Major global brands are now beginning to source from Ethiopia. Such interest is believed to stem from rising wages in China, labor unrest and violence in Cambodia, and ineffective compliance with rules and regulations in various countries in South Asia. Also, Ethiopia has been making efforts to create favorable conditions in order to attract investors.

The textile and apparel sector in Ethiopia is centered around spinning, weaving, knitting, and finishing. A few years ago, the country set ambitious goals for the textile and garment industry with production, productivity and export performance of the industry set to be further increased. Currently, the textile and apparel sector in Ethiopia employs 47,000 people. According to plans, the number of skilled workers will increase to 3,50,000 within the next five years in 12 industrial parks.

Initiatives are being given to foreign investors or shareholders. This is expected to help the country in professionalising of the state-owned companies and bring in foreign currency. Several major foreign companies have invested in the textile and clothing industry in Ethiopia and a number of high profile brand names have started sourcing apparel from the country. In 2014, H&M began purchasing textiles and garments from Ethiopia. UK retailers Tesco, George and Primark also began sourcing from Ethiopia earlier that year.