Ethiopia is the biggest recipient of private equity in eastern Africa, thanks to its friendly business environment and favorable industrial policy, Business Daily newspaper reported quoting a UN report.
Ethiopia has promoted the development of industrial parks focusing on textiles, leather, agro-processing and pharmaceuticals, as part of its Vision 2025 that seeks to make the country a light manufacturing hub in Africa.
The 16th edition of the African Economic Outlook Report released early this week said the development blueprint has made Ethiopia a magnet for manufacturing and service industries.
It sets the projected private equity inflows into Ethiopia this year at 4.4 billion USD compared to Kenya’s 1.3 billion USD.
“For example, the Hawassa Industrial Park, inaugurated in July 2016, was designed and built by a Chinese corporation and includes 35 manufacturing facilities and one fabric mill, equipped with new and innovative technologies powered by green energy,” the report stated.
The report is prepared by a consortium of three teams from the African Development Bank (AfDB), the OECD Development Centre and the United Nations Development Program (UNDP).
“The park has already attracted 15 major manufacturing firms from China, Ethiopia, Indonesia and the United States.” The park aims to employ 60,000 people at full capacity and generate export revenue of 1 billion USD per year.
The report cites another 9 industrial parks that are under construction or in the pipeline, namely Dire Dawa, Mekelle, Adama and Kombolcha parks that are due to be completed during the 2016/17 fiscal year.(ENA)