Ethiopia’s Industrial Parks:

A Data Pack on recent performance

We review the 2019-20 performance of Ethiopia’s industrial parks, which now consist
of 10 active sites, 189 companies, and 71,000 employees. On the positive front,
industrial park exports rose 16 percent to $165mn this past year and they now make RESEARCH & ANALYTICS
up nearly half of manufactured exports. However, their export performance is well
below expectations, especially as the COVID pandemic reduced monthly exports and
employment starting in April 2020. Looking ahead, though some long-standing
challenges remain (labor and logistics), the coming on line of additional industrial
parks, some switching in product mix by existing companies, and the now much more
favorable exchange rate could bring gradually improving prospects.

• Macro context: Ethiopia’s industrial parks are a core component of the

Government’s plan to make the country a leading exporter of manufactured goods
in Africa. Their performance is thus a key barometer of progress in this area and
towards these aims.

• Recent performance: Ethiopia’s ten active industrial parks (five government and five
private) registered exports of $165mn in 2019-20, up 16 percent from the year
before and nearly four-fold the export levels of two years earlier (Tables 1-5).
Industrial parks account for only 5 percent of total exports ($165mn vs $2988mn)
but a much higher share—43 percent—of manufactured exports ($165mn vs
$379mn). The three leading industrial parks are Hawassa ($73mn in annual exports),
Bole Lemi ($44mn), and Eastern ($15mn), together making up 80 percent of total
exports, while those in Kombolcha, Mekelle, and Adama each registered annual
exports of between $4mn to $9mn. While positive, these outturns for last year are
only 54 percent of the targeted figures.

• Outlook: The Industrial Parks Development Corporation (IPDC) expects industrial

park exports to reach $400mn this fiscal year, which would be a 2.4x increase from
last year’s $165mn outturn. This may be challenging if there is a slow pace in the
global recovery and if continued logistics and labor-related challenges (including high
employee turnover) act as a drag on company operations (Tables 6-8). At the same
time, the prospect of capturing global investors’ on-going diversification away from
China/Asia remains in place and Ethiopia’s attractiveness to such investors is still
strong on many metrics. In addition, supply should be boosted by new industrial
parks/companies already coming on line this year (the ICT Park, Debre Berhan, Dire
Dawa, Jimma) and by existing companies switching their product mix to meet extra
demand for textile-based PPE (e.g. masks). A much more competitive exchange rate
is also now in place to help offset long-standing frictions in the business
environment, while one measure of worker productivity (annual exports per
employee) has doubled to $2,000 per employee in FY 2019-20 from just $1,000 two
years ago. With latest industrial park data showing that exports have bounced back
sharply in July 2020 (more than doubling to $14mn from their April lows of just
$7mn), a recovery from the COVID-related shocks seems underway, pointing to the
likelihood of moderately positive growth for the new fiscal year (Table 9).
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
 RESEARCH & ANALYTICS

Table 1: Industrial Parks: Overview of Names, Locations and Sector Specializations

Name of Industrial zone Location Main Industry Owner Area(Ha) Progress

1 Eastern Industry Zone Oromia, Dukem Mixed Sectors Private 400 Operational
2 Bole Lemi Industrial Park I Addis Ababa Textile and Leather Government 187 Operational
3 Hawassa Industrial Park SNNPR Textile and Garment Government 300 Operational
4 Mekelle Industrial Park Tigray Garment Government 1,000 Operational
5 Kombolcha Industrial Park Amhara Garment Government 800 Operational
6 Adama Industrial Park Oromia Textile & Garment, Machinery & Equipment
Government 2,000 Operational
7 Huajian Industrial Park Lebu, Addis Ababa Shoes Private 138 Operational
8 Mojo George Shoe Industrial Zone Oromia, Mojo Leather Private 86 Operational
9 Velocity/ Vogue Mekelle Textile and Garment Private 177 Operational
10 DBL Mekelle Textile and Garment Government 79 Operational

11 Debre Birhan Industrial Park Amhara Textile and Agro-processing Government 1,000 Inaugurated
12 Jimma Industrial Park Oromia Garment Government 150 Inaugurated

13 Dire Dawa Industrial Park Dire Dawa Assembling, Garment, Foods Government 4,068 Under construction/finalization
14 Kilinto Industrial Park Akaki, Addis Ababa Pharmaceuticals, medical equipments Government 279 Under construction/finalization
15 Bahir Dar Industrial Park Amhara Garment Government 1,000 Under construction/finalization
16 Arerti Industrial Park Amhara Construction products, home appliance Private 100 Under construction/finalization
17 Yirgalem Integrated Agro-Industrial Park SNNPR Agri-products processing Government 109 Under construction/finalization

