July 19, 2024

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Ethiopia is transitioning industrial parks into special exonomic zones

29 Industrial Parks to Become Special Economic Zones in Ethiopia

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The Investment Commission announced on June 13, 2024, that industrial parks meeting the requirements set by the recently approved Special Economic Zone Proclamation will be transferred to special economic zones. This news has been followed by a partnership agreement signed with Geda Special Economic Zone.

According to Deputy Commissioner Zeleke Temesgen, one of the major changes that will come about as a result is the transfer of 29 industrial parks nationwide and 4 agricultural processing parks at the regional level to special economic zones. Temeseng notes that the environmental impact assessment will be done once the industrial parks are transferred to the special economic zones.

Industrial parks will be enabled to market 50% of their production locally under the new policy. On the other hand, if one of these parks is moved to a special economic zone, it may see a big rise in its forex exchange capacity. This is because the economic zones usually provide a more favorable business environment, which in turn can create increased profits.

Last month, the Ethiopian Investment Commission (EIC) made an important announcement regarding foreign companies operating within industrial parks in Ethiopia. Previously, foreign companies in the industrial parks were not allowed to sell their products to the local Ethiopian market. They could only export their goods. However, the EIC changed this policy in April. Companies operating in the industrial parks are now allowed to sell up to 50% of their products to the local Ethiopian market.

Moreover, Zeleke Temeseng said, “When an investor comes to the country to develop an industrial park or a special zone, the board of investment can decide whether it is the original park or not.”

Last month, the Ethiopian Industrial Parks Development Corporation announced that the Affluence Electric Appliances Manufacturing Plant had finished all the preparations needed to begin operations. Affluence Electric Appliances Manufacturing Plant is a Chinese company that makes electrical appliances.

Affluence Electric Appliances Manufacturing Plant and Ethiopian Industrial Parks Development Corporation made a deal and entered into a contract. The Chinese company was doing the work and made Bahir Dar Industrial Park ready to begin the operation. Read More…

The Investment Commission will provide crucial support, as outlined in the decree, including the services of a dedicated center. This collaborative effort aims to transform the Special Economic Zone into a thriving hub, offering a range of services such as ICT parks, logistics, real estate, free trade zones, industrial parks, and agricultural product processing facilities.

Furthermore, the National Bank is taking a proactive role in ensuring the zone’s success by implementing an independent financial and foreign exchange management system. This system will be designed to enhance the zone’s attractiveness, competitiveness, and effectiveness, making it an attractive destination for investors and businesses.

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