Ethiopia's export earnings from textiles have been growing. In spite of yearly growth, however, the revenue earning from the textile sector is very small compared to the target.

Germany, Turkey and China are the leading destinations for Ethiopian textile products. Garment, yarn and fabrics are at the top in revenue generators. The highest performance level of the factories in the textile industry is only 60 per cent of their potential. Factories which are involved in garment production are performing lower than 40 per cent.

Strengthening capacity of industries and addressing shortage of raw material are among the priorities to be carried out this year. Increasing plot of land used to cultivate cotton is another area the country is working to address this challenge and meet the increasing demand. Currently cotton is being cultivated on more than 1,25,000 hectares of land.

Ethiopia's textile manufacturing industry embraces both medium and large public and private enterprises. Their main activities include spinning, fabric formulation, dyeing, finishing and sewing. The textile sector mainly produces 100 per cent cotton textiles. Each enterprise produces one product range, such as cotton yarn, cotton fabrics, bed sheets, blanket, knitwear etc. All the cotton yarn in the Ethiopian market is supplied to the local handlooms.