Agro-Parks – Are They in Good Shape?

As Ethiopia is buzzing in exploiting the agriculture sector resource for industrialization and increased export, what comes to mind immediately is that how are the constructions of nationwide Integrated Agro-processing Industrial Parks(IAIPs) are going?

According to the latest available information, ,the constructions of the first phase of all four IAIPs that are being undertaken in Amhara, Oromia SNNPs and Tigray States are nearing completion.

Oromia State Industrial Parks Development Corporation Head Kefyalew Tulu says the construction of the first phase of the Bulbula IAIP is in good progress as its the administration building, information ,kiosk and training centers as well as retail space have reached 14, 10, 22 and 12 percentages of completion respectively.

With regard to water works, consultancy services for hydrological investigation, site selection and well drilling supervision have been done successfully, he adds.

_In the efforts of putting place electricity, transformer house construction at Bulbula IAIP site has been in action while excavation and earth works are being carried out at a good pace , he notes.

He also mentions the construction of the Rural Transformation Centers (RTCs) which aimed at providing essential agricultural input to the IAIP is progressing well.

Similarly, Amhara State’s IAIP that is under construction and on the schedule in Bure town said Dessie Assegne, the State Industrial Parks Development Head. As to him, road, water and electricity works are going to be completed soon . The construction of seven RTCs is also advancing to provide agricultural raw materials to the industry, he adds. "The overall construction would cost more than four billion Birr."The industry would supply processed animal products, grain and oilseeds, fruit and vegetables to the local and international market while it goes operational.

Likewise, about 50 percent of the construction of Yirgalem IAIP’s administration building and water works have been completed. And electricity works are under progress, SNNPs State IPDC Integrated Agro and Special Parks Director recently told to Fana TV.

Meanwhile the construction of the Baeher IAIP in Tigray State is in good shape , says Adugna Abreha ,State IPD Deputy Head.

The industries are being established in the areas where intended agricultural inputs are possibly found. The construction of the industries was also started having conducted and drawn experience from successful countries including China and India, says, Yared Dessalegn ,Investment Promotion Group Leader and Industrial Parks Development Expert at the Ethiopian Food, Beverage and Pharmaceuticals Development Institute._

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"They would help to improve productivity both in quality and quantity, job creation, foreign currency and agricultural transformation."

As to him ,Research and Standardization Centers would be constructed to enable the industries to provide qualified products at the intended volume and level. In the same time, the RTCs that are constructing around the industries would hasten productivity supplying agricultural inputsfrom the surrounding farmers.

The RTCs also help to build the capacity of the farmer to realize extension based agriculture which mainly lies on supplying sufficient and quality product by installing modern technology, Yared adds. On the other hand, the Ministry of Agriculture and Livestock is exerting efforts to advance the sector through expanding technology to the farmer. The ministry is striving to help farmers to get medium agricultural machineries that would serve to farming, planting and harvesting procedures, Ministry Public Relations Bureau Head Alemayehu Birehane says.

"This would help to modernize the traditional farming system saving time and energy and increasing productivity, he said. The effort is to provide sufficient and quality agricultural inputs to the growing number of industries." During the past seven months, the country has generated some 1.6 billion USD of which 1.2 billion, 257 and 88.4 million USD from agriculture, manufacturing and mining product export respectively.

Ministry of Trade Communications Director Wondimu Filate says the agricultural product that counted more than one billion USD would have showed significant increment if it was in a finished form.

Exporting finished product, market promotion and strengthening ties with trade partners are basic mechanisms to increase the country’s beneficiary from the sector, he notes. The ministry is working with the Ethiopian Conformity and Assessment Authority and other quality assurance organizations to evaluate the quality of finished product, he says.

Increasing the number of Ethiopian product destination is significant beside the effort to convince the already existing importers to receive additional products from the country. This could be achieved conducting market research, promoting products and strengthening the diplomatic ties with partners. In the other way Ethiopia’s engagement in the Free-African-Trade area would help to scale up its trade advancement across the continent, according to Wondimu.

All the infrastructure and marketing efforts seem critical to enable the country have efficient IAIPs that would provide finished product to penetrate the international market. But will the country possibly make the industries efficient and important role players to save the annual one billion Birr that spend on import food?