Hot Issues of Skills Development

This page provides summaries of previous and relevant research on skills development.

SKY[Skills and Knowledge for Youth] home Hot Issues of Skills Development Industrial Park and Skills Development in Ethiopia

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Industrial Park and Skills Development in Ethiopia Yujiro Yamazaki
  • Labour Market Information and Investment Environment in Africa

The textile and garment industry in Ethiopia is rapidly expanding and is noted as a key to the country’s economic development. The SKY project is currently investigating the Hawassa and Bole Lemi industrial parks in Ethiopia.

Bole Lemi Industrial Park is the first industrial park in Ethiopia developed by the Ethiopia Industrial Park Development Corporation (IPDC)(Davison, 2013). The park, which became operational in 2014, has created job opportunities for many women. Most factories are textile and garment factories. The Hawassa Industrial Park was constructed in 2016 under contract with the China Civil Engineering Corporation (CCECC). Hawassa Industrial Park specializes in textiles and garments, and many overseas brands have entered (“Hawassa Industrial Park”, 2018).

In Ethiopia, there are other industrial parks such as Kilinto, Mekelle, Dire Dawa, Kombolcha, Debre Birhan, Addis Industrial Village and Jimma, etc. Export revenue is increasing each year rapidly (“Ethiopia’s industrial park”, 2019). On the other hand, there is a room for improvement of workers’ wages (“Labour Strike Rocks”, 2018).

With the increase in the number of employees as a result of reccent expansions, the importance of worker’s skills are also emphasized in order to improve the productivity of the textile and garment industry. The Ministry of Industry has set up Textile Industry Development Institute (TIDI) to encourage worker training, and the Ethiopian Institute of Textile and Garment Technology at Bahir Dar University, a higher education institution specializing in garments and textiles, plays a vital role in skill development by providing diplomas and degrees in the field (Gessesse , 2017).

The International Labour Organization (ILO) launched a program for comprehensive industrial human resource development in Ethiopia that incorporates BetterWork, Vision Zero Fund, SCORE, and LABADMIN from April of this year to support the Ethiopian garment and sewing industry, and provide opportunities for working environment improvement and training (ILO, 2019).

The government plans to construct further industrial parks by 2025 as a hub for Africa and the world, the skills and training in the garment and sewing industry are expected to gain more attention.

References
Davison, W. (2013, March 18). Ethiopia to Open First Industrial Zone to Bolster Economy. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2013-03-18/ethiopia-to-open-first-industrial-zone-to-boost-economic-growth
Ethiopia’s industrial parks generate $103 million export income. (2019, May 2). New Buisiness Ethiopia. Retrieved from https://newbusinessethiopia.com/ethiopias-industrial-parks-generate-103-million-export-income/
Gessesse, A. S. (2017, June 27). Concerns over wages as Ethiopia introduces textiles industrial park. New Buisiness Ethiopia. Retrieved from https://newbusinessethiopia.com/wage-concerns-employees-as-ethiopia-introduces-specialized-textiles-industrial-park/
Hawassa Industrial Park Generates $38m. (2018, December 29). Addis Fortune. Retrieved June 12, 2019, from https://addisfortune.net/articles/hawassa-industrial-park-generates-38m/
ILO. (2019, April). Advancing Decent Work and inclusive industrialization in Ethiopia: An ILO Programme. Retrieved from https://www.ilo.org/africa/technical-cooperation/WCMS_687547/lang–en/index.htm
Labour Strike Rocks Bole Lemi Industrial Park. (2018, May 19). Addis Fortune. Retrieved from https://addisfortune.net/articles/labour-strike-rocks-bole-lemi-industrial-park/