ETHIOPIA’S INDUSTRIAL PARKS: KEY HIGHLIGHTS
Ethiopia’s Industrialization Strategy
Ethiopia is implementing phase II of its Growth and Transformation Plan that is anchored on building a solid and vibrant industrial base that will engender structural economic transformation and inclusive growth. The government of Ethiopia’s overarching plan is to make the country the leading manufacturing hub in Africa by 2025 – with a focus on light manufacturing. Ethiopia’s industrialization approach includes developing specialized industrial parks, maintaining social and environmental sustainability, building vertically integrated industries, and enhancing skills development – and achieving all these through strong collaboration with the private sector including global players in the value chain.
Ethiopia’s Investment Climate
Ethiopia has become a preferred investment destination owing to:
- Sustained economic growth with an average of about 11% annual GDP growth for the past 14 years;
- Governments commitment and broad-based support to investors;
- Large scale investments on infrastructure – energy (largest hydroelectric dam in Africa), electric-driven railways (connecting cities to the Port of Djibouti), Africa’s aviation hub (Ethiopian Airlines flies to over 100 international destinations & 45 dedicated cargo destinations), etc;
- Strategic location with proximity to major global markets including the EU, Middle East, and the USA. The country further enjoys duty-free market access to the USA and EU through the AGOA and EBA initiatives. A large supply of trainable industrial workforce available at globally competitive rates,
- An abundant supply of high-quality industrial inputs, and globally competitive utility rates such as electricity and water.
Ethiopia’s Industrial Park Overview
The Government of Ethiopia places high importance on industrial parks development and is establishing over 20 state-of-the-art industrial parks located along key development corridors – each with a distinct specialty in priority sectors. These industrial parks will be developed and financed through different mechanisms ensuring a sustainable and inclusive partnership between the Government and private industrial park developers. Furthermore, investors planning on entering the industrial parks are meticulously selected to ensure cohesive and cordial relationships among them with a shared vision of ensuring higher productivity and competitiveness in the park.
Key Anchor Principles
- Specialized parks: Enhancing economy of scale and efficiency through the development of specialized/clustered industrial parks that are dedicated to priority sectors such as apparel and textile, leather and leather products, pharmaceuticals, agro-processing, etc;
- Export-oriented: Government provision of industrial park incentives and support measures targeted at increased export performance and competitiveness;
- Skills development and competitiveness: Creating and developing a pool of trained industrial workforce & enabling environment for skills attraction & retention which will lead to enterprise competitiveness;
- Vertical integration: Enhancing backward and forward linkages in the economy;
- Sustainability: Maintaining high environmental standards by applying cutting-edge environment-friendly technologies (zero liquid discharge systems) and other social sustainability standards.
Quick facts on Industrial Parks
- Located along strategic economic corridors, connected to ports by electric driven railway lines and asphalted roads;
- Close proximity to high labor force pool;
- Ready for plug-and-play, equipped with all the necessary infrastructures; and
- Tailored fiscal and non-fiscal incentives
Industrial Park Facilities
- One stop services including processing & issuance of permits, licenses, registration certificates, agreements, tax identification number, customs clearance, banking services;
- Dedicated power sub-station;
- Waste treatment facilities;
- Health stations;
- Fire brigade;
- 24 x 7 security services;
- Housing facilities;
- Commercial buildings.
Supporting Institutions
Industrial parks receive support from key governmental institutions that are actively playing various roles in targeting, attracting, and supporting investors enter and operate in Ethiopia. These institutions include
HAWASSA INDUSTRIAL PARK
The first and largest sustainable apparel & textile park in Africa;
- Inaugurated in 2016 with state-of-the-art technology and world-class infrastructures (features a zero liquid discharge technology (ZLD), adheres to global quality/audit certification including Customs-Trade Partnership Against Terrorism (C-TPAT));
- Companies: PVH, Wuxi Jinmao Co.Ltd, Arvind Ltd., Best Co. Pvt. Ltd, Hirdaramani Garment PLC, Hela Clothing Group, PVH, Quadrant Apparel Group PLC, Raymond and Silver Spark Apparel Ltd, TAL Apparel, Wuxi Jinmao Co. Ltd, Indochine International, Bussana Apparel Group, Giangsu Golden Island Group, Chargeurs Fashion Technologies, and others;
- Products: Woven shirts, woven bottoms, sportswear, casual and motorcycle wears, underwear garments, synthetic tops, socks & tights, women wear (blouse, dress, skirts, etc)
BOLE-LEMI INDUSTRIAL PARK
- The park is 15 minutes drive from Bole-international airport;
- It has access to756km electric driven railway that connects Addis Ababa to Djibouti;
- Companies: Hosts leading manufacturers including George Shoe, Saints ETP Garment PLC, Evertop Sportswear, etc.
