Ethiopia has entered a $28 million agreement with the United Nations Industrial Development Organisation (UNIDO) to bolster the sustainable development of the nation's textile and garments industry. The initiative, supported by the Global Environmental Facility (GEF), aims to propel the sector's growth over the course of five years.

Funded by the GEF, a multinational environmental fund focusing on projects related to climate change, biodiversity, and land degradation, the project will concentrate on advancing the circular economy within Ethiopia's textile and garment sector. This endeavor includes investments in new, resource-efficient technologies to enhance manufacturing processes.

The collaboration between Ethiopia and UNIDO signifies a significant step towards fostering sustainability in the country's textile industry. With a focus on promoting circular practices and adopting eco-friendly technologies, the project aims to drive long-term growth while minimizing environmental impact