18 Airlines and Logistic Park Addis Ababa Transportation Government 200 Planning stage
19 Kingdom Linen Industry Zone Dire Dawa Linen Private 1,000 Planning stage
20 Bure Integrated Agro-Industrial Park Amhara Agri-products processing Government 155 Planning stage
21 Bulbula Integrated Agro-Industrial Park Oromia Agri-products processing Government 263 Planning stage
22 Baeker Integrated Agro-Industrial Park Tigray Agri-products processing Government 151 Planning stage

Source:EIC

2
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
 RESEARCH & ANALYTICS

Table 2: Tenants at Ethiopia's Operational Industrial Parks

1. Eastern IP
1 ABYSINO MANUFATURING PLC 41 HANSOM KINFENGDA MANUFACTURING PLC 81 SHENG DA TEXTILE MANUFACTURING PLC
2 AISAI RESYCLED PLASTIC MANUFACTURING PLC 42 HC&HG FURNITURE MANUFACTURING PLC 82 SHUAIJIE TEXTILE
3 AISAI SHICUN STEEL PIPE 43 HONGCHANG TEXTILE PRINTING AND DYING PLC 83 SHUNFA TEXTILE MANUFACTURING PLC
4 AOFAN 44 HONGHUA LI PLC 84 SINO WEAVING TECHNOLOGY PLC
5 AOXANG 45 HQ AND ZA MANUFACTURING PLC 85 SLS TEXTILE MANUFACTURING PLS
6 ARAEK INDUSTRIAL PLC 46 HUA XIN METAL METAL PLC 86 SMART SHIRTS MANUFACTURING PLC
7 AROVA PLASTICS PLC 47 HUAJIA ALUMINIUM INDUSTRY PLC 87 START SHOE AND SLIPER MANUFACTURING PLC
8 ASHE TEXTILE PLC 48 HUAJIAN INTERNATIONAL 88 TGS TEXTILE AND GARMENT
9 Asia chemical plc 49 HUI HUANG INDUSTRIAL PLC 89 TY WOOD MANUFACTURING PLC
10 ASTER TESFAYE 50 JILI ELECTRONIC PLC 90 UNILEVER MANUFACTURING PLC
11 BAISHENG FIBER MANUFACTURING PLC 51 JILI PLASTICS PLC 91 vast ocean textile manufacturing plc
12 Baohua garment manufacturing plc 52 Jiuding chemicals industry plc 92 VECTORY metyal
13 BECONNECTED LABLING PLC 53 JINDAL GARMENT MANU. PLC 93 VIVA GARMENT
14 BECONNECTED PRINTING PLC 54 JORE TEXTILE S MANUFACTURING PLC 94 WA WAE
15 CHANG JIANG CHEMICALS SOAP 55 KAIPU MANUFACTURING PLC 95 WAN XIAN STEEL MAN. PLC
16 CHEER CHEMICAL FIBER PLC 56 KEPA TEXTILE PLC 96 WEIQIN ZHOU
17 COLORFUL TEXTILE PLC 57 KOK MILK MANUFACTURING PLC 97 WENZHENG ZHU MANFU PLC
18 DI YUAN CERAMICS 58 L AND H BUILDING MATERIALS PLC 98 WILD HORSE AUTOMOTIVE MANUFACTURING PLC
19 DONG FANG SPINNING PRINTING AND DYING PLC 59 LAINHE FOOD MANUFACTURING PLC 99 WU ZHEN MIAO PLC
20 DONG FANG XIONG DI TEXTILE MANUFACTURING PLC 60 LIANHE METAL 100 WU ZHEN MIAO Glove
21 DONGXU TEXTILE PLC 61 LIDA TEXTILE PLC 101 XINMAOTAI FASHION HOME
22 E TRUCK MOTOR MANUFACTURING PLC 62 LINDE GARMENT (ETHIOPIA) PLC 102 XUWU TEXTILE MANUFACTURING PLC
23 EAST MOTORCYCLE MANUFACTURING PLC 63 LISA TEXTILE PLC 103 YAFI JUICE MANUFACTURING PLC
24 EAST STEEL PLC 64 LIU DUO 104 YANG FAN MOTORS (LIFAN MOTORS PLC
25 EASTERN INDUSTRY ZONE PLC 65 LONTO GARMENT PLC 105 YILILAI GARMENT PLC
26 EJIA METAL PRODUCTS MANUFACTURING PLC 66 MICHOT DIAPER MANUFACTURING 106 YUECHEN INDUSTRY PLC
27 ESTEEM FOOD PRODUCTS PLC 67 MINGSHENG SHAN 107 YOGO PLASTIC MANUFACTURING
28 ETERNAL TEXTILE PLC 68 NEW BRILLIANT MANUFACTURING PLC 108 Yong Wang Textile PLC
29 ETHIO INDIA PACKING PLC 69 NEXGN (ETHIOPIA) MANUFACTURING PLC 109 ZEHAO TEXTILE PLC
30 ETHIOPIA GIANT WHEEL SCHINCE AND TECHNOLOGY 70 ORIENT JUNYO TEXTILE 110 ZHAO XIN WANG PLC
31 FENG HE 71 ORIENTAL STEEL MANUFACTURING PLC 111 ZHEN ZHEN IRON AND STEEL MANU
32 FH SHOE PLC 72 PUREWOOD PULP PAPER AND PACKAGING PLC 112 ZHONGSHUN CEMENT MANUFACTURING PLC
33 FUBANG STEEL PRODUCTS 73 QUN ZHAN HOME TEXTILES PLC 113 ZSZ ELECTRONIC MANUFACTURING PLC
34 GONG QINGHAI PLC 74 RAINBOW GARMENT PLC 114 CWC CANAVAS SHOES MANUFACTURING
35 GREATWALL PACKING MATERIAL PLC 75 RICHY FOOD PROCESSING MANUFACTURING PLC 115 XINDA SHOE
36 GUANYAN HE 76 RIGHT POINT ELECTRODE MANUFACTURING PLC 116 XIAOBLE TEXTILE PLC
37 GULI FOODS PLC 77 SAIL TEXTILES PLC 117 JULIAN
38 GUANGYING TEXTILE 78 SANSHENG NEW-TYPE BUILDING MATERIALS PLC 118 ZIXING PACKAGING INDUSTRY PLC
39 HAI BO MANUFACTURING PLC 79 SANSHENG(ETHIO) PHARMACEUTICALS PLC
40 HANBON CONSTRUCTION MATERIAL PLC 80 SHADEKA SPERPARTS MANUFACTURING PLC

