A COMPARATIVE STUDY ABOUT CHALLENGES AND POTENTIALS OF DECLARING CITIES AS FREE TRADE ZONE IN ETHIOPIA

Abstract

The role of free trade zone for enhancing the economy of developing countries becomes invaluable these days. Because of that, different countries in the world choose to establish and free trade zone. Ethiopia also declared the city Dire Dawa to be the first pilot free trade zone area since 2022. However the law which allows the establishment of free trade zone and regulates the activities concluded in free trade zone area, is still on its draft stage. Addressing the challenges and opportunities of declaring city administrations as free trade zone areas in Ethiopia especially with regard to law and policy is the major aim of this research. In order to achieve this aim qualitative research methodology implemented. Interview was conducted with some important key informant individuals who are presumed to give a reliable data for this research. In addition to that the experiences of different countries are also provided for comparative purpose. Hence the research is a blend of both doctrinal and non-doctrinal legal research. Based on the finding of the thesis, it is concluded that the free trade zone formation in Ethiopia faced an obstacle because of the absence of regulatory legal frame work enacted mainly to administer those areas in Ethiopia. And also the preparation of the country in general and the city administration particularly seems minimal on especially on free trade zone formation and other related aspects. So it is highly recommended that the draft law which allows the establishment of free trade zone in Ethiopia to be effective as early as possible. And the preparation of the country should be improved on so many grounds.