The Potential for Ethiopias Textile and Garment Industry

Clothing and textiles is a totally global industry, with multinational companies continuously searching the world for new sources of supply. It seems strange, therefore, that Ethiopia has been almost completely overlooked, even though its textile and clothing industries are ripe for development and the Ethiopian government is desperate to encourage investment and export growth in this industry - which is still in its infancy, but has enormous export potential. It has indigenous raw cotton and the potential to produce other natural fibres plus an integrated textile supply chain, albeit in need of modernisation and expansion. This month's briefing offers an overview of the industry in Ethiopia, including an outline and history, SWOT analysis, the domestic and export market, machinery and equipment, expansion plans, foreign investment and examples of local manufacturing and sourcing companies.

Table of contents :

Executive summary
Introduction
History and outline of the industry
Machinery and equipment
Labour
The domestic market
The export market
Support through policy and incentives
Expansion plans
Foreign direct investment
Difficulties facing investors

SWOT analysis of the Ethiopian textile industry
Strengths
Weaknesses
Opportunities
Threats

Examples of local clothing manufacturing and sourcing companies
Addis Garments
Almeda Textiles
Elias
Feleke Garments
GMM Garments
Haile Garments
Klowt Africa
Knit to Finish
MAA Garment
Mulat Garments
Narga Garments
Nazareth Garments
Oasis Abyssinia
Ras Dashen
Total Textile and Garment Services (TTGS)
Yonis

Appendix 1: Basic country information
Key facts
Ethiopian calendar
Ethiopian time
History
Politics

Appendix 2: Major investment incentives
Customs import duty
Exemption from payment of export customs duties
Income tax holiday
Board of Investment
Loss carried forward
Guarantees to investors
Repatriation of capital and profits
Guarantee against expropriation
Other guarantees

Appendix 3: Outline of the African Growth and Opportunity Act
Implementation
Country eligibility
GSP product eligibility
Apparel provisions
Other provisions

List of tables :

Table 1: Ethiopia’s textile and garment exports by destination, 2005-2006 (kg, US$ and %)
Table 2: Ethiopian government export targets to be achieved by 2009 (US$m and %)
Table 3: Ethiopia: Additional textile capacities required to meet 2008-2009 production targets (tons, m m2 and US$m)
Table 4: Areas and periods of tax exemption

Companies mentioned :

- Addis Garments
- Almeda Textiles
- Elias
- Feleke Garments
- GMM Garments
- Haile Garments
- Klowt Africa
- Knit to Finish
- MAA Garment
- Mulat Garments
- Narga Garments
- Nazareth Garments
- Oasis Abyssinia
- Ras Dashen
- Total Textile and Garment Services (TTGS)
- Yonis

To know more and to buy a copy of the report "The Potential for Ethiopias Textile and Garment Industry" feel free to visit http://www.bharatbook.com/ or contact us at +91 22 27578668.