(3BL Media/Justmeans) - Increased international interest in Ethiopia’s centuries-old textile industry is resulting in investments by some of the world’s biggest companies. Five years ago, there was little interest in Ethiopia’s textiles, but over the last three years queries from overseas have increased, and this country is now the fourth largest and second fastest growing economy in Sub Saharan Africa. It has been singled out as a land of growth and investment opportunity.

Ethiopia wants to position itself as the next source for the world’s clothing industry; growing some of the world’s finest cotton, it has about 60 garment factories and 15 textile mills in operation. Ethiopia’s new role as an awakening textile giant is helped by an abundance of cotton — millions of hectares suitable for growing cotton remain untapped — and labour, thanks to a population of about 90 million, with a large proportion under the age of 30. The textile and garment sector in Ethiopia has set ambitious targets to expand rapidly by 2015 and is considered a priority by the Government‘s Industrial Development Strategy with a strong vision to become world-class by 2024.

Moreover, the clothing industry in Asia is being disrupted. The collapse of the Rana Plaza factory in Bangladesh last April, which killed more than 1,100 people, drew worldwide attention to the poor conditions of many Asian factories. Plus, production costs in Asia are increasing, and now strikes by garment workers in Cambodia, another major supplier, have put pressure on global firms. Tesco, the world’s third-largest retailer, recently announced it expects to source more clothes from Ethiopia. H&M, the world’s second-biggest fashion retailer has said it sees opportunities for producing clothing in Ethiopia.

Foreign companies are sensitive about the need for regulated growth and ethically sound practices, so that mistakes made before are not repeated. It really matters that clothes are produced in good conditions and that everyone involved is treated decently, which is why foreign companies are working closely with the Ethiopian government to ensure the long-term development of a well-regulated, ethical clothing industry. One advantage here is that many suppliers have worker unions, which ensures a good dialogue between workers and employers. So, as Ethiopia welcomes investments from all over the world, it becomes highly attractive.

H&M and Swedfund have created a unique cooperation in Ethiopia that will contribute to the development of a responsible Ethiopian textile industry by this fall. They see an opportunity to get involved in Ethiopia's growing textile industry at an early stage. In this venture H&M will contribute with expertise and knowledge of the textile market as well as purchase of products from suppliers that Swedfund will invest in, while Swedfund will provide local market expertise and expansion investments in suppliers to H&M.  Both will be setting standards for sustainable production and following up indicators such as water use and wages.

Now with several Ethiopian designers already making it onto the international fashion stage, expect to see "Made in Ethiopia” emerging more over the coming years.

Photo Credit: Embassy of Ethipopia