Ethiopia’s special economic zones and industrial parks generated an estimated 16 billion birr worth of manufactured goods in the recently concluded fiscal year, according to the Industrial Parks Development Corporation (IPDC). The figure reflects growing momentum in the country’s manufacturing sector, driven by improved industrial capacity, rising local participation, and targeted investment in key sectors.

Production capacity within the parks increased from 47 percent to 65 percent during the year, the agency said, marking a notable improvement in operational efficiency.

Zemen Junedi, Executive Director of Investment Promotion and Marketing at IPDC, told Ethiopian News Agency (ENA) that the parks have not only boosted output but also enabled import substitution, particularly in security-related manufacturing. “We now have full local capacity to produce uniforms for the defense forces and other security institutions, which creates strong domestic market opportunities for our industries,” he noted.

In total, over 45,000 new jobs were created within the economic zones and industrial parks over the past year.

The zones also attracted $1.2 billion in foreign direct investment (FDI), with increasing interest from multinational and regional investors. Key growth areas include pharmaceuticals, construction materials, chemical products, leather processing, and agro-processing.

Ethiopian investor participation in the industrial parks has also grown steadily, now accounting for more than 50 percent of the active enterprises, according to the corporation.

IPDC added that it is accelerating efforts to scale production across sectors and deepen linkages between industrial parks and the broader economy to enhance their developmental impact.