A joint venture, between the Government of Ethiopia and investors from Turkey, has established a new textile unit with an investment of US $78.5 million in Sebeta. It is located at a distance of about 24 km from Addis Abba, which falls under the Oromia Special Zone. This unit will start the manufacturing process in January, 2011.
The industrial unit was named as Saygin Dima Textile Factory, after the Turkish company – Saygin and the region where the unit is located – Dima. It is going to start three units on a plot of land that was approved by the Investment Board of Oromia Regional State. The approval also extended a lease right of 80 years. This was done after the farmers of the region were paid the compensation.
The company plans to set up facilities for spinning, weaving, and dyeing of textile products. The Privatisation and Public Enterprises Supervising Agency (PPESA) owns 60 percent and 40 percent ownership is held by the Turkish company. It is mandatory to ship at least 45-50 percent of its output in the global market.
The Ministry of Trade and Industry (MoTI) targets to raise its revenue from total exports by 50 percent from US $2 billion in the last fiscal year. It also anticipates to generate a lot of revenue from the shipment of both textiles as well as apparels. The textile sector generated an income of $21 million in the last fiscal year, which was 3.9 percent more than that of the 2008/09 fiscal year.
The textile sector is expected to expand by four more textile units together with Saygin which will be operational in the 2010/11 fiscal year. MoTI is expecting to generate $50 million from the functioning of these units.
Fibre2Fashion News Desk - India
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