Operational Practices and Lessons of Ethiopia’s Hawassa Industrial Park, East Africa

Girma Melese Mengistu
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Girma Melese Mengistu: PhD Candidate Management Science and Engineering, School of Economics and Management, Beihang University, Beijing, 100191, China.

International Journal of Science and Business, 2022, vol. 13, issue 1, 27-44

Abstract: Industrial parks have played a crucial role in ensuring economic growth of developing countries. Besides, representing socio-economic achievements, operational industrial parks, on the other side, have exposed various issues that need to be addressed. This study, therefore, aims to assess the major contributions of Hawassa Industrial Park (HIP) to the national economy, but on the other hand, it investigates the main challenges and gaps of the park for proper and effective operation. This study applied both quantitative and qualitative approaches to collect data through questionnaire from 250 employees and interviews with representatives of manufacturing enterprises as well as government institutions supporting them to operate in the park. Results of the study indicate that HIP has positive impact on the national economy in terms of capital investment, job creation, enhance export and foreign currency. It also reveals that inefficient delivery of one-stop-shop (OSS) services, high turnover and instability are among the big challenges that the park has faced. Recommendations for future research are also discussed. Finally, limitations and implications of the present study are also discussed.

Keywords: Industrial Park; Foreign Direct Investment; Employment; Success; Challenges; Hawassa; Ethiopia. (search for similar items in EconPapers)
Date: 2022
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