Posted by The Ethiopia Observatory (TEO)
by Abiy Hailu
The Ethiopian Textile Industry Development Institute (ETIDI) said the first six month export performance of the textile sector is lagging behind plan.
During the 2015/16 fiscal year first half year cotton development and textile industry performance evaluation, the Institute announced that while the nation planned to obtain some 60.07 million USD from the export of textile, 41.1 million USD has been obtained meeting 70 percent of the plan.
It was also noted that the major challenge in the export performance focus on local market, managerial and technical capacity of companies, power outage and fluctuation, shortage of manpower and high turnover, weak company linkage, investment project implementation delay and the like.
Institute Plan and Information Management Director Abebe Kasse told the media that the government believes that the sector has to be export oriented by giving due emphasis to quality. The last six month export performance is 70 percent of the plan because of the above mentioned challenges, he said. However, it is the conviction of the Institute that there is still potential to achieve the target for the year within the coming six months.
Most of the industries established at Bole Lemi industrial park are garment producers and they are expected to commence production next month and they would become additional input to achieve the target, he added.
Despite the country’s comparative advantage in cotton production, it has not managed to meet its local demand. According to the evaluation, during the production year, the planned land for cotton is 262,000 hectare but actual covered land was only 65,000 hectares. In addition, the performance evaluation shows that due to the El Nino, over 14,000 hectares of cotton plantation has been damaged and replanted with other crops. However, a total of 65,000 hectares (50,000 from Omo and 15,000 from Beles) was reversed from sugar to cotton production.
Ethiopia’s industry minister admits Ethiopia’s manufacturing sector too sluggish, despite all support