Investment Agency Invites Local Manufacturing Companies Into Industrial Zones

The Ethiopian Red Cross Society (ERCS) is looking to raise 27 million Br in a year’s time for the construction of its new multipurpose headquarters, through the “One Birr for Humanity” fundraising project, Fortune reported.

The Addis Abeba Investment Agency (AAIA) is inviting local investors in the manufacturing sector to work on the 330ha of land it has allotted in the Nefas Silk Lafto and Akaki Kaliti districts.

This offer, made only to local businesses, will have leases prices fixed through negotiation, said Kidanemihret Berhe, director of the AAIA.

The Land Bank & Transfer Agency developed plan formats for three industrial zones – one in Akaki Kaliti and two in Nefas Silk Lafto – which have now been submitted to the Cabinet of the Addis Abeba City Administration for approval, according to Masre Yemam, sub-process head with the Land Bank & Transfer Agency.

There are already industrial zones in both the Akaki Kaliti and Lafto districts, each covering 2,800sqm. The companies, which have leased plots in the zones are engaged in the garment, shoes, agro-processing and metal manufacturing sectors. The AAIA says it has invited investors to take plots in the industrial zones for two reasons.

Textile and garment, leather products, agro-processing and chemical products have been prioritised by the new offer, he said.

Agriculture is the primary source of employment for the Ethiopian economy. It contributes 43.2pc to national production and provides employment to more than 80pc of the working population. The manufacturing sector, which grew by 18.5pc in 2012/13, accounts for only 13pc.

The offer is for local investors, the Diaspora and mid-scale enterprises. The latter are those who have graduated successfully from SMEs with capital investment growth. Foreign investors are excluded because the Agency aims to encourage local ones, Kidanemihrei said.

“The AAIA decided to allocate land for investors, taking into consideration the fact that many local investors went as far as to erect warehouses on land leased from other investors,” he added.

The size of the land to be leased for each of the investors will be decided based on the project that they submit to the Agency.

The Agency will evaluate investment projects and transfer them to the Land Bank & Transfer Agency, which will facilitate the process. The proposals will then be sent to the City Administration’s Cabinet for final approval.

Infrastructure, like roads, water, electricity and telephone, have already been installed in the zones. A technical committee under the AAIA is to work on the remaining infrastructural facilities, according to Kindanemihret.

The Agency has responsibilities to promote the investment potential of the city, deliver efficient services to investors and conduct proper follow ups and strengthen the support service to investors.

Source: Fortune