Industrial Zone Development in Ethiopia Challenges and Prospects: the Case of Eastern Industrial Zone. Dukem District

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Date

2015-10

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Addis Ababa University

Abstract

This study is attempting to explain the case of “Eastern Industrial Zone”, which found in Eastern part of Addis Ababa in the Dukem Administration. The overall objective of this study is to investigate achievements, challenges and potential impacts of Chinese Eastern Industrial Zone and its contribution to the economic development of Ethiopia at large and surrounding community in particular, and thereby to forward suggestion for identified problems and gaps. This study trying to identify the achievements and challenges of EIZ based on different relevant literature review of concepts and experiences of different countries, especially focusing on the area of policy, laws regulations and directions that govern SEZs; especial arrangements of institutions and existence key actors for its proper management and operations; identification of positive and adverse effect of the project on local community and environment; and infrastructures and over all benefit realized by the establishment of the project. The study has been based on primary, and secondary data collection techniques, group discussions, interview, and questionnaires (semi-structured and unstructured) as well as observation research methods in general. Qualitative and quantitative survey instruments applied aimed at examining and describing the current status of the eastern special industrial economic zone. This study identified that, the Chinese based eastern industrial zone found to be a incredible potential source in absorbing labor force attracting potential investor from china and other regions, appears to be as a good benchmark for other zone development of the country. On the other hand it has been working without prior institutional legal policy framework, well-organized institutional arrangement, planned environmental and social impact assessment, lack of linkage with national and local economy among others. This study recommends the need for well-structured institutional legal framework and government close support, collaboration with its strategic business partners, strong linkage and integration with the national and local economy, viable social and environmental plan among others

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Keywords

Industrial zone, Dukem district, Ethiopia

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