ETHIOPIAN INDUSTRIAL PARK

DEVELOPMENT CORPORATION
(IPDC)

Since 2014
 Why invest in IPDCs industrial Parks
Advantages of Investing in Ethiopia + Advantages of IPDC
Solid Financial incentive package Very competitive cost of operations
Easy access to rent or buy
Up to 10 years of income tax exemption Extremely competitive labour cost
pre-built factory sheds;
Duty-free import of capital goods, construction Availability for skilled and unskilled staff, with
materials, machines and vehicles excellent vocational training centres and Easy access to Serviced Land;
universities
Access to loans from the Ethiopian Common facilities, and solid &
Development Bank at low interest rates for up Real estate costs at par with comparable liquid waste management
to 70% of the total investment (on countries
(Zero Liquid Discharge
manufacturing sectors)
Lowest costs of electricity in Africa technology);
AGOA and EBA duty free agreements, COMESA
free-trade agreement Dedicated power line and
support of IPDC to access all
Hospitable environment for utilities;
Rapidly improving logistics and
infrastructure expatriates Easy access to government
agencies through OSS and
Direct flights to 90 destinations with Ethiopian facilitation services;
Airlines; Political stability and unparalleled security On-site custom clearance;
28 international airlines flying to Ethiopia; Large network of international schools
Cost competitive;
Fast growing network of highways, domestic Excellent recreational facilities and weather
airports, and railways (liaison Addis-Djibouti in
2016);
On site customs in each Park

Since 2014
Regulatory framework
Guiding laws
Proclamation No. 886/2015
Regulation No. 326/2014

Regulatory and facilitation bodies Entities developing Industrial Parks

Ethiopian Investment Board IPDC

Ministry of Industry Private Developers
Ministry of Environment, Forest, and PPP projects
Climate Change
Ministry of Labour & Social Affairs
EIC (concerning the One Stop Service)

Since 2014
Overview of IPDC

Since 2014
 Our Mandates
1 Receive Industrial Parks land from regional states & city
administrations, and work as a Land Bank;
2 Prepare the national master-plan for Industrial Parks;
Undertake Environmental and Social Assessment, and obtain
3
approval from the Ministry of Environment, Forest and
Climate Change, before starting construction;
On December 2014,
the Council of 4 Promote Industrial Parks and their benefits both domestically
Ministers issued and internationally
regulation
5 Develop and administer Industrial Parks, end-to-end, including
326/2014,
establishing the responsibility for park financing (bond pledges, loan
IPDC to replace the agreements)
Ethiopian Industrial
6 Ensure that all parks (including Parks from Private Developers)
Development Zones
Corporation and are connected to afferent infrastructure road networks,
expanded its remit power, water, sewage and telecommunications and that
services are made available on-site
7 Lease or transfer developed land (serviced land) and pre-
erected factory sheds
8 When deemed necessary, outsource though management
contracts, the management of Industrial Parks

Since 2014
Our Parks (1/4) Our parks respect US import requirements for
smooth custom process: CTPAT (the Custom
Trade Partnership Against Terrorism),

The requirements from key industries (including

Alliance and Accord standards in the garment
industry) are accommodated;

Plots are connected to utilities, as well as to

state-of-the art water treatment facilities.

Heavy maintenance and 24/7 roaming security

are taken care-off.

Agreeable environment: 10% of land reserved

for green areas

Custom clearance is available on-site

(bonded parks)

One-Stop-Shops with all necessary services are

gradually being implemented under the
coordination of EIC.

