Ethiopia prioritizes the idea of developing massive Industrial Parks (IPs) aimed at promoting industrialization and massive job opportunities creation for the growing number of the educated youth population. The development of industrial parks started in 2014 when the Ethiopian Industrial Parks Development Corporation (IPDC) was established. It gained momentum in 2015 with the Industrial Parks proclamation 886/2015. In less than three years, several industrial parks were built, inaugurated and started operations.
Currently, industrial parks which are operating in the country are 20 of which,16 are federally developed and four Regional while the remaining are Private parks. Ethiopia set to increase its IPs to 30 by 2025, as part of its efforts to make the country a light manufacturing hub and lower-middle-income economy.
Established in November 2007, Eastern Industrial Park is the first in Ethiopia. It rested on area of 5 square kilometers; 2 square kilometers have been developed in the first phase and the rest is planned to be developed in the second phase.
As it is the pioneer, it also becomes the leading and only private industrial park set up before thirteen years. It is owned by Chinese investors and attracted more than 100 Chinese based companies.
Eastern Industrial Park Administration Director Daniel Tao told The Ethiopian Herald that the Park is undertaking successive infrastructural facilities; waste water treatment plant, public utilities as well as shade constructions.
The first phase of the industrial park rested on 233 hectares of land and the second phase construction will be constructed on 167 hectares.
It is currently working comprehensively both in the manufacturing and agro-processing sector which would be a plus to avail wide job opportunities to the urban and rural residents.
According to him, Eastern Industrial Park is ready to commence its second phase infrastructural facilities construction soon and waiting for the harvest of Teff and other crops. We have already settled all compensation and other required payments to the surrounding residents and the government.
The second phase infrastructural facilities construction will be finalized within six to seven months and the first factories will be ready for the targeted service by the next Ethiopian rainy season (Kiremt).
While undertaking investment here, Eastern Industrial Park never forgot to discharge its social responsibilities. In recent years, while the community was facing shortage of electricity and clean water, the park immediately addressed the problem.
Accordingly, the community is accessing free electricity and clean water supply from Eastern Industrial Park. Also, last year, the park provided support close to 50 million Birr as a donation in kind and in cash to the surrounding administration targeting easing the community’s life.
He assured that Eastern Industrial Park will continue its noble contributions to the community during the second phase of the expansion period. It targets forming a bigger family through a harmonious and sustainable relationship with the community, employees and the government.
Eastern Industrial Park is the model of the industrialization progress in Ethiopia in which it provides a successful experience to the other IPs operating in the country. Ten years back before the Eastern Industrial Park set up in the area, about 200 household farmers were residing. But, now it made possible to create 18,000 jobs citizens including those that used to utilize the land before. Of course, the figure will grow into 50,000 jobs soon.
“We think there is potential production capacity in our country China which can be transferred into Ethiopia and Africa. We have already submitted a proposal for the Ethiopian government to build new special economic zones and industrial clusters between Dukem and Bishoftu.
The planned special economic zone will stretch on 72.5 square kilometers to the northern part of the existing Eastern Industrial Park. And 60 percent of the land from the new special economic zone will be used for manufacturing industries.
The other will be for residence commercial, financial and public utilities including schools, hospitals as well as universities and so on that are helpful for the function of a city.”
If this proposal gains acceptance, China will introduce more than 500 companies to Ethiopia within 10 to 15 years which is supposed to provide a total of 1.5 million jobs directly and indirectly.
In doing so,this special economic zone is predicted to generate over 10 billion USD foreign exchange from export annually, according to him.
It was also said that this is a big proposal and the government of Ethiopia need to understand or recognize the importance of the projects. Because it can create huge job opportunities and generate tangible foreign exchange for the country and helps citizens’ life improvement.
But, this project needs special economic policy as it will be a special economic zone and industrial cluster for the country.
Once this special economic zone built, it will be equivalent to the special economic zones in China that accommodate millions of residents with dynamic economic activities.
Finally, this special economic zone will demonstrate the best way to the future of Ethiopia and helps to realize its endeavors towards industrialization, he added.
As long there are workable policies [building special economic zones] is very easy for the park.
China has enough experience in developing huge industrial cities in special economic zones; there are a lot of industrial cities everywhere. After 1979, the country built several industrial cities like Shenzhen.
“Thus, we are aspiring to bring this wise experience to Ethiopia and build this project quickly and efficiently. Our plan fits the socio-economic development aspirations of current Ethiopia.”
The Ethiopian Herald Thursday 16 January 2020
BY TEWODROS KASSA
