Ethiopia’s quest for competitive industrial parks

Bereket Gebru

Ethiopia has set out to raise the number of its industrial parks to ten during the second GTP period. Towards realizing that goal, the government set up the Ethiopian Industrial Parks Development Corporation (IPDC) in 2014. By setting up these gigantic industrial sheds, the country aims to enhance exports, employment, technology transfer and agricultural to industrial economic transformation.

Addis Industry Village, Bole Lemi I and Hawassa Industrial Park are the three industrial parks that are already operating in the country. The IPDC website states that Mekelle and Kombolcha industrial parks are about to go operational in the recent future. Adama and Dire Dawa industrial parks are expected to follow.

Ethiopian Industrial parks are assigned a specialized sector to serve. Some serve textile and garment industries, while others are made for pharmaceuticals, footwear and leather products, agro-processing and heavy industries. Another identifying factor about Ethiopian industrial parks is that they are eco-friendly. According to the IPDC website, the Hawassa Industrial Park stands in testimony as its “sewerage, waste disposal will be recycled by using latest technology with Zero-Liquid Discharge (ZLD) facility that was constructed for this purpose.”

The implications of these industrial parks for employment creation, provision of housing and physical infrastructure, education, health and social services, and pollution control are staggering. A 1999 article entitled “industrial parks: principles and practice,” Caj O. Falcke (Ph.D.) states:

The Large-scale manufacturing is likely to play only a limited role in providing employment. Small and medium-sized firms in manufacturing, services and trade, as well as micro-enterprises will provide most of the jobs. Many of these will benefit greatly in exactly the just mentioned critical variables for success by locating inside a well functioning industrial park: outsourcing based on efficient division of labor is facilitated, economies of scale may be achieved, and productivity thereby is enhanced. By clustering into industrial parks, small, medium and even large enterprises can take advantage of public infrastructures, economize on construction and common facilities, and gain access to nearby skilled labor markets, research and educational facilities and other critical inputs. 

The challenge for the public as well as the private sector, the article contends, is to facilitate the creation and maintenance of industrial parks that are competitive in the global as well as the local context. It states: “the ability to compete in national, regional as well as international markets is the hallmark of successful private enterprise and the paramount prerequisite for sustainable economic development.”

Access to major markets, infrastructure, cheap skilled labour and incentive packages, the Spring 2008 Prologis Research Bulletin states, are among the main reasons that determine the competitiveness of industrial parks in the global system.

Situated in the horn of Africa, Ethiopia provides an easy access to Africa, the Middle East, Asia and Europe. Therefore, it is ideally located to access the major markets in the world. As a rapidly growing economy, the state of infrastructure in the country is changing tremendously for the better with the industrial parks enjoying the best of electrical, water, telecommunications, roads and other facilities Ethiopia has to offer.

The 2008 bulletin states:

“When China first cracked its “Open Door” in 1980, it lacked virtually all of the basics (not to mention amenities) that modern business enterprises simply take for granted. Absent were such basics as a transparent legal system, the concept of private property, labor markets, banks, foreign exchange markets, and modern infrastructure — including highways, telecommunication facilities, water, waste management, comfortable living quarters, and energy-supply systems. Only the most intrepid foreign enterprises were willing to venture into this uninviting setting.”

With more than a dozen years of rapid development under its belt, it is plausible to think that the present day Ethiopia offers more of some of the amenities stated above than the China of nearly forty years back. Although there have been improvements in infrastructure and work procedures, Ethiopia still needs to keep things rolling to catch up with the demands of today’s businesses. By providing businesses with a fully furnished space to operate from, Ethiopia’s industrial parks compensate for the shortcomings in infrastructure through their connection with ports and close proximity to airports, railway stations, dry ports and universities.

The other point to consider is the availability of cheap skilled labour force. Set to hit the 100 million mark, a significant section of the population of Ethiopia is young. This group constitutes the working section of society. Therefore, there is a large availability of labour in the country. Considering the nearly universal enrollment in primary schools and considerable expansion of education at all levels in the past couple of decades, the labour force is more educated than it used to be. The salary level of Ethiopian workers is also generally low. Therefore, Ethiopia has skilled labour that can be employed for low price.

The other gauge deals with incentive packages. Accordingly, Ethiopia provides manufacturers with:

• Zero tax
• Exempted from income tax up to 8 - 10 years
• Exempted from duties & other taxes on imports of machinery, construction materials, spare parts, raw materials & vehicles
• One-stop-shop for government services
• Land lease term: 60-80 years at zero charge for factories & residential quarters

Developers also enjoy equally beneficial incentives that include:

• Exempted from income tax up to 15 years (outside Addis Ababa)
• Exempted from duties & vehicles
• Provision of essential infrastructure, including dedicated power substations
• Land lease term: 60-80 years at zero charge with sub-lease rights

Considering Ethiopia ticks all the right boxes to host competitive industrial parks at the world stage, the successful completion of the projects would speed up the transformation of the economy to an export-led industrialized one.    

