Mitigation Projects in Helping Thrive Impacts of Ethiopia’s Removal from African Growth and Opportunities Act (Agoa): The Case of Top New Garment Factory in Bole Lemi Industrial Factory
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Date
2022-05
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Addis Ababa University
Abstract
Ethiopia have strategically invested on establishing industrial parks across various locations in the country with the aim of providing an internationally competitive business environment to attract foreign direct investments. Top new garment factory was among many other factories attracted to Ethiopia and producing in Bole Lemi Industrial Park. The key pulling factor for top new garment factory to Bole Lemi Industrial Park includes Ethiopia’s eligibility to AGOA. However, following Ethiopia’s termination from AGAO effective Jan 2022, the factory experienced crises, and this project work aimed at finding out the role of mitigation projects implemented by the factory to help it thrive. Specific objectives included: 1) to understand factors contributed to success of implementation of mitigation projects by top new garment factory workers; 2) to explore different types of mitigation projects designed and implemented by the factory management team; and 3) to understand the role of mitigation projects in resuming export income of the factory. The study used a concurrent triangulation design and mixed research method approach which included collection of quantitative data from 138 factory workers, secondary data from Bole Lemi industrial park administration and qualitative data from 5 key informants. A chi Square test, cross tabulation and regression analysis indicated strong relation and effect (p<0.001 of transparently communicating staff about mitigation project plans and staff engagement in works. The factory implemented different mitigation projects in the meantime. However, looking for new customers in USA who were willing to share costs of tax was the most effective and sustainable mitigation project implemented. Investment on enhancing competitiveness and increasing efficiency of factory workers were recommended as a sustainable measure for the factory.
Key words: industry, parks, AGOA, competitiveness, factory workers