1 ETHIO NEWS Panel Discussion on 25 years of Ethiopia’s For- eign Policy A panel discussion on Ethiopia’s Foreign Policy Journey of the Past 25 Years was held at Sheraton Addis Hotel on Wednesday (May 25). See Page 2 In This Issue Ethiopia’s GTP II: Indus- trial Zone development Panel Discussion on Ethiopian Foreign Policy. Energy Development in Ethiopia Industriezonen - die Grundvoraussetzung für einen gesunden Produk- tionsprozess Business Fora in Ham- burg and Munich The 5th Political Consul- tation between Ethiopia and the Czech Republic ሀያ አምስተኛው ዓመት የግንቦት ሀያ በዓል፡ ከማሽቆልቆል ጉዞ ወደ ዕድገት ምዕራፍ 25th anniversary of May 28: National Day of Ethiopia Pictorials Feature Ethiopia’s GTP II: Jewel for Investors Part Two : Industrial Zone development: Basis for Manufacturing The Second Growth and Transformation Plan (GTP II) which will be implemented in the next five years will play a decisive role in speeding up the transformation of Ethiopia’s economy and realize its vision of Renaissance in leading to become a middle income country by 2025. This structural transformation, to give industry a significant role in the economy, and promote holistic developments at all levels, will bring changes to the political economy of the country. Ethiopia had been able to attract quality investments and score a mod- est increase of industry from 10.3% in 2010 to 15.6% at the end of the GTP I; and GTP II planned to increase the manufacturing sector’s an- nual growth to 24%. In this regard, the government planned to deploy enhanced efforts to provide for high yield industrial input and export production which will be centered round development corridors. Hav- ing key pulls for investment such as competitive and inexpensive labor, cheaper and renewable energy supply as well as consumer markets, the government is targeting the export-oriented light manufacturing indus- tries as well as small and medium manufacturers to become the manu- facturing hub in Africa in the next decade. The strategic directions of the industrial sector are to establish light manufacturing industries which are labor intensive and benefiting citi- zens, globally competitive and leading in Africa and environment friendly; and to establish the foundation which enables to create an in- dustrialized country by moving into the development of strategic heavy industries. In addition, there is opportunity which enables high-tech industries to contribute to the development of the industrial sector. See Page 2 Monthly Newsletter : Ethiopian Embassy in Germany May/June 2016, No.2
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1
ETHIO NEWS
Panel Discussion on 25
years of Ethiopia’s For-
eign Policy
A panel discussion on
Ethiopia’s Foreign Policy
Journey of the Past 25
Years was held at Sheraton
Addis Hotel on Wednesday
(May 25).
See Page 2
In This Issue
Ethiopia’s GTP II: Indus-
trial Zone development
Panel Discussion on
Ethiopian Foreign Policy.
Energy Development in
Ethiopia
Industriezonen - die
Grundvoraussetzung für
einen gesunden Produk-
tionsprozess
Business Fora in Ham-
burg and Munich
The 5th Political Consul-
tation between Ethiopia
and the Czech Republic ሀያ አምስተኛው ዓመት የግንቦት
ሀያ በዓል፡ ከማሽቆልቆል ጉዞ ወደ ዕድገት ምዕራፍ
25th anniversary of May
28: National Day of
Ethiopia
Pictorials
Feature Ethiopia’s GTP II: Jewel for Investors
Part Two : Industrial Zone development: Basis for Manufacturing
The Second Growth and Transformation Plan (GTP II) which will be
implemented in the next five years will play a decisive role in speeding
up the transformation of Ethiopia’s economy and realize its vision of
Renaissance in leading to become a middle income country by 2025.
This structural transformation, to give industry a significant role in the
economy, and promote holistic developments at all levels, will bring
changes to the political economy of the country.