May 28: the turning point in Ethiopian history

Tesfaye Lemma

No one imagines that, Ethiopia would be at its present status. That was because its economy was extremely decorated and its peace was also poisoned. Law and order were violated and the situation in the country seems a ground that could lead it to disintegrate and bloodshed at the time of the fall of the military rule and the coming of Ethiopian Peoples Revolutionary Democratic Front into power with more than 17 armed groups in the country, who had different interests.

Now, it is just two decades and half. Last Sunday, May 28, 2017, Ethiopians throughout the country celebrated the 26^th anniversary of the victory, the turning point in the country’s entire situation, in a bid to strengthen their massive national success and to vow once again to join hands and face the challenges of bad governance, rent seeking, extremism and chauvinism, which the country has encountered with amid its achievements.

May 28 is the turning point of the Ethiopian socioeconomic and political arena. It is a unique day that offered light to the dark and gloomy situation engulfed the country for decades. 

It is an unforgettable history that altogether altered the country’s scenario. Weak working culture, poor diplomatic relation, hostile internal situations, dire poverty, deteriorated economy,  insecure arena and entire dark atmosphere to industrial work culture, fruitful diplomacy, secured and stable situation, hopeful, encouraging,  prosperous light environment.

As a turning juncture, May 28 will in fact remain being memorable in the minds and hearts of the living Ethiopians and the posterity for its gains.  It is undeniable that the socio-economic and political gains nearly in the past three decades are so remarkable.

The political arena has also shifted from aggressive, dictatorial, unitary rule to participatory, peaceful, multiparty and democratic system where nations, nationalities and peoples enjoy equal opportunities, hoping a bright and prosperous future respect among each other, stood together in building their country so as to realize its renaissance. 

Nations, nationalities and peoples have retained their political sovereignty; exercising their political power since 1995. Besides, the multiparty system emanated from the Federal System of the country paved ways for citizens to organize themselves in various  political parties  and participate in their country's political, economic and social affairs.

The first historical, free, fair and democratic election was held in 1995 in which about 57 political parties have participated, which both historically and politically a landmark election the country had experienced for the first time in its history.

Five years later, the second national election took place in the country, in which about 49 political parties competed. In 2005, Ethiopians once again had their national election with 36 contesting political parties.

The number of political parties has raised to 63 in the fourth national election, which was held in 2010 then to 67 in the fifth national election. In all these elections the  people used their political power in electing  their leaders free of any imposition.

It is tangible that the democratic arena  has been widening from time to time. Political parties in the country managed to come together to argue on the political, economic and social affairs. In fact, recently, this dialogue  has reached at a constructive  agreement that could benefit  citizens.

These political parties used the chance to explore all possibilities to sit round a table and negotiate on issues of national concerns and reached at an amicable agreement. The consecutive engagements they hold in the past few months helped them to identify the challenges and opportunities on the ground that they could face while taking the country a step ahead economically and politically, which strengthened their willingness to take part on  that negotiation. This is another significant achievement of the victory of May 28 and the advent of the developmental and democratic system in the country.

In line with public political sovereignty, the right to press freedom and opinion expressions is respected. It was legally guaranteed by the Ethiopian constitution, which was endorsed by all nations, nationalities and peoples of Ethiopia.

Despite some challenges in using the rights properly, the public got an opportunity to disseminate their ideas, opinions on the socio-economic and political concerns of their country.

The country's economic stride is another manifestation of May 28. The Agricultural Development Led Industrialization (ADLI) Policy of the country coupled with the commitment of the government and the people have been contributing in pulling the country out of the quagmire of poverty.

Incredibly, Ethiopia’s economic growth rates double digit for the past ten consecutive years. As a result, poverty has reduced significantly in those years. Its economic achievement is, in fact, highly intertwined with its fruitful efforts of ensuring lasting peace and stability at home and in the volatile horn region.

The government has considered peace and security as preconditions for creating healthy economic progress cognizant of the impossibility of developing the economy being in a war zone. Besides, the country's foreign policy, founded on mutual development and prosperity, has been significantly contributing to the overall development.

While celebrating the 26th anniversary of May 28 today, the entire people vowed once again to face the challenges the country has encountered with and scale up all the gains for maximum public benefit.  

These achievements become realities due to the consolidated efforts of all nations, nationalities and peoples of Ethiopia, the prudent of the government and the political commitment of the Ethiopian Peoples Revolutionary Democratic Front (EPRDF) with the advent of May 28. Now they once again renewed their promise to enhance gains and face the challenges the country has encountered amid its forward move. 

