Special Economic Zones in the OIC Region:
Learning from Experience
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investor’s concerns and then finding the right kind of investors by taking the following
steps:
o Looked at issues in those sectors that require improvements and tried to solve these
problems through the Industrial Park Programme;
o Looked at countries where there was growing investment in that specific sector; and
o Started targeting investors by - approaching companies directly; facilitating meetings
an interest through the business diplomacy sections of the embassies; visiting investors
face-to-face; taking the advice of investment advisors; organising site visits; signing
MoUs with interested investors.
 Cheap labour and low price electricity have made certain manufacturing activities more
affordable than regional competitors, such as Kenya/
 Incentives:
o The strong incentive package offered under the investment promotion legislation and
regulation has made investment more attractive;
o Streamlined government involvement;
o Effective one-stop-shop services at the park level – lowering the costs of doing
business;
o Strong ties with international donors (World Bank, Chinese Development Bank);
o Good transport infrastructure, close to highways and airport; and
o Expansion of the Industrial Park into Phase 2, based on the achievements of Bole Lemi
Phase 1.
Challenges
 During development of the zone there were some challenges, including:
o Delays in the infrastructure and utility services developments, including access to
power and water – with delays in connecting the zone to reliable sources of power and
water; and
o There were at times disputes among involved government entities in development of
the zone. These issues have mostly been resolved since the zone has become
operational.
 During operations, other challenges have been encountered, including:
o High rate of employees turnover (because of ability of competing labour markets in and
around surrounding area ~ particularly because of Bole Lemi’s proximity to the capital
city where other sectors have large demands on labour );
o Raw material shortage (most raw materials and accessories are imported);