2. Hawassa IP 3. Bole Lemi IP 4. Huajian IP

1 Arvind Lifestyle Apparel Manufacturing PLC 1 Arvind Lifestyle Apparel Mfg. PLC 1 Amazz
2 Best International Garments PLC 2 Ashton Apparel Manufacturing PLC 2 Ao Fan
3 Chargeurs Fashion Technologies PLC 3 Evertop Sportswear 3 Chan Hange
4 EPIC Apparel PLC 4 George Shoe Ethiopia PLC 4 Huajian International
5 Everest Apparel Ethiopia Share Company 5 Jay Jay Mills Garment PLC 5 Youbang
6 Hela Indochine Apparel PLC 6 Kei Engineering Constancy
7 Hirdaramani Garment PLC 7 LYU Shoutao Factory PLC
8 Indochine Apparel PLC 8 New wide Garment Ethiopia Branch Company 5. Mekelle IP
9 Isabella Socks Manufacturing PLC 9 Shin TS ETP Garment PLC 1 KPR Exports PLC
10 ITL Apparel 10 Sumec 2 SCM Garment Knit Tex PLC
11 JAS 11 Vestis Garment production PLC 3 Luarence FootWear Manufacture
12 JP Garment 4 Strathmore Apparel manufacturing PLC,
13 JP Textile Ethiopia PLC (WUXI)
14 KGG Garment 6. Kombolcha IP
15 NASA 1 Carvico Ethiopia PLC 7. Adama IP
16 Ontex Hygienic Disposables PLC 2 Pungkook Ethiopia Bag Manufacturing PLC 1 Antex Textile PLC
17 PTU/ Century Garment 3 Saytex Spinning PLC 2 Kingdom Linen Ethiopia PLC
18 PVH Arvind Manufacturing PLC 4 Trybus Bbridgetex Ethiopia PLC 3 Sunshine Ethiopia Wool Textile PLC
19 Quadrant 5 seyang kombolcha garment plc
20 Silver Spark Apparel Ethiopia PLC (Raymond) 6 FUANLAI kombolcha ethiopia plc
21 Sumbiri Intimate Apparel
22 TAL Garments Manufacturing PLC

