Ethiopia, the emerging global garmenting hub, is all set to get a boost following the recent inauguration of the country’s largest Industrial park at Hawassa by Prime Minister Hailemariam Desalegn Boshe.
Designed and built by China Civil Engineering Construction Corporation (CCECC) at a cost of US $ 246 million in less than a year’s time, the industrial park is spread over an area of 300 hectares and has 1.3 million sq. metres built-up area for factories solely dedicated to textile and garment manufacturing.
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Expected to generate employment for over 50,000 people and export of textile and garments worth US $ 1 billion, the industrial park is strategically located about 275 km south-east of capital Addis Ababa and close to the picturesque holiday location of Hawassa. The eco-friendly industrial park has been designed with energy and water conservation as prime concerns with lot of natural light and ventilation, LED lamps for the common areas, and dedicated water recycling unit to treat at least 85 per cent of effluent discharge.
A testimony to the Government’s priorities and impetus on textile industry as the focused sector for achieving its targets of generating job opportunities for the country’s 45 million young population under the 5-year Growth Transformation Plan (GTP) while also eradicating poverty and achieving middle income economy, the Hawassa Industrial Park is well supported by improved road connectivity with extension of Addis – Adama Highway, a planned domestic airport, and extension of Addis-Madjo-Djibouti Railway line. Logistics being the biggest hurdle for existing players together with export/custom formalities, all custom clearance facilities have been set up in the park to facilitate entrepreneurs operating within the park zone. It is well supported with setting up of Hawassa University in the close vicinity and dedicated power supply (hydro-power).
Special care has also been taken to keep 19 buildings for exhibition hall area, food courts and dormitories as well.
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Many international companies of repute have already landed here to take advantage of being an early entrant – like PVH, Calvin Klein, Vanity Fair and Tommy Hilfiger from USA; Chargeurs, Ontex from Europe; TAL, EPIC and MUST from Hong Kong; Arvind, Raymonds and Kanoria Textiles from India; Hyderamani from Sri Lanka; Ayka Addis, MNS and Saygin Dima from Turkey; and PT Busana from Indonesia.
Some local companies have also taken up this opportunity to set-up their operations in the park like Selina Trading PLC along with 5-6 others with an average area of approx. 5,500 sq. metres. The Government stipulated lease price for industrial sheds were up for tender at US $ 2 per square metre for first 4 years with a minimum lease period of 10 years, which is further extendable upon negotiation and minimal increase of lease rate for balance 6 years of the lease period. The Government has also extended 85% loan of total investment with further support to cover the cost of manpower training and cost of expat technicians/experts drawn from Sri Lanka, India, Mauritius and Pakistan.
The local companies, however, are required to achieve productivity and quality standards of foreign companies operating in the park up to 100% within first three years of their operations to be allowed to operate in the park.
Encouraged by the success of this project, the Government has awarded projects of US $ 250 million for similar industrial parks in Mekelle, Kombolcha with many more reportedly coming up in Bahir Dar, Dire Dawa and Adama as well.
