Practical Problems And Challenges Of Ethiopia In Developing Textile And Garment Industry

The textile and garment industry is highly connected.

Well functioning upstream and downstream industries are critical to efficient and high-quality project production.

At present, the surface accessories needed by Ethiopia clothing enterprises need to be imported, which will lead to a long manufacturing cycle and can not meet the stringent requirements for quick response orders.

For fabric companies, the same problem exists in Ethiopia.

Quantity and quality are not guaranteed.

According to the delegation, at present, the road and railway pportation in Ethiopia has not been marketed, and the efficiency of state-owned enterprises is not high and expensive.

According to Ayka, a container pport from its factory to Djibouti port costs more than 3000 dollars.

The high cost of logistics is not expected to be effectively resolved in the short term.

Increase worker

It is a long-term challenge.

According to the investigation of Dongfang Industrial Park and Turkey Ayka group, the productivity of Ethiopia workers is still at a low level compared with the mainstream manufacturing countries in the world.

As one of the best local textile enterprises, the first-class textile equipment invested by Ayka also has room to increase output.

It is worth mentioning that this visit also learned that our country's investment in Ethiopia also had difficulties in operation due to inadequate understanding of investment laws and policies.

This also suggests that the Ethiopian investment enterprises should fully grasp the local laws in due diligence, and do not sign preferential terms beyond the law.

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According to data released by the United Nations Conference on Trade and development (UNCTAD) in May 18th, foreign direct investment in emerging economies increased by 30% over the same period last year, reaching a record 484 billion US dollars over the same period in 2014.

This is almost entirely driven by Asian investors.

Among them, foreign investment of Asian developing countries reached US $440 billion, making Asia the largest source of foreign direct investment in North America and Europe.

Enterprises in China and other countries are looking for new opportunities overseas to ease the slowdown in domestic growth.

This is one of the major trends in the global economy.

In 2014, China's mainland and Hongkong's foreign investment reached US $266 billion, making China the second largest source of foreign direct investment after the US.

Zhan Xiaoning, James Zhan, head of the joint China World Trade Center conference, said this reflects a significant change in China's global position.

10 years ago, the investment to the mainland of China was 18 times that of its foreign investment, but last year, the outflow of China's investment exceeded China's investment for the first time.

China's leading Asian infrastructure investment bank (AIIB) will soon be established and China plans to open a new Silk Road across Central Asia to Europe, which will inevitably bring more investment.

Therefore, the importance of China as a source of investment will only increase in the next few years.

The United Nations data show that the pnational investment of developed economies such as the European Union, the United States and Japan is unchanged from the previous year at 792 billion US dollars.

But Japan's foreign investment dropped by 16%.

The composition of investment in 2014 also illustrates the problem.

More than half of foreign investment in developing economies in 2014 is equity based, equivalent to new projects or acquisitions.

In developed countries, as much as 80% of foreign investment is reinvested in profits, and overseas subsidiaries have huge cash reserves.