What are the Top Ethiopia’s Booming Industrial Parks that Continue to Attract Foreign Investors?

The Ethiopian government has been busy building industrial parks in recent years, arguing that it will play a key role to attract foreign investors and making Ethiopia Africa’s manufacturing hub. This bold vision sounds promising as Ethiopia’s low wages will give a competitive advantage to attract foreign investors. The economic benefit is believed to be the creation of employment opportunities for a growing number of young people and increasing Ethiopia’s foreign exchange earnings. In the last 2 years, the industrial parks have faced foreign exchange shortages and affected by political instability. Given the latest developments, Ethiopia’s efforts has started paying off and more success stories loading.

By Definition an industrial park (also known as industrial estate, trading estate) is an area zoned and planned for the purpose of industrial development. An industrial park can be thought of as a more “heavyweight” version of a business park or office park, which has offices and light industry, rather than heavy industry.

The Government has successfully built more than 12 industrial parks that are currently running. We will introduce few of them here.

Hawassa Industrial Park

The Hawassa Industrial Park, located 275-km south of the capital Addis Ababa is the largest industrial parks in Ethiopia. It the biggest occupying an area of ​​140 hectares. There are 52 production shades and growing. The total area of ​​the production sheds is 402,681 square meters. About 26,738 people are employed in the industrial park.

The industrial park is designed for textile and warranty manufacturing products; International brand companies are operating in the industrial park. It has many buildings with one window and different services, has standard condominiums, Water, power, telecom, etc. infrastructure are completed and working like a charm. There is a fire brigade organized by manpower and machinery in the industrial park; – The industrial park has a waste and sewage treatment plant with a capacity of 11,000 m3 per day.

Addis Industrial Village

Addis Industrial Village was the first ever industrial park established in Ethiopia, in the 1980’s, and it is currently undergoing heavy modernization, including a new management system. Geared toward domestic exporters, it comprises of 10 government-built factory buildings (11,000 m2) rented to investors, and 9 privately-built factory buildings developed on leased land. Covering 88 hectares of land, it is today at full capacity.

Debre Birhan Industrial Park

Located in the city of Debre Berhan, 120km northeast of the capital Addis Ababa, the Park was built on a total of 1,100 hectares of land and has currently 8 production sheds completed. The Industrial Park was inaugurated in February 2020 by Prime Minister Abiy Ahmed and President Uhuru Kenyatta, together with the then Amhara State President Gedu Andargachew.

• It has been in production since 2019
• It is an industrial park designed for investors in clothing and garment
• Factory sheds are ready for rent
• There are a total of eight factory shades (5500 square meters)
• The total area is 100 hectares and invites investors to invest in exports
• It is 131 km from Addis Ababa and 737 km from the port of Djibouti.
• The park have already created more than 13,000 temporary and permanent jobs during the construction phase and expected to foster even beyond following the entrance of local and international investors into the park.

Bole Lemi Industrial Park

Bole Lemi Industrial Park is a large Export Zone and a modern Industrial Park located in Addis Ababa, the capital city of Ethiopia. Already operational, Bole Lemi is Ethiopia’s first industrial park developed by IPDC. An Export Processing Zone, it will be upon completion a “green” park, with more than 30 hectares of green areas being currently developed. Bole Lemi Phase 1 (156 hectares) has started operations in 2014, with all pre-erected factories already rented-out to more than 12 different corporations. Bole Lemi Phase 2 (186 hectares) is currently being developed in collaboration with the World Bank Group, and should include both serviced land (from beginning of 2016) and pre-erected factory sheds (from 4th quarter of 2016). In the future, a residential and recreational area adjacent to the site will also be developed.

Kilinto Industrial Park

Located in the south of Addis Ababa, Kilinto is a mixed-use park and the number one destination for manufacturers in agro-processing, pharmaceuticals, electric and electronics products, wood and furniture, both for export and to serve local consumers.

• Located in Addis Ababa city, at the central part of Ethiopia.
• Total area: 279 hectare
• Only serviced land is available.
• Sector-Pharmaceutical Hub
• Air transport:- Bole International airport is located at an approximately 25 minutes’ drive distance from Bole Lemi Industrial Park and serve to link Addis Ababa with major regional cities and the rest of the world
• Rail way:-The 756km railway that connects Addis Ababa with Djibouti gives an opportunity for access to transport of raw materials and finished products for the park. In addition, a total of 31.6 km light rail transport service of Addis Ababa certainly helps to easily access to Kilinto IP.