Today’s Guest Memiru Moka was born and raised in the former Sidama zone, Hagere Selam woreda. He earned his BA in community development and leadership from Ethiopian Adventist College. He has also received an MA degree from South Korea Lingnan University in natural resource management.
Memiru has served for over 12 years in a range of government institutions to discharge various responsibilities such as agronomist, deputy administrator of the former Sidama zone (now Sidama State), and inclusive value chain project coordinator and so on. He is currently serving as an Executive Manager for Sidama State Industry Development Cooperation.
The Ethiopian Herald made a brief stay with him to know more about the current status of Yirgalem Integrated Agro Industry Park and the activities done so far to upgrade the livelihood of the community in particular and the performance of companies in terms of bringing hard currency to the economy and creating jobs.
Would you tell us about institutions which are managed by the Corporation?
The corporation administers Yirgalem integrated agro Industry Park, two rural transformation centers at Aleta Wondo, Morocho and Shebedino, Small integrated agriculture development. It also manages 141 cluster centers (shades) that provide service for Small Medium Scale Enterprises (SME’s).
When the Yirgalem integrated park was established?
Yirgalem integrated agro Industry Park was officially inaugurated about a year ago as a second Integrated Agro-Industrial Park (IAIP) in the south-central Sidama state of Ethiopia. However, the park started work after the completion of some shades couple of years back. The park has huge potential for national as well as international markets. It has 11 production facilities in the IAIP that are occupied by investors such as the Sunvado Avocado Oil Company, Doely Processing, and Hebron Coffee etc.
With a total investment of over 60 million USD, the Yirgalem Integrated Agro- Industrial Park is laid on 294 hectares and has created permanent jobs for more than 133,000 people, and indirect jobs for more than 400,000 people. The park is expected to drive the structural transformation of the economy and support the country in reaching its Vision 2025 goal of becoming alight-manufacturing hub in Africa.
What is the goal of establishing this park?
As we all know, the integrated agro Industry parks have been established with a vision of producing and supplying quality raw materials with the expected quantity to industries so as to accelerate pre and post agricultural development activities thereby creating a conducive situation for agricultural productivity. The other thing is accelerating industrial developments.
Ethiopia’s economy is highly dependent on agriculture, which accounts for 40 percent of the GDP, 80 percent of exports, and an estimated 75 percent of the country’s workforce. Therefore, agriculture is a food and job opportunity for Ethiopia. We have a number of agricultural products. Thus, the role of industry parks is to add value on agricultural yield and accelerate industry development activities in the country. Agro-industries have the potential to provide employment for the rural population not only in farming, but also in off-farm activities such as handling, packaging, processing, transporting and marketing of food and agricultural products.
Agro-Industrial Parks are units which add value to agricultural products, both food and non-food, by processing them into products which are marketable, or usable, or edible, or by improving storability, or by providing the link from farm to market or park thereof. It is an integrated clustering model that combines different agro-production chains, thus maximizing operational synergies, economies of scale, and income generation activities for the community it is located in. By targeting the vertical and horizontal integration of value-chains, AIPs aim at achieving sustainable development goals in the area in which they are established.
Industrial parks have contributed to the national as well as local economy in terms of employment generation, income tax, capital investment, and export and import substitution, technology transfer and cultural integration.
The general objective of the agro-park is to support several distinct areas dedicated to processing, logistics platforms, R&D, training, and technology transfer, business incubators, service areas, and other common facilities.
Could you tell us the linkage created between investors and farmers to solve raw materials supply?
The people residing in the area are feeding themselves from the income gained from what they produce. Yirgalem is the place where a number of agricultural activities are carried out. Coffee, vegetables, fruits, cattle breeding are some of the agricultural activities done by the people residing there. In short, there is a great opportunity to get raw material with the desired amount and quality. Investors who are already engaged in the park are witnessing this.
The other thing is, there is a wide range of infrastructural developments in the area. The area where the industry park has been established is relatively near to the capital Addis Ababa. What is more, it is conducive for air transport. The expressway which is on the verge of completion is also another blessing that triggers investors to engage in the industrial park. The fertile land and conducive climate ecology is capable of producing any kind of agricultural products. There is the opportunity to increase agricultural productivity using fertilizer and technology. The reliable security which ensures industry peace is also another issue that helps farmers and investors to be effective in business.
On the other hand, the incentives provided for investors such as the supply of raw materials, loan access and other options are pulling factors for investors to engage in the industrial park.
What are the tasks done so far to resolve challenges related to raw materials?
