Ethiopia pours $1.5B into Industrial Park Development

The government of Ethiopia has invested $1.5 billion over the past decade to develop industrial parks and build the necessary infrastructure to support economic growth, according to the Industrial Parks Development Corporation (IPDC). Speaking at a forum aimed at increasing financial institutions’ engagement in Special Economic Zones (SEZs), Mr. Fitsum Ketema, Deputy CEO of IPDC, highlighted the government’s commitment to prioritizing construction and infrastructure development for industrial parks.

Hosting over 250 domestic and foreign investors and more than 60% of these investors being domestic, Mr. Fitsum said Banks and Investment must remain integrated and financial institutions have a crucial role in supporting investors and driving economic growth, emphasizing that local investors don't only need infrastructure but also financial support and urging banks to strengthen their services and assist companies operating within SEZs. He noted that access to banking, which was previously limited to a single institution, has now expanded to all commercial banks operating within these zones.

IPDC currently oversees 11 special economic zones, 14 SEZs, and 3 industrial parks, strategically located along Ethiopia’s major development corridors with easy access to transportation links and key resource hubs, underscoring the growing role of local businesses in Ethiopia's industrial sector