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Ethiopia’s textile and garment exports remain disappointing

Ethiopia's textile and garment sector export revenue during the fiscal year 2016-17 that ended on July 8 was a third of planned revenue. Ethiopia earned $89.3 million out of a the estimated goal of US$271 million during the previous Ethiopian fiscal Year. Despite the below expectation performance, Ethiopia plans to become the top textile manufacturing country in Africa.

As Assefa Tesfaye, Corporate Communications Director at Ethiopia Ministry of Industry (MoI) , insufficient supply of inputs, delay in commissioning several industries contributed to the underachievement of textile sector. Ethiopia is building or has commissioned more than a dozen industrial parks across the country with a view to become a light manufacturing hub in Africa by 2025 especially in textile and garments.

It in particular Ethiopia had its ambitions set on the Hawassa Industrial Park, located in southern part of Ethiopia, to revolutionize its budding textile and garment sector. However, the Ethiopian ministry of industry says a pause in commissioning some textile and garment plants in the Hawassa Industrial Park contributed to the disappointing export results. Once operational at full potential, the park is expected to generate $1 billion for Ethiopia mainly from textile and garment products.

 
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