Hawassa University Awada Business

and Economics College

Department of Economics

Field Trip Report

Name Zeyba Hassen Kebede

ID/no 0140/09

Section 2

Year 2019

Submitted to MR. Tadesse

Submission date June 10

Table of Content
Introduction …………………………………………. 1

Main body …………………………………………...2

Objective of the field trip……………………………3

Arba Minch crocodile ranch………………………..4

Arba Minch textile factory…………………………5

Hawassa Industrial Park…………………………..6

Personal exposure ………………………………...7

Conclusion…………………………………………..7

INTRODUCTION
 Industrialization is a process in which change of series of strategical and systematic
production takes places. Industrialization is the engine for socio economic
transformation of countries. Its favored for creating employment opportunity, bringing
competitive advantage and generating dynamism in the company.

Although Ethiopia has emerged as one of Africa’s fastest growing economies, its
manufacturing sector is still far from being an engine of growth and economic
transformation. It currently plays a marginal role in employment creation export and
output and falls short on stimulating domestic linkage.

Ethiopia is an agrarian economy. It has huge land and human labor. As a result it has
designed and has been agricultural lead industrialization since the past two and half
decades. In fact the country realizes the fact that industrialization plays an important
role in economic development where the manufacturing sector plays the key role in the
growth process.

Despite the importance of industrialization in sustainable economic growth, the sector

has encountered with various problems that lead to insignificant contribution to GDP,
due to financial constraint, shortage of supply raw material and lack of skilled man
power.

The Importance of Industrialization within the Ethiopian Economic Situation

# generates employment opportunities

# Provide educational opportunities

# encourages advancement and innovation etc….

 Industry is a backbone of country and self sustained to govern nation so

industrialization is important. Industrialization is the key to economic
development.

MAIN BODY
 First we went to A/Minch , A/Minch is km from Yirgalem. We reach our
destination in night so we lay over at A/Minch University Main Campus. In the morning
we went to see Nech sar National Park as a coincidence it was renew so we didn’t saw
that much but we seize the opportunity and saw the spring that the forty springs
confluence and after that we headed to A/Minch textile factory they gave us a long tour
in the factory after we finished we headed to the crocodile husbandry the instructor
gives us a tour then we left to our dormitory in the university and took some rest and in
the evening we went to the city and have a look around and me and my three friends
had a very nice and delicious feast by our lecture at tourist hotel then we went to our
dormitory.

In the morning we went to Langano for recreation ,I had a great time, I enjoy and relax
every second of it after that we went to Wendogenet hot spring water ,In Wendogenet I
cleared all my worries and stress ,the water makes me relax ,I can say it was my best
time there. After we finished we headed back to Hawassa University Main campus and
spend the night there.

In the next day we went to Hawassa Industrial Park and tour the companies after that
we headed back to our campus Awada Business and Economics College.

OBJECTIVES OF THE FIELD TRIP

Our field trip has its own objectives these are;

 Examining, assessing and evaluating practical framework of what we learnt in

our academic courses, mainly in industrial economics and natural resource and
environmental economics theoretically.
 To examine the contribution industries, particularly Hawassa industrial park
and Arba Minch textile factory to the GDP of the country.
 To investigate the cost and benefits of such industries to the environment and
societies
 To identify cost and benefit of d/f natural resources, particularly Arba minch
crocodile ranch and water bodies.
 To identify efficiency of industries and natural resources (productively and
allocatively).
 To assess the role of industries and natural resources in creating employment
opportunities for existing labor force.
 To identify the d/f conduct of firms within the industry.
 To overview long term and short term vision & mission of the industries.
 To look at the growth of firms in the industries.
 To identify what is the role played by technological progress in the industries.
 ARBA MINCH CROCODILE RANCH
Arba Minch Crocodile Ranch was established in the mid 1984.the operation
does not breed rather it collects hatchlings from the wild. The operation depends on the
wild animals. Current capacity of the ranch is around 9,000 animals and annually 3,000
hatchling are collected from the wild ,namely Lake Chamo.

Main product includes skin and intends to also export the meat. Only during export
marks are used in the way of tag.

The major objectives of establishment of Arba minch crocodile ranch are;

 To avoid illegal hunting by local peoples, which may result in lose of crocodile
species.
 To generate export revenue by producing qualified skins of crocodile.
 To generate revenue through tourism.

Inspections and Monitoring procedures

 Annual intake is recorded

 Daily Mortality data is collected
 Daily conditions of animals are inspected
 Monthly number, age, and size are closely examined to confirm the identity of the
stocks, and to detect the presence of unauthorized specimens.

According to the information obtained from workers in the ranch, after 3 years of
age, the skins of crocodile can be supplied to the mkt and exported to abroad.this the
skin to be supplied for the market, the size of skin must be 27cm- 30cm. One crocodile
skin can be sold about 40 US dollar, if it is produced in better quality and size. The skin
of crocodile can be used in producing d/f products, such as; shoes, belts, bags and for
ornamental materials. The skin which is most useful and can be supplied to the market
is chest skin.

Generally, Arba Minch crocodile ranch is contributing more to the GDP of the country
and it is providing the employment opportunity to the local peoples.the ranch has its
own vision & mission.

VISION;

 Improving the crocodile husbandry of the ranch to the world standard.

 Produce high number and quality of skins.
 MISSION;

 Conservation of the crocodile population in the wild.

