Changes In Raw Material Import Policy Make Ethiopia Textile Investment Hot

P, known as the "African ridge", seems to be the "Darling" of many international textile and garment industries in 2014. The Ethiopia Textile Group invested 550 million US dollars to open the largest textile and garment factory in Africa in India. The textile enterprises in Turkey plan to invest 175 million US dollars to build factories in Ethiopia. The international clothing giant Hennes and Mauritz (H&M) and the British retail giant Tesco are also planning to open branches in Ethiopia.

< /p >

< p > according to the statistics of Ethiopia Textile Industry Association (TIDI), in the first 6 months of 2013~2014 fiscal year (July 2013), Ethiopia exported 60 million US dollars in textile and apparel, compared with the same period in the previous fiscal year, the export volume increased by US $15 million.

Volta Information Center, a leading website in Ethiopia, said that Ethiopia's textile and apparel industry is experiencing explosive growth and will become one of the most important industries of Ethiopia.

< /p >

< p > < strong > < a > href= > http://sjfzxm.com/news/index_x.asp > production > /a > conditional advantage is favored by international textile enterprises < /strong > /p >

< p > in recent years, many international producers have set up bases for product processing in Asia, such as Bangladesh and Vietnam. At present, with the increase of wage level and the increase of labor costs in some Asian regions, some producers are more and more strict in terms of production conditions. They are looking for cheaper labor markets as production bases.

According to the German Fashion Association's report, Morocco and Tunisia are known as clothing producers in African countries, mainly producing "discount" (cheaper) clothing, while other African countries such as Garner and Kenya are less developed.

Ethiopia, as the second largest population in Africa, has many advantages in production. Thomas Ballweg, purchasing and technology consultant of the German Fashion Association, believes that Ethiopia has abundant labor force and low production cost. On the other hand, Ethiopia has the convenience of approaching the Suez canal, and the products can be shipped to European countries nearby.

Compared with the Far East countries, the time of pport products from Ethiopia will be greatly shortened, which will save 1/3 of logistics and pportation time.

< /p >

Less than P, thanks to favorable policy environment, low labor costs and convenient pportation conditions, some world famous textile enterprises are seeking to set up factories in Ethiopia.

In May of this year, India Shrivallabh Pittie Textile Group will invest 550 million US dollars to build a SVP textile company, the largest textile factory in Africa, in Ethiopia Kombolcha, and the Bank of Ethiopia will provide financing support for it.

A delegation from a garment investor in the United States visited Ethiopia and visited Ethiopia's investment prospects. The vice chairman of Phillips-Van Heusen (PVH), head of the delegation, said he was impressed by Ethiopia's efforts to create an attractive investment environment and promote industrialization.

Akber, a Turkey textile company, is also planning to invest $175 million to build factories in Ethiopia, and other famous garment manufacturers are also considering whether to set up factories in Ethiopia.

According to the Volta Information Center report, the first 9 months of the fiscal year, the Ethiopian clothing and textile industry has invested $84 million.

In addition, Sweden's international clothing giant Hennes and Mauritz (H&M) and the British retail giant Tesco are also planning to open branches in Ethiopia.

< /p >

< p > the Ethiopia government has formulated an economic development plan. By 2016, the economic growth rate of Ethiopia is about 7%~8%.

At the same time, the government of Ethiopia also stressed the importance of strengthening the development of the textile industry, and welcomed the large garment manufacturers like H&M to build a factory in Ethiopia.

According to a supplier of H&M, H&M hopes that orders for garment processing in Ethiopia can reach 1 million pieces per month, and a company spokesman confirms that Ethiopia's manufacturers are beginning to be included in H&M's clothing supply system.

< /p >

< p > < strong > import of raw materials was encouraged by national policy < /strong > < /p >

< p > recently, Minister Abtew of Ethiopia Ministry of industry said that since the implementation of the financial year, due to the continuous expansion of the company's production capacity and the strong demand of the domestic market, the Ethiopian industrial production enterprise has been beset by insufficient supply of raw materials. For this reason, the Ministry of industry has taken active measures to actively expand the import of raw materials for industrial production, especially the leather and textile enterprises that are subject to raw material constraints, and will be strongly supported by the Ministry of industry.

At the same time, the Ministry of industry will also actively respond to the shortage of domestic electricity supply to meet the production needs of industrial enterprises.

Abtew minister said that at present, the market demand of Ethiopia in the domestic market has been expanding. In the past 6 months, 60% of the textile and leather products have been supplied to the domestic market.

At present, according to official sources, Ethiopia has 60 garment manufacturers and 15 textile enterprises. The Minister of industry Sisay Gemechu has announced plans for the construction of the textile and leather industry industrial park in the country.

< /p >

< p > the determination of < a href= "http://fz.sjfzxm.com/ > > /a > Ethiopia textile and garment industry can be seen from the investment projects formulated by the government.

Textile and clothing production is the first investment promotion project of the government, including: first, strengthen garment processing and manufacturing to promote the increase of import and export orders.

Second, we should make use of the advantages of cotton in the local and neighboring countries for spinning production.

Third, the introduction of weaving production projects to ease the urgent need for fabric tension.

< /p >

The head of the LIDI, the head of the P, said that in the past 9 months, the exportation of the leathers made a total of $99 million 890 thousand, a 11% increase over the past year.

Therefore, leather products processing is also a project attracting investment from the government.

Including: men and women leather shoes production, leather bag production and leather gloves production projects.

< /p >

< p > < strong > infrastructure construction was supported by multi-party funds < /strong > /p >

< p > the perfection of infrastructure is an important consideration for many international textile enterprises to choose factory bases.

Infrastructure conditions in Africa are relatively backward, which is also one of the reasons that restrict the development of its textile industry.

As one of the members of the African Union, Ethiopia's Economic Development Bank of Africa (BADEA) decided to provide us $10 million in April this year to support the construction of the Essex highway project in Arabia.

In May, Standard Bank of South Africa will set up a representative office in Ethiopia as a platform for entering Ethiopia.

At the same time, the world bank agreed to provide us $380 million loan to Ethiopia to improve the infrastructure and public services in the city of Ethiopia and promote sustainable development.

< /p >

< p > > a href= "http://fz.sjfzxm.com/" > Ethiopia < /a > in addition to receiving economic assistance from African Union and other international organizations and agencies, and constantly creating and improving the construction of textile and garment industry including funds, logistics, infrastructure and public services, and creating favorable conditions for the development of the textile and garment industry, the Ethiopia textile industry association also put forward a textile development plan in the stage of "economic growth and pformation plan", which was implemented in the country from 2010~2011 to 2014~2015.

The association said that in the implementation of the economic pformation plan stage, Ethiopia plans to achieve US $1 billion in exports of textiles and clothing by 2016.

< /p >