Home / Knowledge / News / Textiles / Ethiopian textile exports have grown under AGOA – Textile body chief
Ethiopian textile exports have grown under AGOA – Textile body chief
10
Jul '09
The African Growth and Opportunity Act' (AGOA), the free trade pact with the US provides preferential access to Sub-Saharan countries in to US markets till 2015 and also has special provisions for exports of textiles and apparels. This act was enacted to help these African countries open their economies and build free markets in the region. The main idea behind the act was to help these countries grow their economies, by opening up the biggest market in the world.

Fibre2fashion spoke exclusively with Mr Endalkachew Sime, Secretary General of the Ethiopian Textile and Garment Manufacturers' Association (ETGAMA) and asked him as to how much Ethiopia has taken advantage of the act, to which he said, “Ethiopia's performance under AGOA can be said to be slow for the period 2001-2005. Exports eligible under the newly-added AGOA product categories amounted to only US $0.2 million in 2001, the first full year of operation of AGOA”.

He continued, “This increased to $1.3 million in 2002, which exclusively consisted of textiles, apparel and agricultural products. AGOA/GSP exports have gone up steadily, but slowly, year after year since 2005, representing an increase by $4.8 million through 2007. Total AGOA/GSP exports were $5.1 million in 2005 and reached $7.2 million by the end of 2006. AGOA/GSP exports for 2007 reached $8.9 million, the highest ever since Ethiopia started exporting under AGOA”.

He added, “The growth in export value has continued showing remarkable increase in the year 2008. The year-to-date total AGOA/GSP exports from Ethiopia to the U.S grew from $5.423 million in 2007 to $18.087 million in 2008, indicating more than a two fold increase. Ethiopia has continued to increase exports and from January-June 2008, Ethiopia's AGOA exports reached $9.7 million, surpassing $8.9 million achieved during the entire 2007 calendar year”.

“The latest data available for almost every product exported under AGOA/GSP show large increases, including textiles and apparel (up 162%), foliage/bouquet filler (up 115%), live plants (up 122%), fruits and nuts (up 1,495%) and also this achievement has come on back of a reputation carried by the Sub-Saharan countries of exporting commodities, which used to account for a majority of exports to the markets of the US in the last few years”, he concluded by saying.

Next we asked him to reveal the main reasons for Ethiopia not being able to take advantage, to which he replied by saying, “Lack of information on market opportunities in US which applies to the period from 2001-2005; low industrial capacity and base; relatively low skilled and inadequately trained labor force; lack of proper production management skills and last but not the least, existence of some bureaucratic challenges in order to derive benefit from the various government incentives”.

To conclude the interview we asked him as to, if the real benefits of the act had been garnered, what in his opinion could have been the situation of the Ethiopian industry in current times, to which he explained by saying, “The number/types of export items could have been diversified, as the current export is mainly of textile and garment items, along with which there could have been strong value chains of the various economic sectors starting from inputs to final product and beyond”.

“Currently, there are limited value adding establishments within all sectors that can produce products that meet international market requirements and also, currently, there are few vertically integrated manufacturing operations that suit export market operations. So, if the above conditions had been met, export volumes could have been better than the actual performance, at least closer to that of Kenya, a country which has benefited from non-oil exports”, he observed.

Fibre2fashion News Desk - India


Must ReadView All

UK Govt, fashion retailers sign agreement to fight slavery

Fashion | On 17th Nov 2018

UK Govt, fashion retailers sign agreement to fight slavery

John Lewis, M&S, New Look, NEXT, River Island and Shop Direct...

CNTAC delegation from China visits Pakistan

Textiles | On 17th Nov 2018

CNTAC delegation from China visits Pakistan

Chinese investors have expressed a desire to enter into joint...

Odisha to set up three textile parks

Textiles | On 17th Nov 2018

Odisha to set up three textile parks

Around 17 firms have expressed interest to invest to the tune of ₹589 ...

Interviews View All

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Anshul Sood, Oceedee

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Oliver Schmitz,

Oliver Schmitz

Germany-based Gmöhling is a leading manufacturer of aluminium containers...

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search