With Southeast Asia and Turkey on the brink of saturation, Ethiopia is now positioned as one of the most promising hubs for apparel sourcing. Low salaries, foreign investment led by China and commitment to infrastructure are the country’s biggest incentives for operators in the sector. The first textile factories in Ethiopia were launched in 1939. The sector is growing at an annual average of more than 50 per cent and hosting around 65 international investment projects. The factories produce wool, cotton and nylon fabrics, acrylic and cotton threads, sewing thread and readymade garments, among others. The country plans to be the main textile supply hub in Africa, following in the footsteps of other countries such as Vietnam and Bangladesh. In 2016, foreign sales of the sector were 56 per cent more than the previous year’s. In 2019, the country’s exports of fashion goods to Europe were 49 per cent higher than the previous year’s.

H&M opted for Ethiopia as a textile hub in 2014. The Swedish fashion distribution group chose to set up joint ventures with local manufacturers to train workers and prepare factory executives. Currently, the Swedish retailer has 31 suppliers in Ethiopia. Inditex, Decathlon and Primark are some of the other major operators in the sector that have opted for the African country.