በቆሻሻው ዘመን የምጥቅቱ ደረጃ እንደዛ ከነበረ፤ በብልጽግና የከፍታ ዘመን የእድገቱ መጠን ምን ያህል ይሆን?
What is the growth rate during Abiy Ahmed's Propserity Party's 'Prosperity Era' ?
War in Ethiopia: Challenge to Ethiopian Apparel Industry and Economy
By
The Apparel Digest
April 8, 2022
A majority of people do have tendency to base the factor of success on a few linear aspects. What people don’t realize is that success is a multi-dimensional outcome. A key factor behind success is luck. And what the apparel industry of Ethiopia and every individual connected with its economy doesn’t have is luck itself.
African nations, in general, have it tough to grow. Weak domestic currency and declining revenue from commodities make it hard for them to advance economically. However, Ethiopia is different. It is a country born from the ashes and ruins of human conflict. Slowly but steadily, they started to rise from their demise and became a hub for industries and investments among the African countries.Least developed countries(LDC) are often appealing prospects for business purposes. With relative political stability and a proper government that made foreign investments easier, Ethiopia attracted attention from around the globe. The government’s direct involvement in different projects around the nation to create more money flow and employment opportunities also made Ethiopia a lucrative opportunity for international brands. Moreover, other factors such as cheap labor, low-tariff access to markets are also positive sides Ethiopia can bring to the table that the other African countries can’t.
Since Ethiopia comes up as an abundance of opportunities, a lot of countries jumped in. Global apparel companies like H&M, Decathlon, PVH, Tesco or Primark became the first of many buyers which started sourcing from for the garment factories of this East African nation. In fact, H&M started way back in 2014. Furthermore, after Ethiopian government’s decision in 2015 to introduce the Growth and Transformation Plan and establishment of many industrial zones around the country, many foreign companies started its operations in the country. In addition, observing the success of other companies, many new foreign entities also started to move for funding projects in Ethiopia. In 2017, American Company PVH also decided it was time to do business here. China became another strong stakeholder for the growth of Ethiopian apparel industry. Due to the apprehension of trade war with US, many Chinese enterprises have been investing in different industries of Ethiopia.Even from Bangladesh, DBL Group had joined with its global peers to start an apparel operation in Ethiopia. The Korean company Youngone which has big operations in Bangladesh and many others also started their operations with a goal to maximize their global apparel business.
Thanks to retailers’ keen interest to have manufacturing base in the country, the Ethiopian apparel industry bloomed. According to the data provided by the federal government, currently, Ethiopia has more than 200 industries around the country. The Ethiopian industry had an average growth rate of 51% from 2013 to 2018. More than 60,000 workers were employed directly in the apparel industry, and the majority of the workers were women.
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