Tex­tile in­dus­try is trans­form­ing Ethiopia's econ­omy: MoT

Apparel Online - - Tex-file -

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.

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