News Flash

'Ethiopia competing with Indonesian textile industry'

05 May '17

1 min read

Indonesia is trying to attract textile manufacturers to produce in the country as they are moving away from China owing to increased labour costs and air pollution. However, the country is facing tough competition from East African country Ethiopia, which is attracting a number of manufacturers owing to its competitive costs and availability of cheap labour.

Electricity in Ethiopia is relatively cheap costing 4 cents per kilowatt hour. Additionally, as per the African Growth and Opportunity Act (AGOA) with the US, exports from Ethiopia are not limited by quotas or duties, said Indonesian media reports quoting Ade Sudrajat, chairman, Indonesian Textile Association (API).

Some of their members have already invested in Ethiopia's textile sector, said Sudrajat while addressing a discussion on the textile industry.

Close to 124 foreign investors, including 71 from China, are interested in Ethiopia's textile industry, according to the Ethiopian Investment Commission. On the other hand, as per the data from Indonesia's Investment Coordinating Board, investment realisation in Indonesia's textile sector decreased by 7.3 per cent. It earned Rp 8.14 trillion in 2015 and Rp 7.55 trillion in 2016. (KD)

Fibre2Fashion News Desk – India

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