethiopia a 6 million birr interest-free loan to be used to purchase equipment with which to construct a shipyard on Haleb Island, off Aseb. It was expected the shipyard to produce wooden-hulled and steel-hulled craft ranging in size from 5,000 to 150,000 tons displacement. The project had not been come to the end. The Ethio-Korean military relationship had continued even during the era of EPRDF, as the North Korea had helped the Government by strengthening the Gafat complex in Debrezeit as well as the munitions factory in Ambo.

Following the fall of the Derg regime on May 28, 1991 through the arduous struggle, Ethiopians shifted their full attention to install peace, democracy and development. As a result, the nation enormously reduced its military expenditure for the sake of development and to get rid of poverty. Some examples of the existing Ethiopian defense industry capability are:

• Bishoftu Motorization Engineering Complex in Debre Ziet is a repair and overhaul center for heavy armament, tanks and military vehicles. It is one of the organizations of the Ethiopian Defense Industry supporting the Ethiopian National Defense Force. The complex was set up in 1987 as a heavy repair center for tanks and armored vehicles. The Derg regime had plans to eventually produce tanks, armored vehicles, aircraft missiles like air-to-air missiles and SCUD missiles at the complex.
• Branna Printing Enterprise
• Dejen Aviation Engineering Complex (DAVEC): Center for overhauling and upgrading military aircraft.
• Gafat Armament Engineering Complex: Produces a wide range of infantry equipment that meet the requirement of the Ethiopian National Defense Force.
• Hibret Machine Tools Engineering Complex (HMTEC): Produces medium weapons for the Ethiopian National Defense Force. Its civilian output includes hand tools, hospital beds, aluminum saddles, and household and office furniture.
• Homicho Ammunition Engineering Complex: Produces a wide range of ammunition ranging from light weapons to heavy mortars and artillery. It also produces various metal products that are inputs to civil industries.
• Nazareth Canvas and Garment Factory: Produces and supplies military uniforms, canvas, leather and strap products to the Ethiopian National Defense Force.
• Zuqualla Steel Rolling Mill

Bishoftu is a resort town known for having seven crater lakes that are enclosed by steep escarpment which gives the lakes panoramic views: Lake Bishoftu, Lake Hora Arsedi (the largest lake of the town), Lake Bishoftu Guda, Lake Kuriftu, Lake Babogaya (located in the outskirt of the town and convenient for many sporting activities), Lake Kilole (also called Green Lake “Arenguade Haike” because of presence of Green algae) and Lake Chelelaka. Lake Balbala is an artificial or manmade lake situated in the town. These lakes are places where the majority of resort hotels are located and different recreational activities are taking place. Bishoftu was a favored weekend destination for his majesty, Emperor Haile Selassie. Consequently, he built his palace which is named ‘Fairfield’ in the town, after his wartime home in exile in the town of Bath, England. The palace was constructed at the shore of Lake Hora.

Yhe Ethiopian Air Force has a history which is tightly woven with the history of Bishoftu. It is established in 1946 following assigning of Bole Airport to Ethiopian Airlines, the civilcCivil Aviation of the country. The Air force base is constructed by Swedish Instructors and Ethiopian Cadets. The first 6 saab 91 safir training airplanes were bought from Sweden and flown to the air base in 24th of Dec, 1947 to start the training career. Currently, Bishoftu Air Force base plays significant role in the social, economic and political activities of the town.

It’s close proximity to the capital city, Addis Ababa, and it’s position on the road to Djibouti, makes it a hub for industrial development. The industries that are established in Bishoftu Town includes Bishoftu Automotive and Locomotive Industry, Bishoftu Motorization Engineering Complex, Gafat Armament Engineering Complex, and other business include Elfora Agroindustry Export Abattoir, Adda Flour and Pasta Factory, Pasqua Giuseppe Aluminum and Metal Works, Salmida Leather Product Manufacturing and Win rock International Ethiopia.

Metals & Engineering Corp., an Ethiopian military-run corporation, planned to partner with more foreign companies as it spearheaded a government-drive to develop industries in Africa’s second-most populous nation. MetEC is engaged in the design, manufacturing, upgrading and maintenance of different products and services of the defense industry including upgrading combat aircraft and helicopters, tanks, vehicles and weapons.

METEC was established in June 2010 with 10 billion birr of capital by grouping nine businesses previously owned by the Defense Ministry, including Dejen Aviation Industry and Gafat Armament Industry, Michael said. Six other industries, including plastic, tractor and vehicle spare-parts manufacturers, were transferred to METEC from the privatization agency and it now operates as many as 75 factories nationwide.

