Ethiopia will open its first industrial zone for export-oriented factories before the end of the current Ethiopian budget year, according to Mekonnen Manyazewa, Industry Minister of the Federal Democratic Republic of Ethiopia.

The Bole Lemi Industrial Zone which covers 156 hectares, located in Addis Ababa, is expected to cost an estimated USD 49 million. The industry hub is  designed to help companies such as agro-processors, pharmaceutical factories and textile manufacturers to produce and sell value-added goods and boost revenue from exports.

South Korean garment-makers are among companies in talks with the government about establishing operations at Bole Lemi Industrial Zone located in Addis Ababa.

The government is building roads, electricity and telecommunications infrastructure at the site and it will offer tax incentives for industries based there.

“This is one of the key strategies to facilitate and support foreign and domestic private-sector partners and particularly to enhance exports,” Mekonnen said. “It’s key for our industrialization.”

Plans for additional industrial zones is under consideration in at least five other locations including, Kombolcha, 158 miles northeast of Addis Ababa, and Dire Dawa, a self-administered city about 228 miles east of the capital, according to Mekonnen.

The Ethiopian government is working to attract private investment with plans to convert its investment agency into a “one-stop service” for new companies to register, Mekonnen said. It is also introducing measures to expedite the clearance of exports and imports at the border, he said.

Source: Bloomberg