Over 180 domestic and foreign companies joined the industrial parks that have taken shape across the length and breadth of Ethiopia. The parks in Hawassa, Mekelle, Kombolcha, Addis Ababa [Bole Lemi I] and Adama offered more than 60,000 jobs to citizens.
The products of these companies are competitive in the global market. A fact that corroborates this statement is that internationally acclaimed brands like H&W, Pivage, and The Children’s Place buy textile from Ethiopia while Michael Kors buys the leather bag from Kombolcha Industry Park.
Yet, the government has plans to expand the industrial parks. Several parks are in the pipeline including Dire Dawa Industrial Park whose first phase construction is almost complete.
As the country’s investment eco-system is so friendly, compounded by legal and procedural improvements, the country has become the prime investment destinations in Africa.
In a press statement, Ethiopian Investment Commission Deputy Commissioner Temesgen Tilahun said Ethiopia accounts 18.5 percent of all jobs created through FDI in Africa.
Further, so many tasks are being executed to make doing business in Ethiopia easy.
The deputy commissioner also ascertained that institutional reforms and structural changes within the country have created an enabling environment to the investment climate, and investment policy became a central aspect of government industrialization agenda.
He also mentioned the reasons to invest in Ethiopia as growing economy; excellent climate and fertile soils; strong guarantees and protections; abundant and affordable labor; regional hub with access to a wide market; improved economic infrastructure and competitive incentive packages.
Forex earning as a result of the park’s products export have shown remarkable surge over the last Ethiopian fiscal year, Industrial Parks Development Corporation CEO Lelise Nemie told the press. To her, the increment smashes its immediate fiscal year by 115 percent,
Currently, seven industrial parks are operational, she said, adding that the remaining four industrial parks of Bole Lemi II, Bahir Dar, Dire Dawa, and Kilinto have already been readied for operation, she added.
“Employees at industrial parks also received pieces of training of various sorts.”
Fitsum Ketema is General Manager of Hawassa Industrial Park. He told this reporter that companies known for their brand textile and garment products have been operating at the park. Lying on a-300 hectare of land, with the first phase covering 140 hectares, all the sheds of the park have already been joined by domestic and foreign companies, he added.
To him, the majority of companies in the IP are currently operational and exporting their high-quality products to the international market.
Above all, the park is eco-friendly, he said. “[The Park]I have a water and waste treatment plant which uses the latest technology for treating and recycling about 90 percent of the water used in the park. To this end, a zero-liquid discharge (ZLD) facility has already been set up with a daily processing capacity of 11 million liters of effluent,” says information accessed from Ethiopian Investment Commission’s website.
Currently, more than 26,000 peoples are working in the park.
And also, when the park is fully operational, it is expected to generate one billion USD. The IP generated 66 million USD by exporting various products, he said.
A single window service at the park has also tremendously eased investors hassling, he added.
As the pertinent data show, 60 percent of the population of the country represents the youths. The expansion of education has enabled the youths to be productive citizens. Yet, the government has been working to improve the education system, and feed the manufacturing and other sectors with the required skilled personnel.
The development of industry indeed plays a crucial role in the economic growth of the country because of the large investments attracted in these areas.
As stated in the Growth and Transformation Plan (GTP II) of Ethiopia, the accelerated growth of the manufacturing industry will be promoted through expanding new investments mainly in export-oriented manufacturing and improving the productivity and competitiveness of domestic manufacturing firms.
The strategic directions during GTP II are improving the productivity, quality and competitiveness of both existing and new industries and ensuring structural change, building labor-intensive light manufacturing industries which are globally competitive in terms of productivity, quality and price, transforming the medium and large manufacturing industry to become a reliable source of foreign exchange and building industrial engineering and technological capacity.
The Ethiopian Herald August 9, 2019
BY ABDUREZAK MOHAMMED
