The Ethiopian Government has set out plans to increase its textile and garment exports by US $ 1 billion through its forthcoming second Growth and Transformation Plan II (GTP II). The T&C sector is also expected to create more than 300,000 jobs during the plan period.
In addition to the suitable policy concerning the sector, the nation is placed in the disadvantageous position with easy access to international value chain and it has abundant and competitive workforce, according to Ethiopian Investment Commission (EIC).
Also, different incentives in terms of structure, training, workshops, loan, machinery lease, finance, advice services, market linkages and the like have been provided for foreign investors and local small scale and medium textile and garment associations in order to encourage the sector, according to Siyoum Wujira, Garment and Textile Directorate Director, Ethiopian Textile and Garment Agency.
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As per the training document prepared by the Ministry of Industry, the major challenges are lack of input with fair price, quality and quantity, lack of skilled manpower, and less improved technologies. On the other hand, investors’ lack of awareness about the sector was mentioned as another issue to deal with and which made such a training mandatory. Slow process on credit access and some maladministration of the shades are few challenges for small- and medium-scale associations or people organized in textile and garment sector.
