Policy gaps in Ethiopia's textile-garment sector; wage reforms needed

At a recent roundtable organised by the Forum for Social Studies (FSS), stakeholders pointed to the government’s delayed response in tackling the acute shortage of skilled labour in the sector.

The number of skilled workers entering the industry has dropped drastically in recent years, according to Tolera Aderie, former executive member of the Ethiopian Textile and Apparel National Association. The drop is attributed to the sector’s eroding professional prestige and a tendency among employers to hire less-skilled, lower-paid workers.

The government’s continued delay in setting minimum wage limits is a major concern and is harming both workers and the sector as a whole, Tesfaye Abdisa, president of the Ethiopian Textile Federation, was cited as saying by a domestic media outlet.

The International Labour Organization (ILO) reports that the average monthly wage in Ethiopia’s textile and garment sector is just 3,000 birr (about $52), among the lowest globally. Nearly half of workers in foreign-owned garment factories have left their jobs due to inadequate pay, signaling widespread frustration and instability.

Factory managers in key production hubs such as Hawassa, Bole Lemi and Kombolcha have echoed these concerns, stating that the lack of legal wage floors makes it tough to manage their workforce and retain skilled employees.

The challenges are further compounded by high labour turnover and absenteeism.

Despite the government’s efforts to attract investment and create jobs through the establishment of 13 specialised industrial parks, policy gaps around wages and workforce development continue to cast a shadow over the sector’s future.

Outdated vocational education and training curricula, a lack of industry-relevant skills and insufficient investment in training centres have left the sector struggling to meet the demands of modern, technology-driven manufacturing.

Fibre2Fashion News Desk (DS)