The Perks of May 28 and the Challenges Ahead

Bereket Gebru

Looking back on the last quarter of a century since EPRDF came to power, Ethiopians can see and live the tremendous achievements registered over that period. From the basics of peace and security to rapid economic development, there have been important milestones in life in Ethiopia.

The exponential growth of productivity in the agricultural sector within the specified time has equipped the country with a famine shield of an economy. Food self sufficiency has seen it’s brightest of days in the past decade. Subsistence farming is increasingly giving way to surplus farming as more and more farmers are gaining the economic clout to apply technological products and ensure increased surplus.

The availability of education at every doorstep throughout the country has also set human development and the economy’s demand for skilled manpower on a concrete foundation. The days when education used to be regarded as a privilege to have been long gone in courtesy of the May 28 victory. Ethiopia has nearly ensures that no kid is deprived of education no matter which corner of the country they are born.

That fulfillment of the right to education is complemented by the vast health service throughout the country. The time required to get a person in need of medical treatment to a health facility has been significantly slashed all over the country. Ethiopian mothers and children are nowadays much safer or less likely to die of health complications than they ever used to be. The life expectancy of Ethiopians has grown by a year for over a decade ensuring a longer life for Ethiopians.

The time it took for Ethiopians living in rural areas to get to tarmac roads or other types of all weather roads has been considerably slashed. Roads have become a feature of almost all rural kebeles - the smallest unit of local government in Ethiopia. The provision of social services to these kebeles has become easier than ever along with the expansion of the roads. Urban centers have also seen the level of road networks African cities seldom enjoy.

Other infrastructural developments in telecommunications, electricity, water supply and housing have all been expanded to reach out to people in all regional administrations of the country. Connectivity is no more seasonal even in the most remote parts of the country. Access to social services has also been more just and inclusive over the last quarter of a century.

There is also an unprecedented level of self-administration in the regions as state power is delegated to local governments in the pronouncedly inclusive federal system. The equality of nations, nationalities and peoples has become a reality Ethiopians live under. There has also been increased political participation by the people over the last quarter of a century.

After having enjoyed all these perks, it is only rational that Ethiopians mark May 28 in a special way – after all it is the victory that laid the ground for all the good that followed. It is, therefore, worthwhile to commemorate those who have given their lives to the cause and be thankful of their sacrifices.

After having celebrated the May 28 victory over the Derge regime so colorfully, however, Ethiopians need to have a shared clear path on the set of activities needed to sustain and build on the achievements. The legacy of the struggle to topple the Derge has been so fruitful up until now but the challenge always appears more daunting in the unknown future. Ethiopians should, therefore, be more motivated and organized in their attempts to conquer the future.

With more of the problems that characterized the country until recently being tackled and the country gaining a more positive image in the international arena, motivation is in abundance for Ethiopians to push even further towards development. The grave challenges they have overcome are also constant reminders that the challenges they are going to face in their endeavors are just as concrete as they imagine them to be. Rising up in unison has proved to be a lasting remedy for these challenges. The experience they have gained in overcoming these challenges would also be crucial in ongoing and upcoming struggles.

One of the major challenges of sustaining the achievements so far has been rent seeking. As indicated in this year’s unrest in some parts of the country, the issue of good governance, rent seeking behavior and corruption can be a fatal affair that threatens our unity. Therefore, we need to stamp out rent seeking behavior in the times ahead to make service delivery more just and equitable.

As urban centers are areas of intense interaction between governmental and private institutions, they provide numerous loopholes that have the potential to nurture rent seeking behavior. The institutional reforms in our country that have changed the civil service for the better have certainly helped narrow down these loopholes. However, the temptation of rent seeking still proves to be too much for a considerable number of people as the problem is still chronic. Therefore, making the work procedures of rent seeking prone activities more transparent, less time consuming and less discretionary should be a major area of focus in the times ahead.

The other major point that could help sustain the achievements is improving the capacity of the government to mobilize the people. With very notable perceptions of corruption among the people, the credibility of governmental offices is set to suffer a blow. Therefore, there should be efforts to restore popular trust in government for the people to be motivated enough to participate sincerely in the implementation of the second growth and transformation plan.  

A third point towards sustaining the achievements is the efficient and effective utilization of financial and material resources. The exploitation of the country’s natural resources along with a strong financial system also determines how the country performs economically in the times ahead.

Ethiopia’s diplomacy contributes much to the victory

Gemechu Tussa

Ethiopian diplomacy has borne fruits. One of the confirmations of this fact could be the recent victory of Dr. Tedros Adhanom as General Director of the World Health Organization. 133 countries voted for him, and it is because of the fact that Ethiopia had established good diplomacy with countries around the world in addition to the personal caliber by the elected Director General.

