馃嚜馃嚬EthiopiaEast Africa
Industrial Parks Development Corporation reports 650 million Birr net profit, reversing previous year's losses
via The Reporter Ethiopia6 min read
The state-owned Industrial Parks Development Corporation IPDC recorded a net profit of nearly 650 million Birr for the 2024/5 fiscal year. This marks a significant turnaround from the 708 million Birr loss reported in the prior year. The profit surge is attributed to increased income from lease agreements and foreign exchange holdings. Operating lease income doubled to 3.4 billion Birr, with the majority of these agreements denominated in USD, leading to a rise in Birr income after the liberalization of the forex regime in July 2024. The IPDC also holds retention monies in USD from contractors, which increased to 2.7 billion Birr by June 2025 from 1.9 billion Birr the previous year. While gross profits saw a substantial increase, a corresponding rise in operating expenses, particularly depreciation and a 2.5 billion Birr administrative expense two-thirds categorized as bad debt, tempered the net profit. The Corporation's total assets are valued at 71 billion Birr, with physical assets at nearly 20 billion Birr and ongoing construction of new industrial parks valued at almost nine billion Birr. Paid-up capital has reached 40 billion Birr, and three industrial parks, including Hawassa, generate the majority of its revenue.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
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