Industrial Parks Development Corporation (IPDC) has revealed a significant increase in investment and production activities at Ethiopia's industrial parks, highlighting their crucial role in import substitution and export diversification.
The government of Ethiopia have established 13 industrial parks specialized in various manufacturing sectors including textile, agro-processing and pharmaceuticals.
The parks have been established with the vision to make the country a leading manufacturing hub, and the government places high focus on industrial parks development and expansion.
IPDC Deputy CEO Zemen Junedin told ENA that recent investments by both local and foreign investors have resulted in the occupation of most industrial park units, with a utilization rate of 85 percent.
He attributed this growth to the post-peace agreement environment and the IPDC's reform initiatives, including streamlined procedures and enhanced customer service.
Zemen noted the growing prominence of industrial parks in manufacturing essential goods, such as pharmaceuticals, textiles, and agricultural products.
The Deputy CEO highlighted the Kilinto Industrial Park's contribution to replacing imported pharmaceuticals and the Debre Birhane and Bole Lemi industrial parks' ability to meet the demand for malt by local beer producers.
'We have been registering remarkable achievements. For instance, we have encouraging activities in improving import substitution in pharmaceuticals as we have been spending huge foreign currency to import pharmaceuticals. We have been working to reverse this and currently obtaining good results. Additionally, we have also recorded concrete achievements in agro-processing. The factories located at Debre Birhane and Bole Lemi industrial parks have been able to supply malt to our beer producers 100 percent. Previously, the factories used to import malt from various European countries including France. These malt factories have already been in process to export their product as they have covered fully the domestic demand.'
Moreover, the Kilinto Industrial Park is actively receiving raw materials from neighboring avocado farmers, creating a sustainable market chain.
Additionally, the Jimma Industrial Park's avocado-based edible oil production is benefiting up to 70,000 avocado farmers, he said.
In the textile and garment sector, products manufactured in industrial parks meet global quality standards and are exported to major markets, including the United States and Europe.
Textile and garment manufacturers are also contributing to import substitution by producing uniforms for various organizations, reducing the need for foreign imports.
IPDC's efforts to foster mutually beneficial partnerships between industrial parks and surrounding communities are also evident.
For instance, a Chinese company is establishing a camel milk processing facility, providing a valuable market outlet for local camel farmers.
Overall, industrial parks are playing a pivotal role in Ethiopia's economic development by substituting imports, diversifying exports, and creating employment opportunities.
As investment and production continue to grow, these parks are poised to further strengthen the country's economic competitiveness by strengthening import substitution and export trade.
Import substitution of textile and food items has already been bearing fruits. It is indicated that 100 percent of beer barley seed demand of the country has been covered with domestic products.
The nation has begun exporting beer barely seeds as the country was able to produce surplus.
Ethiopia is also working to fully substitute imports of food and beverages products as well as textiles and garments in the next three years.
Source: Ethiopian News Agency