Capital Ethiopia Newspaper

Ethiopia’s garment industry begins to uncover

Eight new textile projects and expansions are scheduled to be completed and become operational in the current Ethiopian Fiscal Year 2011/12 with a total outlay of more than 4.4 billion birr.
Five of the projects are new and are being constructed at a total cost of more than 3.4 billion birr with an expected employment opportunity of three thousand people.
The other three expansion projects are also under construction with a total cost of over one billion birr and an employment potential of 1800 people. The eight projects in total comprise factories which can produce T-shirts, yarn, woven, finished and knitted fabrics.  Ethiopians, Turks, Indians and Pakistanis are the players in the textile industry, separately or as a joint venture with the Ethiopian government.
Meanwhile during the last six months of the 2011/12 Ethiopian Fiscal year, textiles export earned Ethiopia roughly USD 44 million, recording  110 percent more revenue compared to the same period last year.  However the government still hopes to collect around USD 71 million within a year.   In terms of composition, woven products took the lion share with 75.63 percent, followed by textiles at 11.56 percent, yarn at 7.04 percent and handicraft products at 5.74 percent. This means value added products such as woven and handicraft products together take 81 percent of the export share. According to Fekadu Ethiopia, corporate communications expert of the Textile Industry Development Institute (TIDI), textile exports were lower than projected because of the international economic crisis as well as the cotton price flux last year. However, he said TIDI hopes it can meet the targeted textile exports supported by the completion of the expansion project at garment factories in Bahir Dar, Kombolcha and Arba Minch.
Ethiopia has a set target of USD 171 million from textile exports in the current 2011/12 Ethiopian Fiscal Year. 
Some of the major export destinations of the textile products are the European economic powerhouse Germany, one of the fastest growing economies in the world Turkey, United States, Italy, Belgium, China, the Middle Eastern Gulf country of United Arab Emirates (U.A.E) and neighboring countries Djibouti and Sudan.
The noted factories for the textile sector performance were the Turkish owned Ayka Addis Textile and Investment Group, Kombolcha Textile Factory Share Company, the MIDROC owned Ma Textile and Garment Private Limited Company, Nova Star Garment and one of the largest textile factories in Ethiopia Almeda Textile Factory.
By the end of the growth and transformation five year plan, Ethiopia hopes for one billion dollars from textile exports.