Industry Zones, One at a Time Featured

Industry Zones, One at a Time e-eiz.com

Worku Girma spent nearly two years looking, unsuccessfully, for work after graduating in Law from Wollega University, one of the recently established higher institutions in the country. Back then, he would probably never have imagined that he would be a designer at a shoe factory for a Chinese company. Yet, that was what happened after he completed three weeks of training the company gives for new employees. He currently works for Huajian International Shoe City, which is one of the companies nested in the Eastern Industrial Zone.

Established by a conglomerate of Chinese companies, the Eastern Industrial Zone cost USD 180 million to develop. It sits on 500 hectares of land, some 35 km South East of Addis Ababa near Dukem town. It is the first industrial zone of its kind but the country aspires to create more.

The zone is intended to host about 80 plants that correspond with the goals of Ethiopia’s Industrial Development Strategy. This plan calls for attracting and supporting industries that are labor intensive, export oriented and based on agriculture. The goal is to make products that can be exported using materials produced or grown locally, according to Xu Yang, communication officer of the Industrial zone.

The facility has access to high voltage electricity (100MW), telecom services, a water supply and high quality roads, interlinking each block with the main highway.

The First Industry District is an area of the zone designed for heavy industries. It has five modern industrial edifices, each covering an area of 10,000 sqm, with sound-proof structures and moving cranes. Four of the buildings in this zone are currently occupied by businesses making shoes, assembling cars and running a bonded warehouse.

Huajian International Shoe City has rented two of these blocks to manufacture shoes that are exclusively earmarked for the US market. The company, established with USD 10 million of investment capital and with an annual turnover of more than USD 150 million, has created more than 2,300 job opportunities.

Huajian shoe city, one of the manufacturing establishments in the Eastern Industry Zone.
Photo: e-eiz.com

Like Worku, many of his colleagues that work at the company are college graduates, who are optimistic about their future careers. Despite the meager ETB 900 monthly salary, they are optimistic that the skills they are learning and the experience they are gaining will make them highly sought after in the future.

Abera Lema works as an assistant in the public relations department at the Eastern Industry Zone. The technology transfer and the work discipline his compatriots are garnering in these industries excites him. “Though there have been minor misunderstandings that occur due to cultural differences, many young Ethiopians are learning a lot from the Chinese engineers and experts,” he told EBR.

“In addition to creating job opportunities, The Eastern Industry Zone is helping spur local development and contributing to Ethiopia’s industrial takeoff,” said the Zone’s communication officer.

“As the first industry zone in Ethiopia, it plays a significant and exemplary role in the establishment of similar facilities in the country,” she wrote in an email to EBR.

Another section of the zone, The Second Industry District, is reserved for light industries. It has six factory sheds, each covering 10,000 sqm. There are three endeavors here; producing garments, assembling motors and packaging goods.

Lifan Motors, one of the well known car assembly companies in the nation, will be the new addition to the industry zone shortly, according to the assistant public relations officer.

However, not everything is rosy in the industrial zone: complicated bureaucracy, lack of support particularly in the lower level local administration and frequent power interruptions are among the main challenges the factories in the Eastern Industry Zone face.

Mr Wie Yong Quan, General Manager of Huajian shoe factory agrees; “We couldn’t even fire some of the workers when they demonstrated bad discipline and replace them with people waiting outside because the local administration would not let us,” he told EBR.

The government has designated several locations for industry zone use. To accommodate this plan, the Ministry of Industry has received 243 hectares of land in Akaki Kality sub city from the Addis Ababa City Administration and 1,051 hectares from the Dire Dawa City Administration. Other plots of land in Kombolcha, Mekele and Hawassa have also been set aside for the same purpose.

The Bole Lemi Industrial Zone, on the outskirts of Addis Ababa covers 156 hectares. The development of this site is expected to cost an estimated ETB 900 million and will create 37,000 jobs when become fully operational in a couple of months. These industrial zones are will target endeavors with strong inter-industry linkages and those that have been prioritized by the government; including textile, leather processing, agro processing, metallurgy and pharmaceutical manufacturing.

