Ethiopian govt focus on improving its textile sector

The Ethiopian government to improve its textile sector and boost exports is planning to make investment to the tune of US$1bn in industrial parks over the next decade. This will help enhance the country’s overall position as a major manufacturer.

Arkebe Equbai, special advisor to the Ethiopian Prime Minister said that in terms of industrial development and manufacturing development, they want to make Ethiopia number one in Africa.

The East African nation has targeted a 15-fold increase in textile and leather exports to US$1.5bn, as part of the current growth and transformation plan that ends in July, said a government official.

Ethiopia aims to capitalize on manufacturing, expand the sector by 25 per cent every year and create employment for 200,000 nationals annually.
Industrial zones in Dire Dawa and Adama will be set up this month.

In October 2014, South Korea’s Shin Textile Solutions Co. moved into the existing factory park at Bole Lemi, employing 3,000 people and a textile park opened in Hawassa in April.

The Ethiopian government has plans to invest US$10bn to develop industrial zones across the country for textile, leather, agro-processing and other labour-intensive factories, the additional funds would come from the World Bank’s International Finance Corporation (IFC) as well as Chinese and European sources.

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