BY MENGESHA AMARE
Having been inspired by the full support of the government, Ethiopian Industrial Parks Development Corporation (IPDC) has been constructing industrial parks as they are expected to become an engine of rapid industrialization cherishing manufacturing industries, accelerating economic transformation as well as promoting and attracting both domestic and foreign investors.
Established in 2014, IPDC, as one of the public enterprises, has been firmly endeavoring towards activating both pre- and post-investment servicing. It has also availed serviced industrial land, pre-built sheds equipped with all-encompassing utilities and infrastructural facilities that fit international standards, without compromising workers’ security and environmental safety.
The corporation in collaboration with the Ethiopian Investment Commission, Ethiopian Revenue and Customs Authority and other institutions, provides investors with designated industrial parks with a one-stop-shopping service.
Through IPDC, Ethiopia is working hard to develop all possible areas in a bid to meet food self-sufficiency and penetrate the international market. That is why a number of industrial parks, Integrated Agro-Industrial Estates and industries have been inaugurated.
Trade and Industry Minister Melaku Alebel on a recent occasion of inaugurating Bure Integrated Agro-industry Park said, “Ethiopia is committed to boosting industrial parks development through the highest standards of professionalism, to drive industrialization, promote exports, create employment opportunities thereby achieving the goal of becoming a middle-income country.”
According to Melaku, the nation is capitalizing on the highest level of integrity and professionalism, building institutions that prioritize to the environment, efficiency and customer satisfaction.
According to him, taking advantage of the seven Industrial Parks namely Adama, Debre Berhan, Dire Dawa, Bahir Dar, Hawassa, Mekelle, and Kombolcha as a startup, Ethiopia has planned to expand the best practices across the nation in various sectors.
The investment-friendly atmosphere, the rich natural resources and the intensive human capital are among the pivotal inputs towards capitalizing on IPs.
Trade and Industry Ministry in collaboration with the Corporation, concerned bodies and other relevant entities is working to ensure that the necessary infrastructure is accessible to companies in Industrial Parks to attract more investors to the parks, he said.
As to him, industrial parks development in the country leads to a series of job creation and employment interventions across several sectors throughout the country.
The creation of industrial parks will unlock the potential for job creation within them, as well as their surrounding ecosystem. Additionally, it will promote local value addition and domestic linkage between large investors and local suppliers.
“The federal government contributes to sustainable development of IPs by implementing the right set of policies on international trade and investment, economy, climate change and energy, and management of natural and social capital, as well as communication technologies,” he said.
According to Melaku, IPs can also be placed to demonstrate leadership in alignment with government priorities, access capital to help with energy and emission projects, and improve environmental performance.
As industrial zones and enterprises balance a growth-oriented agenda with better environmental performance, there are real gaps in expertise and capacity that need to be well identified and addressed, he added.
By participating in the emerging certification schemes, firms are systematically looking at their operations and better understanding opportunities to manage energy and emissions while seeking to improve economic performance through efficiency gains. “In this move, we shed light on the concerted Ethiopian effort to develop low-carbon-certified industrial zones,” he said.
An important motivation for industrial zones to participate in these programs is to attract investment, whether foreign or domestic.
Building internal capacity is particularly important, as industrial zones and their enterprises are increasingly asked to not only achieve economic growth but also to minimize their environmental impact. Switching from a growth-oriented business plan to one of a more balanced path requires new skills to be learned and capacity and skills to be developed.
Providing firms with frameworks to systematically assess their own operations will aid them to identify operational priorities that improve economic performance through resource efficiency.
Improved capacity will then make enterprises all the better prepared to understand how Ethiopia’s emerging energy and emission policies will affect their business and to make cost-effective decisions that will help maintain competitiveness.
Industrial parks in Ethiopia are developed to further promote and support the country’s development. Hence, nurturing manufacturing and service industry centers to promote job creation, and the simultaneous construction of neighborhood centers to enhance living conditions in industrial park has to be industrial parks’ priority.
As quality of life is an influential factor to attract high-quality human resources, it has required industrial parks to create high-quality public space, in order to form a strong sense of belonging among citizens of the nation in general and that of their residents in particular.
Therefore, the provision of a service platform is critical for the growth of the nascent service industry in industrial parks. In this background, promoting smart industrial park infrastructure development becomes possible response strategies.
Ethiopia has achieved rapid economic development at an unprecedented speed, with its Gross Domestic Product (GDP) per capita increase following the effort exerted towards expanding IPs.
As a country with a growing industrial sector, a leading role in combating global environmental challenges and a strong ambition for green development, Ethiopia is one of the best-positioned economies to take the lead in formulating effective investment standards to guide not only the green development and transformation of industrial parks but also the entire economic trajectory of the nation.
According to Melaku, Ethiopian green standards and investment frameworks across all dimensions such as park management and economic, social, and environmental performance with a view to identifying differences and share policy recommendations to further improve industrial parks standards.
As various supporting schemes for industrial parks development continue to be rolled out in the coming years, important implementation issues will have to be addressed, including building local capacity in all domestic regions; and strengthening verification and supervision mechanisms to ensure continuous compliance with standards, added Melaku.
On the same occasion, Prime Minister Abiy Ahmed said the place is expected to lead the country to prosperity by exporting agricultural products to the global market.
As to Abiy, Industrial parks have to incorporate recreational centers where the youth can pass time entertaining. Hence, he urged the youth around Bure Integrated Agro-Industrial Park to engage in beautifying the premises and environs nearby.
He also thanked the United Nations Industrial Development Organization (UNIDO) for supporting the government in all stages of the park’s development.
The Bure IAIP is one of the four integrated parks for which UNIDO has provided technical assistance in the design and planning, including developing detailed feasibility studies, environment and social impact assessment studies, detailed engineering designs and building capacities of the Regional State Industrial Development Corporations.
Having been constructed with an investment outlay of over US$169m, the Bure IAIP which is located on 260.5 hectares of land in the first phase, is complete with water, electricity and telecom connectivity, roads and other infrastructure, including offices factory sheds and staff accommodation. The IAIP will focus on the processing of edible oil, maize, soya beans, honey, milk, meat, and horticulture, as well as poultry and eggs.
“UNIDO has been supporting Ethiopia in the development of the IAIPs program since its inception in close coordination with other development partners including, the FAO, AfDB, EU, among others.
The IAIP initiative is expected to help drive the structural transformation of the economy and support the country in reaching its Vision 2025 goal of becoming a light manufacturing hub in Africa,” Melaku cited.
The emerging trend of coming up with eco-efficient industrial parks and low-carbon certification is of paramount significance in buttressing a well-defined homegrown economy.
The Ethiopian Herald February 25/2021
