Ethiopia’s textile and apparel sector is gaining global attention with opportunities for sustainable growth and international cooperation.
The Global Flax Textile Forum 2024, held in Addis Ababa, was a significant event highlighting Ethiopia’s potential in the textile industry. The forum, which hosted participants from 15 different countries, marked a milestone for Africa’s flax industry.
Youthful Workforce and Natural Resource Advantage
Ethiopia’s Investment Commissioner, Zeleke Temesgen, emphasized the country’s strong workforce, with 70% of the population under the age of 30, and its abundant arable land. Ethiopia’s strategic geographical location, competitive labor costs, and robust infrastructure also make the textile sector highly attractive.
Significant Increase in Foreign Direct Investment
Foreign direct investments in the textile sector have risen from 16 million USD in 2015 to 500 million USD in 2024, with projections to exceed 1 billion USD by 2025. Infrastructure projects such as the Addis Ababa-Djibouti railway and Bole International Airport provide easy access to global markets.
Focus on Sustainable Production
With 95% of its electricity sourced from renewable energy, Ethiopia offers an ideal location for eco-friendly production. The government is also supporting export-oriented manufacturing by establishing Special Economic Zones (SEZs) and providing incentives like tax exemptions and simplified customs processes.
Global Cooperation and Role in the Flax Sector
Among the organizers of the forum were Kingdom Holdings Limited, China Bast & Leaf Fibers Textile Association, and The Alliance for European Flax-Linen & Hemp. Kingdom Ethiopia Linen PLC invested 70 million USD in Ethiopia, creating over 1,100 job opportunities in the region.
Future Vision
Ethiopia aims to expand its international trade opportunities through its membership processes with the African Continental Free Trade Area (AfCFTA) and the World Trade Organization (WTO). Commissioner Zeleke invited global investors to join Ethiopia’s vision for sustainable and innovation-driven growth.
The Global Flax Textile Forum 2024 is seen as a crucial step in strengthening Ethiopia’s position in the international textile market. With its growing infrastructure and focus on sustainable practices, the country offers promising prospects for eco-friendly production and global collaboration.