- Products: Women shoes, sandals, Sportswear, Shirts, trousers, Gloves, jacket and shorts
Quick facts about Bole-lemi Industrail park (BLIP)
Location:
- Located in the South-Eastern part of Addis Ababa Population & employment
- 25 million people within a 25 km radius
- Employing ~ 14,0000 workers
Industrial Park area:
- The total area of 3.27 million m2 (327 hectares)
- Phase one: 1.56 million m2 (156 hectares)
- Phase two: 1.71 million m2 (171 hectares)
Sheds
- A total of 20 sheds
- 10 sheds of 5,500m2 and 10,00m2 each
Park Specialization:
- BLP hosts leading investors in apparel & textile and leather products manufacturing
MEKELLE INDUSTRIAL PARK
- MIP was inaugurated in July 2017;
- The city of Mekelle has an international airport with 8 daily flights from Addis Ababa;
- A new electric-powered railway is under construction and will soon connect the city to the Port of Djibouti. The railway will guarantee efficient and eco-friendly cargo and passenger transport service between the park and the Port of Djibouti reducing travel time by more than 50%;
- A 40 meters wide road will link MIP to the railway line located 18 km from the park. The railway will guarantee efficient and eco-friendly cargo and passenger transport service between the park and the Port of Djibouti reducing travel time by more than 50%;
- Currently, the park hosts leading manufacturers such as Ananta Group (Two companies Calistoga & Strathmore), SCM Garment Knit Tex plc, Pretty Industries plc, Pooja International India, and Laguz Stylish Garment manufacturing plc;
- Products: Wearing apparel, Denim Composite, Knit Composite, Sweaters, Apparel, Knit, and ready-made garments
Quick facts about Mekelle Industrial Park (MIP)
Location:
- Located at the heart of the capital city of Tigray Regional State, Mekelle Population & employment
- 1 million people in & around the city
- Expected to generate employment opportunity for about 20,000 employees
Industrial Park area:
- The total land area of 10 million m2
- 1st phase: 1 million m2
- Phase 1 – 100,000 m2 factory shed built-up area
Sheds
- A total of 15 sheds
- 5 sheds of 11,000m2, 6 sheds of 5,500m2 & 4 sheds of 3,000m2
Park Specialization:
- Hosts leading manufacturers in the apparel & textile and leather products sector
KOMBOLCHA INDUSTRIAL PARK
- KIP was inaugurated in July 2017;
- KIP is located next to the Kombolcha airport and is within walking distance from the railway line that connects the
City to Port of Djibouti; - KIP is located at 480 km distance from the Port of Djibouti;
- The Kombolcha airport has regular flights to the capital city;
- Companies: The park hosts leading textile & apparel companies including Carvico S.p. A, an Italian
the company is globally known for its knit fabrics used in swimwear and sportswear; Trybus a US-company engaged in the production of men’s suits and Pungkook Corporation; Products: Synthetic fabrics, men’s clothing, leather bags, cotton yarn.
Quick facts of Kombolcha Industrial Park (KIP)
Location:
- Located in Amhara regional state, north-central part of the country Population and employment:
- 1.5 million people within a 50 km radius of the city
- It is expected to generate employment opportunities for about 20,000 employees when it is fully operational.
Industrial Park area:
- The total land area of 10 million m2
- Phase one: Total area of 75 hectares
- Factory built-up area: 60,500 m2
Sheds
- A total of 9 sheds
- 2 sheds of 11,000m2 and 7 sheds of 5,500 m2
Park Specialization
- KIP is designed to host investors in the Apparel & Textile and Leather & leather products sector
DIRE DAWA INDUSTRIAL PARK
- DDIP is located 318 km away from the Port of Djibouti and is a few minutes away from the railway line;
- Dire Dawa has an international airport, having regular flights from Addis Ababa and Djibouti;
- Dire Dawa Industrial Park is placed on the rail route that connects Addis Ababa to Djibouti
- Companies; The park hosts leading textile & apparel companies including Wuxi No1 (one of the leading
textile manufacturers in China); - Products: Cotton & blended fabrics, yarn & dyed fabric, leather and leather products.
Location:
- It is situated in the Eastern part of the country, at a proximity distance from the Port of Djibouti – 348 Km. Population and employment:
- 1million people in & around the city
- Expected to generate employment opportunity for about 20,000 employees when it is fully operational
Industrial Park area:
- Total size:10 million m2
- 1st phase: 1.5 million m2
- Factory built-up area of 92,000 m2
Sheds
- A total of 15 sheds
- 5 sheds of 11,000m2, 6 sheds of 5,500m2 & 4 sheds of 3000 m2
Park Specialization
- DDIP is designed to host investors in the Apparel & Textile, Machinery, Chemical, Equipment, sector Park Status
ADAMA INDUSTRIAL PARK
AIP lies on the Addis Ababa-Djibouti railway at an approximate distance of 678 km from Djibouti and has an expressway connection of 74 km from the country’s capital, Addis Ababa;
- Companies: The park has garnered the interests of worldly renowned apparel and textile companies such as Jiangsu Sunshine, Kingdom, Youngone, Antex, Iber cotton, Jiangsu Changfeng Group, etc.
- Products: Wool textile, linen yarn, fiber flax, sports wears, and packaging
Quick facts of Adama Industrial Park (AIP)
Location:
- It is situated ~90 km southeast of Addis Ababa. Population and employment:
- 450,000 people in and around the city
- It is expected to generate employment opportunity for about 30,000 employees when it is fully operational
Industrial Park area:
- The total land area of 1.2 million m2 (120 hectares)
- Factory built-up area of 122,500 m2
Park Specialization
- AIP hosts investors in the apparel and textile manufacturing sector
English
Afrikaans
Amharic
Arabic
Chinese (Simplified)
French
German
Greek
Hindi
Italian
Japanese
Korean
Latin
Russian
Spanish
Sudanese
Swahili
Swedish