Month: February 2018

Ethiopia drops charges against 101 suspects, including Col. Demeke and Brig Gen Tefera

As per the decision of the Executive Committee of EPRDF, the Federal Attorney General dropped charges against 101 suspects on 16 Feburary, including Colonel Demeke Zewde. The other suspects include among others Getachew Ademe, Atalay Zerfu, Nigst Yirga and Teshager Woldemichael.

Of the suspects, 56 were charged with having links with Ginbot 7 and the remaining 41 having links with OLF.

In a related development, 18 inmates were granted pardon, including Brigadier General Tefera Mamo and Asaminew Tsige.

They will be released after their cases are reviewed by the Board of Pardon and once approved by President Mulatu Teshome.

Similarly, the Amhara regional state dropped charges against 224 suspects detained in North Gondar zone

The regional state also pardoned 55 inmates who have been imprisoned in Gondar and Chilga prison centres.

The detainees were previously charged with terrorism and participating in violence. They will be freed as of tomorrow. Five detainees have so far been released, it was noted.

Discover the new Ethiopian e-Visa

In June 2017, the Ethiopian Immigration and Nationality Affairs main Department in collaboration with Ethiopian Airlines finalized preparations for the e-visa service for international visitors to Ethiopia.

The e- Visa is processed and issued online on a single Web page where applicants apply, pay and secure their entry visa online.

Once the online application is approved, applicants will receive an email authorizing them to travel to Ethiopia and they will get their passport stamped with the visa upon arrival in Addis Ababa.

The process will save time, energy and cost for travellers to Ethiopia in addition to the simplicity and convenience that it facilitates.

Please refer the following requirements for Ethiopian eVISA.

  •  e-Visa application fees are not refundable
  •  Your passport must be valid for at least 6 months from the date you intend to enter Ethiopia.
  •  Currently, we allow travellers with e-Visa to enter Ethiopia via Addis Ababa Bole International Airport. Entry via other ports of entry is not allowed.
  •  The validity of Ethiopian e-Visa starts from the date you intend to enter Ethiopia, not from the date of issue.
  •  Please carefully read and comply with the important notices and guidelines stated in each step of the application form.
  •  Travelers who are nationals of or have a permanent residence permit in one of the eligible countries can apply for e-Visa.
  •  Currently, we are issuing single entry tourist visas and conference visas only.

Are you eligible for an e-Visa? 

Citizens from the following countries are eligible for e-Visa:

  1.                 Argentina
  2.                 Australia
  3.                 Austria
  4.                 Belgium
  5.                 Brazil
  6.                 Canada
  7.                 Czech Republic
  8.                 Denmark
  9.                 Finland
  10.                 France
  11.                 Germany
  12.                 Greece
  13.                 India
  14.                 Ireland
  15.                 Israel
  16.                 Italy
  17.                 Japan
  18.                 Kenya   (exempted)
  19.                 Kuwait
  20.                 Luxembourg
  21.                 Mexico
  22.                 Netherlands
  23.                 New Zealand
  24.                 North Korea
  25.                 Norway
  26.                 Poland
  27.                 Portugal
  28.                 Russia
  29.                 Slovakia
  30.                 South Africa
  31.                 South Korea
  32.                 Spain
  33.                 Sweden
  34.                 Switzerland
  35.                 Thailand
  36.                 United Kingdom
  37.                 United States
  38.                 China
  39.                 Djibouti (exempted)

Learn more about e-Visa here: https://www.evisa.gov.et/#/home

 

 

 

 

PM Hailemariam submits letter of resignation

Prime Minister Hailemariam Desalegn has submitted a resignation letter as both Prime Minister and Chairman of the Ethiopian People’s Revolutionary Democratic Front (EPRDF) on 15 February. PM Hailemariam said his decision to resign from the leadership of both EPRDF and the government is to be part of the efforts being made to ensure lasting peace and deepen democracy in the country.

The Executive Committees of his party, the Southern Ethiopian People’s Democratic Movement (SEPDM) and the EPRDF’s have both accepted his request to resign.

Shiferaw Shigute, head of EPRDF office, said PM Hailemariam Desalegn has served as chairman of EPRDF and Prime Minister of Ethiopia for about the last six years and contributed a lot to the ongoing reform programs.

