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Ethiopia

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According to the IMF, Ethiopia was one of the fastest growing economies in the world, registering over 10% economic growth from 2004 through 2009. It was the fastest-growing non-oil-dependent African economy in the years 2007 and 2008. Growth has decelerated moderately in 2012 to 7% and is projected to be 6.5% in the future – reflecting weaker external demand and an increasingly constrained environment for private sector activity.

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Ethiopia aims to generate 30 bln USD from textile sector by 2030

Published on July 25, 2017
Ethiopia has a target to generate 30 billion U.S. dollars in foreign exchange earnings from the textile and garment sector by 2030, according to Bogale Feleke, Ethiopian Deputy Minister of Industry. The deputy minister made the remarks while addressing a workshop organized to promote Ethiopia's textile industry sector held in Ethiopia's capital Addis Ababa on Monday. "We intend to increase our area of cotton production. At present, only 20 percent of the three million hectares are used for cotton production while we aim to increase to around 80 percent," local media FBC quoted Feleke as saying. Read more. Source | Xinhua Net
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Looking Beyond the Horizon: A Case Study of PVH’s Commitment in Ethiopia’s Hawassa Industrial Park

Published on July 25, 2017
Looking Beyond the Horizon: A Case Study of PVH’s Commitment in Ethiopia’s Hawassa Industrial Park. The story of how the PVH Corp. (referred to throughout this document as PVH) came to lead a group of its top suppliers to build factories and a fabric mill in Ethiopia’s Hawassa Industrial Park (HIP) is the study of a strong collaboration between a private company looking to optimize its business model and a government aiming to transform its economy through global strategic repositioning. The success of this story hinges upon the intersection of their goals and a shared vision of development that includes a strong commitment to social and environmental goals. PVH was motivated to invest in Ethiopia to respond to shifts in the global apparel sector, its growing desire to retool its business model and to address its concerns about compliance withsocial and environmental standards in its traditional sourcing locations. PVH had decided to rethink its business model and to look beyond the horizon towards a new region in which to locate its manufacturing base. To have better oversight and enforcement, PVH moved to adopt a fully integrated vertical supply chain, including direct investment in one of the manufacturing facilities. In selecting the location for its new vertically integrated and socially responsible supply chain, PVH looked for ample suitable land on which its supply chain partners could grow cotton, and sustainable sources of energy with competitive electricity rates for the production of yarn and fabric. The company required the country’s government to be committed to ensuring that relevant laws (worker rights, fire safety, building safety, etc.) would be enforced and that their manufacturers would meet international quality and production standards. Finally, PVH wanted to be an early-mover in this new sourcing market.
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Ethiopia, western world from donation to economic partnership

Published on July 13, 2017
Ethiopia's relation with North American and European countries that has been largely characterized by assistance has transformed to business and development over the past few years, Ethiopian Investment Commission said. Out of the total 25 billion Birr FDI came from Asian, European and North American countries between mid 2012 and mid 2017, the share of North American and European countries was close to 10 billion Birr, about 40 per cent of the total investment, according to data. Over the past 10 years Chinese and Indian investment had the lion's share in Ethiopia. Now the situation is changed and flow of North American and European investment has become nearly equivalent to those came from Asia, Mekonnen Hailu, Public Relation Director with the Investment Commission told The Ethiopian Herald. Read more. Source | Ethiopian Herald
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Coffee market reform gets green light

Published on July 11, 2017
Before going out for the recession, on July 7, 2017, the Parliament approved two proclamations that were designed to reform the entire coffee market value chain.The two proclamations are Coffee Quality Control & Marketing and Establishment Proclamation of Ethiopian Commodity Exchange (ECX). Both amended proclamations are meant to improve the coffee market from farms to its export destinations. “The amendment of the two proclamations came as one action taken to narrow the trade deficit,” said Prime Minister Hailemariam Desalegn while addressing the parliamentarians on July 7, 2017. Reforming the value chain came after research findings and discussions held between the government and stakeholders in the coffee market. One of the studies was the assessment that was made by the National Export Coordination Committee, which identified 11 major bottlenecks in the coffee market and its value chain. Read more. Source | Addis Fortune
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Improved technologies enhancing productivity

Published on July 05, 2017
The joint effort of partners in generating and distributing agricultural technologies making positive impact in boosting productivity and availing inputs to the industry. Ethiopian Agricultural Business Corporation Deputy CEO Tafesse Gebru told The Ethiopian Herald that the country has made improvement in utilizing agricultural technology to boost productivity. To back ongoing achievements, the corporation is doing its level best in distributing technologies such as fertilizers, improved seeds, machineries and others. This year,the corporation has distributed about 18 tractors to farmers while plans to import extra combiners and graders shortly. Read more. Source | Ethiopian Herald
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Ethiopia eyeing cluster centers to fast track industrialization

Published on July 05, 2017
Ethiopia is eyeing at strengthening its Small and Medium Scale (SMS) manufacturing industries through shared infrastructure of cluster centers, according to Federal Small and Medium Manufacturing Industry Development Agency. Agency Director Asfaw Abebe said the newly setup Agency is working on strengthening the Small and Medium scale manufacturing industries by building cluster Centers across the Country. “This project, which would be carried out as part of a cluster based industrialization scheme aims to address the problem of workspaces for small and medium manufacturing industries and help to strengthen the interlink between and among them.” The scheme would be an important mechanism that would enable the Country to support its industrial development in an integrated and harmonized manner. Read more. Source | Ethiopia Herald
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Improving quality to enhance agricultural export

Published on June 22, 2017
The amount of agricultural export commodity revenue obtained at the international market is though varied item to item, meeting the international quality standard has remained the major hindrance not to break into and navigate the global markets, the Ministry of Trade said. Presenting his Ministry’s 11-month performance report to the House of Peoples’ Representatives recently, Trade Minister Dr. Bekele Muladu said though vigorous efforts have been exerted to increase volume of agricultural exports and diversify commodities, desirable result has not yet gained. According to the Minister, among the other challenges, shortcoming in meeting international quality standard has posed a major setback in efforts made to enhance the performance of agricultural exports. Read more. Source | Ethiopian Herald
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Hawassa Industry Park goes operational

Published on June 22, 2017
The first phase of the Hawassa Industry Park (HIP), the 1st Sustainable Textile and Apparel Grand Park in Africa, has become fully operational. On an event organized yesterday to officially launch Park's operation, Prime Minister Hailemariam Dessalegne said the Grand Production inauguration of the Park is a demonstration of the government's commitment to deliver its promise to bring about structural transformation in the economy. The Government of Ethiopia is unwavering in its commitment to making the country the leading manufacturing hub in Africa by 2025. In this regard, the construction of the Park will contribute a lot to realize this vision,” he said. Read more. Source | Ethiopian Herald
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