Ethiopia’s vast potential for companies in the textiles and garments industry has been steadily growing, says Zeleke Temesgen, Investment Commissioner, Ethiopia.
Starting today, the Ethiopian Invesment Commission has organised Global Linen Textile Forum 2024 in Addis Ababa. The forum brings together participants from 15 countries. Co-hosted by Kingdom (Ethiopia) Linen PLC, Kingdom Holdings, the China Bast & Leaf Fibres Textile Association, and The Alliance for European Flax-Linen & Hemp, the forum marks a major milestone for Africa’s linen sector.
According to Temesgen, with over 70 per cent of its 120 million people under 30, Ethiopia offers a young workforce, abundant natural resources, and sizable arable land suitable for textile raw materials. Boosted by its strategic position in the global economy, improved capital productivity and competitive labor market, the country is emerging as the new regional sourcing destination for textile and apparel.
Foreign direct investment in Ethiopia’s textile sector has increased from $16 million in 2015 to over $500 million today, with projections of exceeding $1 billion by next year. Strategically located with robust infrastructure, including the Addis Ababa-Djibouti railway and Bole International Airport as it is Africa’s busiest cargo hub, the East African nations provide easy access to global markets. The government has also established Special Economic Zones (SEZs) with a stable power supply to support export-focused manufacturing, he indicated.
Since 2018, the Ethiopian government has implemented a series of reforms to create a more attractive environment for private sector growth. These include liberalising investment opportunities, easing restrictions on foreign investments, and ratifying special economic zones.
Additionally, Ethiopia is in the process of joining the World Trade Organisation (WTO) and actively participates in the African Continental Free Trade Area (AfCFTA) to enable the country to expand market access for investors and promoting trade.
Ren Weiming, Chairman, Kingdom Holding Group emphasises on the forum’s role in advancing the linen industry that has attracted investments worth about $70 million in Ethiopia. The Global Linen Textile Forum 2024 highlights Ethiopia’s growing position as a major player in the global linen market and its potential to drive the future of sustainable textile production.