He has also served as chairman of the Southern Ethiopian People’s Democratic Movement (SEPDM) for the past 17 years and played a crucial role in guaranteeing peace, democracy and good governance in the country move forward following the unexpected death of the great leader Meles Zenawi,

The Council of EPRDF will democratically elect a replacement at its next meeting. The Premier expressed his hope that his party and government will make history again by conducting peaceful power transition.

However, PM Hailemariam will continue to serve in his current positions until the EPRDF Council, and the House of People’s Representatives (HPR) approve his letter of resignation.

He is currently doing his job and will continue until a new Premier is appointed.

 

 

Solar Cell- Panels

Local investor to develop 100 MW from solar energy

A private investor is going to develop a-100 megawatts (MW) of solar energy in Ethiopia for the first time, according to the Ministry of Water, Irrigation and Electricity (MoWIE).

A local investor, who will build the solar farm, has been identified following the culmination of the bidding process. Preparations are underway to ink the final agreement with the inventor. The solar energy farm will be built around Metehara, 200 km southeast of the capital Addis Ababa.

After selling the power it generated to the government for 20 consecutive years, the investor will hand over the farm to the government. The construction of the farm is expected to take 7-8 years.

Ethiopia has designed favorable policy and strategies for the private sector to engage in hydro-power, wind and solar energy development.   The country has been providing various incentives to attract more foreign and local investors and companies in the sector.

In addition to solar energy, private sector investors are participating in the development of geothermal energy, such as the two Canadian companies that will develop geothermal energy plants at Corbetti and Tulu Moye. Each company is expected to generate 500MW.

Ethiopia seeks to raise its power generation capacity to 17, 347 by 2020. It has so far developed 4, 284 MW and the construction of projects that have the capacity to generate 9,000 MW is also underway in various parts of the country.

Massive release of prisoners continue

Ethiopia has released hundreds of prisoners and dropped charges against others in recent weeks. Following the decision of the Executive Committee of EPRDF, the government of Ethiopia has been dropping charges and pardoning individuals imprisoned for inciting violence, terrorism and religious extremism.

Additional suspects whose charges were dropped or were granted pardon were released from prison on 14 February, including Eskinder Nega, Andualem Arage and former chief administrator of Gambella Regional State, Okelo Aquay, Ustaz Ahmedin Jebel, Kalid Ibrahim, Ahmed Mustefa and Mohammed Abate. Seven suspects, including Bekele Gerba, were also freed on 13 February.

Prosecutors in Ethiopia also dropped charges against two bloggers on 14 February and announced they would abandon the prosecution of a third amid a wave of prisoner releases.  Six Zone 9 bloggers were arrested in April 2014. Two were released in July of the following year, while the remaining four were charged with terrorism.

http://www.fanabc.com/english/index.php/news/item/11345-ethiopia-releases-detainees,-including-eskinder-nega,-andualem-arage-and-ahmedin-jebel

Four foreign companies set to commence production at Kombolcha industrial park

Four foreign companies have begun installing machinery to commence production at the Kombolcha industrial park, Amhara regional state.

Azimeraw Dejene, project coordinator of the park told ENA that the industrial park is attracting various global companies.

Companies from South Korea, China, Italy and the US have so far been installing and transporting industrial machinery since last September.

When the companies start production, they will stimulate industrial activities in the area and create a good opportunity for local companies to gain better experience and, he said.

The four companies are expected to go operational this Ethiopian fiscal year once the finished installation of machinery.

They will create jobs for 20,000 people once they started production with their full capacity, he said.

Built at a cost of 90 million US dollars, Kombolcha industrial park was inaugurated last July in attendance of Prime Minister Hailemariam Desalegn.

Fairfax Africa Fund, Asia partner to build $4 billion refinery in Ethiopia

A US-based investment firm is collaborating with partners from Asian countries to build an oil refinery in Ethiopia.

The project, worth $4 billion, is expected to serve the country and the rest of East African market. Located in the eastern Ethiopian town of Awash; some 220 kilometres from the capital Addis Ababa, the refinery will have the capacity to process 120,000 barrels per day. That is equal to six million metric tonnes of crude oil.

“Here in Ethiopia over the next ten to fifteen years there is going to be a very massive transformation in the economy from what used to be an agrarian to what is to become an industrial based economy,”  said Zemedeneh Negatu, Global Chairperson at the Fairfax Africa Fund. “That means a very significant increase in transportation which is what is what this refinery comes into. By the way, it’s not just a refinery. The refinery is just the first component…we are going to have an entire petrochemical over the next fifteen years.”