Ethiopia had been able to attract quality investments and score a mod-
est increase of industry from 10.3% in 2010 to 15.6% at the end of the
GTP I; and GTP II planned to increase the manufacturing sector’s an-
nual growth to 24%. In this regard, the government planned to deploy
enhanced efforts to provide for high yield industrial input and export
production which will be centered round development corridors. Hav-
ing key pulls for investment such as competitive and inexpensive labor,
cheaper and renewable energy supply as well as consumer markets, the
government is targeting the export-oriented light manufacturing indus-
tries as well as small and medium manufacturers to become the manu-
facturing hub in Africa in the next decade.
The strategic directions of the industrial sector are to establish light
manufacturing industries which are labor intensive and benefiting citi-
zens, globally competitive and leading in Africa and environment
friendly; and to establish the foundation which enables to create an in-
dustrialized country by moving into the development of strategic heavy
industries. In addition, there is opportunity which enables high-tech
industries to contribute to the development of the industrial sector. See
Page 2
Monthly Newsletter : Ethiopian Embassy in Germany May/June 2016, No.2
2
...Industrial Zone development
Continued from Page 1
In order to achieve these goals and accelerate growth and expansion
of the industrial sector, a number of implementation strategies are
devised. These strategies mainly focus on the implementation of
project and programs which gear towards attracting quality
investment, enhancing production and productivity, boosting export
shares, accelerating technological learning and strengthen the
linkage among industries. One such strategy is the development of
Industrial Parks in different parts of the country. These industrial
zones are central to build manufacturing bases, targeting labor in-
tensive industries such as textile, garment, agro-processing and
leather and leather products. Ethiopia’s Industrial Zone Corporation
is responsible to oversee the construction and regulation of these
Zones.
In this regard, during the plan period, 7 million square meters land
will be made available for investors who planned to engage in
manufacturing and related sectors. Four pilot agro industry parks
will also be established and linked with millions of smallholders to
supply inputs. Hence, Ethiopia is targeting $1 billion of annual
investment in industrial parks over the next decade to boost exports
and make it Africa’s top manufacturer.
The Industrial Zones Development Corporation (IZDC) aims to
build 2 million sq ms of factory sheds and create 200,000 jobs an-
nually. See Page 4
...Panel Discussion on For-
eign Policy
Continued from page 1
The occasion was part of cele-
brations surrounding the 25th
anniversary of Ethiopia’s Na-
tional Day, on Saturday (May
28, ‘Ginbot 20’), celebrating
the downfall of oppressive
military dictatorship of the
Derg. More than 250 people
attended the panel including
members of the diplomatic
community in Addis Ababa,
higher officials and govern-
ment authorities, researchers
and members of research insti-
tutions, academics, scholars
and others. The panel was or-
ganized by Ministry of For-
eign Affairs, and the theme
was “Respect for diversity is
Ethiopia’s strength for its ren-
aissance!”
The speakers were State Min-
ister for Foreign Affairs, Am-
bassador Taye Atske-Selassie,
who spoke on the changes and
achievements in foreign policy
since 1991 and the current
Foreign Relation and National
Security Policy and Strategy’s
role in foreign affairs; Profes-
sor Costantinos Berhe, on “A
Diplomatic Supremo in Af-
rica: Priming International
Policy and Practice on Re-
gional Integration, Peace and
Security for a Quarter of a
Century’; and a presentation
by Mr. Feki Ahmed on
“Ethiopia’s Achievements in
Trans-boundary Water Re-
sources Management Particu-
larly with Nile-riparian Coun-
tries”. See Page 10
Growth and Transformation to achieve vision 2020
3
From the Ambassador
The embassy of the Fed-
eral Democratic Republic
of Ethiopia continue to
publish its bi-monthly
publication named “Ethio
News” with the objective
of providing timely infor-
mation on the activities of
the Embassy, our Consu-
late General in Frankfurt
as well as on major issues
in Ethiopia. The newslet-
ter covers at large the
grand development plan
of Ethiopia, known as the
Growth and Transforma-
tion Plan. As it is the
main economic drive of
the country, the plan
would lay the foundation
for Ethiopia to achieve its
vision of a middle income
country in 2020. The
newsletter also covers the
major achievements dur-
ing the last quarter of a
century as Ethiopia cele-
brated the 25th anniver-
sary of its national Day.
