The Ethiopian Textile Industry Development Institute has said during the last three months, Ethiopia earned $31.2 million from the export of textiles and garments. The Institute also noted the foreign currency generated from the textile segment has been steadily growing. Institute Communication Directorate Director Bantihun Gessesse has reported textile products have been exported to Germany, Italy, China and United States through AGOA.
The growing might of textile industries is triggering expansion of cotton farming by public, private sector and small scale farmers. Currently, cotton is cultivated in 42,000 hectares. Gessesse informs the Institute is providing training to cotton growers to maintain the quality of cotton.
Prevailing peace and stability, availability of abundant cheap labour, plenty of cheap energy from hydro power and flourishing industrial parks all over the country is attracting foreign investment in the sector. In addition, the government is encouraging foreign investors through the provision of various incentives including tax holidays, tax free capital goods importation, custom services provision on the spot and easily access to financial credit. World’s leading US textile company, HDM located its factory in Hawassa Industrial Park and has so far created 10,000 jobs.
