JCC explores MSMEs’ untapped job creation ability via the productive use of energy (PUE) technologies.

February 2, 2022

The Jobs Creation Commission aims to explore the untapped job creation potential of micro, small, and medium enterprises (MSMEs) through productive use of energy (PUE) technologies. PUE technologies allow agricultural, commercial, or industrial activities using solar-powered systems.

PUE tech can generate opportunities to mechanize tasks & expand production capacity, creating 190,000 jobs. PUE technologies will be used across three high-potential value chains – horticulture, wheat, and milk. MSMEs created 880,000 new jobs between 2018 and 2019, making them the second-largest employers in Ethiopia.

MSMEs can help expand Ethiopia’s economic base, promote innovation, deliver goods & services, and incorporate youth and women into the workforce. Although, several MSMEs are informally set up and engaged in low-productivity activities.

This is why PUE technologies are essential to help MSMEs access resources to grow and expand their production capacity and generate new jobs. There are several suggestions based on challenges to increase PUE technologies access and create jobs, including:

o Replicate previously successful foreign currency financing interventions and advocate for prescribed funding towards PUE technologies within existing initiatives

o Encourage additional blended finance facilities for PUE technologies

o Advocate for PUE companies to be put on the forex priority list

o Continue to close information gaps for PUE companies

o Create an enabling environment for demand-side subsidies (DSS), which can play a role in addressing the low affordability associated with PUE technologies

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