BY DANIEL ALEMAYEHU
As time goes by, people need to adapt the new and updated way to handle things. The world has gone far in creating better mechanisms to assist the daily chores of people and their government.
In this course of change, Ethiopia took its share to be a favorable place for Ethiopians. That is the reason why the Government of Ethiopia has acted upon various social, economic and political decisions. Accordingly, the government has tailored itself to create attractive and conducive environment for economic activities.
It is important to remember that international organizations such as the United Nations Organization and the African Union have set their own goals to create a better world. As the United Nations has Sustainable Development Goals (SGDs), the African Union has also Agenda 2063. These long set goals ensure better environment for all creatures living in the world. Out of the 17 Sustainable Development goals, 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.
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.
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.
Lately, on a panel discussion held in Dire Dawa to establish the FTZ, Transport and Logistics Minister, Dagmawit Moges stated that there are a number of ideas regarding the Free Trade Zone. According to the Minister, there are also 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.
Just last week, the first Ethiopian Free Trade Zone (FTZ) was inaugurated in Dire Dawa by the Ethiopian Prime Minister Abiy Ahmed (PhD). The Prime Minister said that the City of Dire Dawa depicts the little Ethiopia. “The Free Trade Zone was one of the sectors that we Ethiopians were not aware of it. We were in a deep sleep regarding the sector. There are a number of sectors such as water, land, utilizing the rise of the number of population that we have not awakened before,” the Premier said.
The concept of Free trade zone was practiced in the United States of America in mid 1930s. Besides, China started the free trade zone before decades in 1979. This time, China has more than 54 similar sites dedicated for economy, export and import along with free trade zones.
Before China introduced free trade zone, the county’s GDP was half a trillion. After 4 decades of implementing such economic measures, the nation has 9.23 trillion USD worth GDP. It is easy to predict the increment, explored Prime Minister Abiy Ahmed.
In addition, before China started free trade zone, the country’s Foreign Direct Investment (FDI) was as little as 50 million USD. At this very moment, the Premier noted, the nation generates billions of Dollars from FDI.
Regarding export, China was categorized with countries with low export activities. Nowadays, china has become the main exporter country in the world. In 2003, for instance, the amount of export that China exported is seven fold higher than the export that the whole world exported, Abiy disclosed.
According to the Premier, all the above mentioned blessings were acquired by these countries are because they were aware of it earlier. Like China, there are other African countries to mention in starting free trade zones. “We, Ethiopians, need to take this opening of the free trade zone as an opportunity. Especially, Ethiopian investors should wake up from your deep sleep,” Abiy stressed.
Prime Minister Abiy Ahmed (PhD) further said, “Rich person in rich countries is not similar with rich person in poor countries.” Rich people in developed and rich countries have the chance to be respected and get a first class treatment wherever they go; on the other hand, rich people in poor countries encounter with several challenges, the Premier elaborated.
In this particular trade zone, as to Abiy, everyone is invited to invest. On top of that, Ethiopian investors should be the first to take the chance and stand beside the government to achieve better in import and export sector.
Further, Prime Minister Abiy noted that practice of rules and regulations in this particular free trade zone are relatively loosened. Financial and custom systems coupled with other bureaucracies will be fast and easy. The government will take care of them.
As to the Premier, “if this particular free trade zone brings better outcomes, many free trade and economic zones will be opened. The main reason for the opening of the zone is that prosperity is mounting so that we need to have a shift in paradigm. We cannot use the same old methods for this time.”
Likewise, the Premier said that in the past three years Ethiopia has started activities and registered tangible achievements in the agriculture sector under the administration of Umer Hussien, Minister of Agriculture. Concrete successes have been observed in green legacy, wheat farming, fruit production, and recently in tea leaves practices. Not only that, backyard farming and urban agriculture should answer the question of food and become a source of income.
“When agriculture starts to grow, we need to create the connection among the industry and logistics. If we fail to do so, our agriculture will deteriorate to when it was,” Abiy said.
Prime Minister Abiy further elaborated that many African countries exported wheat to other countries. For instance, Sierra Leone was capable to export wheat to West Africa, but this time the nation imported wheat. Production of wheat is not enough; it should be the source of income. The reason why Ethiopia need Free Trade Zone is that if the government does not arrange a system with fast logistics and better trade system, the success scored by the agriculture sector will drop.
For better success that all Ethiopians wish to witness, citizens should wake up and start working and learn new lessons, the Premier said.
The Premier also tweeted, “Increasing the economic and technological capacity of our country while traveling in the same old way is a cumbersome journey. We need to follow new and innovative pathways. The world is changing exponentially. Trying to accept the new world with old thinking is considered as good as carrying our youth on our shoulders in the same way we carried them as children. The Free Trade Zone we are building is one of our ways to integrate into a rapidly changing world. I have no doubt that the zone will not only facilitate trade and investment but also enhance our technological capabilities.”
THE ETHIOPIAN HERALD WEDNESDAY 17 AUGUST 2022
