# Ethiopia Launches Gada SEZ with CCECC MOU

> Wardheer News, citing Xinhua, reported Ethiopia launched the Gada SEZ, with CCECC and Oromia signing an MOU for the Lume Free Trade Zone.

- By: Editorial Team, Somali Construction Review (https://somaliconstructionreview.com/about)
- Published: 30 September 2026
- Format: News story (reported from one named public source)
- Publication: Somali Construction Review (https://somaliconstructionreview.com)
- Subject: Infrastructure and Services
- Tags: utilities, procurement, project-management
- Web version: https://somaliconstructionreview.com/blog/ethiopia-gada-sez-ccecc-mou-launch

## Key points

- On 11 May 2024, Wardheer News reported, citing Xinhua, that Ethiopia launched construction of the Gada Special Economic Zone in Oromia the previous Friday.
- CCECC and the Oromia regional state administration signed an MOU for the Lume Free Trade Zone within the Gada SEZ, but no contract, value or timeline is stated.
- The report does not establish any physical construction progress, funding amount or project update since the launch.

On 11 May 2024, Wardheer News reported, in a dispatch sourced to Xinhua, that Ethiopia launched construction of the Gada Special Economic Zone project in the Oromia region the previous Friday. Wardheer News's Xinhua-sourced report says the Chinese contractor associated with the project is China Civil Engineering Construction Corporation (CCECC), and that CCECC and the Oromia regional state administration signed a memorandum of understanding for the development of the Lume Free Trade Zone within the Gada Special Economic Zone.

The report does not name a construction contract award, a project value, a budget, a funding source, a start date for physical works or a completion date. It also does not establish what, if anything, has happened on the site since the launch event. No independent, non-Xinhua verification of the event is available in the report.

Prime Minister Abiy Ahmed addressed the event, according to the Wardheer News report. He said the Lume Free Trade Zone will become the second of its kind after Ethiopia's Dire Dawa Free Trade Zone, will contribute to Ethiopia's socio-economic development, and is intended as a platform to replicate agricultural sector successes in industry. He also said the free trade zone, once finalized, will be a major source of employment and attract foreign direct investment, and that the economic zone will amplify opportunities for economic growth and development. Those are forward-looking statements by the prime minister as reported by Wardheer News, not verified outcomes.

Dai Hegen, chairman of China Railway Construction Corporation, the parent company of CCECC, said the Lume Free Trade Zone will work with other Ethiopian industrial parks, especially in coffee processing, bamboo and timber processing, machinery manufacturing and bio-pharmaceuticals. He pledged to bring technologies and management skills and to build a comprehensive free trade zone excelling in manufacturing, trade and research and development. These are pledges as reported, not contractual obligations.

Motuma Temesgen, director-general of Gada Special Economic Zone, said the free trade zone is situated 65 km southeast of Addis Ababa. The zone envisages boosting exports, establishing a trade logistics center and attracting foreign investment into Ethiopia, according to the Wardheer News report.

> **Note:** The Wardheer News dispatch does not state a project value, contract value, budget or total cost, and it does not give a construction timeline or completion date. It does not report job numbers or FDI figures. No evidence of physical construction progress beyond the launch event is established.

What happens next is not established by the report. The MOU is not a construction contract, and no subsequent project update is provided. Readers tracking the Gada SEZ should watch for a contract award, financing details and site works, none of which this dispatch documents.

## Questions

### Which Chinese company is associated with Ethiopia's Gada Special Economic Zone?

On 11 May 2024, Wardheer News reported, citing Xinhua, that China Civil Engineering Construction Corporation (CCECC) is the Chinese construction contractor associated with the project, and that CCECC signed an MOU with the Oromia regional state administration for the Lume Free Trade Zone. No construction contract award is named.

### What is the investment value of the Lume Free Trade Zone?

The Wardheer News report does not state a project value, contract value, budget or total cost, and it does not name a funding source.

### What is the location of the free trade zone?

Motuma Temesgen, director-general of Gada Special Economic Zone, said the free trade zone is situated 65 km southeast of Addis Ababa, according to the Wardheer News report of 11 May 2024.

## Sources

- [Ethiopia launches construction of Chinese-contracted economic zone](https://wardheernews.com/ethiopia-launches-construction-of-chinese-contracted-economic-zone/) — Wardheer News, 2024-05-11