Fekadu Wubete
Nation had finalized the construction of Hawassa
Industrial Park(IP) at a cost of 250 million USD and inaugurated it on July 13,
2016. The park has landed on 30,000 square meters and has housed 37 sheds. It is
equipped with one-stop service centers and has its own renewable electricity
sources to avoid power supply problems.
Until now, some 15 foreign and six local companies
have joined the park. Most of the foreign companies are from America, Turkey,
Sri Lanka and India that are engaged in textile and garment production.
The park is expected to play its own crucial role in
materializing the country’s vision to become pioneer in the manufacturing
sector in Africa by 2025. It enables to expand industry development and
reinvigorate the national spirit and endeavor being exerted to finalize
construction of same projects in regions (kindling spirit of industrialization,
even some quipped it as torching up Ethiopian industrial revolution).
Dictionary that focuses on investment, investopedia,
states that IP is portion of a city that
is designated as industrial area (as opposed to residential or commercial use).
IPs may contain oil refineries,
ports, warehouses, distribution centers, chemical plants, plastics
manufacturers, airports, food and beverage processors, and steel manufacturers,
to name just a few.
According to a research journal publicized by University of
Wyoming, the concept of industrial park dates back to the turn of the century in
which "planned industrial districts" were first established in
Chicago and Kansas Cities using state of the art technology (Peddle, 1993).
These districts were privately developed and built around railroad projects (in
the mid-forties government became key player to expand IPs and convert wartime
facilities in to industrial projects.
These areas are also known as industrial estates and
are frequently built outside of densely-populated areas or residential
neighborhoods. The first IPs began to be
constructed with the aim of creating a space where industry could be isolated from
urban centers. But establishment of IPS is located in areas where there is good
access to transportation and infrastructure. Establishment of numerous industries
in one area could also create conducive condition to build high-quality waste
treatment and disposal facilities.
In the past forty years, the number of IPs has grown rapidly all over the world. Currently, it is estimated to be over 12,000 worldwide. Almost every country in the world has some kind of industrial estate. For instance, Vietnam and Sri Lanka are estimated to each have 50 to 60 industrial areas, and India and China reaching hundreds of industrial clusters.
In the case of Ethiopia, The 2nd GTP of
the nation is formulated to effect fast-track development and poverty
alleviation through speedy transformation of the industry sector.Accordingly, IPs
are meant to speed up the process of industrialization and implement rapid
transformation from agriculture-led economy to industry-based economy (it is
aimed to enable the industry sector take the lead from agriculture and become a
major contributor to the GDP. IPs construction is anticipated to enhance
productivity and create wider job opportunities in the 2nd GTP).
Viewed from development experience of other
countries, it is essential to encourage industrial development through IPs. Nation
believes that the vision to make Ethiopia hub of African manufacturing
activities is absolutely unthinkable without the establishment of IPs( based on
investment survey and feasibility studies).
During the 2nd GTP, Ethiopia has planned
to boost the contribution of the manufacturing sector to 25 percent which is
sizeable increment compared to the meager five percent contribution of the
sector at present. To realize this effort, nation has earmarked billions of dollars
to build 12 industrial parks across the country.
In this regard, the construction of IPs in
Dire-Dawa, Meqelle and Kombolcha is also well in progress and the projects are
anticipated to be completed in the coming April. New constructions of IPS in
other localities are expected to employ Hawassa-type modern technology(and
protect environment from the impacts of pollution).
Contrary to the benefits of IPs, some sources
stated that Environment Impact Assessment (EIA) may not be properly carried out
in developing countries as the finance and environment-related know-how of
industrialists and consultants is not very well developed. If there is any
study at all, they said, projects fail to include detailed impact assessment of
industries on environment and society (unlike developing countries, most developed
countries have strict regulations and codes for their industrial estates. But,
in some low- and middle-income countries little is done to protect surrounding
communities from waste of industries and their harmful byproducts). For
instance, South Asia and Africa have large-scale problems due to contamination
of groundwater sources by untreated effluent.
Industrial
estates in many low-and middle-income countries have little or no waste
treatment and disposal infrastructure. For instance, in the case of an
industrial park that has no pollution control mechanisms lead, which is often main
contaminant released by industries, can be emptied into surrounding air, soil and
water. Hence, if not cautiously managed and treated, IPs may turn in to a
cluster of pollutant industries that discharge pollutants and contaminants,
including lead. In addition, when industries are located in such close
proximity, it is very hard to distinguish which one is responsible for
pollution.
To curb adverse effects that may be induced by IPs,
the Multilateral Investment Guarantee Agency of the World Bank recommends
that if proper precautions are taken,
industrial estates can reduce community and environmental impacts by isolating
potentially hazardous processes in areas far away from residential
neighborhoods and by ensuring safety and environmental standards for all of the
industries in the zone.
Similarly, IPs Dev. Corp. Chair person, Arkebe Oqubay, said that cognizant of
environmental sustainability and comprehension of energy and water conservation
principle, IPs in Ethiopia are being designed and constructed in state-of-the-art
technology and water treatment systems that implement Zero Liquid Discharge
(ZLD).
He said modern system and equipment installed with IPs,
for instance in Hawassa, enable to dispose waste products by reducing them to
harmless matter and even recycle used water to irrigable and potable water (other
IPS will also be equipped with efficient system of waste disposal and ZLD technology that fulfills world-class
standards).
Arkebe said efforts should be exerted to finalize IPs being constructed in Addis Ababa and regions on time. Besides, building the capacity of institutions established to develop and manage IPs (Investment Commission, IPS Devt. Corp. and Investment Council) is an exigent task of the country. Moreover, more effort should be exerted to thoroughly utilize IPs via the full participation of the private sector.
In addition to leadership and effective management,
industrial estates must also have sufficient finances in order to upgrade their
status to the desirable level and enable them employ environment-friendly
technology. Proper enforcement of environmental and health standards, however,
needs adequate political support and cooperation between the government and
industrialists.
Overall, nation has got big assignment to help
enhance quality of production and productivity of IPs through GTP-2 and realize
many Hawassa-like IPS across the country; speed up transformation of the
current agriculture-based economy to industry-based one; expand the culture of
entrepreneurship and effect noticeable transformation in the economy.
In a bid to attract more investors and develop the
industry sector, the government has decided to give special permit to investors
and foreign citizens who are interested to invest in IPs. Investors who want to
invest in IPS will be able to get multiple visa that would expire within five
years. The foreign employees will also get multiple visa for three
years(contrary to the current trend that gives a one year residence permit to
investors and the visa that allows to
stay in the country for six or nine months in special cases).
Until now the accomplishment related to construction
of IPs is encouraging. The achievement that has gathered momentum at present
should be sustained as far reaching industry-led economy. Secret in public, the
single handed effort of the government cannot get the country anywhere near the
desperately needed level of industrialization (for instance, most of the
participants registered to participate in the Hawassa IP are foreign companies:
six local companies and fifteen foreign companies). Hence, domestic companies
should be encouraged to exploit the opportunity made available in Hawassa and
other regions.
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