This study will attempt to provide an overview of the challenges facing the manufacturing sector in Ethiopia in terms of enhancing competitiveness in a fast-changing global environment. We will look at the issue of competitiveness in the context of global value chains and the increasing importance of ‘trade in tasks’. The study builds on existing studies such as the Diagnostic Trade Integration Study of the World Bank to provide a more complete picture of competitiveness in recent years. The outputs of this analysis will be utilized in two ways. First, they serve as a foundation for more specific studies in subsequent periods. Second, they will inform policymaking immediately.