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Ethiopia is set to open its first Free Trade Zone (FTZ) in the Dire Dawa’s administration. This was mentioned in a statement issued by the Ministry of Transport and Logistics. Dire Dawa has its proximity to ports, market potential, and huge cargo gravity as well as suitability for multimodal transport and logistics operation
Ethiopia is set to open its first Free Trade Zone (FTZ) in the Dire Dawa city administration. This was mentioned in a statement issued by the Ministry of Transport and Logistics. Dire Dawa has its proximity to ports, market potential, and huge cargo gravity as well as suitability for multimodal transport and logistics operations.
This free trade zone will have a significant role in boosting the entire economy of Ethiopia. It is also expected to reduce the hyperinflation in the country, which has breached 37% on a year-on-year -basis and reduced inflation.
The FTZ will integrate Dire Dawa Industrial park and dry port with various service-providing institutions including Customs during operation. Such facilities would help reduce logistics time and cost of production while boosting trade competitiveness, FDI flow, urbanization, and industrialization.
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The Dire Dawa FTZ is one of several Free Trade Zones and Special Economic Zone that will be established in other parts of the country. A feasibility study has already been conducted on the FTZ that corroborated the necessity of creating free trade areas. The government also plans to leverage the immense experiences of Ethiopian Airlines in cargo operation and logistics in order to realize the free trade zone’s effective operation in Dire Dawa.
