Advantage And Potential Of Ethiopia In Developing Textile And Garment Industry

1. Ethiopia has a relatively stable political and economic environment, and the political risk of investment is relatively small.

At present, Ethiopia has a strong ruling base in the country, and the society is relatively stable.

The ruling party and the central government are committed to developing the economy and eliminating poverty for a long time.

Since 2003, Ethiopia has maintained close to 2 digit GDP growth over the past ten years. The macro-economy has maintained a good momentum of development. The GTP plan for the five year period is ambitious, and investment related laws are more standardized.

Ethiopia has a good political relationship with China, and its economic and trade cooperation is increasing. It has signed bilateral investment protection agreements.

Overall, the political risk of investing in Ethiopia is small, which is conducive to long-term investment.

2. the central government takes textile and clothing as a priority development industry, and the development strategy based on special industrial parks and various incentive policies is conducive to the establishment of export oriented industries.

In talks with the prime minister's advisor, Ministry of industry and the Ministry of foreign affairs, senior executives at the Egyptian side said that the textile and garment industry is one of the most important industries of Ethiopia's industrialization, hoping to attract Chinese excellent textile and garment enterprises to invest in Ethiopia, and the Ethiopian government will focus on five important textile and garment provinces in Jiangsu, Zhejiang, Guangdong, Fujian and Shandong.

Ethiopia is learning from China to vigorously develop industrial parks, and has provided many preferential incentives to the export-oriented enterprises such as land, various taxes (corporate income tax, consumption tax, property tax, business tax, etc.), tax exemption for machines and raw materials, and "one-stop" service.

In particular, the Ethiopian government will cooperate with the PVH company of the United States to complete the construction of the textile industrial park in Hawasa in the beginning of December this year. PVH will pfer some purchase orders to Ethiopia.

Members of the delegation are very interested in Hawasa's industrial park project.

3. Ethiopia

Abundant resources, high quality and low cost.

Ethiopia has a population of over ninety million people and its population structure is very young.

The Ethiopian government attaches great importance to basic and higher education, so the quality of labor is higher than that of many other African countries.

According to Ayka Addis, an investment enterprise in Turkey, the average monthly wage of the ordinary clothing workers is 900 Bill, which is less than 300 yuan, and the labor cost has obvious advantages over China and Southeast Asian countries.

4. Ethiopia has enough water resources and low electricity prices.

Ethiopia has the unique advantage of hydropower development in Africa, and its construction capacity will reach 6 million kilowatts per year and the annual output of the country will reach 8 million kilowatts soon.

Low cost hydropower brings huge cost advantages to industrial development. It is understood that Ethiopia's electricity price can be as low as 3 cents per cent, which is a great attraction for the huge consumption of cotton spinning and other links.

5. Ethiopia has great potential for cotton cultivation, and has the possibility of developing from cotton to clothing full textile industry chain.

Ethiopia's lint yield is only about 70 thousand tons a year, but the total area of cotton planted in the whole country is as high as 3 million hectares. At present, the utilization rate is less than 10%, and the potential is very great.

If Ethiopia's cotton planting and production can enter a virtuous circle with the cotton spinning industry, its resources and cost advantages can be brought into full play.

In addition, Ethiopia has rich resources of raw materials for wool and linen.

6. Ethiopia, one of the least developed countries, enjoys zero tariff quotas for exports to the US and Europe.

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This year, the AGOA bill in the United States has a great chance to extend for another 10 years.

The EBA admittance will not be cancelled in the near future.

At the same time, because Ethiopia is a member of the common market of eastern and southern Africa, the goods produced by Ethiopia investment enterprises can export 23 African countries with a total population of 300 million with preferential tariffs.

7. the Ethiopian infrastructure is improving and China Airlines operates well.

Members of this delegation are very concerned about the import and export infrastructure of Ethiopia.

Essex does not have ports, and goods basically need to enter and leave through Djibouti port.

It is understood that the railway from the capital to Djibouti will be opened to traffic by the end of this year, which will greatly improve the efficiency of freight pportation.

Meanwhile, the Ethiopian government attaches great importance to the leading position of AI in Africa and the advantage of daily direct flights with cities such as China's Shanghai and Beijing.