Ethiopia has built mega industrial parks in different corners of the country. On Wednesday, the country also cut the ribbon of the finalized state-of-the-art industrial parks in Bahir Dar.
As part of its efforts to make the country a light manufacturing hub in Africa by 2025, Ethiopia is working to create favorable atmosphere and systems that enable to do business in the country.
Industrial parks are meant to attract labor and capital-intensive domestic and foreign investments and establish links to global markets by supplying quality products, eventually bringing economic transformation.
Park development brings lots of blessings to the country. It bolsters industrialization, urbanization and job creations. This is what Ethiopia has been trying to achieve through expansion of industrial parks. In fact, building industrial parks is the best way to attract foreign investors into the country as foreign investors usually prefer to install their machineries than building their own industrial parks.
In this regard, dedicated to textile production, the inaugurated Bahir Dar Industrial Park is expected to create over 10,000 jobs when it starts production with full capacity. The park is equipped with all the necessary infrastructural facilities.
But, building a well-furnished industrial park is one thing and recruiting anchor investors is another thing. In fact, bringing reputable investors with international experience and staggering capital is as equally important as building the industrial parks.
Besides opening up industrial parks, the government should also provide the required infrastructures such as electricity, water, and telecom services besides creating market opportunities and stabilizing the macro economy.
Also, the government needs to first help the private sector get more financial and technological efficiencies. The government should first build the required infrastructures such as electricity, water, and telecom services besides creating market opportunities and stabilizing the macro economy.
Moreover, the construction of industrial parks should be carried out in consideration of economic returns and the nation’s industrialization policy. Due care shall be attached in determining the location and status of industrial parks in line with their strategic importance, not distributions patterns.
The country’s industry sector is yet to be competitive. It is highly reliant on imported inputs. To this respect, the country ought not to compromise efficiency over equity. There is a need to stick to a universal approach. Industry parks are not about fairness, they are about efficiency. And, industrial parks must be located where there are road networks and better infrastructural facilities.
Meanwhile, Bahir Dar industrial park, entering agreement with a Hong Kong based company to exclusively take entire sheds and begin operation in less than a month.
The park situated on about 75 hectares of land has been under construction for two years. And it is ready for commencing operations shortly, said Amare Asgedom Deputy Chief Executive Officer of Industrial Parks Development Corporation of Ethiopia (IPDC).
A Hong Kong based company is entering Memorandum of Understanding with IPDC to fully take the sheds and begin manufacturing. The company is known for its quality bra products, Amare added.
The company is preparing to offer training and commence production that requires it to create over 4,000 jobs.
Infrastructural facilities are being installed properly and effectively to avoid service disruptions, Amare said adding that the park requires 8 MW of energy and power distribution facilities are being installed and supply the need amount of power for nearby areas. Everything is going smoothly with regard to water and telecommunication installations.
The park has consumed about 64 million USD so far and over 75 hectares of land cleared for planned expansion projects.
“The construction is almost finished and we are preparing to hand over to IDPC. The quality is according to the standard and everything is put in place,” said Bahir Dar Industrial Park, Project manager, Song Yong Xian.
One of the very problem faces the construction has been the rocky nature of the land. This has contributed to the delay of the construction a bit. However, now that the construction is nearing completion, the company is awaiting a go ahead to begin planned expansion project.