Ethiopia plans to generate USD 240 million from the textile sector in the 2018/19 fiscal year. The textile and garment sector is a prioritized industrial sector by the government. The sector is expected to offset the country’s hard currency shortage. The country was able to gain USD 110 million, which is 46% of the expected outcome, in the 2017/18 fiscal year from the garment and textile sector. According to the Minister of Industry, Bogale Feleke, the failure in achieving the plan is caused by lower exports, shortage of cotton, lack of trained manpower, and instability in some parts of the country.

The Minister stated agreements to release efficient foreign currency in the textile and apparel market have been signed with the National Bank of Ethiopia and Development Bank of Ethiopia. He also said that the government had developed National Cotton Development Strategy, a 15 years strategy, in order to address cotton shortages. According to the minister, the strategy aims at improving local cotton production and putting Ethiopia at the top of cotton production in Africa.

The Director General of Textile Industry Development Institute, Silesh Lema, stated that maximum efforts are being undertaken to enhance foreign currency earnings from the sector. He said that the institute is doing its best to expand market opportunities and attract potential buyers from the global market.

Source: Ethiopian News Agency