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China-Africa Trade Information Service
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On November 19, the International Trade Center (ITC) organized a project under the Partnership for Investment and Growth in Africa (PIGA) project. The seminar was co-organized with the Ethiopian Investment Commission (EIC) and the China Chamber of Commerce for Import and Export of Textiles and Apparel (CCCT).
The event gathered more than 100 international buyers, potential Chinese investors, representatives of Chinese and foreign-owned companies in Ethiopia and representatives of Ethiopian institutions. It was followed by field visits to T&A factories in several industrial parks around Addis Ababa.
Despite challenges to overcome, such as reliable energy supply, customs procedures, lack of backward linkages and insufficient skills, all participants agreed that Ethiopia could become one of the next textile manufacturing hubs of the world with its wide and young labour pool, growing market potential, advantageous trade agreements, including the future African Continental Free Trade Area (AfCFTA), and strategic position.
Mr. Zhang Xi'an, the Vice President of the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), explained, "I led several missions of potential Chinese investors to Ethiopia in recent years and witnessed the great progress made in the development of the industry. I believe Ethiopia can become an important T&A manufacturing hub."
"If Ethiopia manages to solve its power issue, it has the potential to become a key T&A supplying hub," added Mr. Neil Hackett, Edinburgh Woollen Mill Ltd. Group Managing Director for Sourcing & Supply Chain.
All stakeholders emphasized the role of foreign direct investment (FDI) in leveraging this potential and the importance of attracting sustainable investments that comply with social and environmental standards.
Mr. Goshu Negash, President of the Ethiopian Textile and Garment Manufacturers Association, explained, "The T&A sector stagnated for many years, but it has been growing rapidly in the recent years, mostly due to foreign investors. The CMT (cut, make and trim) purchasing model can only be a stepping stone for the sector's growth."
"Chinese investment has contributed to the growth of the sector through knowledge and technology transfer, closing local companies' capital gap and opening up new markets, and the government is looking forward to working with more Chinese investors and international buyers to further develop the sector," added Mr. Sileshi Lemma, the Director General of the Ethiopian Textile Industry Development Institute (ETIDI).