Ethiopia: Textile Sector Receives 58 New Factories to Assist in Lofty Ambitions
In a bid to meet the government's ambitious
plan of collecting 500 million dollars from the textile sector in the
current fiscal year, 58 additional mid-level textile companies joined
the export sector this September.
In addition to the 58 mid-level factories, which come on top of the existing 110, the Ethiopian Textile Industry Development Institute (TIDI) is aspiring to open six new factories and expand four others, in order to meet the target.
The recent move by the TIDI aims to boost export revenue from the textile sector. Currently, it is functioning at around 50pc of its production capacity, whilst generating 43pc of the exports in the manufacturing sector.
The TIDI estimates that textile factories inEthiopiawork at only 54pc of their total production capacity. The country exported close to 10,000tns of textile and garments during the last fiscal year.
"We are planning to utilise 84pc of the production capacity in every factory by the end of the current fiscal year, " Bantihun Gessesse, acting corporate communication director at the TIDI, told Fortune.
In the manufacturing sector, textile and garments are one of the major areas of focus in the Growth & Transformation Plan (GTP). This aims to increase export earnings up to one billion dollars by the end of 2014/15 fiscal year.
In the last three years, however, the sector has only brought in 244.6 million dollars; 59pc short of the planned 600 million dollars.
"Although the goal is very ambitious, we are working at fulfilling our potential to achieve it," said Bantihun. "We are pushing large textile factories to produce at their maximum potential."
The Institute, established four years ago to facilitate the country's transition to an industry-based economy, aims to increase the number of high level textile factories to 48. In doing so, it will create 40,000 new job opportunities by the end of the GTP period.
Despite its shortcomings, the sector is starting to progress, according to Bantihun.
According to the current fiscal year's two-month export review, close to 20 million dollars has been obtained so far. This is 56pc higher than the 13.2 million dollars recorded over the same period last year.
In addition to the 58 mid-level factories, which come on top of the existing 110, the Ethiopian Textile Industry Development Institute (TIDI) is aspiring to open six new factories and expand four others, in order to meet the target.
The recent move by the TIDI aims to boost export revenue from the textile sector. Currently, it is functioning at around 50pc of its production capacity, whilst generating 43pc of the exports in the manufacturing sector.
The TIDI estimates that textile factories inEthiopiawork at only 54pc of their total production capacity. The country exported close to 10,000tns of textile and garments during the last fiscal year.
"We are planning to utilise 84pc of the production capacity in every factory by the end of the current fiscal year, " Bantihun Gessesse, acting corporate communication director at the TIDI, told Fortune.
In the manufacturing sector, textile and garments are one of the major areas of focus in the Growth & Transformation Plan (GTP). This aims to increase export earnings up to one billion dollars by the end of 2014/15 fiscal year.
In the last three years, however, the sector has only brought in 244.6 million dollars; 59pc short of the planned 600 million dollars.
"Although the goal is very ambitious, we are working at fulfilling our potential to achieve it," said Bantihun. "We are pushing large textile factories to produce at their maximum potential."
The Institute, established four years ago to facilitate the country's transition to an industry-based economy, aims to increase the number of high level textile factories to 48. In doing so, it will create 40,000 new job opportunities by the end of the GTP period.
Despite its shortcomings, the sector is starting to progress, according to Bantihun.
According to the current fiscal year's two-month export review, close to 20 million dollars has been obtained so far. This is 56pc higher than the 13.2 million dollars recorded over the same period last year.
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