Ethiopian Garment Exports Fall Short Of Target Despite Y-o-Y Leap

Economy

Ethiopian Garment Exports Fall Short Of Target Despite Y-o-Y Leap

A quantum leap in export of textiles and garments was witnessed by Ethiopia when its earnings reached USD 68.5 million during a period of eight months commencing from July 8, 2017. Currently the government of Ethiopia is viewing this sector as a one of the key areas to develop growth in the country and has set a target figure of USD 30 billion for the year 2025.

The leap in revenue stood at a significant 23.1 percent when effectuating a y-o-y comparison. However, the figures achieved are yet 50% short of the targeted figures for the current year.

Ethiopian industry circles disclosed that of the total USD 68.5 million, USD 12.6 million was secured by local companies numbering 58 and the rest of the corpus was yielded by foreign owned companies.

An industry spokesperson detailed the contributing factors to the shortfall from the expected target for Ethiopia, stating, “Managerial and technical limitations, inadequate supply of inputs, failure to meet international criteria and shortage of skilled manpower were responsible for the current state of affairs.”

At present the government of Ethiopia is seeking to diversify from agro-based exports to strategic industrial products like textiles and garments. Consequently, upward of 10 industrial parks has been opened in different parts of the country.