 Educate the public about the ecological and economical importance of the
crocodile species.
 Produce high quality skins.
 Improve attraction of the ranch and increase tourist revenue

ARBA MINCH TEXTILE FACTORY

Arba Minch textile factory is Ethiopias oldest factory , which has been operating
since 1984 E. The factory is located about 275KM far from Hawassa, in Arba minch town,
the capital of GAMO zone . The Arba minch textile factory is formed under public
ownership and when it is established, it has integration with that of Hawassa industrial
park .At the startup stage, when it was owned by government , chemicals used in
processing and it cause pollution to the surrounding environment and lake that found near
the factory. But now days, there is no chemicals used in the factory, b/c it is now privately
owned and has been started using of latest technologies in order to reduce chemicals.

The factory is located in that strategic area at Arba minch around lake b/c of availability of
cotton in that area, which is the industry's main raw material still now. During its earlier stage,
the factory specialized in producing semi finished textile products and that semi finished
products were converted in to the finished product in other industries. Currently Arba Minch
textile factory is owned by private investors, who are both domestic & foreign investors. The
factory had been operated for some periods of time with lose when it was under public
ownership.

According to the policies that designed to encourage private ownership which allows any
public organization to be under private ownership, the most of industries in whole Ethiopia
converted from public ownership to private ownership. By following this trends, Arba minch
textile factory (AMTF) became under private investors.

Arba Minch textile factory has established branches in different location in order to produce
better quality textile products. For instance, with in oromia region one branch is built by 1.2
billion birr and now started operation. Beside to this, with in A.A, especially in sebeta
integrated factory is established and now producing most qualified products.

Arba Minch textile factory is now playing a great role in creating employment opportunities for
large group of labor forces. This is from the fact that, at the startup stage it has about 600
workers with in it, but currently the factory providing job opportunities for about more than
1000 peoples. These workers are exist not only with in Arba minch, but it includes those who
have been working in many diversified branches.
Arba Minch textile factory is price taker in the mkt. This indicates that, DD and SS governing
the price of the product. As a result, the factory is perfectly competitive. Present growth of
firms within the industry is very slow. The major constraint for the factory is financial
constraint. This is b/c of the most of the sphere parts come from abroad, this in turn requires
the foreign exchanges. As a result, the needed sphere part can't be obtained easily and on
time. These causes loses of production. In addition, the most of chemicals used are imports.
This is also considered as the financial constraint. The products are exportable and
substitute the imports on other hand.

HAWASSA INDUSTRIAL PARK

Hawassa industrial park is specialized in textile and clothes. The park has 52 shed and 23
companies, three of them are Ethiopians and the rest are Americans, Asians and
Europeans. Each shed consists of office, rest room (toilets), generator room .automatic fire
alarm, store room, clinic, and police station.

The park has three significations for our country;

Work opportunity, the park has 25,000 employers and in the future it will have 60,000
employers.
Foreign currency, the companies export their product to Europe and America.
Technology and skill transfer, the companies have 130 year of experience.

The Hawassa industrial park is expecting to employee 60,000 people at full capacity
and able to generate export revenue amounting to 1 billion us dollar.

Ethiopia inaugurated the largest industrial park in Africa. The Hawassa industrial park
has been dedicated to most mainly textile and garment product.

Currently 18 leading global apparel and textile companies from Africa, China, India, Sri
Lanka as well as six local manufacturers are operating within the park. It also own
renewable electricity source.

Furthermore, Hawassa industrial park also consists a provision of all government

service one-stop shop center and also employs zero liquid discharge that enables to
recycle 90 percent of sewerage disposal water and fulfills international standards.

Indeed, the park have additional area allocated for shared facilities , as it encompasses
an area of 1.3 million square meters of which 300.000 meter square is factory shed
building up area.

The park will serve as a prototype for the industrial park being built in other parts of the
country.
 Personal exposure
In Arba Minch I couldn’t resist the heat ,it was very hot I was sweating the whole time
and I was bored the whole tour because it was Ramadan, I was fasting so it was
exhausting and at night I could not sleep because of the weather and in the next day
when we went to Langano I have had a little accident a blade cut my leg and it hurt a
little.

CONCLUSION
Ethiopia currently has the largest air line and electric rail way network in Africa and is
now also constructing the largest hydro power plant in the continent .Now days
Ethiopian government opened great access and opportunity for foreign investment wit in
our country. For instance, with in Hawassa Industrial Park, most of the investment is
undertaken by foreign investors and company owners. In addition to this, the Arba
Minch Textile Factory is also owned by both internal and foreign investors under private
ownership.

Furthermore, Ethiopian government has identified the development of industrial park as

one of main route to industrialization. As a result, currently different industrial firms with
different objectives are diversified even up to rural areas of the country. This
diversification of different branches of industries is strategically to use the untouched
resources of different local areas as well as to provide skill transition to the most of
unskilled local peoples. This is broadly intended as an effort to attract domestic and
foreign direct investments, there by upgrading industries and generating employment.

Ethiopia is performing particularly well in GDP growth and net inward foreign
direct investment. Ethiopia has extremely low reliance on natural resources,
insulating it from commodity price fluctuations that have recently harmed
other African countries. However, Ethiopia is starting from relatively low,
traditional base in terms of economic structure which creates both challenges
and opportunities.