German-Serbian firm Inter EPCM proposes a new partnership model that empowers Ethiopian engineers with world-class expertise while ensuring local control and profits. This approach differs from traditional development models by prioritizing Ethiopian agency and knowledge transfer. It aims to build sustainable industrial capacity in Ethiopia.
Ethiopia grapples with building industrial power amid historical patterns of external control and limited local ownership, as highlighted in a new proposal from Inter EPCM. The German-Serbian engineering firm advocates a partnership model that keeps decision-making in Ethiopian hands, trains local engineers to international standards, and ensures profits stay local.
Inter EPCM's CEO, Aleksandar Obradović, pinpointed the issues: “Every model has fatal flaws. International companies extract value through high costs. Local companies cut corners on quality. Consultants provide plans nobody executes. We manage international standards and local realities – while keeping Ethiopia in control and building your people’s capacity to eventually lead independently.”
Under this model, Inter EPCM coordinates all project phases transparently, with Ethiopia retaining authority. They handle engineering, sourcing, construction, and quality control while upskilling the workforce. Over 5-10 years, Ethiopian engineers are expected to lead complex projects across East Africa. The firm plans permanent Engineering Hubs in the region, with Ethiopia as the primary site, employing locals alongside international specialists.
A real-world example is the modernization of an aging Ethiopian manufacturing facility facing outdated machinery, high energy costs, and safety issues. Inter EPCM executed phased upgrades without halting production, training 50 local technicians in standards-based skills. Results included a 35% production increase, 20% energy cost reduction, 80% drop in safety incidents, and technicians qualifying as engineers.
Financing uses blended finance: development banks cover 50-60%, private investors 25-35%, and Ethiopian partners 10-15% with strategic decision rights. Risks, such as permitting delays or power unreliability, are assessed upfront, as in an industrial park project where early land negotiations, partner training, and backup power were implemented.
Global trends like industrial decarbonization—leveraging Ethiopia's hydroelectric potential—and geopolitical shifts create opportunities. Obradović emphasized: “We don’t come as experts telling you what to do. We come as partners. Together, we succeed – or fail together.” This model promotes Ethiopian-led industrialization over dependency.