@MoTI_Ethiopia – Ethiopian Business Review

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Ethiopia’s Special Economic Zones (SEZs) have secured nearly USD 900 million in new investments in the current fiscal year alone, a leap that signals the zones are active engines of industrial growth.

As reported by the Ethiopian Press Agency, 89% of all developed land and factory shades in the country’s 13 SEZs have been taken up. Bole Lemi and Adama Industrial Parks have reached full occupancy, while Jimma SEZ stands at 90%.

“This level of uptake shows that previously stagnant areas are now attracting serious investment,” said Zemen Junedi, Deputy CEO of Promotion and Marketing at the Industrial Parks Development Corporation (IPDC), in an interview with The Ethiopian Herald. “Most of the newly registered projects are already operational.”

Zemen attributes the turnaround to a set of government-led legal and regulatory reforms—nearly 80 policy frameworks have been revised. The goal: eliminate red tape and boost investor confidence. The results are visible. Just a few years ago, local investor participation in SEZs stood below 5%. That figure now stands at 60%, with Ethiopian firms operating alongside foreign players in zones across the country.

SEZs have also shifted from being purely export-driven to supporting import substitution, especially in textiles, pharmaceuticals, automotive assembly, logistics, and agro-processing. Parks once seen as underutilized are now actively contributing to employment, technology transfer, and foreign exchange generation.

“Zones that were struggling are now alive with factories, warehouses, and local value chains,” Zemen said.

However, recent reports highlight persistent challenges for workers within these zones. Laborers face wages as low as USD26 per month, among the lowest globally. Poor working conditions, including long hours, inadequate occupational safety, and substandard housing, contribute to high turnover rates—sometimes exceeding 10% monthly. Inflation continues to erode workers’ purchasing power, while weak enforcement of labor laws and limited union influence leave many with little protection or recourse.

Heineken Ethiopia, in partnership with Addis Meter Taxi, the Addis Ababa Traffic Management Agency, and the Addis Ababa Traffic Police, has deployed 50 taxis across the city tagged with a powerful public safety message: “When You Drink, You Don’t Drive.”

The initiative, which spans six months, is expected to reach over two million residents daily, targeting behavioral change at scale. The campaign comes at a time when traffic-related fatalities and alcohol-induced accidents remain a pressing public concern in Ethiopia’s rapidly growing urban centers.

“As a company, we take our responsibility seriously to ensure this message is not only heard but remembered,” said Bart De Keninck, Managing Director of Heineken Ethiopia. “Driving under the influence isn’t just dangerous, it’s deadly. When someone is drunk, they can’t think clearly, and the consequences can be irreversible.”

The initiative extends beyond the city’s streets. In a parallel campaign targeting youth, Heineken has launched an awareness program across 11 Ethiopian universities, educating students under the theme “No for Drinking.” The program emphasizes that alcohol consumption is not appropriate for those under 21, aiming to foster early awareness and responsible behavior.

“This isn’t about promoting our brand, our name isn’t even visible on the taxis,” explained Fekadu Beshah, External Relations and Sustainability Manager at Heineken. “It’s about standing up and taking responsibility as a corporate citizen.”

Kegna Beverages S.C has officially launched its flagship product, Kegna Beer backed by an impressive ETB 22 billion investment and the support of over 5,000 Ethiopian shareholders.

The grand launch, held at the Addis International Convention Center, was not merely a product unveiling. It was the realization of an eight-year journey marked by perseverance through foreign currency shortages, COVID-19 disruptions, and political turbulence. Yet, the company stood firm, fueled by what it calls a “collective vision” of economic empowerment and national pride.

“We passed through tough challenges, but we had strong backing from the community. From the first public announcement alone, we raised ETB 1.2 billion,” said Neway Megerssa, Chairman of the Board at Kegna Beverages and CEO of Sinqe Bank. With visible excitement, he also recalled the moment they submitted nearly 50 documents to the Development Bank of Ethiopia, secured ETB 7.12 billion in financing, and proceeded to purchase the machinery.

Derived from the Afaan Oromo word “Kegna” — meaning “ours” — the brand is an expression of public ownership and cultural identity. The company was founded under the principles of the “Oromo Economic Revolution”, an economic philosophy aiming to elevate regional prosperity through inclusive entrepreneurship.

During its formation, Kegna conducted extensive taste research across 20 cities, crafting a recipe tailored to Ethiopian preferences. The result: Kegna Beer, a premium lager brewed with local and internationally certified inputs, featuring 5% ABV and available in 33cl and 50cl bottles, as well as 30-liter kegs.

