Wednesday, October 14, 2026
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Low wages challenge garment industry workers

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Low and inconsistent wages remain a major concern for workers in Ethiopia’s textile and garment industry, where pay varies between factories and has not kept pace with rising living costs, according to a study on employment and working conditions in the sector.

The report, Productive Employment and Decent Work for Youth and Women in Textile and Garment Manufacturing, says Ethiopia has no national or sector-specific minimum-wage policy. Under the current system, employers largely determine wages, contributing to significant differences in pay across companies and industrial parks.

A workers’ survey conducted between July and September 2021 found that the average monthly basic salary was 1,349 birr at Hawassa Industrial Park and 2,110 birr at Bole Lemi Industrial Park. The figures reflect the survey period and should not be interpreted as current wage rates.

The study also highlighted the gap between workers’ earnings and basic expenses. Surveyed workers at Hawassa Industrial Park reported average monthly spending of 779 birr on food, 371 birr on rent and 280 birr on transport. At Bole Lemi Industrial Park, average monthly expenses were 1,624 birr for food, 1,335 birr for rent and 222 birr for transport.

The report cited a separate survey that found a textile worker at Eastern Industrial Park received a monthly salary of 3,400 birr. Researchers attributed the higher average there partly to differences in the types of products manufactured and the park’s longer operating history.

Ethiopia’s Labour Proclamation No. 1156/2019 provides for the establishment of a Wage Board, bringing together government, workers and employers to address minimum-wage policy. However, the study says the board had not been established at the time of the report, leaving workers without a statutory wage floor.

Researchers said the lack of a minimum wage contributes to low pay and variation between firms, including those operating inside and outside industrial parks. Wages are also not adjusted regularly to keep pace with inflation, the report said.

Workers surveyed in the sector have raised concerns about the relationship between their workloads and pay. The study noted that unclear wage-setting systems can also contribute to perceptions that salaries are unfair.

The report said some employers provide non-wage benefits, including meals, transport, housing allowances and medical care. But access to such support varies among factories, and workers’ assessments of the quality of services are mixed.

A 2021 survey of textile and garment workers in Hawassa and Addis Ababa found that many received transport or food from their employers. Yet more than 70 per cent of respondents rated the quality of workplace food as bad or very bad, while many also criticised the quantity and variety of meals.

The study links low wages and high living costs to wider challenges in the sector, including labour turnover and absenteeism. Many textile and garment workers are young people who have moved from rural areas to industrial centres, where housing, transport and other costs can add pressure to limited incomes.

Researchers argue that improving pay and working conditions is important not only for workers’ welfare but also for productivity and the industry’s ability to retain experienced staff.

The report recommends strengthening dialogue among government, employers, workers and trade unions to address wage-setting and other labour issues. It also calls on employers to provide jobseekers with clear information about wages and working conditions and to develop career pathways and skills training for employees.

Ethiopia’s labour law recognises workers’ rights to organise and bargain collectively. However, the report notes that union membership remains limited across the country, even as trade unions have become more active in some textile and garment factories.

The study’s wage figures are based on surveys and research conducted mainly between 2017 and 2021. They provide a snapshot of pay and expenses at that time, rather than a current assessment of wages across the sector.

ECA and partners advance inclusive and shock-responsive social protection

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Government officials and experts have gathered in Addis Ababa to strengthen social protection systems that reach underserved populations and respond effectively to economic pressures, climate-related disasters and conflict.

The interregional workshop, taking place at the United Nations Conference Centre from 7 to 9 October, is co-organized by the Economic Commission for Africa (ECA), the United Nations Department of Economic and Social Affairs (DESA), the Economic and Social Commission for Western Asia (ESCWA), and the Economic and Social Commission for Asia and the Pacific (ESCAP) and African Union Commission. The Oxford Poverty and Human Development Initiative (OPHI) provides technical support.

Speaking at the opening, Zuzana Schwidrowski, Director of ECA’s Socio-Economic Development Division, emphasized that social protection is essential to meeting basic needs, managing risks and building sustainable livelihoods. “Social protection must help people move forward—and protect them from being pushed back,” she said, highlighting the importance of linking support to employment, skills development and entrepreneurship while extending coverage to informal and self-employed workers.

Africa eyes domestic capital to tackle high financing costs

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Africa needs deeper capital markets, stronger financial institutions and better mechanisms for mobilizing its own resources if it is to finance development at the scale required, experts said at the 2nd Annual Conference on Credit Ratings, which concluded in Mauritius on 6 October.

Over two days, policymakers, credit rating experts, investors, regulators and development partners explored how Africa can strengthen its credit ratings ecosystem while mobilizing more domestic capital for long-term investment.

Discussions ranged from the way risk is assessed and priced in African markets to the development of local capital markets, financial literacy, artificial intelligence and fintech.

Another issue was how Africa’s reserves, pension funds, sovereign wealth funds and insurance assets could be put to greater use in financing the continent’s development.

The conference came at a time when African countries continue to face high financing costs and growing investment needs.

A digital platform to better track Africa’s progress towards harnessing the demographic dividend

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As Africa undergoes an unprecedented demographic transformation, countries’ ability to fully harness the potential of their populations, particularly young people, will largely depend on their capacity to produce and use reliable data to inform public policies and measure progress.

It is against this backdrop that the United Nations Economic Commission for Africa (ECA), through its Subregional Office for West Africa, and the United Nations Population Fund (UNFPA), in collaboration with Côte d’Ivoire’s Ministry of Planning and Development, through the National Population Office (ONP), launched on 7 September in Abidjan a technical workshop to validate and operationalize the Digital Platform for Monitoring the Implementation of the African Union Roadmap on Harnessing the Demographic Dividend.

Held from 7 to 9 September 2026, the meeting marked a major milestone in finalizing the pilot phase of the platform jointly developed by ECA and UNFPA. The platform aims to provide Member States with a common tool to track progress, identify gaps, strengthen accountability and support evidence-based decision-making.