The public manufacturing enterprises which are under the control of MetEC, include Dejen Aviation, Bishoftu Automotive and Locomotive, Hibret Machine Tools Engineering Complex, Homicho Ammunition Engineering Complex, Gafat Armament Engineering Complex, Power Engineering, Hitech Industry, Metal and Fabrication Industry, Adama Garment Industry, Ethiopia Plastic SC, and Nazareth Tractor Assembly Plant.

By 2013 METEC, as it’s known, was working with companies including Alstom SA, Europe’s second-largest power-equipment maker, U.S.-based solar-panel manufacturer Spire Corp. (SPIR) and China Poly Group Corp. on engineering and manufacturing projects. Some of the company’s budding industries, like vehicle-assembly and engineering businesses, may generate more than 20 billion birr ($1.1 billion) of revenue a year.

By 2013 MetEC – the misleadingly named Ethiopian Metal and Engineering Corporation - had come to dominate the Ethiopian economy in less than one year. It had its fingers in everything from the so-called Grand Renaissance Dam to arms factories, to a spanking new fertilizer factory, to ten sugar factories. It entrenched a patronage system that gave a larger stake to the military while guaranteeing the survival of the regime.

Since 2007 management of these assets rests in the Ministry of National Defense’s Defense Industry Sector. Investment in the defense industry is permitted only in partnership with the Ethiopian government.

The use of foreign military advisers has a long history in Ethiopia, going back to the arrival of a Portuguese military expedition in the 1530s. French, Russian, Belgian, and Swedish advisers all contributed to efforts before World War II to build a modern army (see Training, this ch.). Following the war, Britain, Sweden, Norway, Israel, and the United States assumed responsibility for training and equipping the Ethiopian armed forces.

After the 1977-78 Ogaden War, the Soviet Union became Ethiopia's major military supplier. Addis Ababa also received military assistance from a number of other communist nations, including Cuba, East Germany, and North Korea. In addition, by late 1989 Israel had resumed its military relationship with Ethiopia, which the imperial government had broken off at the time of the Arab-Israeli October 1973 War.

With a modest domestic defense industrial base, Ethiopia’s 2002 Foreign Affairs and National Security Policy and Strategy mandated that the economic and defense sectors should benefit one another, and that factories designed for military purposes should also be geared to produce commodities needed by the civilian community. The goal is to reduce the negative impact of military spending on the economy.

In developing this guidance the Ethiopian security planners attempted to address both the pros and cons of defense spending. On the negative side defense spending may inhibit investments by competing for funds and impacting consumer and business spending. In many cases defense scientists and engineers produce goods that have little economic growth potential, but in their efforts may drive resource costs up, possibly creating an uncompetitive position in the world market. On the positive side, military research, development, test and evaluation efforts can provide basic and applied technology for civilian innovation and eventual growth. When this is available in a domestic base the economy is strengthened and jobs are created. A well-planned strategy will seek to absorb any excess economic capacity that would otherwise lie idle.

In 2004 a Defense Industry Coordinating Office was created to administer all factories, including those under the National Defense Force. In 2007, the Defense Industry Coordinating Office was renamed Defense Industry Sector and put under the Ministry of National Defense.

Shortly after UNSCR 1718 banned arms transfers from DPRK in late 2006, the GoE informed our Embassy of an imminent delivery of tank parts and munitions components. The GoE claims that the parts it received do not violate the embargo because they burned up in transit before being received.

Despite press reports from April 2007 alleging U.S. consent for an Ethiopian arms purchase from North Korea (DPRK), the US continued to press Ethiopia to end its arms sourcing relationship with DPRK. Ethiopia has maintained a relationship with DPRK since at least the mid-1980s. Its border dispute with Eritrea and military operations in Somalia are driving defense acquisitions and may create demand for North Korean arms imports. Ethiopia relies on DPRK for inexpensive ammunition components, spare parts, and production machinery to develop its indigenous arms production capability of ammunition and small arms and keep its aging stock of Soviet era weapons operable. DPRK also built, and helped operate, two munitions production facilities in Ethiopia.

Russian goods were never delivered on time and that due to corruption Meles noted that deliveries were either slow or never forthcoming without a good stiff bribe. China and India offered good opportunities, but the cost factor was a problem. Israel and China are exceptional bilateral partners because of their decorum in helping the ENDF and not criticizing the Ethiopian National Defense Force (ENDF) and Ethiopia for shortcoming and other problems.

The U.S. had been an extremely responsive and reliable partner to the GoE providing quality military goods and services, particularly in comparison to shoddy Chinese goods which often breakdown, goods which meet only partial ENDF needs by the Israelis, and cheap but poor quality assistance and materiel from North Korea that appear to violate Ethiopia's UN obligations.