Ethiopia’s textile and garment sector is in an upward trajectory.
The industry has grown at an average rate of 51 per cent. More than 65 textile investment projects have been licensed for foreign investors in the last five to six years.

The country hopes to be a continental textile hub in the coming years. The sector is also working on solving issues related to raw materials, namely cotton, in a bid to increase productivity and global competitiveness.

A 15 year road-map with time-frame has been formulated that would increase productivity, direct how the sector can be assisted and facilitated. The road-map in general provides a set of solution in identifying and solving bottlenecks in cotton production, and a way to interlink with pertinent stakeholders, including agriculture extension experts. It will also contribute to increase the cotton field coverage, and ultimately the cotton production of the country.

Expansion and development of industrial parks in various core areas of the country, developing technological adoption and industrial culture in the industry along with attractive investment incentives are helping the sector's growth.

As the core of the country’s light industry, textiles have been playing a pivotal role in facilitating structural transformation by accumulating capital that would enable the country to focus on capital-intensive heavy industries in the future.