Pharma Cluster Industrial Parks

   

1. What are the key laws governing industrial parks in Ethiopia?

The Industrial Parks Proclamation (No. 886/2015) governs development of and investment in industrial parks in Ethiopia. The full text of the proclamation can be found at this link: http://www.ipdc.gov.et/index.php/en/resources-en.

 

2. Does Ethiopia have industrial parks specialized in pharmaceutical manufacturing?

Yes, Kilinto Industrial Park—under construction now and scheduled to be finished in early 2019—will be open to investment by pharmaceutical manufacturers exclusively (including manufacturers of human medicines, veterinary medicines, and medical supplies).

In addition, another industrial park dedicated to pharmaceutical manufacturing is being planned, and will be located in Debre Berhan (approximately 113 kilometers from Addis Ababa).

 

3. Where is Kilinto Industrial Park located? 

Kilinto Industrial Park is located in Addis Ababa (the capital of Ethiopia), approximately 25 kilometers from the city center.

 

4. When will construction of Kilinto Industrial Park be finished?

Construction of Kilinto Industrial Park is scheduled to be finished in early 2019.

 

5. What is the size of Kilinto Industrial Park?

Kilinto Industrial Park contains 279 hectares of land, 166 hectares of which will be dedicated to manufacturing.

 

6. What is the price of land in Kilinto Industrial Park? 

The land lease rate in Kilinto Industrial Park is an average 3.59 USD per m2 per annum, which is based on a cost recovery (not-for-profit) approach. The duration of land leases will be 40 years. In addition to the land development cost, firms investing in Kilinto are expected to pay an additional ETB 1 (or the equivalent in USD) per m2 per annum for the duration of lease period.

 

7. What services does Kilinto Industrial Park offer? 

Kilinto Industrial Park offers serviced land, which includes all of the essential infrastructure—such as a state-of-the-art wastewater treatment plant, reliable water supply, and a dedicated power substation.

In addition, a one-stop shop will be located in the park, offering government services related to customs clearance, investment licensing, administration, product registration, etc. Joint warehousing, calibration, and testing services will also be available in the park.

Investors in Kilinto Industrial Park will construct their own factories and sheds, as these must be tailored to the types of products being produced.

 

8. What types of products can be manufactured in Kilinto Industrial Park?

Any pharmaceutical product can be manufactured in Kilinto Industrial Park, including active pharmaceutical ingredients (APIs), excipients, final medicines and formulations, medical supplies, and pharmaceutical packaging.

 

9. What is Kilinto Industrial Park’s transport connectivity?

Kilinto Industrial Park will be connected by the new electric railway to the Port of Djibouti, which is 863 kilometers away. This railway offers cold chain services.

Being in Addis Ababa, Kilinto Industrial Park is located 20 kilometers from Addis Ababa Bole International Airport. This airport is the hub for Ethiopian Airlines, which serves over 100 international passengers and 36 cargo destinations. Ethiopian Airlines also provides care logistics.

 

10. What is the climate around Kilinto Industrial Park?

The climate around Kilinto Industrial Park is warm and temperate, with average temperatures ranging from 14.8-18 °C. Humidity ranges from 47-80% across the year.

 

11. Will the pharmaceutical industrial park to be developed in Debre Berhan be competitive?

Yes, the pharmaceutical industrial park in Debre Berhan will be competitive. All of the services offered in Kilinto Industrial Park will also be offered in the industrial park in Debre Berhan (including wastewater treatment, water supply, and electricity).

It is approximately 113 kilometers from Addis Ababa, and is connected by paved road (4 lanes total). In addition, it will be connected to the Port of Djibouti by the new electric railway. The climate in Debre Berhan is similar to that of Addis Ababa.