It has been a year since Prime Minister Abiy Ahmed inaugurated the construction of the Gada Special Economic Zone (GSEZ) in Ethiopia’s Oromia region. Spearheaded by the dynamic leader Motuma Temesgen, this ambitious initiative aims to reshape the nation’s economic landscape through robust investment. The construction of the Special Economic Zone is being carried out by anchor investors such as Kun Huang International Industry Park, alongside 12 other investors from China, Europe, the USA, Ethiopia, and joint venture companies.
Situated just 65 kilometers east of Addis Ababa, the GSEZ spans 24,000 hectares—half the size of the capital and six times larger than Adama, a regional city in the Oromia National Regional State. Within this vast area lies the GSEZ and the Lume Free Trade Zone, the second of its kind in Ethiopia, which is expected to unlock new avenues for economic growth and development. The project has the potential to connect major cities such as Mojo, Adama, and Shashemene. Its objectives focus on increasing exports, attracting both domestic and international investors, streamlining business services, and creating employment opportunities. This strategy is anticipated to significantly boost foreign direct investment (FDI), which has faced hurdles in recent years.
During the launch program of GSEZ’s Lume Free Trade Zone last year, Prime Minister Abiy emphasized the importance of leveraging agricultural successes to propel the industrial sector. He stated,
“We aim to replicate the successes of our agricultural sector in the industrial domain, and the Gada Special Economic Zone serves as a pivotal platform to realize this vision.”
Under Motuma’s leadership, the construction of the GSEZ is progressing well, and stakeholders are optimistic about its potential to transform the region’s economy. Approximately 3,114 hectares are slated for development over the next five years, while 8,000 hectares are currently under construction. The project is expected to generate significant employment opportunities for Ethiopia’s growing youth population, thereby tackling the critical challenge of youth unemployment.
The Gada Special Economic Zone’s strategic proximity to the Ethio-Djibouti railway and Mojo dry port highlights its significance. This locational advantage underscores the project as a testament to the AU Agenda 2063 and UN Sustainable Development Goals (SDGs), facilitating connections between towns, cities, provinces, and countries through improved infrastructure.
Meanwhile, the Chairman of China Railway Construction Corporation has pledged to integrate advanced technologies and management practices with local resources, enhancing productivity across various sectors, including coffee processing, bamboo and timber processing, machinery manufacturing, and bio-pharmaceuticals.
One of the GSEZ’s key objectives is to establish a robust trade logistics center that will enhance Ethiopia’s export capabilities. This initiative aims to improve the country’s competitiveness in regional and international markets, fostering a more dynamic economy.
As construction continues, the GSEZ reflects Ethiopia’s commitment to sustainable growth, prioritizing job creation and infrastructure development. The successful development of the GSEZ is viewed as a critical step toward positioning Ethiopia as an emerging hub for trade and industry in East Africa, furthering its ambitions for a prosperous future.
The GSEZ represents a significant investment in Ethiopia’s economic future and serves as a model for public-private partnerships aimed at achieving sustainable growth and development. Under Motuma Temesgen’s diligent leadership, the GSEZ promises to be a beacon of hope and opportunity for the nation.
