The textile and apparel industry in Ethiopia has exceeded its target export earnings over the past five months. In particular the leather industry performed spectacularly and the plan is to earn $90 million from leather exports this year. The sector is seen having immense opportunity to support the overall economy of the country with an improved functioning.

Some 80 of the over 400 textile and apparel industries in the country export textile products. Work is now on to resolve the challenges being raised by the textile and leather industries, including the availability of foreign currency, input raw materials and spare parts. The textile and apparel sector is one of Ethiopia’s key industrial sectors.

Foreign currency earnings are given priority as a way of offsetting the current shortage in hard currency. To effect proper market linkages with reliable buyers, market opportunities are being explored to obtain potential buyers in the global market. A 15-year National Cotton Development Strategy has been prepared to tackle the cotton shortage. Ethiopia is going to harvest a huge amount of cotton for export and to satisfy the demands of the local textile industry. Several major foreign companies have invested in the textile and clothing industry in Ethiopia.