BY MENGESHA AMARE
Of the crucial undertakings being carried out by the Ethiopian government to facilitate the transition from agriculture to industrial-led trajectory, the construction of standard factories and integrated agro-industrial parks comes at the forefront.
Yes, Ethiopia is advancing towards growth and development by which it can ensure food security, social wellbeing and even to run export trade at a larger scale. To this end, the county is devising a rage of mechanisms and framing outlines.
Among the number of schemes to help come up with viable means to attain the set target, the country has set up industrial parks and a range of factories, in collaboration with the private sector, of course.
The works of integrated agro-industrial parks and industrial complexes such as Phibela can be cited as a very good example in this regard. Currently, there are efforts to improve yields and there is potential to expand sesame seed production in Ethiopia through various means.
Sesame is well processed and has been made readied for local consumption as well as for export via adding value. For this effective process, Phibella Industrial complex is working hard.
Recently, Prime Minister Dr. Abiy Ahmed along with Deputy Prime Minister and Foreign Affairs Minister Demeke Mekonnen and other high ranking officials inaugurated Phibela Edible Oil Factory, the giant palm oil processing plant in Africa, in Bure town, Amhara Regional State.
The Premier also inaugurated Burie Integrated Agroindustry Park. The inaugural ceremony was attended by a number of investors, ministers, religious fathers, federal and state senior government officials, state administrators, invited guests, residents of Burie town and its environs and the like.
As far a Phibela oil factory is concerned, it is believed to meet 60 percent of the local edible oil ultimatum. The complex incorporates factories which can potentially process sesame, animal feed and soap and detergent, carton production, to mention but a few.
The factory that has been set up by the Ethiopian investor Belayneh Kindie with an outlay of 4.5 Billion Birr is expected to create 3,000 jobs for citizens. Phibela Industrial Complex has a capacity of producing 1,500 tons of Palm oil a day.
Belayneh Kindie, BKG Board chairperson at the inaugural ceremony said that the private sector is playing an irreplaceable role in transforming Ethiopia. What BKG is doing along this line is a case in point in this regard.
He also stated, “Having commenced with a meager capital, 4,600 Birr, granted from my mother, the group has now reached to be a prominent national company. We can say that BKG can be the emblem of heedful Ethiopia,” he said.
According to Belayneh, the Phibella industrial complex started production after a range of ups and downs and it has now comprised a range of factories, which are capable of contributing a great deal to the development of the country. As to him, the oil and refinery plant is the first of its kind in Ethiopia.
In the journey to seize the ladder of success triumphing over poverty and backwardness, citizens at every corner are endeavoring day in and day out. Likewise, private sector and investors are relentlessly working towards that end, he underscored.
“Expanding the business run roaming from Gojam to Addis Ababa, I have now seized the ladder of success to the extent that I am capable of fostering international trade, even reaching to award winning level,” Belayneh added.
“As far as hotel and tourism sector is concerned, the company is renewing Ethiopia Hotel, Adama Ras hotel and constructing Bahir Dar Hilton Hotel,” he added.
Belayneh said, “The Company has aspired for being country’s industrial development model and is working to foster farming community and market link. Of the close to seven factories, one is capable of substituting what is imported from abroad, palm oil.”
Taking government’s manufacturing policy into account; BKG is profoundly investing in manufacturing, transport, hotel and tourism and other related sectors. The complex covers 30 hectares of land at the industrial town of Bure.
As leant from Belayneh, when this huge complex becomes operational, it will cover up to 60 percent of the edible oil demand of the country. It also covers 30 percent of foreign currency and reduces the price of oil about 20 percent. It is also of great importance in backing the national job opportunity creation effort.
To satisfy its demand of 20 million quintal a year, it has taken a sesame farmland around Humeral and working hard on it. The company is working in collaboration with the government and the farming community to well address national oil demand.
Belayneh also pointed out the challenges such as lack of power supply and foreign currency shortage that hinder the company not to run activities in full swing.
Additional factories will be operational within the shortest time possible in the same premises like a big refinery with a refining capacity of 1500 tons per day, sesame oilseeds processing plant via adding value to the raw sesame, liquid soaps, and solid soups and detergents manufacturing factory, he elucidated.
Amara Industrial Parks Development Corporation Chief Executive, Desie Asemie on his part said that several industrial parks in Ethiopia have been created all over the country, and the government is now going steps further with the development of integrated agro-industrial parks, which are believed to help the country come out of the trap of poverty.
As to him, countries which are not suitable for agriculture by their very nature have integrated agriculture and industry in a very streamlined manner to have lucrative productivity.
“Even they have controlled world food market and get their economy well developed. On the contrary, our country with rich fertile lands and prolific resources, discounted human labor could hardly feed its people.
Our agriculture is not made modernized as required and we fail to be food self-sufficient. We have to draw important lessons from many nations appropriately tapping their resources for change,” he said.
A number of agroindustry parks are being constructed in our country with a view to fostering export trade via value adding on our products apart from feeding our people and make them food self-sufficient, he said.
According to Dessie, coming up with sustainable development path towards making modern agriculture would be made possible via addressing a number of problems which have posed tough challenges.
He said, “Though efforts made so far have played a significant role in promoting the agriculture sector, a lot remains untouched to hit the target set—bringing about industrial-led agriculture thereby fostering growth and prosperity of the country.”
Recognizing evolving industrial development as the key springboard, the government has outlined a range of integrated agro-industrial schemes with the recognition of the great potential of the nation regarding untapped resources, human power as well as technical resources, Dessie added.
Dessie further elucidated that integrated agro-industrial parks are instrumental in linking agriculture with industry, and setting up such a huge complex, Phibella, helps facilitate smallholder market participation, improve household welfare, and promote rural development.
Cognizant of the fact that smallholder farmers in Ethiopia are often trapped in a vicious cycle of low-intensity, subsistence-oriented farming, low yields, and insufficient profits to make beneficial investments, the government is expected more than ever before to capitalize on intensifying Integrated Agroindustry Parks and a number of factories keeping international standards, Dessie opined.
In a nut shell, Ethiopia is aggressively working to transform the raw materials coming out of agriculture to be processed and sold at continental and global markets understanding its agrarian status.
Without a shadow of doubt, this process dictates the growth of the entire frugality. Yes, the country is undergoing a massive socio-economic transformation.
Principally, Ethiopia has to capitalize on the prime drivers of the economy—integrated agro-industrial parks, manufacturing, agro-processing, textile and leather etc. to bring about real change and well fuel the march towards upholding industrial-led agriculture by which it could be made an interesting place for investors to locate and an affluent continental nation.
The Ethiopian Herald February 13 / 2021
