China is investing in textile factories in Ethiopia. Among the inducements are cheap labor and electricity, vast arable land as well as various quota and duty free opportunities to the US and EU markets. One of these textile plants will create more than 20,000 jobs when it becomes operational. The textile industry has been identified as one of the priority sectors for development by the government. Ethiopia is home to over 230 textile and garment industries with 20 training institutes, employing about 37 per cent of the country’s public sector work force.
Nearly 11 Chinese companies are already involved in the manufacturing of leather and leather products, textile and garments. The textile and garment sector in Ethiopia has seen continuous improvement in the production capabilities of domestic textile, garment, knitting and weaving firms.
International textile and garment companies see Ethiopia as an investment destination. Ethiopia has recently become an increasingly important destination for international buyers looking for high-end shoes because of its fine leather products and a strong commitment to quality. Ethiopian entrepreneurs have been introducing new ideas for product design, production methods, labor management, procurement, and marketing.