Assessment of the Challenges of Value Chain Process in the Case of Ethiopia,Tigray Manufacturing Sector

Abstract

The study assesses the challenges of value chain process in Ethiopia manufacturing sectors. The objective of the study was to provide an insight on the principles of value chain and its activities ,the linkage between partners and actors of the value chain and the major challenges that hinder the efficient, transparent and effective process of the value chain in the manufacturing sector. The methods used for the study were the questionnaires, semi structure interview and field visit observation in the study area. The finding shows that though different efforts were done by the government companies could not bring the required change in the value chain process due to lack of skilled manpower ,poor linkage of stakeholders, and poor infrastructure and information diffusion by the actors result in weak market share and poverty reduction, starting from raw materials to customer that include from supplier producer, wholesalers, retailers, and consumers that create various problems for the whole value chain operations like lack of demand forecasts, poor customer handling and production to prevent high cost and minimize risk in the process. Therefore, decision makers and partners should be work closely together enable firms to achieve their intended objectives. Develop market infrastructure and other measures to reduce marketing costs in reducing transaction costs and producing competitive products, incentivized business schemes to attract investors, open and develop transport roads and market infrastructure with facilitate access to affordable and quality inputs and technology.