Tesco, the world's third-largest retailer, is looking to source ethically produced clothes from Ethiopia, Reuters reported.

"Ethiopia is a very exciting potential country to grow a supply chain but needs to grow up to be a well regulated, ethical new industry," Giles Bolton, ethical trading director at Tesco, told the Retail Week Live conference on Wednesday.

Tesco has already placed initial orders from manufacturers in Ethiopia and Bolton said he had recently met with Ethiopia's ministers of industry and labour to make sure the development of the sector was well regulated.

"We see that as strongly in our business interest to take that long-term view," he said. "It's fundamentally important to customers who want to be confident that everything they buy has not been sourced in poor conditions."

Hennes & Mauritz, The Swedish fashion retailer, said in January it plans to source clothing from sub-Saharan Africa, in a move to diversify its supply chain and reduce reliance on Asian sourcing.

Bolton said he hoped Ethiopia could become a pioneer in Africa in garment production, which he said could be a major driver of economic development for the continent as it has been in Asia.

Source: Reuters