Special Economic Zones in the OIC Region:
Learning from Experience
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o Lack of industrial work culture & low productivity (factory workers have limited or no
prior exposure to industrial work culture);
o Communication barriers between workers and managers – most front line workers are
young rural migrant with little formal education; and
o Lack of competent local supervisors and managerial capabilities.
Summary Lessons Learnt
 The drive to promote and attract investment into the Bole Lemi Industrial Park was
achieved through a well thought out investment strategy process. This included a well-
coordinated effort from government agencies aimed at targeting specific investors to
mitigate existing concerns and weaknesses within the Ethiopian investment
environment. The investment promotion efforts were also specifically targeted at
particular businesses in particular sectors, after feedback from market research;
 The relatively low cost of doing business in Ethiopia’s Industrial Parks has been a
defining feature of its investment attractiveness, with very low cost of electricity and
relatively low cost of labour (particular in relation to regional competitors). The
Industrial Park offering was also bolstered through a strong incentives package; and
 In terms of lessons learnt from the challenges faced by the Industrial Park, it was clear
that skills – both in terms of factory workers and line managers – needed to be rapidly
improved in order to effectively cater to the needs of investors.