THE CHALLENGES AND CONTRIBUTIONS OF INDUSTRIAL PARK DEVELOPMENT IN ETHIOPIA: THE CASE OF EASTERN INDUSTRY ZONE PLC, DUKEM CITY, OROMIYA, ETHIOPA

Abstract

The main objective of this study is to investigate the challenges and contribution of Industrial Park Developments to the national and local economy and social development. Both primary and secondary data were employed. Questionnaire, key informant interview and observation were the main data collection instruments from the case study of Eastern Industry zone Plc. All 67 companies inside EIZ were addressed by this study. Among the 67 companies, a sample of 87 respondents were covered. The quantitative data were analyzed using descriptive statistics and the results are presented in tables and figures. Narration method was employed to analyze the qualitative data. The findings of the study indicated that industrial parks have contributed to the national as well as local economy in terms of employment generation, income tax, capital investment, and export and import substitution, technology transfer and cultural integration. Furthermore, the research finding showed that shortage of raw materials, delay on the logistic service, shortage of foreign exchange and problems related to government rules and procedures as the constraints faced by the companies. Inefficiency of workers, communication barriers, lacks of enough training and organizational structure problems on the other hand are considered as internal problems faced by the companies. In general, there is a need for strengthening the growth of industrial parks and thereby enhancing their socio-economic contributions by minimizing the challenges.