BY DANIEL ALEMAYEHU
The world is a home for every person regardless of its color, race, financial strength, or political stands. In order to live in harmony, the world needs a system that governs all to stand in solidarity and grow together no matter what the existed fact is. A unified objective needs to be outlined. That is why the world is living under the big umbrella called globalization.
Though the world is diversified and the nations are in different political power and financial status, these nations have set shared common goals. These set goals aim to end the human suffering all over the globe by making the world a favorable place to live.
It is the fact that the United Nations is an organization that stands for the wellbeing of those nations that are members to the institution. One of the major achievements is that the organization has set Sustainable Development Goals (SDGs) for the highest objectives of creating favorable place. The Agenda 2030 has plenty to offer to the people of the world. Out of the 17 Sustainable Development oals, goal number eight and nine focus more on economic growth. The eighth Goal aims to promote inclusive and sustainable economic growth, full and productive employment and decent work for all. The ninth goal aims to build resilient infrastructure, promote inclusive and sustainable industrialization and fostering innovation.
Align with the UN’s Agenda 2030; the continent of Africa has developed its own objectives entitled Agenda 2063. The Agenda stated twenty objectives to be achieved during the remaining years. From those twenty goals, the fourth goal focuses on transformed economies. Under this goal, there are sub-objectives to be achieved. Creating sustainable and inclusive economic growth, science, technology, and innovation (STI) driven manufacturing, industrialization and value addition coupled with economic diversification and resilience are the main objectives under goal number four.
There are a number of attempts to make the continent one of the competitive continents in the world market. So as to meet the set goals by the UN and AU, a number of agreements have been made between and among nations to work together for the enormous goals.
In 2019, it was reported that the historic African Free-Trade Zone (FTZ) was introduced when the African Union celebrated making one more step toward creating a continent-wide market of 1.2 billion people worth 2.5 trillion USD. This step was considered as a step to success. It was also reported that from those fifty five members of the African Union, fifty two of them have signed the agreement to establish the free trade area starting from March 2018.
According to the report, except Nigeria, other countries with strong and giant economic power like Ethiopia, Kenya, Egypt, and South Africa have ratified the agreement.
Recently, the government of Ethiopia has shown its commitment to establish the aforementioned Free Trade Zone. The Ministry of Transport and Logistics has announced that Ethiopia will establish the Free Trade Zone in one of the federal administration cities, Dire Dawa. This action will be followed by other regions of the country.
In order to choose sites and places to prepare them for such objectives, multiple points need to be considered. On a panel discussion held in Dire Dawa to establish the FTZ, Transport and Logistics Minister, Dagmawit Moges stated that a number of ideas regarding the Free Trade Zone. According to the Minister, there are a number of reasons why the government has chosen Dire Dawa to be the first place for the Free Trade Zone. Dagmawit said that the city was chosen by considering its proximity to the sea and to the Port of Djibouti and the place is also used as the major outlet for Ethiopia.
Tasks should be done together with other responsible stakeholders, so does the Free Trade Zone. The Ethiopian Maritime Affairs Authority, Ethiopian Shipping and Logistics Service Enterprise, Custom Commission, Ethiopian Airlines and other stakeholders are said to be involved in the task, according to the Minister.
It is important to remember that the project in Dire Dawa is a pilot project. Besides, the project will be expanded to nominated regions of Ethiopia, as to Dagmawit.
The continent of Africa is rich in natural resources that its citizens can use them to develop the continent. Dagmawit disclosed that Ethiopia needs to exploit its every potential and resource to make itself the major land linked trade and investment hub. In addition, the government of Ethiopia along with its stakeholders strives to make the nation an industrialization and logistics hub in the Horn of Africa.
As to the Minister, the Free Trade Zone prioritizes specific areas such as trade, comprehensive logistics service, processing zone, and export facilitation. Dagmawit said, “The Free Trade Zone facilitates the country’s internal trade, and the zone will be used as a corridor for the neighboring nations’ import and export facility.”
Likewise, the Minister mentioned that the establishment of the Free Trade Zone in Ethiopia will help agents to make an entrance to their products to Ethiopia within a short period of time. This will help to reduce spoilage and ensure the overall development of the country. It also plays a significant role in increasing its participation in an international trade system, the Minister stressed.
By the same token, Ethiopian Maritime Affairs Authority Managing Director Engineer Yehualashet Jemere presented a research paper on the event. The director stated that the establishment of the Free Trade Zone is timely and will be fit with the African Continental Free Trade Area (AfCFTA) as well as realizing regional integration. It plays a crucial role regarding cost minimizing and time management. It helps also for urbanization and industrialization. The corridor will be worth in attracting Foreign Direct Investment (FDI) to the nation’s economic activities. The director stressed, “It is vital to boost economic activities of the corridor and support economic development of the nation.”
On the event, the director disclosed that the Dire Dawa FTZ will be operational by next month. Apart from Dire Dawa, other places have been identified as the next Free Trade Zones. The director announced that places like Modjo, Adama, Moyale, Kombolcha, Bahir Dar and Hawassa will be the next destinations for the Free Trade Zone.
THE ETHIOPIAN HERALD THURSDAY 14 JULY 2022
