Ethiopia: Efficient Textile, Garment Industries To Boost Exports

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Ethiopia: Efficient Textile, Garment Industries To Boost Exports

Ethiopia's textile and garment industry has been given due attention by the government in the second Growth and Transformation Plan II (GTP II). Aspiring to increase the export from the sector by US$ 1 billion by the end of GTP II, the government is demonstrating commitment in investing in the sector. The sector is also expected to create more than 300,000 jobs during the plan period.

In addition to the suitable policy concerning the sector, the country is placed in the advantageous position with easy access to international value chain and it has abundant and competitive workforce, according to Ethiopian Investment Commission (EIC).

Various incentives have been provided for foreign investors and local small scale and medium textile and garment associations in order to encourage the sector. According to Siyoum Wujira, Garment and Textile Directorate Director at the Ethiopian Textile and Garment Agency, small and medium industries have been given support in terms of infrastructure, training workshops, loans, machinery lease, finance, advisory services, market linkages and the like.

Girma Tafere, a senior officer in technology transformation and training directorate at Textile Industry Development Institute, said that the Institute provides chemical and environmental laboratory facilities, spinning, garment technology, weaving, knitting and trainings.

According to him, the number of medium and large industries in the sector has reached 161. The progress of the sector is promising, the export status accelerated from US$ 7 million in 1990 to US$ 111 million in 1998. Export growth has increased from 0.9% to 3.8%.

According to a training document prepared by the Ministry of Industry, the major challenges are lack of input with fair price, quality and quantity, lack of skilled manpower, and technologies. Investors' (engaged in small and medium textile and garment) lack of awareness of the sector was mentioned as another issue to deal with and which made such a training mandatory.

In Ethiopia, there is also a huge and untapped potential for cotton production which is the major input for the industry. Therefore, strengthening access and incentives for small and medium textile and garment industries, and most of all improving the competency of the labour force in the sector should be given due attention. The sector also needs committed and modern management system in a way that can raise the small industries baselines to the higher ones.