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Construction & Mining

Bole Lemi SEZ Expands With Over 16 New Factory Projects

May 20, 2026
Bole Lemi SEZ Expands With Over 16 New Factory Projects

Key Takeaways:

• Over 16 factory projects are underway as Bole Lemi SEZ enters a new expansion phase.
• Industrial Parks Development Corporation is developing eight new factory units for foreign direct investors.
• Over eight additional projects are being financed by domestic investors inside the zone.
• Some factory units are expected within two months, with broader rollout scheduled by December.
• Bole Lemi spans 353 hectares, including 171 hectares in phase one and 181 hectares in phase two.
• Current electricity consumption is about 70MW, against full-capacity demand of up to 134MW.
• The zone hosts 40 companies, but only 20 are currently in active production.

Market Impact:
Bole Lemi’s expansion signals continued investor demand for serviced industrial land and ready-built factory infrastructure in Ethiopia’s special economic zone system. The new phase adds production capacity across foreign-investor factory units and domestic light manufacturing projects.

The zone’s infrastructure model is central to its commercial appeal. Integrated power, water, wastewater and utility systems allow investors to reduce setup time and move faster into production once facilities are handed over.

The investor mix also shows the limits of domestic industrial participation. Only three of the zone’s 40 companies are domestic investors, while foreign capital remains dominant in Bole Lemi’s manufacturing ecosystem.

Key Numbers:

  • Over 16 projects — new factory developments — expansion pipeline

  • 8 units — IPDC-developed factories — planned for foreign direct investors

  • Over 8 projects — domestic investor-financed units — local manufacturing participation

  • 353 hectares — total zone size — industrial land base

  • 134MW — full-capacity electricity demand — utility requirement

  • 70MW — current electricity consumption — operating load

  • 40 companies — current tenants — zone occupancy base

Business Signal:
Bole Lemi’s expansion shows Ethiopia is using special economic zones to deepen manufacturing capacity, but domestic investor participation remains limited.