Textile and Garments

  • HetM logoH&M established its office in Addis Ababa in 2012, and has been buying clothing from a number of Ethiopian manufacturers since then.

    Source: The wall Street Journal, “H&M Looks to Source Clothing from Ethiopia”, August 15, 2013

  • 1

Key Reasons for Investing

  • Abundant available workforce at very competitive costs: wages in Ethiopia are a fifth of China’s and half of Vietnam’s.
  • Quality and productivity: Ethiopian workers produce as many polo shirts of the same quality per day as workers in Vietnam when using similar technology.
  • A privileged geographic location: Ethiopia is located at the center of the world with easy access to international value chains, and has access to a state-of-the-art container port (Djibouti).
  • Potential to develop a competitive cotton or textiles industry due to good climatic and soil conditions together with cheap hydro-energy (textile factories pay between US$0.78 and US$0.002 per KW).
  • Duty-free access to the European Union (EU) and U.S. markets through the African Growth and Opportunity Act (AGOA).
  • Strong export performance: the Ethiopian garment and apparel industry has grown an average of 51% over the last 6 years, with the UK accounting for 10% of Ethiopia’s textile and garment exports, with other countries in Europe taking 50% and the US taking 40%.
  • Over 65 textile investment projects from international investors have been licensed in Ethiopia since 1992, with retailers such as H&M and Primark already sourcing clothing from Ethiopia.

Sources: World Bank, “Light Manufacturing in Africa,” 2012; EY’s Attractiveness Survey, Africa 2014; All Africa, “Ethiopia Textile Market Growing”, December 2012; EIC database of licensed project.

  • tesco logoTesco PLC and the British arm of Wal-Mart Stores Inc. are also buying clothing from Ethiopian manufacturing plants.walmart logo

  • 1

Investment Opportunities

  • Spinning, weaving and finishing of textile fabrics.
  • Production of garments; the manufacturing of knitted and crocheted fabrics, carpets, and sportswear, among others.
    cotton mill page Click here for an Investment Opportunity Profile for a Cotton Spinning Mill.

Useful Links:

Ethiopian Chamber of Commerce and Sectoral Associations

  • Ayka logoAyka Addis, the Ethiopian subsidiary of the Turkish textile giant Ayka Textile, inaugurated in 2010 its factory at a cost of US$140 million at Alemgena, 20km west of Addis Ababa, creating jobs for more than 10,000 people. Ayka Addis has the capacity to export textile products worth US$100 million a year per annum.

    Source: All Africa, “Ethiopia: 50 Turkish Textile Factories to Relocate in Ethiopia”, 2 August 2013.

  • 1

Addis Ababa
P.O. Box 517
Tel: 251-11-551 8240
Fax: 251-11-551 7699

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Addis Ababa Chamber of Commerce and Sectoral Associations

P.O. Box 2458
Tel: 251-11-552 8120
Fax: 251-11-551 1479
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Ethiopian Textile and Garment Manufacturers Association

Mexico square, Chamber of Commerce and Sectoral Associations, 7th floor
Tel: +251115576002
Fax: +251115576003
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.