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

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Overview of the sector*

  • Ethiopia’s textile and garment industry witnessing rapid growth, as a number of domestic and multinational firms are being engaged in the production of textile and apparel for domestic and global markets. In the path to industrialize Ethiopia, the sector is given prominent position in boosting export, creating job opportunities, and as a model to other sectors as well.
  • This recent surge in Ethiopia’s textile and apparel production and export to the global markets shows that the country has the potential to become one of the leading textile and Apparel hubs of Africa, of exporting the equivalent of 30 billion USD with bold vision of transforming the action into compelling new apparel sourcing hub for brand, retails and their suppliers.
  • Due to focused strategy and support of the government, in recent years, Ethiopia has grown spectacularly as a sourcing destination for apparel in recent years attracting most of the FDI in the sector.

Policy and strategy

  • The sector has become a top priority for Ethiopia as part of its goal to become a middle-income country by 2025. The key objective is to make the sector globally competitive and to bring the necessary structural transformation to the nation’s economy to export industrial outputs, create thousands of jobs, attract much-needed foreign currency and above all, contribute to poverty reduction.
  • Plan 2020: generates USD 1 billion export earnings over 300,000 employment opportunity.
  • Established the Ethiopian Textile Industry Development Institute to enhance skills and technologies in the sector.

Key Reasons for Investing

  • An abundant workforce at very competitive wages, competitive cost of electricity and potential for backward and forward linkage,
  • 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.
  • Duty-free access to the European Union (EU) and U.S. markets through the African Growth and Opportunity Act (AGOA).

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

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Investment Opportunities

  • Ginning, integrated textile mills, spinning, weaving and/or knitting, dyeing and printing,
  • 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.

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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.
www.ethiopianchamber.com

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.
www.addischamber.com

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.

Useful Links:

Ethiopian Chamber of Commerce and Sectoral Associations

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.
www.ethiopianchamber.com

Addis Ababa Chamber of Commerce and Sectoral Associations

  • American clothing giant owner of the big global fashion brands such as Tommy Hilfiger, Calvin Klein, Speedo, IZOD, Van Heusen, Arrow, Warner’s and Olga, has set up a manufacturing plant in Hawassa Industrial Park.

    Read More
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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.
www.addischamber.com

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.