Ethiopia’s Bahir Dar Industrial Park Companies Driving Economic Growth with Value-added Production

Addis Ababa December 9/2024 (ENA)—The investors operating within Ethiopia's Bahir Dar Industrial Park are significantly contributing to the nation's economic growth through the production of value-added goods and the generation of foreign currency, according to the Bahir Dar branch of the Industrial Parks Development Corporation (IPDC). 

The IPDC Bahir Dar Branch Manager, Tiruye Kume, told ENA that the investors are engaged in key sectors such as agro-processing and manufacturing.

                        Tiruye Kume, IPDC Bahir Dar Branch Manager

According to her, these sectors have been instrumental in expanding the country's foreign currency inflow, producing value-added goods locally, facilitating market access for agricultural produce, and creating employment opportunities—all of which are vital for Ethiopia's economic growth. 

Currently, five investors in the fields of transformer production and agro-processing are actively engaged in production, she said.

Most importantly, these investors are contributing to foreign exchange earnings by exporting their products abroad, she added.

One notable company is Nirvana Processing Factory, which specializes in producing refined oil and processed castor oil derivatives, she elaborated. The company supplies these products to both the local and international markets. 

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During its initial production phase, Nirvana Processing Factory managed to export processed castor oil, earning 304,000 US dollars in foreign revenue, it was learned.

Furthermore, the company has produced value-added goods worth an estimated 1.3 million USD, which were supplied to the domestic market.

Preparations are also underway to commence exports as part of the company's second production phase, she added. 

The factory has established a contractual market arrangement with 9,500 castor bean-producing farmers, ensuring a stable supply of raw materials while simultaneously boosting farmers' livelihoods, it was learned.

This collaboration demonstrates how industrial parks can foster rural economic development by linking smallholder farmers to larger production networks, the branch manager said. 

According to Tiruye, the Bahir Dar Industrial Park boasts robust infrastructure and essential services to support its operations.

It has a self-sustaining electricity supply, a deep-water well, a centralized data center, and a 24-hour CCTV surveillance system to ensure the park's security, she said.

Additionally, the park has a one-stop service center to facilitate business operations, an environmentally compliant waste management system, and a fire protection brigade to address emergencies, she pointed out. 

Spanning 150 hectares of land with eight warehouses and three additional vacant warehouses, the park is primed for expansion, according to Tiruye.

It also has 96 hectares of unoccupied land, which presents significant opportunities for future investors, she elaborated.

As part of efforts to attract both domestic and international investors, the IPDC is calling on investors to utilize the available space, with a clear path for them to engage in production and development. 

The Bahir Dar Industrial Park is among the few industrial parks in Ethiopia to be designated as a Special Economic Zone (SEZ), a status that enables it to attract a wide range of investors by offering incentives and enhanced support services, she elaborated.

This development is expected to further solidify the park's role as a key driver of Ethiopia's industrialization and economic transformation, the manager stated. 

On his part, Warehouse Manager at Nirvana Processing Factory, Binyam Alemayehu thehe factory has achieved remarkable results since commencing operations.

 

Within just four months, it has produced 600 quintals of castor oil derivatives daily and 10 tons of refined oil, he revealed.

The products are supplied to both domestic and international markets, significantly enhancing Ethiopia's export revenue and demonstrating the factory's capacity to meet growing demand, Binyam said.