Ethiopia’s export revenues from textiles and garments over the last eight months of the current fiscal year increased 23.1 per cent compared to revenue earned in the same period last year. However, this was 50 per cent below the target.

Managerial and technical limitations, inadequate supply of inputs, failure to meet international criteria and shortage of skilled manpower were among the limitations attributable to unsatisfactory export performance in the sector.

The country wants to diversify exports from agricultural products to strategic sectors like textile and garment manufacturing, through opening more than ten industrial parks in different parts of the country.

Ethiopia perceives textile and clothing supply chain as one of the country’s key targets for growth. By 2025, it aims at generating $30 billion from the export of garments and textiles. In the last five to six years, the textile and apparel industry in Ethiopia has grown at an average of 51 per cent, and more than 65 international textile investment projects have been licensed for foreign investors during this period.

In 2016, Ethiopia ranked second in attracting foreign direct investment in the textile and garment industry, next to Vietnam. It aims at becoming Africa’s manufacturing hub.