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Hawassa Industrial Park in Ethiopia - Evaluating the impact of FDI
29th December 2017
The Guardian visits Hawassa Industrial Park in Ethiopia and provides a fantastic mini case study for students taking development economics as part of their A-level.
Ethiopia is attracting manufacturers away from China with a new industrial park offering wages of less than US$1 per day for workers https://t.co/3evebUwb4l
— Rachel Strohm (@RachelStrohm) December 24, 2017
The park is part of a wider strategy by the Ethiopian government to attract investment in light manufacturing and increase formal employment in the labour market. Spurred on by numerous tax breaks, low land and labour costs and tariff/quota-free access into the European Union, a number of multinational companies have established themselves in the industrial park. Wages (on average) are higher than in the public sector and farming and the park is increasing employment amojg young women, but the article also highlights some of the key costs / risks and limitations of inward FDI.
The @UN awarded #Ethiopia’s Investment Commission for successfully attracting #FDI by developing the largest textile and apparel park in #Africa, the eco-friendly Hawassa Industrial Park. The new Park already employs more than 12,000 people, 80% young women. Congratulations! pic.twitter.com/n61WLvGGT8
— Zemedeneh Negatu (@Zemedeneh) November 23, 2017
#Ethiopia Hawassa Industrial Park is Africa's first textile and clothing facility. Sitting on 1.378 million sq meters, the park hosts 37 factories that boast cutting-edge infrastructure and equipment, and has created 100,000 jobs. pic.twitter.com/48WLe8Cj8S
— ET Media Watch 🔄 (@EthiopiaRise) November 9, 2017
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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