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Global apparel companies setup manufacturing base in Ethiopia

American and European companies are setting up shop in Ethiopia. Until now, the majority of FDI was coming from China. Power supply and labor in Ethiopia is reliable and cheaper so it creates an attractive alternative to more commonly known manufacturing destinations. Industrial parks up and down the country are employing thousands of people. The country now has business stakes in all major sea ports in east Africa and the state-owned Ethiopian Airlines freights cargo to over 40 international destinations.

Velocity Apparelz from Dubai does textile production in Ethiopia. The factory can produce 26,300 pieces of jeans, 200 kg of knitted garments, a lakh pieces of poly-bag and 60,000 cartons a year. The workspace is automated, set up on conveyor systems, powered by wind and lit by LED bulbs with its own water treatment on-site. Other sustainable practices at the factory include waterless washing, sublimation fabric printing and laser-blast technology.

American Philip Van Heusen established a joint venture in Ethiopia in 2016 with Indian manufacturer Arvind. The PVH Arvind conglomerate will export eight million shirts annually. Over 80,000 Ethiopian people work in the textile sector and the plan is to make that two million by 2025.

 
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