The Industrial Parks Development Corporation (IPDC) projects that the new under-ratification proclamation will increase the pipeline of commerce and logistics activities in the now functioning free trade zone in eastern Ethiopia.
The corporation that joined forces with Ethiopian Shipping and Logistics (ESL) to form a seamless operating partnership stated that the deal will enable the facility to function efficiently after the proclamation on free trade effectiveness is passed by parliament, which discussed the draft this week.
In addition to playing a critical role in making goods accessible at extremely reasonable prices, the proclamation that the Council of Ministers recently approved and sent to Parliament, will provide legal cover for the eagerly anticipated free trade activity that the government expects to promote business, including industrial activities.
According to IPDC CEO, Aklilu Tadesse, the proclamation is anticipated to be adopted by parliament very soon.
An agreement was reached on Wednesday, November 15, by the public companies ESL and IPDC, to speed up logistics at the first-ever free trade zone, which is situated in Dire Dawa. According to ESL CEO, Berisso Amallo, his business would supply enough staff and equipment to run the facility efficiently, which will increase park activities and facilitate import and export.
Berisso pointed out, “We have a dry port at Dire Dawa that will allow the necessary labor and equipment for the Dire Dawa Free Trade Zone.”
Speaking at the signing ceremony, the CEO of IPDC noted that one of the things that would allow the Dire Dawa Free Trade Zone to begin operating at full capacity is transportation and logistical services. He went on to say that the free trade zone’s potential will rise significantly if this service is made available there.
According to Akilu, the arrangement has been negotiated by the two parties for a number of months. Berisso informed Capital that finding productive activity at the site and the legal process had taken up the majority of the negotiations. “In accordance with the agreement, we will offer prompt and efficient services to both domestic and international investors operating within the free zone,” he continued.
The CEO went on to say, “Our major target is to boost the activity of the free trade zone and contribute for the country.”
The logistics giant will offer services to clients at a competitive rate. In order to provide the public with an adequate supply of imported goods, the free trade zone aims to operate on a liberal market idea and a lax bureaucratic framework.
It also aims to speed up the industrial sector. Manufacturers engaged in producing value-added items and assisting the industry sector are the primary residents of the trade zone.
“The free trade and logistics division has not yet fully embarked, but the manufacturing portion of the free trade zone has become operational,” stated Aklilu.
A proclamation that would regulate trade and logistics activities at free trade zones has been forwarded to the parliament for approval in order to actualize the anticipated plan; according to the CEO of the IPDC, it will likely be approved in the upcoming weeks. He said, “Important government offices, such as IPDC, have been working on preparations to give the proclamation life and execute it successfully at the free trade zone.”
According to him, the legal basis for the free trade zone’s qualifying player selection procedure has already been prepared, and the legal structure for the zone itself is ready to go. Setting the price at the free trade zone, an autonomous business territory has also been determined by taking into account the lessons learned from other nations with similar experience.
During the event, it was announced that certain workers of Ethiopian Shipping and logistical service in the zone would be able to provide the logistical services required by importers, exporters, and investors in a variety of trade and investment industries.
The CEO of IPDC stated, “The very critical body is ESL, which has a key role to accelerate the logistics activity to make the free trade zone fully operational.”
“We have been jointly discussing and developing the legal modality to work together at the free trade zone in order to include the logistics giant, which would have a big role at the scheme,” he continued.
At the Dire Dawa Free Trade Zone, investors now occupy the majority of the production spaces. “We hope that the trading and logistics part will be accelerate when the proclamation ratified by the law makers,” he underscored.
Over 130 businesses have made investments at the 13 industry parks and free zone that the public corporation is now managing. A number of new points those were unusual for the nation’s economic activities were added in the new proclamation.