The World Health Organization has got an African Director General for the first time since its foundation in 1948. It was in 1945 that diplomats from different countries met and discussed the need to set up a global health organization. It is headquartered in Geneva, Switzerland.

Now, the Ethiopian Hero, Dr. Tedros Adhanom has become the first African to be the Director of the WHO and has made history for himself, his country and indeed for the continent.

In fact, the extensive and commendable experience in the field that the WHO badly needs, he has what it takes to doing the best job and to help people around the world, irrespective of their culture, race, religion, gender, nationality or any other differences they might bare.

The main function of the WHO focuses on the mitigation of international public health issues, such as on communicable diseases, HIV/AIDS, Malaria, Ebola, Tuberculosis, etc. and on nutrition, health development, food security and on the provision and treatment of occupational health and substance abusers among others.

Its 2014-15 proposed budget was four billion provided by member states and three billion from the voluntary institutions. This also shows how important the WHO is and most importantly, how important the position of its Director General is.

It is obvious that what the WHO needs right now is a person who not only possesses the much needed education, skill and professional background, but also a person on the ground tested and with a demonstrated knowledge and skill to effectively run the office and the only person who has what it takes to do the job is Dr. Tedros Adhanom.

He is a man of integrity, caring and kindness, a passionate person for his profession, a skilled scientist and diplomat and most importantly, he is humane.

Over the years, he has served not only his nation and his people, but also his continent and indeed, the world at large with dignity, commitment, perseverance and honesty. He has gained world recognition for his services, even from world leaders, such as President Bush, President Clinton, and President Obama, among others.

President Clinton, in giving his testimony said, “Doctor Tedros is one of the ablest public servants that I have ever worked with. You would all be very comfortable if he became the secretary of health and human services in the United States”.

He gets much more recognition and acknowledgment for the job well done from the entire Members of the African Union, the Caribbean and many other world leaders, international, governmental and Non-Governmental institutions and the evidences are there for any one,s perusal.

As a health minister, he reformed the institution in all aspects for the better. As a result, he has earned respect and admiration from the public at large. He laid a firm foundation in the Ethiopian Ministry of Health. 

The same is true with the Ministry of the Foreign Affairs that he headed before his candidacy for the Director General of the WHO. There too, he earned respect and admiration for his skilled and modern diplomatic approach.

The usual anti-Ethiopian and even anti-African few cry foul members of the so called Oromo Liberation front and from Genbot 7 labeled terrorist organizations who always instigate terror, anarchy and lawlessness from their sanctuary in North America and Europe trying to defame the his candidacy.

In fact, his competition though ended up affirmatively had some obstacles during the process.  That is shocking many Ethiopians to see fellow countrymen making a personal attack and trying to denigrate a candidate representing the whole Africa with a very high caliber and who has done an admirable service to our nation, to our people and indeed to the whole world. A much admired and highly respected not only nationally and regionally but indeed internationally by intellectuals and world leaders.

The ill practices of these anti-Ethiopian and anti-African mercenaries emanates from lack of substance, blind hater or mere ignorance. Unethical and uncivilized personal attack or statement against a candidate of the same nation and of the same continent has nothing to do with any democratic and civilized comment because it is simply unacceptable least to say.

Few opposition baseless finger pointing and personal assassination on personalities is therefore a sign of uncivilized, inexperience and vacuum or hollow arrogance based on hate, racism, xenophobia and retribution.

Comments aspiring to represent the interest of the public at large must focus on issues, substances, programs, strategies and tactics to help their nation and the public at large and not on cheap personal attacks, insults and unethical comments that can backfire and that can have detrimental and regrettable effect on own personalities.

Candidates are judged by those nations who cast votes and those who cast votes want among others gentle, intelligent and wise leader. They want to see and hear substance not insult; so those who are baselessly finger pointing on Dr. Tedros or any other respected personalities have to learn to be careful not to insult the intelligence of the public at large.

What these people failed to comprehend is the fact that the election of Dr. Tedros Adhanom as Director General of World Health Organization is the result of the country's all over diplomatic success and the development at home. It is a public secret that the hero is the result of the growing and emerging country's fruit in the past three decades.

The image of Ethiopia is now changed completely. The world knew what is going on in Ethiopia and what the people and government of Ethiopia have been doing. President Mulatu Teshome also emphasized this key issue while addressing the Ethiopian people in connection to the 26th founding Anniversary of May 28.

He said, "May 28 has completely changed Ethiopia's unpleasant image in all aspects apart from allowing the people of Ethiopia to build a constitutionally guaranteed democratic unity"

It is absolutely right that the image of the country has already changed. This situation emanates from its diplomatic efforts and the development at home. The election has this base and in fact the individual caliber is also undeniable.