Situated on 110 hectares in Ginchi Town, Oromia Region, the Kegna Brewery is among the most advanced in East Africa, blending state-of-the-art global machinery with local engineering talent.

“From the water to the wheat, every ingredient is tested to international standards. Kegna is built with cost-efficiency in mind — one machine here can replace five traditional ones,” said Afework Legesse, Chief Operations Officer.

With a current production capacity of three million hectoliters, the company plans to double capacity to six million hectoliters within four years.

“This isn’t just made in Ethiopia – it’s made of Ethiopia. It’s a shared legacy,” said Abiyu Abera, Commercial Manager at Kegna Beverages.

Kegna Beverages is uniquely structured as a public share company, now employing over 250 people, with plans to grow its workforce to 1,000 nationwide. Its over 5,000 shareholders include individuals, cooperatives, and institutions from across Ethiopia — ensuring that the profits generated return to the communities that built it.

Kegna’s ambitions go beyond beer. As part of its multi-product roadmap, the company plans to introduce eight additional beverages, including water, juices, and soft drinks, in a bid to expand its footprint in Ethiopia’s fast-growing FMCG sector. Starting mid-June, Kegna Beer will be available at bars, butcheries, groceries, and restaurants nationwide.

Siket Bank is positioning itself as a central player in Ethiopia’s industrial renaissance, claiming a significant role in transforming the country’s manufacturing landscape through financial innovation. At a high-level panel discussion themed “Financial Provision for Industrial Productivity”, the bank showcased its evolving strategy to empower local manufacturers and accelerate industrial productivity.

Held alongside the 2025 Manufacturing Industries Exhibition and Fair at the Addis International Convention Center, the panel attracted key figures from federal and city administrations, private sector leaders, development partners, and industry experts. The discussion aligned with the national “Ethiopia Tamirt” (Ethiopia Manufactures) movement, which champions a shift from import dependency to homegrown production and self-reliance.

Panelists discussed the broader role of finance in Ethiopia’s industrial development while spotlighting Siket Bank’s own transformation—from a microfinance institution into a commercial bank. The transition, they noted, has allowed the bank to expand its reach and offer more sophisticated services tailored to the needs of various businesses.

Testimonials from long-standing clients painted a vivid picture of transformation, micro-enterprises nurtured into competitive manufacturing firms. One such testimony came from Abemelek Degu, a plastic manufacturer, who described finance as “essential—as essential as vision itself.” He credited the bank for turning his small-scale operation into a scalable enterprise, saying Siket “transitioned me from zero to hero.”

Another compelling story came from two returnees who, after abandoning overseas migration, launched a local business with just ETB 5,000 in microfinance support from Siket. Today, they run a firm with a capital base exceeding ETB 10 million—a testament to the bank’s role in unlocking entrepreneurial potential for underserved groups.

Siket Bank also unveiled an innovative lending product developed in partnership with the World Bank, employing psychometric testing to assess loan applicants based on personality traits, behavioral consistency, and social indicators rather than physical collateral.

“We have now started piloting this model with select customers,” said Damte Alemayehu, CEO of Siket Bank. “It evaluates long-term relationships, work ethic, family context, and broader social behaviors to determine creditworthiness. This opens new doors for entrepreneurs who are typically locked out of formal finance.”

The psychometric approach is particularly significant for Ethiopia’s large informal sector, where credit exclusion is a persistent challenge. By gauging trustworthiness beyond traditional balance sheets, the bank hopes to expand access to capital for promising small business owners.

Beyond lending innovation, Siket Bank announced key digital milestones: the launch of mobile banking services and the establishment of a modern data center. These developments are part of the bank’s broader push to modernize its operations and serve an expanding customer base that now exceeds 600,000 clients.

“These may seem like simple steps for legacy banks, but for a newly transitioned institution like ours, they represent bold progress,” said Damte. He emphasized the bank’s vision to be a catalyst for inclusive growth in Ethiopia’s shifting financial landscape.

The panel closed with a unified message from stakeholders: Ethiopia’s industrial growth will remain stunted without bold financial innovation.

Ethiopia’s Special Economic Zones Attract USD900M in a Single Year as Occupancy Hits 89%

Heineken Rolls Out Awareness Taxis in Addis to Promote Sober Driving

Kegna Beverages Unveils Flagship Beer with Over ETB 22 Billion Investment

Siket Bank Claims At the Forefront of Ethiopia’s Manufacturing Transformation