Ethiopia’s government is said to have allocated 1,600 megawatt for industrial parks found in its territory. This is in the aim of industrializing Ethiopia and in the long run to make the nation Africa’s light manufacturing hub.

The federal government is currently developing 9 huge industrial parks in different parts of the country. And in order to generate part of the required investment capital, the government issued sovereign bond in 2015 at the European capital markets. This enabled the country to generate 1 billion USD which was allotted for the construction of 3 industrial parks in Hawassa, Mekelle and Dire Dawa.

In order to attract big foreign direct investment to the parks the country is building, the government is offering generous incentive package, including; cheap lease fees, land provisions, duty free imports of capital goods, a tax break of up to 15 years, and a very cheap electric power supply.

Therefore, to meet the promise of cheap electric power supply, the Ethiopian Electric Power (EEP) is tasked for the installation of high kilovolt power transmission lines towards the industrial parks, including the accompanied substations.

According to The Reporter, this month EEP was able to finish 85 percent of the installation works for Hawassa sand Mekelle industrial parks. Installation works for Kilinto and Bole Lemi industrial parks; Bahir Dar and Jimma industrial parks; and Dire Dawa, Adama, Debre Berhan industrial parks have reached above 50 percent.

However, 1,600 megawatts is not sufficient to operate all the industrial parks at their installed capacity. For example Dire Dawa Industrial Park alone consumes 300 megawatt of electric power, while Hawassa Industrial Park on the other hand takes almost 500 megawatt of electric power.

Source: The Reporter