Ethiopia Investment Commission will soon declare the results of bids placed by companies to set up sheds in the Hawassa Industrial Park of Ethiopia. The 77,500 sq. m. area has been up for grabs for companies working in sectors like textile and garments, with legitimate permits issued by the Trade Bureaus and guarantees of value-added tax payment. Despite the loan arrangement, low capacity is the main limiting factor, causing many to withdraw from the process.
Selina Traders, which is involved in importing yarn and zippers for local manufacturing factories, was amongst the persistent contenders since the second round of the bid. Fitsum Hagos, General Manager of Selina Traders states that the company persisted not because the incentive or price is attractive, they opted for the deal as a last resort, after a failed request for land from Addis Abeba City Administration.
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In a contrasting situation, unlike the local manufacturers, world’s 10 leading textiles and garment companies, like PVH, Vanity Fair and Raymond Group, have secured sheds at the Industrial Park… Hirdaramani, Sri Lanka’s top apparel manufacturer, has already hired 1,000 employees for its operations there. Another textile major, Arvind Limited – the Indian T&C manufacturer – is also installing machinery in six sheds at the Industrial Park to start production at earliest.
