As Ethiopia is entering the second phase of its growth and transformation plan (gtp), the textile industry Development institute of Ethiopia has set a us $ 1 billion target for apparel and textile exports. Due to below- than-expected performance in the first phase of the gtp, even after having benefits such as agoa from the usa, the government will introduce incentives such as 100% duty- free import of textile machinery to attract new investments. similarly, duty-free import of spare parts of 15 per cent of capital goods for the first five years of operation, the possibility to hire expatriates free from income tax provided they stay for no more than two years and reconciliation of vat for materials purchased locally during the project period is possible if declared in six months, are among the incentives provided by the government.
Such incentives will provide a firm foundation for more than 152 new investments that are expected during the second gtp. Ethiopia’s government is building at least 10 industrial zones. a delegation of bangladeshi apparel, fabric and accessory manufacturers will visit Ethiopia for investment and trade opportunities, under the leadership of Anisul Islam Mahmud, MD, Shasha Denim soon. the company itself is looking at establishing a factory in Ethiopia but would not be the first as two more bangladeshi companies – Dbl group and Experience clothing – have started construction of their projects in the african nation.
