Dissolving the drawback of backward linkages, the Ethiopian government is preparing to open factories outside Ethiopia to export inputs that manufacturers in the country will need as a part of the project worth (Birr) Br 4 Billion called Ethiopian Industrial Inputs Development Enterprise (EIIDE). Under the project, the textiles and garments sector and leather and leather products sector will be supplied with the inputs from manufacturing units located outside Ethiopia. The new enterprise will also have a 200.5 million Br budget to grow cotton in partnership with private investors, with the enterprise owning 51pc share, according to media reports. This is a “principled approach” by the Ministry of Industries, says Fasil Tadesse, President of Ethiopian Textile & Garment Manufacturers’ Association (ETGMA). “It will make sure that inputs are delivered to the textile and garment manufacturers appropriately,” he said. “Stabilising the market, it will enhance the competitiveness of the sector in the international market.”