Companies from abroad are also asking for land to build their own industrial zones. South Korean garment producers, and businesses from Turkey, China and Egypt have been considering similar projects. Huajian shoe factory, also has plans to invest USD two billion to build a new manufacturing city on 320 hectars of land in Lebu, on the outskirts of Addis Ababa. EBR

Berihun Mekonnen

EBR Staff Writter

28 comments

  • Kennithreuck

    viagra tablets for sale australia
    viagra without prescription
    buying viagra in punta cana
    viagra without prescription
    jamie reidy the evolution of a viagra salesman

    Kennithreuck Wednesday, 20 September 2017 15:15 Comment Link
  • DerrickFam

    Trusted Online Pharmacies
    Canadian Online Pharmacy
    drugstore online
    Canadian Online Pharmacy
    canadian online pharmacies

    DerrickFam Tuesday, 19 September 2017 00:50 Comment Link
  • AndrewBot

    order cialis canada
    buy cialis
    where is the cheapest place to buy cialis
    buy cialis
    order generic cialis from canada

    AndrewBot Sunday, 17 September 2017 18:26 Comment Link
  • Richardsom

    viagra online sito sicuro
    viagra without doctor
    viagra cheap buy
    viagra without doctor
    sildenafil 100mg troche

    Richardsom Wednesday, 06 September 2017 08:01 Comment Link
  • Anthonyloxia

    price of viagra online
    viagra without a doctor prescription
    para que sirve sildenafil 100 mg
    viagra without a doctor prescription
    cutting 100mg viagra half

    Anthonyloxia Monday, 04 September 2017 18:59 Comment Link
  • Michaelglina

    generic viagra good
    viagra without a doctor prescription
    viagra 100 mg 12 st
    viagra without doctor
    buying viagra online in the us

    Michaelglina Monday, 04 September 2017 04:57 Comment Link
  • Edwardkab

    use of sildenafil effervescent tablets
    viagra without doctor
    generic viagra approved
    viagra without a doctor prescription
    20mg cialis vs 100mg viagra

    Edwardkab Saturday, 02 September 2017 14:28 Comment Link
  • Melvinnoipt

    best place buy viagra online uk
    viagra online
    comprar viagra generico pela internet
    viagra cheap
    take two 50mg viagra
    buy cialis in usa
    cheap cialis online
    cialis pills pictures
    cheap cialis
    cheap cialis thailand

    Melvinnoipt Thursday, 31 August 2017 03:10 Comment Link
  • Jessieelurn

    cialis buy online cheap
    cialis buy
    buy cialis with mastercard
    cialis online
    order generic cialis online
    buy levitra generic
    buy levitra
    buy levitra super active oo
    levitra
    how to buy levitra in canada

    Jessieelurn Tuesday, 29 August 2017 18:39 Comment Link
  • Charleswramy

    generic sildenafil citrate available us
    buy viagra
    acquisto pillole viagra
    cheap viagra
    viagra pills for sale uk

    Charleswramy Monday, 28 August 2017 16:44 Comment Link

Leave a comment

Make sure you enter the (*) required information where indicated.Basic HTML code is allowed.

Latest News

Ethiopia to Host the 4th International Coffee Conference

Ethiopia to Host the 4th International Coffee Conference

Ethiopia is set to host the 4th International Coffee Conference from March 6 – 8, 2016 in Addis Ababa at the United Nations Conference Center. Previous conferences were held  in England in 2001, Brazil in 2005 and Guatemala in 2010. Read more

Most Popular

  • 1
  • 2
Prev Next

The White-Box of Ethiopian Agriculture

The agricultural sector remains our Achilles heel, nonetheless, we remain convinced that agricultural-based development remains the only source of hope ...

Read more

For Whoever Has, to Him Shall be Given …

As the Ethiopian government seeks to transform the economy into one that’s rooted in manufacturing, the simplicity for local investors to access finance...

Read more

Commentary

  • 1
  • 2
  • 3
Prev Next

Shooting in the Dark: The Anomalies of Headhunting

The war for ‘heads’ – also known as talent – has been raging for many years and the manner headhunters ‘poach’ people is getting tougher ...

Read more

Understanding Chinese Investment in Ethiopia A Critical Evaluation of the World Bank’s “Chinese FDI in Ethiopia” Survey

The World Bank country office in Ethiopia, apparently in response to the request by the government of Ethiopia, has conducted a survey of...

Read more

Mitigating Growing Income Inequality: What Needs to Be Done

Rising income and wealth inequality in many countries around the world has been a long-term trend for three decades or more. But the atte...

Read more

View Point

  • 1
  • 2
  • 3
Prev Next

Delivering Life Insurance: The Untapped Market in Ethiopia

Modern insurance transaction in Ethiopia was started by an Egyptian Bank in 1905. According to Ethiopian Chamber of Commerce there were 19, 33 and 40 insuran...

Read more

Headache When a Key Personnel leaves a Company in the Financial Sector

The financial sector in Ethiopia has undergone considerable changes in recent decades. The dramatic rise of new market players into the sector has vividly al...

Read more

Women and the World Economy

In many countries, public debate about gender equality focuses mainly on women’s access to top positions and high-powered career opportunities. But the “glas...

Read more