Ethiopia has entered into an agreement with the United Nations Industrial Development Organisation (UNIDO) to revitalise its textile and garment industry with a significant infusion of funding over the next five years.
As per the agreement between the two parties, Ethiopia will receive $28 million, primarily from the Global Environmental Facility (GEF), with UNIDO contributing $3 million towards the initiative.
Spearheaded by the Ethiopian Textile Industries Development Institute, the project aims to enhance circularity within the industry by implementing more efficient technologies and promoting recycling programs to minimise both physical and financial waste. Alongside technological advancements, regulatory improvements and institutional capacity building will be key components of the endeavor.
Headquartered in Vienna, Austria, UNIDO has implemented over 300 projects across various sectors in Ethiopia since 1968. Its focus on technical support and capacity building has been instrumental in fostering growth in Ethiopia's textile, leather, and agro-processing industries.
Ethiopia boasts a rich history of cotton production and textile manufacturing, with a considerable number of factories ranging from large-scale to small-scale enterprises. In recent years, international brands like Walmart, H&M, and Jiang Lianfa Textile have invested significantly in the country, with total sector investment surpassing $1.2 billion.
Buoyed by the country’s vast livestock population, particularly cattle, the leather industry presents immense potential for growth in Ethiopia. Despite challenges such as outdated equipment and supply chain inefficiencies, the country remains a key player in leather production, churning out millions of square meters annually.
It has introduced several initiatives initiatives such as the establishment of leather industry clusters and the strengthening of fashion design capabilities to address challenges facing the industry. The recent agreement with UNIDO signals a renewed commitment to provide much-needed support to propel its leather sector forward.
