Gada Special Economic Zone (GSEZ), located 65km east of Addis Ababa-the capital of Ethiopia-is a new industrial, trade, investment and urban development initiative developed by Oromia National Regional State. It has been designed to accelerate the overall economic development of the country.
According to the Director General’s message printed on the magazine dispatched on the launching ceremony of construction of GSEZ on 10 May, 2024, it aligns with the economic reform agenda, emphasizing ease of doing business and the development of multisectoral economy of Ethiopia. This initiative reflects Ethiopia’s aspiration to become a beacon of economic prosperity.
To begin with briefing about Special Economic Zone (SEZ), it is a geographical area designated by an appropriate organ that is subject to customs and is attended by business enabling policies, trade facilitation service, infrastructure and utilities, and amenities including a one-stop shop, duty and tax-free privileges and other special incentives, and as appropriate organizing within it any one or several of the following constituents: industry park, free trade, and logistics zones, science and technology parks, service parks, agriculture and livestock zones and small investments.
The World Bank defines Special Economic Zones within six typologies: free trade zones, export processing zones, hybrid export processing zones, free ports, specialized zones and enterprise zones. Befitting this definition, GSEZ envisions becoming Africa’s premier economic center by 2062, achieved through the establishment of cost-effective, integrated infrastructure and the cultivation of an appealing investment climate. It is strategically structured to encompass key land use categories such as free trade zones, logistics hubs, export processing zones, various industrial clusters, agro-processing, real estates, commercial and financial centers, social amenities, and recreational facilities among others.
While launching the construction of the Gada Special Economic Zone in Lume District, East Shewa Zone of the Oromia State, Prime Minister Abiy Ahmed (PhD) said that the government aims to replicate the agriculture sector’s success in the manufacturing industry and to expedite Ethiopia’s economic progress. He noted that the GSEZ serves as a pivotal platform to realize the government’s vision of replicating its successes in the agricultural sector in the industrial domain.
The success that has been registered in wheat and other agricultural commodities should not be taken as means for boasting but should serve as a spring board for the bulk work ahead. It is the time to gear focus towards the manufacturing industry since sticking on agriculture alone does not take the country forward, he emphasized.
“For Ethiopia to become competent in the global economic arena, leveraging on manufacturing industry is crucial. In this regard, the establishment of the GSEZ is instrumental in unlocking Oromia’s and Ethiopia’s vast potential for manufacturing industry,” the premier said.
The PM said that the day of launching the construction of the special economic zone was a special day of joy because it was the turning point to shifting topic of discussion from agricultural issues like production of wheat, coffee, rice and others witnessed good beginning to industrial development. It is a big deal to begin modernized manufacturing industry that is capable to consume large amount of working force through its employment opportunities and gratitude shall go for chief of Oromia State, Shimelis Abdisa and colleagues for the success they have registered in this regard.
“The leadership witnessed in agriculture development should be realized in the manufacturing industry too as a result of your contribution to this success is great and we expect more from you. You need to work day and night with great discipline for the project’s accomplishment so that we are optimistic to be witness again seeing your pledge translated into practice,” the PM urged.
Unless the success begun in agriculture is backed by and replicated in industry, as of the prime minister, it would be hard to realize the sought prosperity. Though agriculture provides inputs to the industry, it lacks potential to attain prosperity alone if not supported by industry. The industry should be managed in the way it proceeds the success agriculture has begun to register.
“We have learned a lot from trajectory of our industrialization since its inception. We cannot transform our industrial firm by constructing industrial parks with loan finance and transferring only to foreign investors. Therefore, as the outcome of our policy reform, we have come to a conclusion that preparing free trade zones and handing over to local and foreign investors is viable,” he underlined.
Following the policy reform, Dire Dawa Free Trade Zone became operational being the first of its kind and the free trade zone to take place in GSEZ will be the second and the trend will continue in similar trend. It is expected to heal unemployment and foreign currency crunch pitfalls via providing bulk jobs and earning foreign currency because it is designed to focus on export products. Reliving the burden against the government, it will make the development healthy, he noted.
It is the time to unlock the industrial sector based on key measures like policy reform, infrastructure development such as highways and railways construction, energy provision, and trained human resource with good work ethics, supplying sufficient agricultural inputs in quantity and quality to be processes for foreign market and availing any necessary support the investors need from the government. As the country now can provide all these in full package, unlocking the sector is no more problem.
Though launching a project is good news, the chronic problem the country has suffered from is finalizing which needs more effort from those concerned. The premier expressed his hope that those in the leadership of Oromia State will make the project’s completion a success story but when only going beyond getting satisfied with minor achievements for there are more to do in the country.
On his part, Chief Of State of Oromia, Shimelis Abdissa said that the reform government has been performing vast deeds for the past years in economic transformation, especially that benefit the general public based on the ideas generated and initiated by the prime minister. The Oromia State in particular, has gone long distance to transform livelihood of the farmers. Essential support has been provided to the farmers not to confine on farming; rather to transform to investors using income they gain from agriculture. Over the past years, it could be possible to transfer more than 15,000 farmers to investor level.
In so doing, Shimelis said the agriculture sector has become modernized and livelihood of the farmers has made fundamental change. This includes both the farmers and pastoralists. They are able to play remarkable share in the nation’s journey to prosperity.
On the other hand, in order to expand industrialization, the Regional State has paid special consideration especially in increasing skilled labor, strengthening investment, and availing one stop service to encourage foreign and local investors. The regional state is playing its utmost role for the blossom of industrialization, he noted.
The Director General, GSEZ, Motuma Temesgen on his part said that the economic transformation the government has taken so far, as it is observed, is bearing fruit. In this regard, based on lucrative research, the Gada Special Economic Zone will be operational soon aiming at the central core of speeding up economic transformation. Setting a far reaching plan, the GSEZ has completed preparation to construct a globally recognized economic hub.
Motuma further detailed that the economic zone is established with the vision to take its part in strengthening export trade, attracting export oriented investment, generating foreign currency thereby increasing nation’s income, creating vast employment opportunity to the youth, widening urbanization and creating suitable conditions for the public.
GSEZ is planned to provide various services and different economic clusters like logistics, free trade zone, industrial clusters, real estate development, integrated agro processing parks, entertainment and tourism parks among others on 24,000 hectares of land. The zone is planned to be developed in four chapters of which the first is Logistics Park, free trade zone, export products processing and industry. All in all, it is the first in its kind to be core of the nation’s economic integration, transformation and assurance of prosperity.
The construction site is selected via thorough study for its appropriateness in terms of accessibility through various means of transportation from any direction; its proximity to the capital and closeness to railway and highway. Land Preparation was primary task via paying billions of Birr for compensation that ensures incorporate multiple of local and foreign investment; Motuma noted and invited domestic and foreign investors to engage in the special economic zone.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD TUESDAY 21 MAY 2024
