Germany Vows to Shore up Ethiopia’s Industrial Parks Dev’t

 

Addis Ababa October 15 /2019 German Development Cooperation (GIZ) has expressed its continued commitment to support investors who are keen on engaging in Industrial Parks of Ethiopia and its inclusive development.

Program Manager for Special Initiative Job Creation and Sustainable Program at GIZ, Ulrich Plein told ENA that GIZ is working with IPDC, Ethiopian Investment Commission to improve industrial parks development.

“We are working on Industrial Parks Development Corporation and industrial parks. We also try to support investors to improve their performance by providing capacity building,” he underscored.

GIZ provides assistance for the private sector development in Ethiopia and creating opportunities for local investors to partner with foreign companies.

“We are supporting the local industries working with small enterprises and trying to link them to the activities which are going in the parks,” he added.

Moreover, he stated that this program is attracting investors from Europe and mainly from Germany to invest in the industry sector.

“We are currently having talks with several German companies that are highly interested to invest in Ethiopia,” he said, adding that “GIZ will support them once they have decided to invest here in Ethiopia.”

Praising the commitment of government in developing industrial parks, he said “the county has invested a lot of money and done a great job by attracting various investors from abroad.”

“We believe that this is very important development for the country and we have seen that the government is very eager to scale up this development,” he added.

Industrial Parks Development Corporation (IPDC) CEO, Lilise Neme for her part applauded the efforts of GIZ in supporting industrial parks development in Ethiopia through capacity building and supporting the private sector.

Industrial Parks Development Corporation (IPDC) has 12 industrial parks, of which seven of them are operational as the remaining parks will be fully finalized this year.

The industrial parks which are already in operation have managed to create jobs for about 50,000 permanent and 35,000 temporary employees, it was indicated.

Source:- ENA

 IPDC is working to ease challenges facing industrial parks

 

Skilled labour vital for industrial parks

ADDIS ABABA – Parks and concerning stakeholders said easing hurdles facing the parks is important to make the industrial parks productive and competent abroad.

Economic growth in Ethiopia is progressing at an impressive rate, where industrial parks are satisfying the interest of international investors in the country’s economy. Attracting FDI is at the core of Ethiopia’s industrialization strategy, which is supported at the highest level and in particular by the Prime Minister.

To that end, Ethiopia’s investment policy has been reformed at least four times over the past 20 years, making the country increasingly open to FDI. Since its establishment in 2014 industrial parks created hundreds of thousand jobs permanently and temporarily chief Executive Officer (CEO) of the Industrial Parks Development Corporation (IPDC), Lelise Neme said.

The government of Ethiopia constructed twelve industrial parks across the country and seven of them are operational. Construction of industrial parks beyond attracting FDI and foreign currency, it is an important area to create jobs for the citizens wide. The seven operational industrial parks created over 50 thousand permanent and 35 thousand temporary jobs.

The CEO stated that, challenges facing some industrial parks are lack of access to water and power supply. The industrial parks found across the country are striving to eco industry and many works are underway. From among this using the waste products, making the industrial parks greenery by planting 10 to 50 thousand trees each, are making them energy efficient to save power and the like.

Deputy CEO of the IPDC Amare Asgedom said that, in line with its success in creating job and attracting FDI to the county lots of challenges are facing the parks. From among the challenges facing the sector are finding the right employee with required knowledge and skill has been difficult because the benefit package is not competitive enough to attract talented and experienced workers.

Experience in the industrial park operation and management skill is infant and, lack of sustainable capacity building scheme for operators. In addition, delayed response from the city administration and absence of standard guidelines percentage of land proposition are among the challenges.

October 12/2019

Source:-The Ethiopian Herald

 China to fund $300m industrial park in Adama, Ethiopia

 

Ethiopia and China are set to partner on a $300m industrial park in the city of Adama, 99km southeast of Addis Ababa.

The news was reported by the Xinhua agency, which quoted Liu Yu, economic and commercial counselor at the Chinese Embassy in Ethiopia, as saying that construction could start before the end of the year.

According to Liu, 85% of the funding needed would be covered by soft loans from the Chinese government and the remainder comes from the Ethiopian government.

Liu said: “The governments of China and Ethiopia have attached great importance to their cooperation in various fields including in construction of industrial parks, whereby they have achieved fruitful results.”

The park, which will focus on equipment manufacturing, would be the second to be built in Adama.

The 100 ha project is expected to create 25,000 jobs and is part of Ethiopia's grand plan to transform its largely agrarian economy into an industrialized one by 2025.

13 August 2019

Source:-  GCR (Global construction Reviews) Staff

 Chinese textile manufacturer's investment thrives in Ethiopia

 

As part of the Belt and Road Initiative (BRI) supported by the government, Chinese private textile manufacturers are exploring better development methods in Ethiopia.