Other diverse issues are
also covered in the news-
letter so as to give infor-
mation for our readers. I
invite you to go through
to all the stories and give
us your feedback. Your
engagement with us gives
impetus for our work. I
thank you.
Kuma Demeksa
Ambassador
The Grand Renaissance Dam (GERD) Project
Energy Development in Ethiopia
With more than 45,000MW of untouched hydro potential, plus
huge resources of solar, wind and geothermal energy to tap,
along with rising domestic demand for electricity, pro-
investment policies, and plans are laid out for Ethiopia to be-
come a region-wide clean energy exporter.
Ethiopia has long realized the potential of its renewable en-
ergy. Hydro, solar, wind and geothermal resources are all con-
tributing to changing its economic fortune and that of its peo-
ples. In light of these clean, abundant and feasible alternatives,
the nation has engaged in the development of these energy re-
sources, probably more than any of its peers in the region.
Ethiopia has been aggressively working on the full packages
of generating, transmitting and distributing power, using
mixed resources to address the energy deficit in the country
and beyond. See Page 14
4
Industriezonen - die
Grundvoraussetzung
für einen gesunden
Produktionsprozess
Der zweite Growth
and Transformation
Plan (GTP II) ist ein
bedeutender Meilen-
stein für die Vision
Äthiopiens, bis 2025
zu einem Middle In-
come Country
aufzusteigen. Die
kommenden struk-
turellen Veränderun-
gen sollen nicht nur
die Industrie des Lan-
des stärken, sondern
eine ganzheitliche
Entwicklung in allen
Wirtschaftssektoren
mit sich bringen.
Äthiopien konnte
bereits im Rahmen
des von 2010 bis
2015 laufenden GTP
I mittels externer In-
vestitionen seine in-
d u s t r i e l l e
Wachstumsrate von
10,3% auf 15,6%
jährlich steigern.
siehe Seite 6
...Industrial Zone development
Continued from page 2
To achieve this ambitious target, expansion works are taking place in
the country’s first industrial zone. Fully occupied Bole Lemi I Indus-
trial Zone in the outskirts of Addis Ababa with shoes and garment
manufacturing industry is now under expansion to attract prospective
companies in textile, apparel and shoe areas. Another, Kilinto, indus-
trial zone, some 20 kms away from Addis Ababa is also under con-
struction for the establishment of agro-processing, pharmaceuticals and
electronics and furniture industries. These manufacturing centers are
fully equipped with all the necessary infrastructural and other common
facilities.
Hawassa Industrial Park which is located 275 km from Addis and is
being constructed on 350 hectares of land in Southern Regional State
of Ethiopia is set to be completed in June, 2016. This Eco-Park, cen-
tered on textile and garment products, is fully integrated to the city, is
built in collaboration with the newly built Hawassa University. Upon
completion, it would create job opportunities for 50,000 people. Eight
international companies have already started work in the temporary
sheds built,including the US-based BVH.
Other Industrial parks will also be developed in Kombolcha (400 kms
from Addis Ababa) Mekelle (761 kms from the capital), Adama (100
kms from the capital), and in Dire Dawa (300 kms from Addis Ababa
on the Ethio-Djibouti road) in the coming ten years. The government
will invest half of the $10 billion needed for zones across the country
that will house textile, leather, agro-processing and other labor-
intensive factories. The development of industrial parks can be under-
taken by the government, private investors or by the joint venture ac-
cording to the Ethiopian Investment Law.
Hence, in a bid to engage investment, private companies are encour-
aged to develop their own industrial zones. Some big companies have
already constructed their own industrial zones and started operation.