At the moment Ethiopia uses three million metric tons of fuel every year.

“The aim is to service all of East Africa. To just give you a very quick reference point …all of East Africa…which is a couple of hundred million people…has just one tiny refinery. And yet East Africa is actually the fastest growing region in Africa as a whole. And on the later of that the fact that there is a lot of urbanisation going on we figured this is a viable project. Now the 4 billion is an estimate. It could be slightly lower or it could be slightly higher.” Negatu said.

Reports suggest Ethiopia built its first oil refinery in 1967 in the Port of Assab in current Eritrea.

The then refinery built by Russian engineers had the capacity of producing 500,000MT of fuel per year only. Then it was upgraded to process 800,000MT of fuel per annum.

But the new facility will eventually have the capacity of refining 12 million metric tons of crude oil yearly. That will boost the confidence of Ethiopia’s energy security program.

Intrade Co to invest $100 million to build a textile factory in Ethiopia

The British firm Intrade Co, specialized in agricultural raw materials, will disburse $100 million for the construction of a textile factory in Ethiopia.

The facility will be built over more than 10 ha inside Mekelle industrial park, in Tigray region located 783 km from Addis-Ababa. The construction is set to last 18 months and is expected to generate 1,300 local jobs once the operational phase is launched.

This new investment reflects a general trend of many foreign investors attracted in particular by the competitive salaries, an abundance of energy as well as a favourable fiscal environment.

Lower valley of the Omo river: Ethiopia’s Southern jewel

Located in Southwest Ethiopia, the Lower Omo Valley is one of the most diverse areas in East Africa. Home to some of Africa’s most traditional tribes, the region was once inhabited by our earliest ancestors and is the place where the earliest known discovery of Homo Sapiens fossil fragments was found. This exceptional archaeological and cultural wealth led the area to be designated a UNESCO World Heritage Site in 1980. The spectacularly beautiful Omo Valley also boasts a diverse ecosystem ranging from arid lowlands to lush high-mountain areas, volcanic outcrops, and one of the few remaining ‘pristine’ riverine forests in semi-arid Africa which supports a wide variety of wildlife.

Archeological Wealth

Ethiopia possesses an exceptional archaeological wealth, exceptionally significant to the research of prehistoric human and its material culture. The site was designated a UNESCO World Heritage Site in 1980 for its renewed prehistoric discovery of fossils and exceptional present cultural activities. The Unesco also noted that the discoveries of ancient stone tools in an encampment offers evidence of the oldest known technical activities of prehistoric beings, thus making the property one of the most significant for mankind. All these awe-inspiring archaeological findings contributed to give Ethiopia the title of “cradle of mankind”.

The entire Omo river basin is significant geologically and archaeologically: the age-old sedimentary deposits in the Lower Omo Valley are world renowned for the discovery of many hominid fossils, that have been of fundamental importance in the study of human origins and evolution. These fossils include the remains of Homo gracilis and Australopithicines estimated at some 2.5 million years old, as well as the earliest known bone fragments of Homo sapiens, dating from 195,000 years ago.

A mosaic of cultures

In addition to its scientific significance, the tribes that live in the lower Omo Valley are believed to be among the most fascinating on the continent of Africa and around the world, as the lower valley of the Omo has been a crossroads for thousands of years as various cultures and ethnic groups migrated around the region. More than forty tribes reside in the area and the valley is home to about 200,000 people.

The authenticity and cultural diversity of the Mursi, Suri, Nyangatom Dizi and Me’en have attracted researchers on diversity. The place is also a home for Omotic-speakers of the South Omo and includes the Ari, Maale, Daasanach, and Hamar-Banna. In her article titled ”Why Is Ethiopia’s Omo Valley Region So Rich in Culture?” Albee Yeend (2017) observed the distinctive features of each tribe: the Karo’s decorate their bodies and hair with chalk paint to imitate the guinea fowl and paint multi-coloured facemasks; the Mursi, for their part, are quite simply one of the most fascinating tribes, as women wear huge clay lip-plates while men have stick fighting rituals. As for the Hamer tribe, the men practice the ‘Bull Jumping’ – a three-day initiation rite held every spring – and the women are some of the most beautiful in East Africa; and let’s not forget the crocodile- hunting Dassanech, the most southerly of the tribes who live in Omo Valley. The Bana, Tsamai, Konso, Erbore, Borana and Gabbra have their own equally exclusive and interesting customs.

