Message of the CEO
Mr. Sisay Gemechu
An Integrated Agro-Industrial Park (IAIP) development is aiming at transforming the agriculture sector which is a geographic cluster of firms grouped together to share different infrastructure and to exploit the opportunities for joint purchasing, selling, training, extension services and other synergies. The business model of the IAIPs promotes efficiency of the commercial food supply chain. It is an end-to-end approach linking production to the market. From input source to output market Within a 100 kilometer radius of the Integrated Agro-Industrial Parks Rural Transformation Centers/RTC/ will be established. The integrated Agro-Industrial Parks is expected to facilitate the situation for the planned transition to the industry-led economy and brings rural industrialization which would accelerate the Agro industry sector and contribute to job creation, import substitution, strengthening export, and creating chance for innovation.
The Oromia Industrial Parks Development Corporation was established by Oromia Regional Government to facilitate the industrial park development and identified five areas with respective of agro-industrial potential (Agro-Industrial Growth Corridors-AIGCs). The feasibility study for the one pilot IAIPs near to Batu Town, at Bulbula was completed, and the construction is intensively underway. The commodities for processing in the IAIPs were identified (fruit and vegetable, livestock, cereals, sesame, oil and pulses, honey, coffee, spices etc) and value chain analyses have been done and 1000 hectares of land attributed. AIGCs sites selected for the pilot development are located in the central eastern part of Oromia Region, Batu , Bulbula which is located 160 km from Addis in proximity to one of Ethiopia’s premium holiday destination.
The parks will incorporate companies engaged in exporting value-added agricultural products to the world market in addition to domestic companies, farmers and the youth which are the epicenter of agricultural commercialization will be expected to be benefited from the development. Upon completion, the agro-industrial parks will represent over 30 billion ETB (1.5 billion USD) in investments, and will create over 400 companies and over 400,000 direct employments. /According to the feasibility study conducted by mahndra international consulting firm in 2016.
Oromia is one of the largest Regional Government of Ethiopia in terms of land, population, resource endowment and so on, and located in the center of the country which is currently a top destination for investors in medium and heavy manufacturing. Oromia Regional Government boosts excellent facilities for foreigners, including high quality hotels, and is already served by an express toll way to Addis. The planned railway Hawassa-Mojo-Addis will also on the way of Bulbula Integrated Agro- Industrial Park of Oromia and Rural Transformation center Shashemene. Besides to these facilities , Mojo Hawasa express way which is currently under construction is bypass near by at its western edge of the park. According to the Amended Investment Incentives Regulation No. 312/2014, different incentives scheme linked to the sector.
Therefore, the Oromia Industrial parks Development Corporation is highly encourages and welcomes the Ethiopian Domestic Investor, Diaspora and foreign investors to invest and develop industrial parks. in Oromia Region, either independently or through public-private partnerships. I thank you.