Since 2014

BOLE LEMI 1+2
Key considerations
Next to consumer markets
Today not at International standards
Housing even more key in Addis to retain workers
;
Strategic orientation
Have BL2 at international standards,
Transform into bonded area (i.e., custom at gates)
during Phase 2;
Garments and other light manufacturing well suited
to pre-erected sheds;
Develop full fledged residential area
BISHOFTU
Key considerations
Close to consumer markets;
Site sensitivity to be assessed (lake area, one lake
already dried up);
Need to preserve potential as recreation area /
holiday area
Strategic orientation
Non-bonded IP for manufacturers for domestic
market;
IP need to be away from all lake shores (buildings
should not be visible, no bad smell)
Careful of industries needing too much water
HAWASSA
Key considerations
Highly sensitive site from environment standpoint
(i.e., lake could be polluted or depleted)
Need to preserve potential as recreation / holiday
area for all country
Need to develop IP as new town concept
Strategic orientation
Eco Park, flagship project
ZLD site, potentially Zero Solid Waste too
Phase 1 for Garment and Textile, with pre-erected
sheds
Phase 2 will evolve toward more developed (leased)
land as opposed to pre-erected sheds
Develop environment engineering and textile
engineering at Hawassa university
MEKELLE
Key considerations
Far from Addis & domestic consumption markets
Existence of trained workforce
Strategic orientation
Manufacturing of higher value goods for which
distance isnt an issue (i.e., automotive and light
vehicle assembly, tyres, automotive parts, )
both for domestic and exports
Manufacturing of low margin goods for regional
consumption (matches, soap, )
Other TBD
FIRST INDUSTRIAL
CORRIDOR
Since 2014
DIRE DAWA
Key considerations
Dry climate and high T (no water)
Link to Djibouti
Female workforce mostly muslim unclear if
they would accept dormitory living conditions
Oil pipeline Djibouti > Addis will pass by DD
Strategic orientation
Banned to Industries consuming a lot of water
Smart Architecture to cool down Temperature
(cf. Abu Dhabi, vegetal roofs, no reflective
surfaces)
Need for a non-bonded petrochemical complex
(leasing of developed land)
+ Need for one EPZ, bonded with customs at
gate, for exports potentially with rented sheds
+ Need for one logistic park
ADAMA
Key considerations
Connectivity; close to domestic markets
Inside the Industrial Corridor
Environmental risk unknown
Strategic orientation
Need for 1 non-bonded industrial complex
(leasing of developed land) including electric
and electronics 100 Ha to start with
+ Need for one EPZ, bonded with customs at
gate, for exports potentially with rented sheds
100 Ha to start with
Our Parks (4/4)

Kms from
Kms from Total Size Phase I Completion period
Park Location Djibouti
Addis Ababa (Ha) (Ha) of Phase I
(port)
Addi s Indus try Vi l l a ge Addi s Abeba - 863 9 9 Operati ona l
Bol e Lemi I Addi s Abeba - 863 156 156 Operati ona l
Bol e Lemi II Addi s Abeba - 863 186 186 2017
Ki l i nto Addi s Abeba - 863 337 337 2017
Hawa s s a South 275 998 700 100 2016
Di re Da wa Ea s t 473 380 1500 150 2016
Kombol cha North-Eas t 380 480 700 50 2016
Mekel l e North 760 750 1000 50 2016
Ada ma South-Ea s t 74 678 2000 100 2016
Ba hi r Dar North-Wes t 578 985 1000 50 2016/2017
Ji mma South-Wes t 346 1098 500 50 2016/2017

Since 2014
Our services
We offer both serviced land for long term lease and
plots with pre-erected factory sheds;
For Industrial
Park enterprises IPDC can also work with your teams to adapt these
factory sheds to your specific needs (design).

IPDC is also acting as a Land Bank for interested Park

Developers;
For Industrial
IPDC will avail infrastructure for Private Developers
Park
Land has been reserved for different type of Parks
Developers
including for logistics, light manufacturing, and mixed-
use parks.

In each Park, IPDC is developing commercial space for

For Service service providers;
Providers in the This will include space for banks, travel agencies,
Industrial Parks logistic agents, shops and services, etc.

Since 2014
IPDCs first project: Bole Lemi I Industrial Park
156 Ha already operational; Phase 2 of 186 Ha in design stage
(projected opening date to be finalized, expected end of 2017):
10 pre-built factory sheds of 5,500 m2 each
10 pre-built factory sheds of 11,000 m2 each
Funding: Government of Ethiopia
Dedicated power line;
Conventional common effluent treatment plant in construction
(delivery 1st December 2015) primary to tertiary;
Residential area for workers, including Dormitories currently being
designed delivery by end of 2015
Agreeable environment: greening of Park on-going;
Focus on light manufacturing, particularly garment and shoes
assembly with opportunities for other sectors as well; current
products include luxury leather shoes, sports garments, jeans, etc.
Focus solely on exports;
On-site custom clearance (at each factory)
Bole Lemi 1 already fully rented out for manufacturers (all FDI) who
have started exporting;
Remaining opportunities for service providers :
please contact IPDC for more details;

