According to Ethiopian media reports, the Ethiopian Investment Commission (EIC) and the Chinese company Chongqing Kunhuang International Industry Group (CKIIG) recently signed a sub-developer agreement to carry out sub-development of a plot of land within the Gada Special Economic Zone.

It is understood that the Chinese company CKIIG will develop and implement its project on 20 hectares of land, with a total investment of USD 50 million (nearly 6 billion birr). According to the EIC, the proposal has received a designated decision from the Investment Commission's board, and the project is expected to create enormous opportunities for the local community, import substitution, increased export earnings and stronger local economic linkages.

It is learned that the Gada Special Economic Zone is Ethiopia's first special economic zone, located in Oromia, Ethiopia, about 70 km southeast of the capital Addis Ababa, and close to the junction of the Addis Ababa-Djibouti Railway and the expressway. The core area of the Gada Special Economic Zone is the Lemi Free Trade Zone, jointly developed by China Civil Engineering Construction Corporation (CCECC), a subsidiary of China Railway Construction Corporation, and the Oromia regional government of Ethiopia. The two partners will introduce advanced international technology and management experience, combine local resources, and build the Lemi Free Trade Zone into a comprehensive free trade zone integrating production, trade and research and development, with a key focus on coffee processing, bamboo and wood processing, and machinery and equipment manufacturing.

The Ethiopian government believes that this cooperative investment will bring capital and technology to Ethiopia, help the country raise the technical level and production efficiency of coffee processing, improve coffee quality, and increase the international market competitiveness of its products. At the same time, it can create a large number of job opportunities and raise the income level of local residents.

Although this investment cooperation will strengthen Ethiopia's construction, industrial development and export trade, especially the processing and export business of the country's advantageous agricultural products such as coffee, the country's coffee industry is currently facing quite a few problems.

At present, the country's main problem lies in security. Recently, armed conflicts and large-scale kidnappings have been reported in multiple regions of Ethiopia. Recently, the Ethiopian government added 40,000 soldiers and launched a new round of military operations against Fano armed militants in Amhara State, resulting in road blockades in Amhara State and very severe conflicts breaking out in multiple areas, bringing serious impact on the economy and security of multiple regions of the country.

In addition, in mid-September, in the town of Assela, not far from Gada Special Economic Zone, and nearby areas, it was reported that citizens riding public transport buses and within towns, a total of 44 people, were kidnapped by Oromo Liberation Army "Shene" militants. After the kidnapping, the militants demanded a ransom of 500,000 to 1 million birr from the hostages' families by telephone. According to local residents, the Oromo Liberation Army "Shene" armed group has long been active in the area. Due to the lack of government security forces, killings and kidnappings often occur, so it can be said that the security level in the area is poor.

In addition, an earthquake also occurred in Ethiopia recently. According to Ethiopian media reports, about 200 km from Ethiopia's capital Addis Ababa, in the Metehara area of East Hararghe in Oromia State, a magnitude 4.9 earthquake occurred. Although there are currently no reports of casualties, some roads and land have been damaged. This area is also Ethiopia's Harrar coffee-producing region, and this is Ethiopia's main road to Djibouti, so exports of coffee and other agricultural products may be affected. According to the head of the Department of Earth Sciences at Addis Ababa University, residents living in the rift valley area and along its route should remain vigilant, as similar earthquakes may occur again.

At present, Ethiopia's coffee industry is also facing exchange rate problems. Due to the impact of the new fiscal period, the Ethiopian birr has depreciated significantly, and domestic prices have risen severely, causing the lowest selling price of coffee across the board this week to rise by 2%. In addition, the country's security problems continue to disrupt international freight and logistics, exacerbating the continuous rise in costs. Therefore, many people in the coffee industry have said they hope the government can resolve the security problems as soon as possible. In addition, this Chinese-invested cooperation can effectively alleviate the current severe cost problems.

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