Hawassa Industrial Park in Ethiopia - Evaluating the impact of FDI
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.
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.