African Studies

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Browsing African Studies by Author "Aynalem, Yechalework"

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    Opportunities and Challenges of Industrial Park Development in Ethiopia: Lessons from Bole Lemi and Hawassa Industrial Parks
    (Addis Ababa University, 2019-06) Aynalem, Yechalework; Fenta (Ph.D), Getahun
    The introduction of industrial park development in Ethiopia is currently a topical issue. Both the Government and private developers are working on the development of industrial parks in different part of the country and some of them have started operation while the others are waiting for their completion. The main objective of this study is to exploring the experiences of industrial park developments in African countries, focusing on identifying main opportunities and challenges and lessons from and to Ethiopia. Both primary and secondary data sources were used. Documents, key informant interview and focused group discussion were among the main data collection instruments used to examine and show industrial development practices in the continent and Ethiopia’s Bole Lemi and Hawassa industrial parks in particular. Officials and experts from Ethiopian Industrial Parks Development Corporation and Ethiopian Investment Commission, human resource managers from nine different companies, industrial park managers and employees of manufacturing enterprises have responded the interview questions; households who are evicted due to industrial parks constructions have also participated in the focused group discussion and different documents reviewed. Data have been interpreted through theoretical basis, basic standard, conception and comparative approach. The findings of the study indicated that the industrial park development across the continent varies in terms periods of establishment, opportunities and challenges witnessed in specific countries. Embarking on industrial park development, Ethiopia has attracted foreign direct investment, generated revenue, staged technology and skill transfer and created ample jobs. It offered investors incentive packages, cheap labor and access to market with its attractive investment and legal framework. The challenges in Ethiopian IPs are identified as high labor turnover, inadequacy of infrastructure facilities, poor trade logistics and customs procedures, lack of access to foreign exchanges and weak linkages of IPs with local economy. It also lacks strong coordination among actors in the sector, experience and shortage of raw materials. It is also tested by lack of peace and stability. Thus, at this level of their performance, industrial parks have little impact on the country’s economy. While Ethiopia carries on expansion of industrial park development and industrializations, it needs to consider building industrial culture and discipline, set a minimum wage, establish market chain and strategically identify industry locations. Ethiopia should also be vigilant on peace and stability issues. Keywords: Industrial park, opportunities, challenges, foreign direct investment, employment, technology and skill transfer, Ethiopia