TRALAC - Trade Law Centre

Ethiopia: Institute says textile, garment market expanding

Tuesday, 12 December 2017 Published: | ABEBE WOLDE GIOGIS

Source: Ethiopian Herald

The Ethiopian Textile Industry Development Institute said the foreign currency generated from the textile sector has been steadily growing.

Institute Communication Directorate director Bantihun Gessesse told The Ethiopian Heraldthat textile products have entered into Germany, Italy, China and United States through AGOA.

In addition, Sudan and Kenya have become market destiny and over the last three months the nation has earned $31.2 million from textile and garment export.

The burgeoning of the textile industries triggers the expansion of cotton farming by public, private sector and small-scale farmers. Currently, the total cotton farm being cultivated has reached 42,000 hectares of land. The domestic cotton production could satisfy the local demand, he added.

According to the director, the institute is providing training cotton growers to maintain the quality of the cotton.

Regarding foreign investors flow, Bantihun said the prevalent of peace and stability, availability of abundant cheap labour, plenty of cheap energy from hydropower and flourishing industrial parks all over the country are the pulling factor.

He said thanks to the enabling investment environment currently foreign companies are injecting their money, technology, experience as well as skills on the sector.

In addition, the government is encouraging foreign investors through the provision of various incentives including tax holidays, tax-free capital goods importation, custom services provision on the spot, and easily access to financial credit.

The world number one US textile industry known as HDM installed its factory in Hawassa Industrial Park and has so far created 10,000 jobs. It is expected to create many more jobs in the coming years. Most graduates from technical colleges would benefit from these job opportunities.

The director said university textile industry linkage is getting strengthened. Formerly, the only institution integrated with the industry was Bahir Dar University but currently more than six universities are enrolling students in textile and garment technology with first and second degrees.

However, the sector is facing challenges including incompetency, lack of industriousness and effective management that should be adequately addressed, he said.

 

Related News

Botswana: AGOA dream dims for local textile sector

Botswana: AGOA dream dims for local textile sector

Local textile and apparel producers appear to be giving up hope of exporting to the United States under the duty-free AGOA provisions, preferring instead to focus on the local and regional markets, BusinessWeek has established. AGOA is a trade arrangement between the US and sub-Saharan Africa running till 2025 and providing relaxed access to the American market. Textiles...

30 August, 2019
US delegation reaffirms commitment to Ghana’s apparel manufacturing industry

US delegation reaffirms commitment to Ghana’s apparel manufacturing industry

The United States of America has reaffirmed its commitment to supporting Ghana’s apparel manufacturing industry. This follows a visit of a high-level U.S Congressional Delegation including its Speaker, Nancy Pelosi, to Ghana’s largest apparel manufacturer in West Africa, Dignity Do the Right Thing (DTRT) located in Adabraka, Accra. Speaking to JoyBusiness at the visit...

30 July, 2019
Nigeria: Take advantage of AGOA textile visa stamp, NEPC tasks garment manufacturers

Nigeria: Take advantage of AGOA textile visa stamp, NEPC tasks garment manufacturers

Executive Director of the Nigerian Export Promotion Council (NEPC) Mr. Olusegun Awolowo has charged garment manufacturers to take full advantage of the recently launched AGOA Visa Stamp in Lagos. According to him, the exporters in the sector must not allow the golden opportunity slip away from them. Represented by the Deputy Director, National Export Office, NEPC, Mr....

18 June, 2019
AGOA textile visa stamp will benefit Nigerians

AGOA textile visa stamp will benefit Nigerians

Recently, the Nigerian Export Promotion Council (NEPC) AGOA Trade Resource Centre, Lagos, unveiled the AGOA Textile Visa Stamp. The Textile Visa Stamp, according to the NEPC, would enable garment manufacturers in Nigeria to have tariff concession on textile and garments manufactured in the country for export to the United States under the  African Growth Opportunity...

21 May, 2019
Kenyan textiles maker seeking to expand through AGOA

Kenyan textiles maker seeking to expand through AGOA

Textiles maker Rivatex East Africa Ltd is eyeing regional and international markets with its planned Sh6 billion upgrade. The modernisation drive will increase cotton consumption from 10,000 bales per day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from the previous 5,000. Managing Director Thomas Kipkurgat said the...

14 April, 2019
Botswana: Textile sector upbeat, despite AGOA export collapse

Botswana: Textile sector upbeat, despite AGOA export collapse

The country’s textile and apparel exports to the United States under AGOA, fell to just $3,000 (P32,100) in 2018, the first numbers showing the impact of the relocation to Lesotho of the last exporting firm. Under the African Growth and Opportunity Act’s duty and quota free provision, Botswana textile firms were shipping off P1.8 billion in stock to the US at the peak...

22 March, 2019