European Investment bankAddis Ababa September 22/2016 A major investments for Ethiopia, which hosts the largest population of refugees in Africa, has been endorsed by the European Investment Bank, according to a report by EIB.

EIB President Werner Hoyer announced the EIB has agreed with the Ethiopian Government as well as European and international development partners to work together to prepare financing to support a program of investment in Ethiopia that helps thousands of refugees into work.

The move is linked to the granting of employment rights and opportunities for refugees by the Ethiopian government.

The USD 500 million package of investments would build two industrial parks, creating the jobs needed to make the granting of these employment rights a success. Under the initiative, it is envisaged that the EIB could itself provide around USD 200 million of the total USD 500 million needed in loans to the Ethiopian Government alongside USD 50 million of EU grants.

 Read more : http://www.ena.gov.et/en/index.php/economy/item/1982-ethiopia-receives-major-eib-investment-to-support-refugees 

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 A model of the Ethiopia-China Dong Guan Huajian International Light Industrial Zone Ethiopia is using a range of incentives to woo investors to the country. PHOTO | AFP 

By ALLAN OLINGO
19 September 2016

 

 Ethiopia is using a range of incentives to woo investors to the country. Already, US private equity groups KKR and Blackstone have announced their interest in the country's infrastructure and floriculture sectors.

Dangote Cement has set up shop in the country too and one of India's largest paint-makers, Asian Paints, has entered the market through the acquisition of a local manufacturer last year. Unilever is building a factory there too, while Chinese shoemaker Huajian Group set up shop in the country four years ago.

Ethiopia offers investors in the horticulture sector Customs duty exemptions of up to 100 per cent on imports of capital goods for eligible areas of investment; income tax exemptions for up to nine years; a duty drawback scheme and loss carry forward for businesses that suffer losses during the income tax exemption period for half of the tax exemption period. This has seen several Kenyan-based flower firms diversify their operations into Ethiopia.

 Read more : http://www.theeastafrican.co.ke/business/Ethiopia-wins-big-as-cement-flower-and-shoe-firms-set-up-shop---/2560-3386810-14se5elz/index.html 

hawwasa Industrial Park 1

The Hawassa Industrial Park is expected to employ 60,000 people at full capacity and be able to generate export revenue amounting to 1 billion U.S. dollars

 

 Recently, Ethiopia inaugurated the largest industrial park in Africa. The Hawassa Industrial Park, which was built on 300 hectares of land, has been dedicated to host mainly textile and garment products.

 

Currently, fifteen leading global apparel and textile companies from America, China, India, Sri Lanka as well as six local manufacturers are operating within the park. It also has thirty-seven factory sheds, and its own renewable electricity source.

 Furthermore, Hawassa Industrial Park also consists a provision of all government services one-stop shop service center and also employs Zero Liquid Discharge (ZLD) that enables to recycle 85 percent of sewerage disposal water and fulfills international standards.

 Indeed, the Park have additional area allocated for shared facilities, as it encompasses an area of 1.3 million square meters, of which 300,000 meter square is factory shed build up area.

The park will serve as a prototype for the industrial parks being built in other parts of the country.

Prime Minister Haielmariam Desalegn said, “The eco-friendly industrial park will showcase that environmental protection and development can go hand in hand. The manufacturing sector's share in Ethiopia's Growth Domestic Product (GDP) for many years stood at only 5 percent, showing the need for economic structural challenge if the country is to meet its economic promise."

 

Special advisor to the Prime Minister Arkebe Equbay said the park can attract Chinese firms that are moving overseas to open plants. Ethiopia with a young labor force of 45 million people has a huge potential in the manufacturing sector. "As annual manufacturing growth currently is 25 percent, in 10 years' time, it's projected to increase its GDP share by four fold and it's share in exports to 50 percent," he added.

 

The Hawassa Industrial Park is expected to employ 60,000 people at full capacity and be able to generate export revenue amounting to 1 billion U.S. dollars.

 

Indeed, the Park is the beginning of many to come.

 

Read more : http://allafrica.com/stories/201607270544.html

Economics and industrial experts said that industrial parks would create opportunities for foreign direct investment flow and ample jobs.

Addis Ababa University Economics Department Lecturer Dr. Atlaw Alemu told The Ethiopian Herald that though the development of industrial parks has been much awaited, the incumbent is now widely developing parks across the country.

He said the development of parks could be considered as one of the most lucrative interventions with coordinated efforts to industrial production and services thereby advancing economic development.

As industrial parks are useful for processing exports, imports and managing duty free services, the system would ease red tape for manufacturers particularly those importing raw materials and exporting finished goods, he added.

Dr. Atlaw also said that the major benefit of parks is increasing foreign direct investment, transferring technology, creating link with the international market and acquainting locals on how to manage similar factories. Therefore, local enterprises need to join industrial parks based on their capacity, knowledge, and business acumen, he said.

Read more : http://allafrica.com/stories/201608161195.html

hawwasa Industrial Park modelAddis Ababa July 14/2016  Chinese Ambassador to Ethiopia La Yifan said the Hawassa industrial park which inaugurated yesterday is a ‘good model’ for Africa in terms of infrastructure it contains and the time the construction took.

“I believe this is a good model not only the rest of the Ethiopian industrial parks around the country but also a good example for other African countries”, Yifan said in a press conference he gave here yesterday.

Construction of the park, the first of its kind in the country, consumed more than 250 million USD and built in record time of less than one year.

The Ambassador said the completion of the construction of the park within nine months is a ‘world record’.

“…no country has done that with world class facilities such as the Hawassa industrial park”, Ambassador Yifan said.

It is an important achievement by the Ethiopian government in terms of facilitating situations towards industrialization and thereby achieving its second five year plan (GTP-II).

The design and construction of the park has carried out by the China Communications Construction Company (CCCC).

The park has attracted 15 leading textile and garment companies from America, China, India, Sri Lanka and six local companies.

Upon fully operational, industries within the park are expected to create 60,000 jobs.

Source: - ENA