More than 860 plastic and rubber manufacturers across Ethiopia, carrying over 12 billion birr in unpaid debts to banks and microfinance institutions, are confronting serious economic and social challenges following the enactment of Proclamation No. 1383/2017 on solid waste management and disposal.
The Ethiopian Plastic and Rubber Manufacturers Sector Association (EPR) expressed support for the environmental goals of the new law but raised concerns about the short six-month implementation period mandated after its publication in the Negarit Gazette. The association warned that this rapid transition could push many local producers—already burdened with significant debts—toward bankruptcy.
Speaking at a stakeholder meeting held at Ghion Hotel, the association’s general manager highlighted that the proclamation lacks clear alternative exit strategies for manufacturers who may be forced out of the sector. This omission, he cautioned, could result in substantial economic, social, and environmental losses not only for the producers but also at the national level.
The decree also fails to provide detailed guidance on replacing “single-use plastics” with sustainable alternatives within the tight six-month timeframe, leaving manufacturers without an adequate transition period to adapt their production processes.
Despite these concerns, the association affirmed its commitment to comply with legal provisions banning the production and marketing of problematic plastic products, such as low-density plastic bags and certain packaging materials that are difficult to collect and contribute to urban pollution.
The plastics sector plays a significant role in Ethiopia’s economy and environmental efforts. According to the association, it contributes over 51.6 billion birr annually to the national economy, saves more than $391 million in foreign exchange, and provides employment to over 268,000 people—predominantly women and youth with limited formal education. Additionally, the sector generates more than 10 billion birr annually in taxes and service charges paid to the government.
However, the new proclamation poses risks of substantial financial and asset losses. The association estimates that machinery valued at over $248 million could become stranded if manufacturers are forced to cease operations. The sector’s registered investment capital stood at more than 58.8 billion birr in 2022.
Under the Solid Waste Management and Disposal Proclamation, individuals found in possession of single-use plastic bags face fines of up to 5,000 birr, signaling strict enforcement measures.
A recent study further highlights the precarious position of plastic manufacturers, many of whom owe more than 12 billion birr in outstanding loans. The decree’s implementation is expected to increase financial pressures, especially as manufacturers may need to invest heavily in new machinery and raw materials to produce sustainable alternatives, potentially requiring over $760 million in foreign exchange in the short term.
In light of the sector’s substantial contributions and current challenges, the Ethiopian Plastic and Rubber Manufacturers Sector Association has called on government bodies to engage in extensive consultations regarding the proclamation’s implementation. The association urges the establishment of appropriate transition periods and exit strategies to mitigate economic fallout and support sustainable industry transformation.
As Ethiopia advances its environmental agenda, balancing ecological goals with economic realities remains critical to ensuring that vital industries and the livelihoods they support are not unduly harmed.
