Addis Ababa, 15 August 2022 (TDI): The Prime Minister of Ethiopia Abiy Ahmed inaugurated the Dire Dawa Free Trade Zone in an official ceremony on Sunday. It is the country’s first Free Trade Zone.
During the inauguration of the Dire Dawa Free Trade Zone PM @AbiyAhmedAli affirmed that such zones are very important to facilitate export and import. He also stated that trade zones like this will be multiplied in a way that will enable competition with the global trade system. pic.twitter.com/AXNArcZPxk
— Office of the Prime Minister – Ethiopia (@PMEthiopia) August 14, 2022
The foundation of a Free Trade Zone is one of the goals set in the 10-year viewpoint development plan of the Ethiopian government. Moreover, the government has aligned the Free Trade Zone with the African Continental Free Trade Area (AfCFTA) for regional integration.
Significance of Free Trade Zone
The government believes that the Dire Dawa Free Trade Zone will improve Ethiopia’s entire economy. It will boost the import and export of the country.
Dire Dawa has a huge economic potential due to its proximity to ports, markets, and cargo. The launch of the Dire Dawa Free Trade Zone comes a day after the adoption of the Special Economic Zone Policy.
Under this policy, the Free Trade Zones are significant to fill the economic gap in certain areas. Especially, in the supply of raw materials and value chain faced by manufacturing industries.
CEO of Industrial Parks Development Corporation (IPDC) Sandokan Debebe said the ‘free trade zone will create the ability to stabilize the commodity price inflation that is being observed in our country in connection with the logistics costs’.
IPDC’s Dire Dawa Industrial Park is already attracting foreign investors from various countries. It includes specialized investors in garments, apparel, and textile from China, Italy, and Srilanka.
Minister of Transport and Logistics Dagmavit Moges identified the establishment of Free Trade Zones in Ethiopia as one of the enablers for facilitated trade, bringing logistics efficiency and attracting FDI.
Moreover, Dire Dawa Free Trade Zone is among the many Free Trade Zones the government is establishing in other parts of the country under the Special Economic Zones policy.
