Source: Ethiopian reporter Amharic News. Translation: Apex Business Consultancy
It was announced that, the industrial parks that meet the requirements set by Special Economic Zone Proclamation, recently approved by the House of Representatives, will be transferred to the Special Economic Zone. This was announced on June 6, 2016, when the Investment Commission signed a partnership agreement with Geda Special Economic Zone.
According to Deputy Commissioner of the Commission Zeleke Temeseng (Dr.), the transfer of 29 industrial parks in the country and four agricultural processing parks at the regional level to special economic zones is one of the changes that came after the decree.
The deputy commissioner said that when the industrial parks are transferred to the special economic zone, the environmental impact assessment will be done.
Although the recent decision of the Board of Investment stated that industrial parks can supply 50 percent of their production to the domestic market, it is considered that when they are transferred to a special economic zone, they will increase their foreign exchange potential.
After the name was given by the board, the role of organizing the service in one center is the role of the investment commission, and they announced that they have already started work to provide one center service to Geda Special Economic Zone.
It has been stated that Geda, which has signed a development agreement with the Investment Commission, will develop the Special Economic Zone by itself, and it has been pointed out that it will be able to bring in developers from the day the agreement is signed to develop it. It is said that the commission will provide the support provided by the decree, including the service of a center.
Geda Special Economic Zone established between the cities of Mojona and Adama in the Oromia region will be developed in four phases on 24 thousand hectares of land.
He stated that Geda Zone provides ICT park services including logistics, real estate, free trade zone, industrial park, and processing of agricultural products.
He added that five thousand hectares of the land set aside for development will be used for industry and five thousand hectares for real estate development.
In addition to the transfer of existing industrial parks to special zones, it is stipulated that foreign financial institutions can provide services in the established special economic zones.
It is stated that the National Bank will carry out an independent financial and foreign exchange management reform and establish an operating system to ensure the attractiveness, competitiveness and effectiveness of the economic zone.
In addition, the incentives that the developers of the special economic zone will get are included in the decree, and it is found that goods entering and leaving the zone will be free from duties and taxes.
Similarly, construction materials entering the zone are not subject to customs duties and taxes, and capital goods are exempted from any duties and taxes in the decree.
