Ethiopia's strategic move to upgrade several industrial parks into Special Economic Zones (SEZs) is significantly boosting diverse investment, job creation, and economic linkages across the country, the Industrial Parks Development Corporation (IPDC) announced.
The transformation is a direct result of comprehensive reforms within the economic sector, which have led to fundamental changes in operational regulations and directives. These changes have successfully addressed previous investment hurdles, creating a more attractive environment for both domestic and international developers, according to Ato Zemen Junedi, Deputy CEO of the IPDC.
Highlighting the success, Ato Zemen noted that out of 177 available sheds within the newly designated SEZs, 150 have already been leased by local and foreign investors. Notably, SEZs in Jimma, Bahir Dar, and Hawassa are actively drawing new investment inflows.
Further facilitating diverse investment is the new logistics and trade framework piloted within the Dire Dawa Free Trade Zone, which is already demonstrating significant positive impact.
The IPDC also confirmed that the Bole Lemi and Adama SEZs are now fully occupied by a mix of domestic and international businesses.
In the past nine months alone, the SEZs have welcomed over 80 new investments. Deputy CEO Zemen added that 17 of these new entrants have acquired sheds of various sizes and are currently in the process of installing machinery and commencing operations.
Beyond direct investment and employment, the expansion of SEZs has fostered substantial agricultural linkages, creating sustainable market connections for over 85,000 farmers across the zones.
The IPDC manages a total of 13 industrial parks and the Dire Dawa Free Trade Zone. Of these, ten have successfully transitioned to the Special Economic Zone model, marking a significant step in Ethiopia's economic development strategy.