Parliament Approves Ethiopian Industrial Zones Development Corporation

The Ethiopian House of Representatives approved the formation of an independent Ethiopian Industrial Zones Development Corporation.

The Corporation is designed to manage the development and administration of industrial zones across the country including those that are currently being developed.

The initial plan to set up the new corporation as an independent authority accountable to the Ministry of Industry was changed after the MoI received just 600 million of the 4 billion birr budget that it had requested for the development of industrial zones in the current financial year.

As a corporation the EIZDC will have access to financing for other sources then the official approved government budget including arranging bank loans or seeking foreign aid for the development of the industrial complexes.

EIZDC will also be able to raise revenues from the rent of industrial zones to investors once it has developed the complexes thus being able to pay off loans as well as channeling income to the government explained a source at the MoI.

The ministry currently has acquired locations in various parts of Addis Ababa as well as in Dire Dawa and Hawassa for the development of industrial zones to be equipped with infrastructure and standard pre-fabricated factories.  

The industrial zones will be equipped with various governmental offices including an office of the Ethiopian Revenues and Customs Authority.

The Industrial Zones Directorate of the MoI has already mobilized the 600 million birr allocated in the federal budget from the Industrial Development Fund which was created from fund raised from the profits earned by publicly owned enterprises according to Arega Misiker, Director of the directorate.

http://www.2merkato.com/201207311496/parliament-approves-ethiopian-industrial-zones-development-corporation