Export revenue from industrial parks falls short of expectations in the 2023/24 fiscal year. The Ethiopian Investment Commission (EIC) reported a total export value of USD 115.2 million, 46% of the targeted amount.
This shortfall is largely attributed to Ethiopia’s suspension from the African Growth and Opportunity Act (AGOA) in January 2022. AGOA, a key U.S. trade program, previously allowed Ethiopian manufacturers duty-free access to the American market. Many industrial parks primarily export their products to the United States, and the exclusion has sharply reduced their trade volume.
Security issues have also impacted industrial park performance. The total number of industrial parks has decreased from 22 two years ago to 18, including those operated by private investors. Currently, only four industrial parks are generating export revenue, while others are in decline.
Despite the challenges, the EIC aims to increase exports to USD 153 million by 2024/25 by exploring new markets. The U.S. Trade Representative has outlined conditions for lifting the trade embargo, including measures to address the ongoing humanitarian crisis.
Established in 1992, the EIC is an independent institution dedicated to attracting private investment, particularly foreign direct investment. Supervised by a board headed by the Prime Minister, the EIC promotes investment opportunities, issues licenses, approves agreements and facilitates business operations through various regulatory services.
Source: Capital Ethiopia
