Social Sciences and Education Research Review (Jul 2019)
ASSESSING THE PERFORMANCE OF INDUSTRIAL PARKS (IPS) IN ETHIOPIA
Abstract
This exploratory study was conducted to assess the performance of Industrial parks in Ethiopia taking Eastern Industry Zone, Bole Lemi 1and Hawassa Industrial Parks as a case. To this end, an interview with eight key informants, and non-participant field observations were held. Various reports, policy documents and researches related to the study were also consulted. The study reveals that, in their first phase, the parks are fully occupied by 1 local & 114 foreign companies, and created 53,612 jobs directly. And, the surrounding communities are benefiting from the parks by opening up businesses around the parks and renting houses to the people working in the parks. Besides, the parks are performing good in bringing hard currency to the country in which they are earning about 114 Million USD per annum. However, the parks are suffering a lot from lack of supply of well-trained and skilled manpower, absence of supply of local raw/semi-finished materials to the parks, shortage of supply of houses for rent for workers around the parks, inefficient trade, finance and banking system, inefficient port operation and expensive shipping services, lack of capable, experienced Institutional, regulatory and administrative capacity to administer and manage the parks. Thus, the study recommends that the government should strongly work on the development of skilled and well- trained manpower with TVETs and higher education Institutions, work in collaboration with other stakeholders to empower local firms to create business/supply link with the companies in the IPs, and shall build & supply affordable rental residential houses to the people who come to work in the IPs in collaboration with the private sector. It is also advisable that the government should upgrade its trade, finance & banking system, and reform its Institutional and Regulatory system. Above all, the government should encourage domestic investors to invest jointly with foreign companies in the parks in which technology transfer to local firms will be successful.
