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 a 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.
According to Dr. Atlaw, the government should also diversify complementary factories around industrial parks such as producing metals, machinery, spare parts, and electrical products, other than specializing in same products like Hawassa Textile Industrial Park (HIP).
EDE Garment General Manager Eyasu Ermias said that the textile sector has not managed to bring about the anticipated outcome over the years due to scarcity of infrastructure. But currently, the government has been providing due attention to the sector by expanding sector focused parks.
He said: “If we build the capacity of our productivity, we can supply products to the world market.”
According to Eyasu, the textile sector has a share to contribute to the country’s vision becoming middle income economy by 2025. The participation of international producers and buyers in Hawassa Park would increase sector contribution to speed up the growth of the national economy through absorbing sizable human power, transferring technology and adding value.
Development Bank of Ethiopia Senior Loan Officer Million Timer on his part said that as infrastructure facilities are determinant factors for industrialization, it is a big incentives for foreign investors to run their businesses.
Million noted besides reducing taxes avoiding red tape by introducing one window service in the part would create conducive investment environment for foreign investors.
He emphasized that as foreign investment assists in reducing unemployment and increasing technology transfer, the government should support local investors to utilize this opportunity. It is not enough to support local businesses in the provision of machinery and loan alone, they should also be backed in management intervention as well, he said.
Million also says the expansion of industrial parks has significant contribution to increase foreign earnings, creating linkages to local products to the international market thereby boosting export.
As the second GTP clearly outlined the priorities, the promotion and expansion of industries with special emphasis on manufacturing sector is a centerpiece for the plan.
Among the strategic interventions to enhance the role and contribution of the manufacturing sector to national growth is the development of industrial parks.
Mandated to develop and operate industrial parks, the Industrial Parks Development Corporation is developing world-class industrial parks with fascinating hard and soft infrastructure in areas identified as potential spots.
As to Corporation Board Chairperson Dr. Arkebe Equbay, the factories in the park have a convenient plug-and-play environment with access to all necessary infrastructure including power, telecom, banking and water etc. Besides, one window services is availed to facilitate the provision of governmental services to tenants.
The Board Chairperson said most importantly, besides, attracting global leading international companies, significant importance is also attached to the inclusion of local industrialists into the park. As per the industrial park strategy across the country, 25- 30 per cent of factory shed and space in all parks will be designated for local investors who will be selected based on their ability to maximize the park manufacturing opportunity.
Dr. Arkebe noted that it is strongly believed that the local industrialists will benefit immensely by operating in the same vicinity as the world-class manufacturers where it will be conducive to technological and management know-how transfer.
The government has, therefore, offered a very generous incentive package including investment loan, support for capacity building and market link. This certainly would address hurdles local industries may face, he said.
Recently, Prime Minister Hailemariam Dessalegn told Ethiopian diplomats that the country is constructing 12 industrial parks and any foreign investment would be directed to these parks except huge manufacturing business like cement and other similar industries.
Therefore, he said, the diplomats are expected to popularize the potential of these parks and the government’s interest and direction as a center of their economic diplomacy endeavors.
[www.ethpress.gov.et/herald/]