The Hawassa City Administration Investment Promotion Office revealed that the city issued licenses to investors who have collectively registered capital exceeding Birr 1.1 billion in the first quarter of the 2024/25 fiscal year.
According to Ato Tadesse Fikre, Head of the Investment Promotion Office, 14 major projects, slated for implementation in the current fiscal year, have already been launched within the first three months. These projects have not only secured substantial investment but have also created job opportunities for approximately 1,400 individuals.
Highlighting the broader ambitions for the year, Ato Tadesse noted that 45 high-profile investors are expected to engage in sectors such as industry, urban agriculture, and services. The city aims to attract Birr 4 billion in total investment capital and create 2,500 jobs by the end of the fiscal year.
To accommodate these investments, 103 hectares of land in Hawassa have been allocated for various infrastructure and development projects. Of this, 35 hectares are designated for industrial purposes, 55 hectares for urban agriculture, and the remaining for hotels and tourism-related initiatives.
In addition to fostering new investments, the administration is addressing delays in previously approved projects. Ato Tadesse disclosed that 24 projects, that had secured government land but failed to commence operations as per their contracts, have been terminated in line with the Investment Proclamation. Consequently, 15.7 hectares of land from these projects have been reclaimed and are being prepared for reassignment to other developers.
Despite progress, the investment office head acknowledged several challenges, including delays in credit approvals, raw material shortages caused by foreign currency constraints, and disruptions that have hindered some investors from starting operations on time.
Source: Addis Zemen
