Ethiopia: SEZ Occupancy Hits 89 Percent - IPDC

- Domestic investor participation surges to 60%

- The occupancy rate of shades and developed land in Ethiopia's Special Economic Zones (SEZs) has reached 89%, according to the Industrial Parks Development Corporation (IPDC).

In an exclusive interview with The Ethiopian Herald, IPDC's Promotion and Marketing Division Deputy CEO, Zemen Junedi stated that nearly all of the country's 13 SEZs are operational, hosting a mix of domestic and international investors.

"Currently, 89% of the shades and developed land in SEZs have been taken up, with Bole Lemi and Adama Industrial Parks fully (100%) occupied," he said, adding that Jimma SEZ has also reached a 90% occupancy rate . It is a sign of increasing investor confidence and activity.

Zemen attributed the growth to major legal and regulatory reforms undertaken by the government. "We have revised about 80 legal frameworks to ease bottlenecks and create a more attractive investment climate," he noted. Previously, local investor participation in SEZs was less than 5%.

That figure has now jumped to 60%. "Ethiopian investors are now active in all SEZs. Recognizing the importance of domestic investment for industrial transformation, the government has implemented targeted measures to encourage local manufacturers," he added.

The SEZs are not only export-oriented but are also playing a key role in import substitution, particularly in textiles and garments, including security uniforms. Other major sectors in focus include agro-processing, pharmaceuticals, automobile assembly, logistics, and general trading.

According to Zemen, IPDC attracted nearly 900 million USD in new investments in the current Ethiopian fiscal year, with most of the new projects now operational.

"Areas that once saw low investment activity are now experiencing a significant uptick. Our SEZs are fulfilling their mandates of generating foreign exchange, creating jobs, substituting imports, and facilitating technology and knowledge transfer," he emphasized.

Read the original article on Ethiopian Herald.