The Ethiopian Textile and Garment Manufacturers Association (ETGMA)has called for stricter enforcement of laws against illegal clothing imports and increased support for local manufacturers to help them remain competitive in an increasingly challenging market.
Since the last few months, Ethiopia’s textile manufacturers have beenstruggling to compete with the influx of second-hand garments, known as ‘bonda’ clothingthat has been flooding the market at low prices.
The surge of bonda clothing, colloquially known as ‘Taiwanese’is making it difficult for Ethiopian textile manufacturers to sell their products in the market, says Ageazi G/Selassie, General Secretary, ETGMA. As these second-hand garments are often dry-washed, tagged, and distributed across various boutiques in urban areas, local businesses are unable to compete on price and quality. As a result, many manufacturers are being driven out of the market.
Over the past decade, Ethiopia’s textile and apparel sector has generated approximately $1 billion in export revenue, while imports have totaled around $5.4 billion, resulting in a trade deficit of $4.4 billion. This gap underscores the difficulties faced by the domestic industry, now further compounded by the proliferation of illegal clothing products.
Despite the importing illegal clothing being prohibited under Ethiopian law, the market for these garments is rapidly growing. These products enter the market through various channels and are often sold at prices that are highly attractive to consumers.
The impact of second-hand clothing influx on small-scale manufacturers and vulnerable businesses is particularly severe as they are being forced to quit the market. Local producers in rural areas are being further challenged by a different type of second-hand clothing, known as ‘relief,’clothing.
Asper a study conducted by the association last year, ‘bonda’ clothing accounted for 53 per cent of the Ethiopia’s textile market.This poses a significant threat to local textile industries in Ethiopia and beyond, as consumers increasingly opt for these cheaper alternatives, further pressuring domestic manufacturers.
