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.
- Spinning, weaving and finishing of textile fabrics.
- Production of garments; the manufacturing of knitted and crocheted fabrics, carpets, and sportswear, among others.
Click here for an Investment Opportunity Profile for a Cotton Spinning Mill.
Ethiopian Chamber of Commerce and Sectoral Associations
Ayka 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.
P.O. Box 517
Tel: 251-11-551 8240
Fax: 251-11-551 7699
Addis Ababa Chamber of Commerce and Sectoral Associations
P.O. Box 2458
Tel: 251-11-552 8120
Fax: 251-11-551 1479
Ethiopian Textile and Garment Manufacturers Association
Mexico square, Chamber of Commerce and Sectoral Associations, 7th floor