Mekelle, Ethiopia - Millennium Cities Initiative - Columbia University

20 Mekelle, Ethiopia: Potential Opportunities for Investment
Incentives permitted
at state level
Tigray State has established industrial
zones supplied with basic infrastructure
at nine major towns, namely Mekelle,
Adigat, Adwa, Axum, Endaslasie, Alamata,
Maichew, Wukro and Humera. This
enables investors to obtain land at a lower
fixed lease price per square metre for
each town.
For some strategic projects (livestock
production, dairy farming, manufacturing,
construction), land is provided at a
negotiable price within and adjacent to
industrial zones.
Rental of farming land is possible from the
government and/or individual farmers for
up to 50 and 20 years respectively. Based
on the type of project and investment
capital, a grace period of one to seven
years related to land lease is provided to
any company leasing urban land. A lease
price discount is awarded for real estate
developers, depending on the number of
housing units this can be anything from
five to 45 percent.
Labour force
There is an abundant, easily trainable and
inexpensive labour force in Tigray State.
The average salary is around USD20
per month.
“We pay about 70 dollars per month,
which is more than the average salary
in the region and it makes the staff
more motivated. Our employees don’t
want to lose their job, not only because
of the salary, but also due to some
additional benefits which they get like
English lessons, paid sick leave etc.”
Gheralta Lodge Hotel Manager
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