Textile industry is transforming Ethiopia's economy: MoT
Landlocked African nation Ethiopia, one of the emerging apparel sourcing destinations in the world, has reported a surge in the number of manufacturing units in recent years. The rapid expansion of textile and garment sector is benefiting the light industry in the country and transforming the economy as well. The data revealed by the Textile Ministry shows that the textile industry has reported an average growth rate of 51%.
During the past five to six years, more than 65 textile investment projects have been licensed for foreign investors from countries like Bangladesh, India and China. Markedly, policies and incentives that the country has to offer have steadily started making the country a favourite amongst various leading textile and apparel manufacturers to set up their base in Ethiopia.
More than 200 textile units have become operational in the country in recent years, informed Zerihun Abebe, Director of Textile and Apparel Research, Monitoring and Support with Ministry of Industry. Such kind of growth in the sector indicates that Ethiopia will soon become a continental textile hub in the time to come. Rising technological adoption and industrial culture in the industry along with attractive investment incentives and establishment, expansion of industrial parks in Ethiopia are also helping it to report fair growth.
The development of textile industry is helping Ethiopia to gain capital to position the country where it can focus on capital-intensive heavy industries in the future. The issue of raw materials availability, majorly cotton, is also being taken into consideration, in order to enhance productivity and global competitiveness. It is worth mentioning here that Ethiopia posted a 23.1% surge in its global textile and clothing (T&C) exports during the first eight months of FY 2017-18 that began on 8th July 2017. The country has exported T&C worth US $ 68.5 million during the said period.