The domestic rice industry of Ethiopia is constrained by low productivity, poor quality, and old processing machines. The rice production system is done by hand or with rudimentary tools, and only 2% of households have access to tractors. It takes 175 labor days to weed and 66% of the total farm operations. Rice harvesting and threshing are done manually using a serrated sickle and animal trembling respectively. Farmers are responsible for most of the pre-milling operations and store paddy for household consumption in local stores. Challenges include fragmented farm holdings, poor marketing channels, and a lack of awareness of post-harvest utilization. The prospects for rice mechanization development include improving the rice mechanization research system, training local entrepreneurs, providing repair and maintenance services, promoting custom hiring centers, local manufacturing of farm implements, organizing agricultural cooperatives, landholding, and land ownership structures, assessing foreign experience, linking importers and service providers, and encouraging investments in the rural infrastructure.