In nine months Ethiopia earned $103 million in Exports from Industrial Parks; attracted $2.5 billion FDI

by Textile Quotient News Desk
5 May 2019

China flooding Ethiopia with industrial parks

Ethiopia has achieved $103 million from export generated by industrial parks in the past nine months, according to, the Ethiopian Investment Commission (EIC). It’s an increment of 40% as compared to last year’s performance of the same period. These industrial parks majorly house textile & garments, footwear and other leather products industries and their major buying countries are the EU , US, Asia and other export destinations.

As per Abebe Abebayehu, Ethiopian Investment Commissioner, 70 percent of the planned earning from industrial parks during the stated period has been accomplished. In this period, Ethiopia managed to attract $2.5 billion foreign direct investment.

Ethiopia commissioned four Chinese built Industrial Parks recently, namely- Jimma Industrial Park, Adama Industrial Park, Dire Dawa Industrial Park and Arerti Industrial Park.  Inaugurated in October 2018, Adama Industrial Park has already attracted an investment of 1 billion U.S. dollars for sheep woollen factory, the construction work has started.

Two Chinese-built Industrial Parks, The Mekelle Industrial Park and the Kombolcha Industrial Park, were inaugurated in July 2018, both dedicated to the textile and apparel sector. Located 783 km and 252 km north of Addis Ababa respectively, have a combined construction cost of 250 million dollars

In the coming years, Ethiopia is targeting to have total of 30 industrial parks, as part of a strategy to increase foreign exchange earnings and increase foreign direct investment. EIC also plans to start construction for Ayisha Industrial Park this year, located near the Djibouti port, to ease logistics cost for goods being transported from landlocked Ethiopia to Djibouti port for exports.

Ethiopia is looking at increasing the manufacturing share of the country’s GDP from the current 5 percent to 20 percent by 2025, as part of plans to become an industrialized middle income economy by 2025. The country has ambitions to be a textile and apparel manufacturing hub in Africa earning the country 1 billion dollars by 2020 and providing ample employment opportunity for its estimated 45 million workforce.

 

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