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Assessing The Performance Of Industrial Parks (Ips) In Ethiopia: The Case Of Bole Lemi 1, Eastern Industry Zone And Hawassa Industrial Parks

Author

Listed:
  • Fesseha Mulu GEBREMARIAM

    (Department of Civics and Ethics Studies, Jimma University, Ethiopia)

  • Bizuayehu Daba FEYISA

    (Department of Civics and Ethics Studies, Jimma University, Ethiopia)

Abstract

This exploratory study was conducted to assess the performance of Industrial parks in Ethiopia taking Eastern Industry Zone, Bole Lemi 1and Hawassa Industrial Parks as a case. To this end, an interview with eight key informants, and non-participant field observations were held. Various reports, policy documents and researches related to the study were also consulted. The study reveals that, in their first phase, the parks are fully occupied by 1 local & 114 foreign companies, and created 53,612 jobs directly. And, the surrounding communities are benefiting from the parks by opening up businesses around the parks and renting houses to the people working in the parks. Besides, the parks are performing good in bringing hard currency to the country in which they are earning about 114 Million USD per annum. However, the parks are suffering a lot from lack of supply of well-trained and skilled manpower, absence of supply of local raw/semi-finished materials to the parks, shortage of supply of houses for rent for workers around the parks, inefficient trade, finance and banking system, inefficient port operation and expensive shipping services, lack of capable, experienced Institutional, regulatory and administrative capacity to administer and manage the parks. Thus, the study recommends that the government should strongly work on the development of skilled and well- trained manpower with TVETs and higher education Institutions, work in collaboration with other stakeholders to empower local firms to create business/supply link with the companies in the IPs, and shall build & supply affordable rental residential houses to the people who come to work in the IPs in collaboration with the private sector. It is also advisable that the government should upgrade its trade, finance & banking system, and reform its Institutional and Regulatory system. Above all, the government should encourage domestic investors to invest jointly with foreign companies in the parks in which technology transfer to local firms will be successful.

Suggested Citation

  • Fesseha Mulu GEBREMARIAM & Bizuayehu Daba FEYISA, 2019. "Assessing The Performance Of Industrial Parks (Ips) In Ethiopia: The Case Of Bole Lemi 1, Eastern Industry Zone And Hawassa Industrial Parks," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 6(1), pages 72-111, July.
    • Handle: RePEc:edt:jsserr:v:6:y:2019:i:1:p:72-111
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    References listed on IDEAS

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    1. Mulu Gebreeyesus, 2013. "Industrial Policy and Development in Ethiopia: Evolution and Present Experimentation," WIDER Working Paper Series wp-2013-125, World Institute for Development Economic Research (UNU-WIDER).
    2. Mamo Mihretu & Gabriela Llobet, 2017. "Looking Beyond the Horizon," World Bank Publications - Reports 28334, The World Bank Group.
    3. Briceño Avalos, Hernán Ricardo, 2013. "The Industry oriented Asian Tigers and the Natural Resource based Pacific Alliance Economic Growth Models," MPRA Paper 61665, University Library of Munich, Germany.
    4. Gebreeyesus, Mulu, 2013. "Industrial Policy and Development in Ethiopia: Evolution and Present Experimentation," WIDER Working Paper Series 125, World Institute for Development Economic Research (UNU-WIDER).
    5. Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 358, October.
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    Cited by:

    1. Doryn Negesa & Wei Cong & Lei Cheng & Lei Shi, 2022. "Development of eco‐industrial parks in Ethiopia: The case of Hawassa Industrial Park," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 1078-1093, June.
    2. Fituma Lemessa & Belay Simane & Aseffa Seyoum & Girma Gebresenbet, 2023. "Development-Induced Impacts on the Livelihoods of Displaced Communities: The Case of Bole Lemi Industry Park, Addis Ababa, Ethiopia," Sustainability, MDPI, vol. 15(13), pages 1-19, July.

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