The textile industry is the largest manufacturing industry in Ethiopia. There are a number of state-owned and private textile and garment factories. The industry contributes the lion’s share of employment in the manufacturing sub-sector. Now, the Ethiopian government has asked the country’s Investment Commission to guide prospective investors through every step of the way.

Textiles and garments, leather products, cement, metal and engineering, chemical, pharmaceuticals and agro-processing are identified as priority areas for investment. A large domestic market and an increasing number of skilled workers are turning Ethiopia into an investment destination. The main raw material, cotton, is available in sufficient amounts. In textiles and clothing, spinning, weaving and finishing of textiles from the raw material to the production of garments are areas investors can look at. There are also ample manufacturing opportunities for prospective investors in tannery and leather products involving fashion items such as handbags, shoes, jackets and leather garments.

The main textile products are cotton and nylon fabrics, acrylic yarn, wool and waste cotton blankets and sewing threads. There are possibilities for manufacturing knitted and crocheted fabrics, carpets and sportswear. Already Chinese, Turkish and European garment manufacturers are seeking to expand their operations.