Despite investing heavily in industrial park development, Ethiopia has yet to fully realize its economic potential from these facilities. A high-level consultation between the Industrial Parks Development Corporation (IPDC) and the Ethiopian Investment Commission (EIC) revealed that while over 1.6 billion USD has been poured into 13 industrial parks over the past nine years, their combined revenue has only reached USD 1.2 billion USD.
Feseha Ytagesu (PhD), Director General of the Ethiopian Industrial Parks, attributed the shortfall to several factors. Although 85% of the industrial sheds are occupied, the remaining 15% are still awaiting developers. Additionally, challenges such as a shortage of foreign currency, inadequate raw materials, and the impact of domestic conflicts and international pressures have hindered the parks’ performance.
Minister of Industry Melaku Alebel emphasized ongoing efforts to improve the parks’ infrastructure, including electricity, water, and road networks. Progress has been made in the last six years, with 24,000 kilometers of roads laid in industrial parks. The government plans to expand road access to 245,000 kilometers over the next decade.
Source: Sheger FM 102.1
Image source: IPDC