More others are also requesting to build their own zones to be benefit-
ted from one stop shop services in their own facilities and easy access
to facilities and key infrastructures in the sights. The International Fi-
nance Corp., the World Bank’s private lending arm, along with Chi-
nese and European lenders and private-equity funds are interested in
the projects. See page 5
5
..Industrial Zone development
Continued from page 4
The IZDC aims to encourage more private in-
vestment and public private partnerships. Avail-
ability of credit lines and cheap labor costs will
incentivize private investment in industrial park
development.
……………
Ethiopia is a country in a rush and trying to ac-
complish a lot of things in a very compressed
timeframe. 12 years before, it was an economy
that was just muddling along. But since 2002 to
2003, it has registered a double digit economic
growth. According to the World Bank, it has
grown on average about 10.6%, 10 years in a
row.
The first few years, the economy started from a
low base. But today, it has the fourth-largest
GDP in Africa. Ethiopia continues to post
healthy economic growth, attracting global in-
vestments particularly for large-scale, light
manufacturing.
The global industrialization transformation
which moved large-scale textiles and garments
from the U.S. to China in the past 25 to 30
years is now looking for the next China. And
Ethiopia is one of them. Ethiopia is starting to
become the destination of choice for large-
scale, light manufacturing, in particular gar-
ments and textiles, and shoe manufacturing.
ENDS
=================================
Business Fora in Hamburg and
Munich ...Continued from page 11
Besides holding the Business Fora in Ham-
burg and Munich, and visiting a number of
German companies, the visit provided the
occasion for agreement on a Memorandum of
Understanding signed by Ethiopia’s Ambas-
sador to Germany, Ambassador Kuma De-
meksa and Dr. Stefan Liebing, Chairman of
Afrika-Verein, to establish a high-level busi-
ness steering committee to facilitate and
promote trade and investment between
Ethiopia and Germany in the fields of agri-
culture, infrastructure, pharmaceuticals/
chemicals, textiles, leather and energy as well
as promote private sector development, busi-
ness-to-business links, regional value chains
and value addition. The Memorandum also
allows for joint consultations to resolve prob-
lems as well as help create a conducive envi-
ronment to work in Ethiopia and an enabling
environment for German investors and the
establishment of an Ethiopian-German Busi-
ness Forum to meet annually. ENDS
6
Industriezonen - die Grundvoraussetzung für
einen gesunden Produktionsprozess
Fortsetzung von Seite 4
Der GTP II sieht vor, diesen Wert auf 24% zu ver-
bessern. In diesem Zusammenhang plant die
Regierung, den Produktions- und Exportsektor
weiter anzukurbeln und durch dedizierte
"development corridors" Transport- und Verarbei-
tungswege drastisch zu reduzieren. Mit attraktiven
Standorteigenschaften wie niedrigen Löhnen, großen
Endverbrauchermärkten und kostengünstigen wie
auch nachhaltigen Energiequellen wird insbesondere
die exportorientierte Leichtindustrie angesprochen.
Auch kleine oder mittelgroße Hersteller können vom
Standort Äthiopien profitieren und ihn innerhalb der
nächsten zehn Jahre zum zentralen Produktionszen-
trum Afrikas erheben.
Das grundlegende Ziel für den Ausbau des Produk-
tionssektors ist die Ansiedlung der arbeitsintensiven
Leichtindustrie. Lokal schafft sie Arbeitsplätze, re-
gional stellt sie in der Regel keine Umweltbelastung
dar und global bietet sie ein größeres Exportvolu-
men. Außerdem bildet sie für eine industrialisierte
Nation die Grundlage, mittelfristig überhaupt
Schwerindustrie etablieren zu können. Des Weiteren
wird damit auch die Möglichkeit geschaffen,
Hightech-Industrie zum Aufschwung beitragen zu
lassen.
Um diese Ziele zu erreichen und das
Wirtschaftswachstum weiter zu beschleunigen, wur-
den eine Reihe von konkreten Strategien entwickelt.
Diese konzentrieren sich hauptsächlich auf die Im-