The traditions of the Omo Valley tribes are deeply embedded, and each tribe’s identity is vividly clear, even to outsiders. Researchers have noted that this extraordinary wealth of traditional human cultures and small tribal groups exhibiting an amazing wealth of body decoration and adornment was due to their long isolation. Most travel advice websites, such as Lonely Planet, strongly recommend visitors to experience the fascinating culture of the ethnic groups settled in the Omo Valley by visiting traditional Daasanach villages, watching Hamer people performing a Jumping of the Bulls ceremony or seeing the Mursi’s mind-blowing lip plates.

Spectacular landscapes

Besides cultural attractions, the Lower Omo Valley is endowed with astonishing flora and fauna. It is a spectacularly beautiful area with diverse ecosystems including grasslands, volcanic outcrops, and one of the few remaining ‘pristine’ riverine forests in semi-arid Africa which supports a wide variety of wildlife.

The Mago National Park intersects the park and flows into the Omo River covered by dense acacia woodland. The Park is actually the home for over 100 types of wild animals of which are the buffalo and elephant, lesser kudu and a few other antelopes, leopard, jackals, cheetahs and lions, olive baboons and velvet monkeys roam within the park’s boundaries. The area is highly favourable for birdwatchers as it inhabits 300 species of birds like the Egyptian plover; Pel’s fishing owl, the Black-rumped waxbill and the dusky babbler. The area also includes other national Parks of Ethiopia such as the Omo National Park and Chelbi Wildlife Reserve. The valley is also the home of the Adenium obesum or the Desert Rose, a wonderful dark and light pink little trees whose trunk looks like a very small Baobab tree. As the area is more accessible than it was a decade ago due to new road networks and the development of telecommunication networks and sustainable tourism tours, Omo Valley is increasingly a must-see destination for all the lovers of scientific research, nature and culture. If you visit the area on your way from Arba Minch to Keyafer to Jinka market in the afternoon, you might have the chance to witness the wedding ceremony of a Hamer couple or an incredible bull jumping ceremony. If you manage to visit this place, its fond memories shall remain with you forever. ■

 

Ethiopias textile revolution

Ethiopia: The Next Hub for World Apparel Investment and Sourcing

In the last 5 to 6 years, Ethiopia’s textile and apparel industry has grown at an average of 51% and more than 65 international textile investment projects have been licensed for foreign investors. The decision of the Ethiopian Government to prioritize the sector and design incentives to attract investment in view of worldwide competition has played a big role in the development of the sector’s economic status. This article was originally published in the 9th issue (January 2018) of The Ethiopian Messenger, the quarterly magazine of the Embassy of Ethiopia in Brussels.

Slow beginnings

Ethiopia’s long history of textile production began in 1939 when Dire Dawa Textile Factory, the first modern garment and textile factory of the country, was established. Later, Addis Garment PLC (formerly known as Augusta) was established in 1958. From then to 1991, the growth of the sector was sluggish; in fact, by 1991 there were only 19 textile and garment factories in Ethiopia, all owned by the State due to the command economic policy of the country.

Following Ethiopia’s adoption of a free market economy in 1991, the number of textile and apparel manufacturing companies increased to over 90. However, despite the government’s efforts, few transformational changes were witnessed in the sector until 2010.

A booming sector

Ethiopia’s textile and apparel industry has experienced major development over recent years, mainly driven by the country’s wide availability of raw materials, cheap labour, low energy costs, and several bilateral trade agreements with the world’s biggest markets. Data shows that in the last 5 to 6 years, Ethiopia’s textile and apparel industry has grown at an average of 51%, and more than 65 international textile investment projects have been licensed for foreign investors during this period. This recent surge in Ethiopia’s textile and apparel production and export to the global markets shows that the country has the potential to become one of the leading textile and apparel hubs in Africa, capable of exporting the equivalent of 30 billion USD with a bold vision of transforming the nation into a compelling new apparel sourcing hub for brands, retailers and their supplier.

The sector has become a top priority for Ethiopia as part of its goal to become a middle-income country by 2025. The key objective is to make the sector globally competitive and to bring the necessary structural transformation to the nation’s economy to export industrial outputs, create thousands of jobs, attract much-needed foreign currency and above all, contribute to poverty reduction.