Since 2014
Bole Lemi I Industrial Park Companies Employment
overview
Current status of employment Employment Plan for
Company
Male Female Total
2015 2016 2017
New wide Garment Ethiopia Branch Company 38 270 308 1,000
600 1,800
George Shoe Ethiopia Plc - -
37 983 1020 800
Shints ETP Garmant PLC 3,000
181 1,091 1,272 700 2,000
KEI Industrial Engeneering Consultancy PLC 1,500
20 130 150 500 1,500
ANF Gulf Garment Factory (ARVIND) Plc /
ARVIND Lifestyle Apparel Africa PLC
2,300
30 247 277 380 600
Vestis Garment production PLC 400
24 130 154 300 500
JAY JAY GARMENT PLC 1,200
45 570 615 950 1,150
NITTON APPARELS MANUFACTURING PLC - - -
M & M Garments PLC 19 191 210
Ashton Apparel Manufacturing PLC 27 223 250
LYU SHOUTAO FACTORY PLC. 20 200 220 500 500 500

TOTAL 395 3621 4016 4,730 9,900 8,050

Since 2014
IPDCs flagship project:
Hawassa Eco - Industrial Park
Key facts
Total size of 300 Ha
Phase 1 cycle 1 for 100 Ha currently under construction, since
July 2015;
Opening 1st Quarter 2016;
Dedicated power line (50 MW);
Integrated common effluent treatment plant, with Zero
Liquid Discharge and Zero Solid Discharge state of the art
technology with 8,000 m3 / day capacity CETP and 3,000 m3
STP;
Dedicated fire fighting brigade and clinic;
Hawassa airport currently being upgraded (charter flights
available), and extension Addis-Adama highway to Hawassa
has started;
Focus on Garment and Textile sectors, with some
opportunities for other sectors as well;
Focus solely on exports (bonded park);
Sheds meeting CTPAT and main textile/garment factory
standards
Sheds of 11,000 m2 and 5,500 m2 for garments and textile
mills, both for rent 80% already pre-leased: limited sheds
still available for rent

Since 2014
Hawassa Eco - Industrial Park Masterplan

Since 2014
 IPDCs flagship project:
Hawassa Eco - Industrial Park

The site
currently in
construction

CCECC main office in Hawassa Sheds are being erected

The temporary
training
facilities

Training in progress in Hawassa Temporary training facilities

Since 2014
Bole Lemi II Masterplan
Phase 2 of 186 Ha in design stage (projected
opening date to be finalized, expected end of 2017):
Funding: World Bank
Dedicated power line;
Conventional common effluent treatment plant
Residential area for workers, including Dormitories
currently being designed delivery by end of 2015
Agreeable environment: greening of Park on-going;
Focus on light manufacturing, particularly garment
and shoes assembly with opportunities for other
sectors as well; Focus solely on exports;
Opportunities for service providers :
please contact IPDC for more details;

Since 2014
Kilinto Masterplan

337 Ha
Funding: World Bank
Dedicated power line;
Serviced land for long-term rental
Industries include: food and beverage,
garments and textiles, pharmaceutical,
electric and electronics, furniture.

Since 2014
 INFORMATION IS
Estimative rental and lease costs NON CONTRACTUAL

Guiding principles 1 For Shed rentals

Long term rentals at pre-set costs;
Price depend on Industrial Park location and
Our tariffs are amenities;
designed to
Estimated at ~ 2.0-2.5 $/m2/month under the
guarantee IPDC a 15 shed , plus ~ 0.5$/m2/month for the whole plot
year payback; surface for maintenance fee;
Excludes cost for accessing the CETP (based on
volume and characteristics of the effluents), and
We thrive to
solid waste removal
minimize your
investments costs
and OPEX, to 2 For Serviced Land
guarantee our Upfront payment representing the full cost of
investors developing the land, land value, plus IPDCs
competitive rates margin;
(competitive versus Duration of land lease: TBD
other parks in the Charge of ~ 0.5$/m2/month for the whole plot
East Africa region); surface for maintenance fee;
Excludes cost for accessing the CETP (based on
volume and characteristics of the effluents), and
solid waste removal

Since 2014
For more information:

Please visit our website on: www.IPDC.gov.et

Request a brochure,

Or schedule a visit of Bole Lemi I, Hawassa,

and/or other Industrial Parks under study or
construction, with our dedicated customer
service team and VIP transportation facilities.

Since 2014

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Since 2014