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Ethiopia earmarks $1.3 bn for first phase industrial parks

Addis Ababa, November 24, 2015  Ethiopia has set aside 1.3 billion US dollars for industrial parks to be built in first phase, according to Dr Arkebe Equbay, Special Advisor to the Prime Minister.
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The advisor made the remark here today at a panel discussion organized to celebrate Africa Industrialization Day.

From 700 to 750 million of the total financial plan will be secured from the sovereign bonds issued by the country.

Ethiopia was able to attain the plan set in the sector in the first Growth and Transformational Plan (GTP) period, he said.

The Eastern Industrial Zone in Dukem, Oromia Regional State, is the most successful industrial park among Chinese government industrial parks in Africa, he pointed out.

It has 36 enterprises including Unilever, the world’s second-biggest consumer-products maker, having 187 million US dollars capital, he indicated.

He said Ethiopia offers up to 15 years tax break as incentive for industrial park developers.

According to him, Ethiopia’s industrial park development gives utmost priority to domestic linking and environmental soundness.

Tadesse Haile, Industry State Minister, said the industrial sector has shown a modest growth in Ethiopia from 10.3% in 2010 to 15.6 at the end of the first GTP period.

It has also created job opportunities for several citizens, he noted.

The construction of industrial parks for food processing, garment, metals and machinery manufacturing is underway in various parts of the country, he added.

There is a plan to create jobs for 50,000 people from the industrial park being built in Hawassa alone, according to him.

Chinese Ambassador to Ethiopia, La Yifan, stated that Ethiopia’s efforts to build more industrial hub could be a model for other countries.

The expansion of industrial parks could be a foundation for Ethiopia’s efforts to shift from agrarian to industrial led economy, he said.

Jean Bakole, UNIDO Representative and Director of Regional Office in Ethiopia, said industrializations of Ethiopia and African countries should make women their top-priority.

Research papers showing Ethiopia’s achievement in the sector were presented at the event that attracted several stakeholders.

AYKA Addis Textile and Investment Group PLC, one of the biggest FDI in Ethiopia, presented a paper on Ethiopia’s investment climate and industrialization efforts.

Ayka Addis has created 8,000 jobs.

The company is also planning to engage in cotton plantations in Ethiopia

(FBC)

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