BY DANIEL ALEMAYEHU
In 21st century, the world’s economy and the way things are handled have been shifted in a fraction of seconds and nations have been pushing forward with their power to create better and resilient economy that can resist the existing and upcoming challenges in the world. In the past few years, the world has been experiencing challenges including the worst inflation rate coupled with the global pandemic, COVID-19. Most nations, especially in the African continent, have suffered a lot in this regard. In various occasions, nations around the world have tried to promote the industry sector so that it will create more job opportunities for citizens.
It has not gone long since Ethiopia was under an active war in the northern part of the country. It is true that war destroys a nation, and Ethiopia suffered a lot due to the conflict. The country has experienced the worst scenarios, and its economy was on the verge of collapse facing major troubles. The nation’s expulsion from AGOA might be an example on how the country has been encountering pressures from both in and out sides.
However, the nation has not stopped to fight back those challenges and pressures from different angles and built a resilient economy, and it made its way to build the needed economy. The government has involved both public and private sectors for a holistic goal to uplift the nation’s economy and strived to achieve the objective of becoming the beacon of prosperity in Africa.
Similarly, the Government of Ethiopia has been working on changing the economic paradigm of the country by promoting and introducing numerous ways of doing business. The government has welcomed stakeholders and anyone who is interested to invest in the country with open hands. It has been facilitating and creating better ways for those who want to invest in the country.
One of the decisive steps taken by the Government of Ethiopian in promoting the manufacturing sector is the expansion of industrial parks in every corner of the nation that proves itself. The government gives due attention for manufacturing because it is one of the ways to be economically independent and creating more job opportunities for citizens.
According to its official website, Industrial Parks Development Corporation (IPDC) was established in 2014 as a public enterprise. The corporation aims to be a catalyst for rapid industrialization by ensuring the development of manufacturing industries, economic transformation, and attracting both domestic and foreign investors. Besides, the corporation aims to provide pre and post- investment services.
The corporation has been achieving a number of accomplishments within short period. Collaborating with other stakeholders, IPDC has organized various
events to promote manufacturing. A simple example might be the event dubbed ‘Ethiopia Produces’. When the particular event kicked off, Melaku Alebel, Minister of Industry described the country’s potentials and opportunities in manufacturing and industry development. The Minister has listed the country’s untapped resources that can assist the entire sector.
According to him, Ethiopia has the potential to compete in the manufacturing sector. Its geographic settings, number of population, already built industrial parks, international conventions, and its well- known airlines make the nation competitive in the world. Melaku also added that currently, the government is working aggressively to increase the sector’s contribution to the country’s GDP from 6.8 to 17.2 percent.
In addition, Melaku disclosed that it is planned to increase the industrial productivity from the current 50 percent to 85. On his presentation, Melaku described that industrial parks have created multiple job opportunities, and they have formed market connections with farmers. Regarding job opportunities, the ministry has planned to create over five million jobs in the coming ten years.
It is true that Ethiopia has been practicing international experiences that other countries used to develop their country. From countries like Malaysia, Singapore, Vietnam, and Japan, Ethiopia has learnt applicable experiences. Besides, the country is also learning from the mistakes that other countries made.
According to the last year’s performance report of the corporation, IPDC Marketing, and Communication Department Head, Henok Asrat mentioned that the corporation has built around 177 factory shades. Of these shades, some 158 of them are occupied by investors, and more than half of the investors, 98, started production. In the ICT Park, there is around 4920 square meter area of land ready for rental, and 1937 square meter of the area is rented. The corporation has also been
working on finalizing a one stop service centers working hand-in-glove with the stakeholders.
Lately, it was reported that after the peace accord signed in Pretoria, South Africa between the Federal Government of Ethiopia and the Tigray People’s Liberation Front (TPLF), the investment inflow has shown gradual improvement. In this regard, in the past two months, a number of investors have shown interest to invest in industrial parks. This will bring blessings to the nation regarding foreign exchange, import substitutions, and technology transfer. Following the nation’s expulsion from AGOA, the government organized a social package for local investors to work in those industrial parks.
Recently, the corporation has signed a Memorandum of Understanding (MoU) with three domestic companies with registered capital of more than 11.4 billion Birr and announcing that several actions have been taken throughout the 13 industrial parks by giving attention to building infrastructure, promoting import substitution and job creations.
On the event, Industrial Parks Development Corporation’s CEO Aklilu Tadesse disclosed that a number of investors have agreed with the corporation and shown their interest to invest in various investment sectors which can bring foreign exchange and technology transfer. It is used as a tool to stirring the wheel of the investment sector that has been inactive because of challenges namely COVID-19 and the conflict burst in the northern part of the country.
The CEO also stated that the three domestic companies are Gumesa Trading PLC, Impact Printing and Graphics, and Suji Liyan Doyo Oxygen and Nitrogen manufacturing PLC. With an initial capital of over 200 million USD, Gumesa Trading PLC rented 10 thousand square meter area of land in Kilinto Industrial Park to produce materials used for packaging medicine kits and to distribute in local markets. The company will create 140 permanent jobs for citizens.
The other domestic company, Impact Printing and Graphics also rented 1150 square meter area of shade and plans to invest 40 million Birr in order to produce garment printing. This will also create 200 jobs for citizens. Similarly, Suji Liyan Doyo Oxygen and Nitrogen Manufacturing PLC has received 800 square meter area of land in Jimma Industrial Park and invested more than 206 million Birr for manufacturing oxygen. The company plans to distribute its products to local markets and it will create 300 jobs. The abovementioned companies have also engaged in activities targeting reducing foreign exchange crutch and attracting foreign and local manufacturing companies.
On the event, Gumesa Trading PLC Owner, Neway Nigussie, on his part, said that his company will be fully operational within one year or plus. The company will give due attention to curb foreign exchange challenges and increase job creation. Besides, the company will work with foreign and local companies to share experience and technology in a bid to foster the expected result from the sector.
Suji Liyan Doyo Oxygen and Nitrogen Manufacturing PLC’s CEO, Girma Ababi (PhD) also said that the company mainly produces oxygen and Nitrogen, which has to play an indispensable role in encouraging social and company relationships.
To wrap up the above ideas, Industrial Parks Development Corporation has been working tirelessly to facilitate the necessary inputs for those who want to take part and invest in the industrial parks. The corporation has been working to provide the necessary infrastructure in all industrial parks so that investors can access services easily. Such achievements will foster the overall progress of industrial parks and help the nation achieve its future goals. IPDC has also set its own goals to upscale its contribution on nation’s GDP so that such accomplishments will definitely push the corporation towards its goals.
THE ETHIOPIAN HERALD 28 DECEMBER 2022