In the last 5 to 6 years, Ethiopia’s textile and apparel industry has grown at an average of 51% and more than 65 international textile investment projects have been licensed for foreign investors. The decision of the Ethiopian Government to prioritize the sector and design incentives to attract investment in view of worldwide competition has played a big role in the development of the sector’s economic status. At present, the Ethiopian textiles and apparel industry consists of approximately 188 medium and large-scale factories, 112 of which are foreign-owned. The total industrial sector in the country equals about 17% of the country’s GDP, with textiles and leather dominating the exports.

Industrial parks, strong infrastructure and convenient logistics facilities

Based on the Growth and Transformation Plan I and II, the government intends to construct 15 export-geared, state-of-the-art and eco-friendly industrial parks in different regional states’ main cities. Five are already operational and two will be inaugurated in the upcoming months. In addition, one private industrial park built by a Chinese company in the Eastern Industrial Zone is operational and seven more are under construction, among which one is dedicated to textiles and apparel. All parks have an international standard building with high infrastructure, safety facilities and low carbon footprint. They also boast a wide range of government facilities on site under the Ethiopian Investment Commission’s one-stop service from banking to visa and immigration facilities, import and export licenses, work permits and customs clearance, etc.

Among other things, the cluster of specialised operational state-run parks, the Hawassa, Mekele, Bole Lemi, Kombolcha parks and the Adama Industrial Parks are also dedicated to textile and apparel. The flagship eco-friendly Hawassa Industrial Park, which is dedicated to textile and apparel manufacturing industries, encompasses 1.4 million square meters, 410,00 square meters of factory spaces across 37 shades, making it Africa’s largest manufacturing park with 100% occupancy secured from the very beginning. The park is planned to generate 1 billion USD foreign currency per year and employs 60,000 workers at its fullest operational capacity.

These initiatives have already attracted several international investors. Among the firms currently setting up operations in the Hawassa Industrial Park are: PVH Corp, owner of the Calvin Klein and Tommy Hilfiger brands; Hong Kong-based dress shirt specialist TAL Apparel; Indian denim giant

Arvind Ltd, Chinese fabric mill Wuxi Jinmao; Indonesian Busana Apparel Group in garments; Hong Kong garments company EPIC; British Hela Clothing Group, the Spanish Quadrant Apparel Group PLC and Best Corporations Indian Private Limited Textile Company.

Transport infrastructure is constantly improved: the newly built electric railway network that links Addis Ababa, the dry port city of Modjo, and Djibouti reduced cargo transit times from three days by road to 10-12 hours by train and rail corridors that will make up a 6000 kilometres network are underway to create a series of trade routes to neighbouring Kenya, South Sudan and Sudan are being built. In addition, Ethiopian Airlines, the largest and the fastest-growing airline in Africa, plays a key role in the logistics process.

Incentives of the sector

The textile sector is open to foreign investors and Ethiopian Diaspora. The minimum capital required for a foreign investor is 200,000 USD per project, and if a foreign investor invests in partnership with a domestic investor, the minimum capital required is 150,000 USD per project. The land will be given on a lease basis and the lease payment differs on the location of the investment. However, the government encourages foreign investors to invest in the newly built textile and apparel specialized parks that are located along key economic corridors, connected to ports by electric-powered railway lines and roads with lucrative incentive packages.

In addition, the Government provided the following incentives to encourage investment in the sector:

– Up to 10 years corporate exemption of income tax depending on sector engagement;

– Up to 6 years exemption depending on sector engagement;

– Additio=nal 2-4 year exemption for industrial park enterprises with at least 80% export or input supply to exporters;

– Additional 2-year exemption for 60% exporters or input suppliers to exporters within or outside of industrial parks

– Additional 30% deduction for 3 consecutive years if the investment is in underdeveloped regions.

– Up to 5 years personal income tax exemption for expatriate employees of industrial park enterprises (tenants) following the issuance of a business license.

– 60-80 years of land lease right at a promotional rate; with sublease right for industrial parks enterprises.

-Reliable electricity at global competitive rate government avails dedicated power substation for industrial parks.

Regarding customs duty

– 100% exemption from the payment of customs duties and other taxes levied on imports is granted to all capital goods, such as plant, machinery and equipment and materials;

– Spare parts worth up to 15% of the total value imported of the imported investment capital goods, provided that the goods also exempt, from payment of customs duties;

– An investor granted with customs duty exemption will be allowed to import capital goods duty-free indefinitely

– An investor entitled to a duty-free privilege buys capital goods or construction materials from local manufacturing industries shall be refunded customs duty paid for raw materials or components used as inputs for the production of such goods;

– Investment capital goods imported without the payment of customs duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges.

