Ethiopia as a newly emerging global textile centre: A review

Abstract

The purpose of this paper is to address the situations that world make Ethiopia a resurgent country for textile and clothing manufacturing. Ethiopia is attracting the attention of the world due to several conductive demographic, geographic, and economic factors like the availability of cotton (major input of the sector) with cheap workforce, and low cost energy supply. Politically, the country is stable and the government has been encouraging the private investors by providing tax holidays and duty free activities. To accelerate economic transformation and attract domestic and Foreign Direct Investment (FDI), the Ethiopian government has developed industrial parks, by providing the necessary services and facilities for industries. The government has put numerous and realistic plan of actions in place to assist the expansion of the textile and clothing sector. Ethiopia also signed duty free access privilege to large market of USA and European Union (EU) which increases the export of the country and help to become the future hub of textile investment.