In efforts to shift from farming and become a hub for textile and other industries Ethiopia will start setting up a new industrial park in the coming September and expand existing ones at a total cost of U.S $ 250 Million.
According to Reuters Ethiopia is trying to lure investors that are being pushed by the cost that is rising from China and some other Asian markets. Labor is said to be cheap in Ethiopia and the country also has fast improving power supply, transport and other industries. In addition to these, it’s economy has been growing by double digits during the past 10 years.
According to the Deputy Director General of the Ethiopian Industrial Development Zones Corporation, Yaregal Meskir, plans to expand the Bole Lemi Industrial Zone is finalized and there is a new plan to construct another industrial hub at Kilinto.
Yaregal noted there is a long queue for investors to get a sheds and land. He added the country is prefers for investors that
will invest in labour-based industries such as garment manufacturing and shoe manufacturing for exports.
The Deputy Director General said works on Bole Lemi phase two and the Kilinto Industrial Zone will commence as of September, after selecting a designer.
The expansion work as well as the new site is said to be financed by a U.S $ 250 Million loan obtained from the World Bank, Yaregal said.
Factories can get land from the industrial zones at a U.S $ 1 per a square meter for six months, enjoy tax holiday that will last up to seven years and customs along with other services on site.
Taddese Haile, State Minister for Industry, said "Ethiopia has developed a strategy that gives priority to certain industries". He furthered, "The aim is to see Ethiopia as a globally-known cluster for textiles and garment products".
According to the Reuters Ethiopia’s strong growth is enhancing projects such as hydro-electric dams and other power projects to offer cheap electricity and a growing network of roads and railways.
The government also allows private investment with regard to industrial zones. One such enterprise is the Eastern Industrial Zone, whose shareholders included China's Jiangsu Qiyuan Group.
Source: Reuters