Exemptions of Customs Tax and Duties on raw material through a set of incentive schemes: Duty drawback, Voucher, Bonded manufacturing warehouse and on-site (factory) custom inspection of imported raw materials and exportable products.

A fast-growing export market

When it comes to international exports, Ethiopia is now at one-third of the use of its capacity and one-tenth of potential export value. Given the forecasted growth of the population (which is expected to double to 180 million inhabitants in 2025-2030), the sector will need to grow rapidly and

Desta PLC’s textile manufacturing facility located in Addis Ababa

mature a lot faster than other developing nations. The Ethiopian government plan for the sector to reach maturity in the upcoming 5-10 years, which is three times faster than other emerging nations. In that sense, Ethiopia differs a lot from nations like Bangladesh, for instance, where the sector has come to blossom with an active intervention of government, making the local market much more attractive for Ethiopian textiles and apparel companies.

In recent years, the global market has become increasingly accessible to countries such as Ethiopia. New export opportunities were created through initiatives such as AGOA (the African Growth and Opportunity Act), COMESA (the Common Market of Eastern and Southern Africa) and the many bilateral trade agreements concluded with Western countries, including the Netherlands, Belgium and Luxembourg. Ethiopia is also part of the “Everything But Arms” program that has been set up to provide access to the EU market for Lesser Developed Beneficiary Countries, free of duty and without quota restrictions, for all export products except arms.

Textiles and apparel exports from Ethiopia have increased substantially over the last decade. Based on figures from the Ethiopian Revenue and Customs Authority, Ethiopia’s textile industry obtained about $89.34 million worth of exports in the 2015/2016 fiscal year. According to the Ethiopian Textile Development Institute, Ethiopia has currently five major public textile factories producing mostly workwear garments for the domestic market, while about 180 privately-owned local and international factories produce shirts, suits, work clothes and uniforms for national and foreign markets.

Verticalisation and social and environmental responsibility

Verticalisation is another factor the government has considered in creating a fully vertical supply chain from the ground up. The full cycle of textile business opportunities is encouraged in Ethiopia and more than 50,000 hectares of cotton is under cultivation, while an additional 45,000 hectares of high-quality cotton is cultivated by small-scale farmers. The production of cotton is already well integrated into the textile sector, with garment factories relying heavily on domestically-produced cotton.

Textile and apparel companies operating in Ethiopia are also obliged to meet the social and environmental requirements of their buyers which demand certifications based on their performance on the ground. The Industrial Parks Development Corporation makes sure that the parks are eco-friendly and that these facilities are in place in usage. The Ministry of Labor and Social Affairs also ensures that the textiles and apparel companies’ labour recruitment, benefits, occupational health and safety comply with the labour law of the land.

Besides, international institutions like Swedish apparel giant H&M, the International Labor Organisation (ILO) and the Swedish International Development Cooperation Agency (SIDA) have launched an industrial relations project aiming to improve the development of a socially sustainable textile and apparel industry in Ethiopia. They are also dedicated to providing training and technology transfer in the sector, which all stand in favour of boosting Ethiopia’s textile and apparel industry.

Promising context and remaining challenges

Over 80 years of development, Ethiopia’s textile and apparel industry has transformed from one of the country’s least developed sectors to today’s fully integrated industry and value chain with a significant contribution to the nation’s GDP.

Meanwhile, the government of Ethiopia has also been taking actions to encourage investment in this sector and has created various incentives to support the industry and due to this many international apparel companies are making their preferred investment and sourcing destination to Ethiopia.

As we have seen, the major strengths of Ethiopia’s textiles and apparel sector are the very high commitment of the government in support of the sector, the availability of abundant labor at low cost, cheap electricity costs and goods and the many incentives put in place by the government (tax holidays, income tax holidays up to 2 years for expatriate technicians, integration possibilities with raw materials) as well as fast and convenient transportation infrastructure. Existing challenges are related to the immaturity of the sector and its actors, such as the limited availability of raw materials and the inefficiency of digital processing in business.

Therefore, the Ethiopian Government highly encourages and welcomes the Ethiopian Diaspora and foreign investors and traders to source and invest in textile and apparel industry independently or in a joint venture with preference in textile and apparel parks. ■