Ten of the 13 industrial parks managed by the Industrial Parks Development Corporation (IPDC) have been officially designated as Special Economic Zones (SEZs) by the Ethiopian Investment Commission. They are Bole Lemi and Kilinto industrial parks in Addis Abeba; Bahir Dar, Debre Birhan and Kombolcha industrial parks in Amhara Regional State; Adama and Jimma industrial parks in Oromia; as well as industrial parks in Mekelle in Tigrai and in Semera in Afar. In addition to Dire Dewa SEZ, a total of 11 SEZs now operate in Ethiopia. The designation was granted after Parliament recently passed the SEZ Proclamation and the IPDC fulfilled the requirements outlined in the law. To qualify for SEZ status, industrial parks must meet specific criteria, including a minimum capital of 75 million dollars, unique economic activity, and land holdings exceeding 50hct. Observers point to advantages including enhanced productivity, improved import and export activities, and a more organized and investor-friendly environment. The Proclamation offers incentives including tax breaks, improved access to export markets, foreign exchange flexibility, and streamlined business processes to attract investment and stimulate industrial growth. In its letter, the Commission notes that future expansions, upgrades, or significant changes to these SEZs must comply with the Proclamation and undergo a designation process. The remaining parks under the Corporation—Addis Industry Village and Arerti Industrial Park—currently do not meet the requirements for SEZ status.
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