The Role of Integrated Agro-industrial Parks in Ethiopia’s Development
The government of Ethiopia expects the industrial sector to play an important role in GDP growth, job creation, foreign exchange earnings, and small and medium-sized enterprise (SME) development over the coming years.
The overall goal of the Government’s Industrial Development Strategy (IDS) is to bring about the accelerated structural transformation of the economy through enhancing industrialization, raising the share of the industrial sector of GDP from the current 13 per cent to 27 per cent by 2025, and the GDP share of the manufacturing sub-sector from the current 4 per cent to 18 per cent by 2025.
The development of agro-industries presents Ethiopia with an opportunity to accelerate economic development and achieve its industrial development goals. If addressed correctly, agro-industries can help fulfill the potential of agriculture and advance industrialization in the country.
Recognizing this opportunity, the government is spearheading the development of integrated agro-industrial parks (IAIPs) and accompanying rural transformation centers (RTCs) with the intention of better integrating agricultural value chain actors.
The development of IAIPs is prioritized in Ethiopia’s national development strategy and is a core component of the current Growth and Transformation Plan (GTP II, 2015-2020). The IAIPs are considered a vehicle for the structural transformation of the economy through the commercialization of the agricultural sector. They are also expected to help pave the way for the realization of the country’s Vision 2025 of becoming a leading manufacturing hub in Africa.
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