The Government of Ethiopia introduced its first free trade zone in Dire Dawa this week inaugurating the facility that allows investors to primarily add value to agriculture commodities and export easily.
Ethiopia’s the Dire Dawa Free Trade Zone built near Djibouti, which is the major trade route of the country, is expected to ease Ethiopia’s export, among others.
During the inauguration of the Dire Dawa Free Trade Zone Prime Minister Abiy Ahmed affirmed that such zones are very important to facilitate export and import. He also stated that trade zones like this will be multiplied in a way that will enable competition with the global trade system.
Free trade zones has been known for attracting huge investments in countries like Dubai of the United Arab Emirates, which gives privilege of up to zero income tax to investors working within the free trade zone.
A few years ago, Ethiopia’s neighbor has also introduced a free trade zone to attract more investors into the country and currently many Ethiopian’s are running businesses within the free zone.
Operational since 2004, the Free Zone of Djibouti (DFZ) positions Djibouti as the regional logistics, trade and marketing hub for the import, warehousing, processing and re-export of goods to and from the eastern African countries. DFZ is developed over 40 hectares near the Port and the Airport.