Ethiopian government has made final pre-investment assessment with a Chinese delegation, for the construction of a US$500m textile factory in Addis Ababa. The textile factory will create about 20,000 new employment opportunities once it becomes operational.
This was disclosed when the Ethiopian president Mulatu Teshome hosted Chinese business delegation led by Kong Xiangjun, Board Chairman of Giangsu Lianfa Textile Company Limited.
Ethiopia has, in the recent years, attracted multiple investors in various sectors since the country has been identified as a land of growth and investment opportunities. The textile industry has not been left behind in this new interest by investors. The country is known for its fine cotton and rich textile weaving history and this could help textile factory projects.
The government has come a long way to ensuring it creates a suitable environment for investors who wish to invest in the country. This has been achieved by government incentive offerings, creation of a viable business environment, and provision of duty-free market access to both the US and EU.
The textile and clothing sector is considered as the key priority sector for the Government‘s Industrial Development Strategy as part of the Growth and Transformation Plan.
Earlier this year, India-based ShriVallabh Pittie (SVP) Group announced it would set up a US$550m spinning mill in Kombolcha town, in the Debub Wollo Zone of Ethiopia’s Amhara Region.
Construction of the industrial zone project is slated to begin before June 2015.