Agro-based industries’ utilize animal- and plant- based products as raw materials for making their products. We believe that the agricultural product and productivity should be increased but it entails doing various tasks. It also requires applying agricultural technologies which have greater impact in producing quality yields with the desired amount. The farmers in the area are also expected to engage in a commercial farming system. However, using all the opportunities at hand, to be effective in agro processing, all the possibilities are there. The availability of agricultural extension services, the ease of use of raw inputs, and the welcoming government structure that provides endless support for investors and farmers are some of the opportunities for investors who aspired to invest in Sidama. So far, various tasks have been carried out to increase product, productivity and supply of raw materials for investors.
Improving seed expansion and distribution tasks have also been undertaken in order to prevent the shortage of raw materials for agro industries. Cooperatives are now functioning well in terms of fulfilling input inquiries to industry parks. For instance, two companies engaged in producing avocado oil are working with over 25 cooperatives which hold 133,000 farmers in order to get raw avocado for these companies. The cooperation has given training, input supplies and other materials to ensure product productivity.
Would you tell us the impact and visible changes of people’s livelihood especially after the establishment of the industrial park?
The establishment of Yirgalem Agro Industrial Park has been contributing a lot for Sidama state in particular, Ethiopia in general in attracting foreign currency to the country apart from assisting the world community to get organic avocado in its meal.
First, the flow of companies to the industry park is now creating market access to the farmers. Like I mentioned earlier, over 133,000 farmers are now benefiting from working with the companies invested in avocado oil. Thus, the income of farmers is improving as the capacity of farmers to produce quality avocados are increasing. It is also advantageous in increasing product productivity. Farmers are inspired to produce more as the income they gain increases.
The industry park has created jobs for many people. First, the farmer creates jobs increasing their capacity to produce more yields. Second, farmers are organized under cooperatives and act as one entity to supply the produce to the industries at a reasonable price. The market processes by itself create more jobs for the people in the trade channel. Third, the people in the area have a chance to get hired in the industry parks. If we observe the 2014 E.C report alone, over 7000 people are employed in Yirgalem integrated agro Industry Park on a temporary and permanent basis.
Nationally, the two avocado oil processing companies alone have brought over 4.4 million USD exporting the produce since the park went operational in March 2021. This means it increases the revenue flows to the government and ensures product productivity.
Is there one –stop service available in the park?
The one–stop service center is a welcome point where you can receive information, resolve doubts and complete administrative paperwork. Providing one-stop services to investors makes them more competitive and productive. Thus, through process, the service that is provided by the government should be incorporated. This time, various infrastructural developments are completed in the park. Roads, water, electricity, telecom, banks, customs and other services are accessible in the park. Other services that provide food and pharmaceutical services will begin soon.
Is there a trained human power that fit companies’ desires?
As a nation, we have a great amount of trained and ill trained human power. On the other hand, we have professionals at higher and medium levels. So far, we have not encountered the shortage of trained manpower. Working in collaboration with technical and vocational centers, we can supply trained middle level human power for the companies who engage in the industrial parks. This doesn’t mean that the task does not require providing capacity building training.
As I learned, the company inaugurated the first phase of the facilities. Could you say something about phase two of the project?
The project will expand itself. Yirgalem Integrated Agro-Industrial Park will have a capacity to build shades that can serve up to 150 manufacturing companies, with all necessary infrastructure fulfilled. We have two working systems in terms of shade allocations. One is, we provide land for investors who develop their own shade and the other option is to transfer constructed shades to investors in the form of rent. We planned to expand the existing park to 1000 hectares. However, there is no new project for the time being. What we are doing now is completing the task carried within the park.
If you have a message to convey for investors, this is your floor
Even though the integrated agro industry park is new in its kind, the performance of investors is awesome and what I want to assure for local and international investors is there is enough raw materials, market and conducive work environment in the park. There is no assurance better than the witness made by companies engaged in the manufacturing process. These companies by themselves are a practical lesson for beginners. They are now penetrating the international market exporting quality products that fit the international market.
The presence of fertile land, development of infrastructure, supply of water, electricity, telecom and other services makes the industrial park preferable by potential investors. What is more, the environment is known for its organic agricultural products which are adored and needed by the world community. As an investor, there is a wonderful opportunity to engage in any agriculture activities such as coffee, fruits and vegetables, milk, meat, honey and other products. As the place is found not that much far from capital Addis Ababa, the products are easily accessible to the international market. There is a government structure ready to cooperate and facilitate conditions for the investors. I invite you all to come, visit and invest in Ethiopia, a place where every potential is there to be prosperous. Invest in Ethiopia; begin your journey of being rich!
Thank you!
It’s my pleasure.
BY GIRMACHEW GASHAW
The Ethiopian Herald 14 May 2022