Jiangsu Sunshine Group, a Chinese textile and garment giant based in Jiangsu Province, announced an investment in Africa's textile industry in 2016, opening its manufacturing plant, Sunshine Ethiopia Wool Textile, with a total investment of 980 million U.S. dollars.

"The reason we chose Ethiopia as our first overseas factory is that it is relatively stable throughout Africa," Zhao Jiang, director of operations of Sunshine Ethiopia Wool Textile, told CGTN, noting that the country is rich in human resources with a labor force of over 50 million.

It also has abundant water and power resources, without any tariffs when exporting to Europe and America, he added.

According to Zhao, they began considering establishing their first overseas factory in Ethiopia in 2015, thinking about the increasing labor cost in the domestic and preferential policies under the BRI.

"We got green lights all the way on our project approval, whether from the National Development and Reform Commission (NDRC) or the Ministry of Commerce (MOFCOM). And MOFCOM has offered certain subsidies for our upfront investment," he commented.  

According to MOFCOM, the total of FDI outflows worldwide in 2018 decreased by 29 percent year on year, falling for three consecutive years, while China was up to the second largest foreign investor, with the outward FDI flows reaching 143 billion U.S. dollars.

What's more, the outward FDI stock of China at the end of 2018 was 66.3 times that of 2002, ranking third among all countries and regions, up from 25th place in 2002.

Despite Africa also facing with a sharp fall in global investment, Jiangsu Sunshine Group decided to expand production in Ethiopia by about a third by the end of 2018.

Zhao told CGTN that the recruitment in Ethiopia received an overwhelming response as locals believe that it is good to go to China to train or work in the factory.

"Three batches of 145 Ethiopian undergraduates were recruited for one-year training in China and the first batch has gone back to Ethiopia in March," he cited.

"They started off with the basics, the production line, and made significant progress," he said, explaining that most of them have basically accepted the company's management model as well as the diligent spirit of the Chinese people after a year of living in China.

He held that the current development of Ethiopia is the same as during the early stage of China's reform and opening-up.

"We brought technology and management to them after going there… we'll withdraw 70-80 percent of the Chinese personnel within three years. And the salary of college students entering our factory is 40-50 percent higher than that of local civil servants," he commented.

Sep 24, 2019

(Source; CGTN)

 Ethiopia Taking Part in Paris International Trade Show, Fair for Fashion

 

Ethiopian companies are participating in an International Trade Show and Fair for Fashion which is taking place in France, Paris, for the coming three days, according to Ethiopia’s Embassy in France.

Ethiopian garment manufacturing companies such as Desta PLC, Bahir Dar Textile Share Company, Samira-Made in Ethiopia, Sadulla Business PLC, Almeda, Meron, Yefikir, etc are taking part in the exhibition and show.

Ethiopia is among the few selected countries to participate in a fashion show to be conducted in the course of the exhibition.

In addition to the exhibition, there will be catwalks to promote selected countries, it was stated.

The international trade show and fair exhibition comprises two major events, namely ‘The Apparel Sourcing Paris’ – the International Trade Show for Fashion, and ‘Texworld Paris’ – the International Fair for Fashion. Both were organized by Messe Frankfurt France (MFF), ENA reported.

17 September 2019

Source:-ENA

 Canada Pledges to Increase Investment, Trade Presence in Ethiopia

 

The Government of Canada wants to increase investment and trade presence in Ethiopia alongside engagement in agriculture, Ambassador Antoine Chevrier said.

In an exclusive interview with ENA, Canada’s Ambassador to Ethiopia Antoine Chevrier said the objective of Canada in Ethiopia is to grow and diversify its presence alongside maintaining the strong development program that corresponds to the priorities of the country.

“We want to increase our trade and investment presence and our economic presence,” the ambassador added.

Ambassador Chevrier pointed out that with the Ethiopian New Year in site and the last month of Canada’s new year approaching, “ the objective for us is to keep on doing the good work on the development side, but also more and more diversify our presence.”

Hearing from all stakeholders, that is NGOs, the government and other partners in Ethiopia, “the government’s programs are okay and are needed in many ways; but the need for different relationship with multiple components on trade, for example, is critical,” he elaborated.

Ambassador Chevrier further stated that “hopefully, with the coming Ethiopian New Year, we will see the relationship between our two countries in much more diversified way, very robust based on vibrant and strong presence.”

According to him, a big part of Canada’s cooperation in Ethiopia is the agricultural sector. Besides, one of the bigger programs of the country is supporting the productive safety net program as the need is high.

Ethiopia is reportedly one of the largest recipients of Canada’s international assistance, 198.15 million USD in 2017-2018.

Some of the new initiatives, including entrepreneurship, among others started recently, the ambassador added.

Commenting on the strong relationship between the two countries, he said “it is a big portfolio and we have been here for a long time. I think we can see it moving as also the priorities of Ethiopia are moving.”

11 September 2019

Source:-ENA

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