The state-owned Industrial Parks Development Corporation (IPDC) reports nearly 650 million Birr in net profit for the 2024/5 fiscal year, with a surge in income from lease agreements and forex holdings reversing the 708 million Birr loss it posted the year prior.
The Corporation’s operating lease income doubled to 3.4 billion Birr, and while its gross profits showed an exponential jump, a corresponding rise in operating expenses tempered its net profit to 646 million Birr for the year.
The majority of its lease agreements with investors operating in industrial parks across the country are denominated in USD, meaning its income surged in terms of Birr following the liberalization of the forex regime in July 2024.
Similarly, the Corporation retains retention monies in USD from contractors that undertake construction of sheds and structures at the parks. This retention is reported as payable. At the end of June 2025, IPDC held 2.7 billion Birr in retention, up from 1.9 billion the year prior.
From The Reporter Magazine
IPDC reports a total income of 3.4 billion Birr in 2024/5, while its operating expenses rose to 1.8 billion Birr, driven primarily by depreciation.
Under administrative expenses, IPDC posted 2.5 billion Birr, up from just 882 million the previous year. Two-thirds of this is categorized as bad debt, surging from less than 320 million Birr in 2023/4.
The Corporation values its physical assets (sheds and other facilities) at nearly 20 billion Birr, while it reports ongoing construction (new industrial parks in Semera and Debre Birhan) valued at nearly nine billion Birr.
From The Reporter Magazine
Total assets are registered at 71 billion Birr.
Its report also reveals that significant financial commitments have yet to materialize. These include 4.7 billion Birr for the construction of new parks and the expansion of several operational ones, including the flagship Hawassa Industrial Park, which are set to be carried out by Chinese contractors.
The report indicates the Corporation’s paid-up capital has risen to 40 billion Birr.
It also reveals that three industrial parks account for the majority of its revenue, with Hawassa alone bringing in 1.2 billion Birr.
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