Companies’ performance at KIP, DBIP stimulating economic growth

Recently, media crew has paid a visit to Debre Berhan Industrial Parks (DBIP) and Kombolcha Industrial Park (KIP). The aim of the visit is intended to assess the performance of companies’ operations aftermath of the TPLF conflict on the parks and its impact. The visit was organized by Industrial Parks Development Corporation (IPDC).

Accordingly, The Ethiopian Herald delighted to herald what it was learned from the visit. Despite the TPLF destruction and pillage, companies are resumed operation and continued manufacturing and exporting products to their respective market destination. This is a great achievement and hope-giving performance contributing to the country’s economic development that The Ethiopian Herald observed.

Of course, the companies had experienced difficulties and damages due to the TPLF’s destructive war against the parks and its surroundings, but the performance of the companies operating at both KIP and DBIP are still auspicious helping to realize inclusive economic development of the country but this does not mean there are no difficulties. However, the companies’ performance is promising in realizing the country’s journey towards industrialization.

According to the report, Debre Berhan Industrial Park (DBIP) has significantly surpassed the 9.4 million USD import substitution target set for the first half of the current Ethiopian fiscal year by substituting the 21.2 million USD worth of imports.

DBIP’s General Manager Yeshitila Mulugeta told the visiting journalists that the involvement of big-scale European corporate including the French malting company, Boormalt in the park is instrumental for the stated success. Boortmalt, the world’s leading malting company, has secured 21.2 million USD via providing malt for local beverage companies that the country will otherwise incur the forex to import malt.

As to him, Boortmalt has made market linkages with over 27 thousand barely producing farmers and cooperative enterprises and it has assisted the latter in so many ways including offering training and other capacity building programs as well as input provision. Boortmalt Ethiopia is one of the 27 malt processing firms operating at DBIP and it has the capacity of producing 60 thousand tons of malts annually.

Yeshitila further noted that the park has generated 3.6 million USD from export in the reported period and contributes share in the critical forex earnings. All the 8 shades constructed in the park are owned by various investors.

In terms of employment, the DBIP provided over 600 jobs in the first six months of the current budget year making the total number of employees to over 1,700. Upon fully operational, the park has the capacity of employing 13,000 citizens, it was learned.

By the same token, DBIP envisions becoming a center of excellence in agro-processing, textile and garment industries and have provided sizable jobs to the local community as well as the park has still prepared untapped wide investment lands and other resources. Hence, interested investment has to use the opportunities to run effective and favorable investments.

Patrick Kennedy, Boortmalt Ethiopia Plant, Senior Manager said that there is demand and malt investment potential in Ethiopia that is why the company investing in Ethiopia. He said the company has been working very closely with malt-producing farmers. “We have direct contact with them. The company has undertaken activities to promote and grow the relationship with the farmers because it is very important to realize barely product,” he remarked.

The company has been working to supply customers with good malting barley. This can be done when a company gets good barely from local farmers and barely producing enterprises. “For over a year, a lot of malt’s barely came from Adama and Shashamane, Arsi. Currently, however, we and relevant actors are working with farmers aimed to enable them to produce quality barely and improve their quality of life in the future as well,” he added.

The company is trying to source a good quality barely to supply quality malt for customers. To make this happen, boosting farmers’ quality barely producing potential is unquestionable because the farmers are the most important part of the supply chain, he said.

Despite TPLF’s destruction, Kombolcha Industrial Park (KIP) has secured 3.4 million USD from export just aftermath of the terrorist TPLF attack against the park. As to the available information, KIP planned to export 3.9 million USD after the war, but it has managed to export items worth 3.4 million USD.

KIP Manager Ahmed Seid told the media crew recently that the park has planned to export products worth 7.9 million USD in nine-month performance of this budget year, but it has managed 7.4 million USD exports.

KIP planned to generate 13 million USD this year, but at present achieved 7.4 million USD in the first nine months of this budget year performance, it was said adding that there are companies incurred 5 million USD damage because of the conflict but now those companies have resumed operation and started exporting materials worth 1.5 million USD.

IPDC provided seven months rent-free operation for factories functioning in the park with an estimated value of 10 million USD, and in return, the companies made back payment for the employees who were terminated due to the conflict in the area, he underscored.

With enthusiasm he said; “We are here today because of the relentless support and cooperation of other industrial parks and relevant actors.” As to him, some 2,100 employees are currently working in the park.

BY MULATU BELACHEW

THE ETHIOPIAN HERALD SUNDAY EDITION 10 APRIL 2022

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