Ethiopia has begun investing in the textile industry. The country's climate is suitable for production of animal fiber and cotton which are significant ingredients in the textile industry. The country also has a huge and young workforce.

Producing strings, buttons and other textile materials at home could help the nation reduce the import cost. One problem in the Ethiopian textile industry is low capacity of factories and companies. Capacity building is being encouraged. Companies are given help to become competitive. Finance too is a problem. Individuals who have the training and knowledge of the sector have no capital to spend. And those who do not have the understanding and educational background own the capital. The main problem is to coordinate these crucial business partners to work together in a way that’s profitable for the textile industry.

Industrial zones are being encouraged. They can provide an opportunity for technological transformation. Indigenous garment fabrics can imbibe important experience from their foreign business partners. There can be training opportunities. Brand building opportunities can arise. Modern technological equipment and transfer of knowledge can strengthen productivity and help the country set export targets.

The country is working tirelessly to boost various industries that support the journey to industrialization.