When a country is in trouble like the current situation of Ethiopia in which it is facing existential threat provoked by the terrorist TPLF, its children dwelling inland or abroad, come together and stand in unison to rescue their mother land. The move currently observed and the voices heard from all corners of the world manifest that Ethiopians have inherited the habit of standing together on the issue of their country leaving their differences back when things going wrong.
To give an illustration, Ethiopians living in Washington D.C., and surrounding cities in the United States rally recently in support of the under-construction Great Ethiopian Renaissance Dam (GERD) and the federal army of Ethiopia.
Ambassador of Ethiopia in the United States Fitsum Arega, and Ethiopia’s UN permanent representative Ambassador Taye Atske Selassie have addressed the gathering expressing their appreciation for the Ethiopians in the Diaspora who have actively been contributing for the development of their country.
The rally is organized by Peace and Unity for Ethiopia, a civic society established by Ethiopians in the United States. Ambassador Fitsum urged the Ethiopian Diaspora to continue their public diplomacy and their support for the Ethiopian national defense force, which at the moment is engaged in foiling the attempt of the terrorist group – TPLF that has been working to destabilize Ethiopia.
In addition to financial support for the construction of GERD, Ambassador Fitsum also urged the Ethiopians in the Diaspora to invest in their country, according to the information obtained from the Ministry of Foreign Affairs of Ethiopia.
Likewise, the government, in its 10 years perspective development Plan noted to achieve structural change in the economic arena to get rid of agricultural dominance and transform to manufacturing and services sectors. This transformation energizes the economy in the way it can succeed during hard times like now and carry the burden imposed as a result of existential marching. Currently, the service sectors get the upper hand over the agriculture and manufacturing sectors though it has its own limitations in creating vast job.
Manufacturing sector is expected to play crucial role to import substitution through innovation, boost export, create linkage with agriculture moreover, and attracts Foreign Direct Investment. Therefore, emphasis has been given to the manufacturing sectors which have robust potential for creating job through absorbing the stranded rural labor force.
The construction of industrial parks which serve for both industry and agribusiness in various parts of the country aimed at realizing the above-mentioned objectives.
According to the Industry Parks Development Corporation, the industrial parks have created jobs for more than 76 thousand citizens and could earn more than 610 million Dollars since their establishment. The foreign currency gained from the sector enables the government make necessary preparations to ensure the sovereignty of the country.
However, though creating job opportunities for thousands is realized as compared to the last budget year, the foreign currency earning capacity of the industrial parks is diminishing due to various reasons.
According to Tinsae Yimam, Bole Lemi Industrial Park Manager, the industrial park could earn 44.5 million US Dollars in this budget year through exporting its products.
Investors working in the industrial park mainly engaged in producing textiles and garments, leather glove to be exported to the United States and European markets. But the earned foreign currency as compared to the last budget year is lowered by 8 percent.
The aggravating COVID-19 and the transfer of one investor from the park to Mojo industrial park who was engaged in producing leather products for the US market attributed to poor accomplishment.
To fill the gap, other investors joined the park and the installation work is undergoing to begin production and such venture is expected to raise the foreign currency earning capacity of the industry park.
According to the park manager, the park in addition to playing crucial role in earning foreign currency through exporting its products, it enabled to create job opportunity to 18,069 people.
As compared to the last budget year the number of people get employment in the park which was 16 thousand is increased by 2 thousand. The Park also tried its level best for accelerating technology transfer.
Despite the conflict provoked by the terrorist group in the northern part of the country and attack the neighboring states, the Park continued to attract more investors and currently there are installing their machinery in the availed shades. It is predicted that if the spread of the pandemic declines and the war comes to end, the Park production and its foreign currency earning capacity will be increased.
The Adama Industrial Park deputy manager, Gulilat Abebe, on his part said that all shades constructed in the park by the government are delivered to investors. The construction of additional parks by investors is also undergoing. The number of investors who began production reached to 4.
Among the 9 investors who are licensed to work in the park, two of them are engaged in export business and the rest are at the stage of installing their machinery. They are expected to begin exporting their products in the coming months.
The park earned 7.7 million Dollars during the 2020/21 budget year by exporting its textile products to European and USA markets. However, as compared to the last budget year, the export earning is slightly lowered.
The out brake of the pandemic said responsible for the recession of foreign market and lack of interest to purchase the products.
The Park planned to earn up to 50 million US Dollars through export. Among the investors who obtained license to work in the park, 80 of them will start their production within the coming 6 months, he said.
Up to now the park could create job opportunities to 7 thousand workers and when all 9 shades begin production, it is possible to create job for 20 to 25 thousand people.
Most industrial parks are located in the nearby of the main roads and the “Ethio-Dijibouti” rail way line and this enables the parks to easily transport their products to the port and to bring inputs imported from abroad.
As mentioned above, manufacturing creates forward and back ward linkages with other sectors. The establishment of agro-industry parks in Yirgalem town in Southern Nation, Nationalities and people’s region and in the Bure town in Amhara region proved this. The avocado fruits extensively produced in the large swaths of land get market in the Yirgalem industry parks. Farmers supply their products there at feasible price and the edible oil produced in the park exported to the foreign market and garner foreign currency which is badly needed to the nation. Years back, due to insufficient market, most avocado fruits produced in Yirgalem areas were spoiled.
Farmers in the Amhara region supply their oil seeds to the manufacturing industry located in the Bure town industrial park. Previously, most edible oil processing industries used to import raw materials but now, the establishment of the manufacturing created market to the surrounding farmers and the hard currency to be spent for the importation of the raw materials could be saved.
The industrial parks provide various advantages to investors who work in their shades. The working place is offered in an affordable price. The availability of sufficient water, electric power and internet service helps to make the production process simplified. In addition, the Banking and the custom services availed in the park shorten the value chain.
For boosting the production and to obtain raw materials from local market the park is working with the collaboration of private and public sectors.
Being established in 2014, as one of the public enterprises, the Ethiopian Industrial Parks Development Corporation (IPDC) is inspired by the full support of the government, IPDC is becoming an engine of rapid industrialization that nurtures manufacturing industries, accelerates economic transformation, promote and attract both domestic and foreign investors.
To activate both pre and post-investment service, it avails serviced industrial land, pre-built factory sheds equipped with all-encompassing utilities and infrastructural facilities that fit international standards, with no compromise on workers’ security and environmental safety.
It is important to note, that IPDC, in collaboration Ethiopian Investment commission and Ethiopian Revenue and Customs Authority, and more institutions provide a one-stop-shop service for investors investing in designated industrial parks. In line with this, working in a patriotism sense, to support the country during this harsh time is a duty of every citizen.
Patriotic work culture is a timely action when the country is in a critical time
BY ABEBE WOLDEGIORGIS
The Ethiopian Herald 12 August 2021