8. George Shoes IP 9. Velocity IP 10. DBL IP

1 George Shoes Tannery 1 Velocity Garment 1 DBL

Source: EIC

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Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
 RESEARCH & ANALYTICS

Table 3: Exports by Industrial Parks: FY 2019-20

Export (USD) % Share

Hawassa IP 72,988,852 44%
Bole Lemi IP 44,228,520 27%
Eastern IP 15,391,531 9%
Kombolcha IP 9,096,234 6%
Mekelle IP 5,407,193 3%
Huajian Shoes City IP 4,897,561 3%
Adama IP 4,443,708 3%
DBL IP 3,999,518 2%
George shoes IP 2,587,009 2%
Velocity IP 1,928,360 1%
Total 164,968,485 100%

Source: EIC

Table 4: Industrial Parks as Share of Total Manufactured Exports

FY 2017-18 FY 2018-19 FY 2019-20

Total Manufactured Exports 436 437 379
Textile & Textile Products 104 153 169
Leather & Leather Products 132 117 72
Meat & Meat Products 102 89 67
Electronics 35 31 38
Chemicals & Construction inputs 25 16 8
Other 38 31 25

Industrial Park Exports 45 141 165

Ind Parks share of total manufactured exports 10% 32% 43%

Source: MOTI, ERCA, EIC and Cepheus Research estimates of manufactured exports sub-total

Table 5: Industrial Park Exports Per Employee--Trends over past three years
2017-18 2018-19 2019-20
Exports per year $ 44,818,323 $ 141,004,122 $ 164,968,485
No of Employees (Year-average) 43,932 63,982 80,802
Exports per employee per year: $ 1,020 $ 2,204 $ 2,042

Source: EIC and Cepheus Research compilation

4
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
 RESEARCH & ANALYTICS

Table 6: Employment for FY 2019/20 Table 7: Monthly Labour Turnover (%)

Monthly Resignations/Total Employees

Employment % Share 10.0%

Hawassa 25,026 35% 9.0%

Eastern 18,279 26% 8.0%

7.0%
Bole Lemi 16,111 23%
6.0%
Adama 3,598 5%
5.0%
Kombolcha 1,958 3%
4.0%
DBL 1,853 3%
3.0%
Huajian 1,494 2% 2.0%
Mekelle 1,457 2% 1.0%
Velocity 1,305 2% 0.0%
George Shoe 361 1%

Jun-18
Jul-18

Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19

Apr-19

Jun-19
Jul-19

Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20

Apr-20

Jun-20
Aug-18

Aug-19
May-18

Mar-19

May-19

Mar-20

May-20
Total 71,442 100%
Source: EIC
Source: EIC

Table 8: Employment number for Top IPS

37,000

32,000

27,000

22,000

17,000

12,000
8

0
8

M 9

M 0
8

9
Au 8

Au 9
-19

-20
M 8

No 8

M 9

No 9

M 0
8

9
18

19

20
-18

-19

-20
n-1

n-1

n-2
r-1

p-1
t-1

b-1

r-1

p-1
t-1

b-2

r-2
g-1

v-1
c-1

g-1

v-1
c-1
l-1

l-1
ar-

ar-

ar-
Jan

Jan
ay

ay

ay
Ju

Ju
Oc

Oc
Ap

Ap

Ap
De

De
Ju

Ju

Ju
Se

Fe

Se

Fe
M

Eastern Bole Lemi Hawassa

Source: EIC

Table 9: Industrial Parks Exports on a Monthly Basis, ($mns)

20
18
18
16
15 16
16 15 15 15
14 14
14 13

12
10 10
10

8 7

-
-1 9 g-1
9
p-1
9
t-1
9
v-1
9
c-1
9 -20 b-2
0
r-2
0
r-2
0
y-2
0 -2 0 -2 0
Ju l Au Se Oc No De Jan Fe Ma Ap Ma Ju n uly
*J

Source: EIC
*July 2020 exports figure excludes $3mn of new ICT park exports

5
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
 RESEARCH & ANALYTICS

Figure 10: Ethiopia's Industrial Parks Map

DBL IP
Baeker
Velocity IP
Mekelle IP

Arerti

Bure Kombolcha IP

Debre Birhan
Bahir Dar
Dire Dawa
Airlines
Kilinto Kingdom
Eastern IP
Jimma Huajian IP
Adama IP
Bole Lemi I IP

George Shoes IP Bulbula

Hawassa IP

Yirgalem

6
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.