BY ABEBE WOLDEGIORGIS
The Industry Parks Development Corporation reached an agreement with two companies that have 1.2 billion Birr worth of investment to begin their business in Dire Dawa and Bole Lemi industry parks.
The agreement was reached with L-Auto Engineering and Trading which is going to engage in vehicle assembly and with Dimitrios Campuris Greek-based garment company at the head office of the Industrial Park development corporation.
According to the Industrial Park Commission Executive Director Sandokan Debebe, the L-Auto Engineering company has already been engaged in assembling vehicles in the Eastern Industry Park and supplying its products to the domestic market. Now it expands its production in the newly inaugurated Dire Dawa industry park by investing 700 million Birr.
The L-Auto company agreed with the corporation to rent shade in the Dire Dawa industry park which lies on 11 thousand square meters. When the car assembly company begins works, it creates job opportunities for 400 citizens permanently and contemporary.
Annually, it assembles 9,000 cars and supplies to domestic and eastern African markets.
The Greek-based company known as Dimitrios Campuris engaged in textiles and garments will open its business on Bole Lemi Industry Park established in 18,600 square meters and invest 11 million US dollars.
The Dimitrios company will totally accomplish the construction of the shade within 15 months and when it engages in its full capacity can create permanent and temporary jobs for more than 1,000 citizens. It supplies its products to its 25 shops located in Europe and distributes them to customers.
As to Sandokan, the two companies’ documents submitted to the industrial parks regarding the opening of the business were scrutinized for one year.
He further said that to attract domestic and foreign companies and to do business in the parks aggressively worked and the efforts brought better outcomes.
The two companies’ investment allocated in the Dire Dawa and Bole Lemi parks worthies 1.18 billion Birr and in the coming times they invest their money in the Kilinto and other industry parks located in various parts of the country.
The Industry Development Corporation Transformation and the head of the office of the executive manager Addisu Mamo on his part said that such kind of agreement will be continued in the coming weeks with the companies which show interest to invest in the pharmaceutical business.
He also said that some disseminate false information that domestic and foreign companies showed reluctance in investing in the parks but it is absolutely wrong. However, he did not deny that in the last two years due to the outbreak of COVID-19 the industry park activities were slowed down.
In fact, as to him, in the regular working activities when the investors try to open business and to get a license, he or she faces bureaucratic hurdles however, in the government-industry parks sufficient infrastructures are available therefore, investors must prepare themselves so that, they can easily start their business.
As to Addisu, companies similar to the L-Auto and Dimitrios have the chance to reach an agreement with the industrial development corporation to do their business for 15 years. In the park with the government subsidy, they can rent shade with a square meter by three dollars.
The land price offered by the government does not recover the cost that the government spent for the establishment of the park rather it is offered to encourage productive industries.
Whenever a local or foreign company applies to get a license to open a business, the investment committee will examine the application documents and finally, the document will be submitted to the industry park commission in which later endorsed in a speedy way and get the license.
On other developments, the Debre Berhan town located in the northern Shewa has been flourishing as industry destiny and in the last budget year only, it offered more than three-hectare land to investors.
According to the Debre Berhan town Industry and Investment Office head Birhan Gebrehiwot, the town in the last three successive years has become the preferable investment destiny. Particularly productive companies are engaged in various activities.
He further said that projects owned by private companies which create job opportunities for thousands are implemented. The flourishing industries targets to utilize the agricultural products grew in the surrounding areas as inputs so that they create value chains. Totally, there are more than 560 investment projects in the town and out of the investments 80 percent are productive industries.
In the urban agriculture investment, there are companies that invest more than 80 billion Birr.
As to Birhan, when the projects begin to engage in full capacity, they could create job opportunities for 75 thousand citizens. Some began production and currently, they already created jobs for more than 20 thousand citizens.
He also said that, in the last budget year, the investment office planned to attract
more than 300 investors and could attract 299 investors. It also planned to bring 40 billion Birr in the form of investment and achieved 41 billion Birr.
In this budget year, the office planned to accommodate more than 400 industries and to that end, 3 thousand hectares of land is prepared by cluster.
He further said that the peace that prevailed in the town helped to make the town be investment destiny and as much as possible the investment office tried to reduce bureaucratic hurdles witnessed while investors appear at the offices for various purposes.
In the town, there are four industrial areas and the municipality tried its level best to avail infrastructure needed for the industries. But due to some limitations, there are some places that do not get sufficient infrastructure, and the effort to tackle the obstacles has been undergoing. Chances have also created the investors to construct the infrastructure by their own capacity. Currently, the electric power infrastructure substations that could generate 360 Mega Watts are installed.
And this can meet most industries’ energy demand. The municipality also in this budget year allocated 9.6 million Birr to stretch electric lines from the substation up to the industries sites. Such an approach also could resolve the problems witnessed in more than 90 factories.
The projects also created opportunities for farmers who were displaced from their holdings and got compensation to invest their money in various economic activities.
The Ethiopian Herald October 30/2021
