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Ethiopian textile exports zoom in FY11'
Aug '11
Ethiopia's textile exports have zoomed to US$ 62.2 million during the fiscal 2010-11, registering a whopping 168 percent growth over previous fiscal, as per the annual report released by the Textile Industry Development Institute (TIDI).

The export earnings of the textile sector during the fiscal year equalled to 73.1 percent of the US$ 85.1 million targeted for the period.

A major part of these revenues were generated by Ayka Addis Textile & Investment Group which exported goods worth US$ 36 million, which mainly constituted garment and weaving items exports to Italy, Greece, Turkey, Cameroon and Germany. Ayka Addis was set up by Turkish investors with a capital investment of US$ 200 million.

In spite of existing problems with regard to supply of raw materials, provision for technology and designs, and the fact that the country's garment industry is functioning at less than 40 percent of its actual production capacity, the garment sector accounted for 43 percent of the textile industry's overall exports, TIDI noted.

Thread, yarn and woven items each accounted for a 14.3, 37 and 5.4 percent share respectively among textile items exports. Italy, Sudan, Turkey, Germany and the US were the key export destinations.

Presently the Ethiopian garment industry incorporates 88 medium and large scale textile manufacturing units employing around 26,000 workers. TIDI proposes to expand the sector by setting up 12 new factories, over six of which are planned to be set up with foreign investments.

According to the Ministry of Agriculture (MoA) statistics, around 2.6 million hectares of land in Ethiopia is suitable for cotton cultivation, which is same as cotton cultivation acreage of Pakistan, one of world's five leading cotton exporting countries. However, Ethiopia presently utilises only three percent of this area.

Cotton production for fiscal 2010-11 was expected to come to 42,000 tons, but actual production turned out to be only 37,000 tons. On the other hand, textile industry's cotton consumption for the period was 47,000 tons, which is indicative of robustly rising demand for cotton in the West African country.

Fibre2fashion News Desk - India

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