IDPC Grants Local Manufacturers Four Years of Free Access to Industrial Parks

Addis Ababa, June 5, 2026 —The Industrial Parks Development Corporation (IDPC) has introduced a major policy shift aimed at accelerating industrialization by supporting domestic manufacturers through reduced service fees and four years of free access to selected industrial parks.

Speaking to ENA, IDPC Chief Executive Officer Fisseha Yitagesu emphasized that the new approach is designed not only to help local investors establish production facilities more easily but also to create employment opportunities and strengthen supply chains.

“We are backing manufacturers so that they can easily begin production, create job opportunities, and supply outputs for both export and local markets,” Fisseha noted.

He explained that while foreign direct investment has contributed significantly to the country's industrial development, the corporation is now placing greater emphasis on supporting domestic investors and helping small and micro enterprises grow into medium and large scale industries.

“Primarily, supporting our country’s investors, promoting them, and enabling small and micro enterprises to grow into medium and heavy industries is highly critical,” he added.

As part of the new policy, eligible enterprises will benefit from reduced fees and an unprecedented incentive that allows them to operate in selected industrial parks free of charge for four years.

“Doing this is very essential because a country’s growth and industrial development are primarily driven by domestic investors,” Fisseha noted.

According to the CEO, the policy is already yielding results, with local investors now accounting for more than 65 percent of businesses operating in industrial parks across the country.

Fisseha said the availability of integrated infrastructure, including land, electricity, water supply, telecommunications services, and waste treatment facilities, is helping reduce the high startup costs that have traditionally discouraged local manufacturers from entering the sector.

“The biggest challenge local investors faced in joining the manufacturing sector was infrastructure, and we have now addressed that problem,” he said.

The CEO also highlighted the growing participation of youth and women entrepreneurs in the parks and underscored the importance of strengthening collaboration between industry and academia.

He pointed to the proximity of Kilinto Industrial Park to Addis Ababa Science and Technology University as a valuable opportunity for internships, research partnerships, skills development, and technology transfer.

“University-industry linkage contributes to increasing production and productivity while also improving the quality of education,” he said.

As part of the first phase of the initiative, the corporation recently allocated 10 hectares of fully serviced land equipped with electricity, water, telecommunications, and sewerage infrastructure to 26 medium sized enterprises in the Bole Lemi and Kilinto industrial parks.

The move is expected to boost production capacity, improve productivity, and strengthen the role of domestic manufacturers in Ethiopia’s industrial transformation.