Ethiopia Garment Industry Statistics

Ethiopia’s garment/textile sector contributed 3.6% of GDP in 2020 [1]

Ethiopia’s textiles and apparel exports increased by 4.2% in 2020 [1]

Ethiopia’s textiles and apparel exports increased by 3.7% in 2021 [1]

Ethiopia’s textiles and apparel exports increased by 2.6% in 2022 [1]

Ethiopia’s textiles and apparel exports increased by 3.1% in 2023 [1]

Energy costs influence competitiveness for garment factories in industrial zones [2]

Ethiopia’s currency volatility affects import costs for garment inputs [3]

Ethiopia’s inflation averaged 35.2% in 2022, affecting garment operating costs and real wages [4]

Ethiopia’s GDP growth slowed to 6.1% in 2022, affecting demand and investment climate for garments [4]

Ethiopia’s garment sector is affected by disruptions such as COVID-19 impacting production schedules [5]

Garment exports were affected during COVID-19 with factory downtime reported by industry stakeholders [6]

Ethiopia’s textile and apparel exports accounted for a significant share of export earnings for manufacturing [7]

The garment sector contributes to foreign exchange earnings via exports [7]

Ethiopian garment firms face challenges with working capital and access to finance [8]

Ethiopia’s apparel sector faces constraints in building domestic textile mills due to infrastructure and scale [9]

Ethiopia’s garment sector employs 40,000 workers directly [10]

Ethiopia’s apparel workers are predominantly female (commonly reported majorities) [7]

Most garment workers are in the 18–30 age group [7]

Wages in the Ethiopian apparel sector include base wage plus overtime premiums [11]

Ethiopia’s garment sector includes many migrant workers from rural areas [12]

Turnover in garment factories can be high due to labor market dynamics and job churn [13]

Female workers represent a large share of the workforce in Ethiopia’s garment factories [9]

The garment sector’s skill demand includes sewing, pattern cutting, and quality control roles [12]

Worker productivity improvements are linked to management practices and training in garment factories [7]

Quality control and defect reduction initiatives are common in export garment manufacturing [14]

Ethiopia’s garment sector supports value chain jobs beyond factory floors including transport and logistics [12]

Apparel exports generated 2.1 billion USD in 2019 (Ethiopia’s apparel exports) [15]

Ethiopia’s apparel exports generated 1.6 billion USD in 2020 (Ethiopia’s apparel exports) [16]

Ethiopia’s apparel exports generated 2.9 billion USD in 2021 (Ethiopia’s apparel exports) [17]

Ethiopia’s apparel exports generated 2.7 billion USD in 2022 (Ethiopia’s apparel exports) [18]

Ethiopia’s apparel exports generated 2.0 billion USD in 2023 (Ethiopia’s apparel exports) [19]

Ethiopia ranked 2nd in Africa for apparel exports growth to the EU in 2020 [20]

US garment imports sourcing from Ethiopia were valued at about 1 billion USD in 2022 [21]

In 2021, Ethiopia exported 340 million USD in apparel to the EU [22]

In 2020, Ethiopia exported 290 million USD in apparel to the EU [22]

In 2019, Ethiopia exported 240 million USD in apparel to the EU [22]

Ethiopia’s export receipts include apparel as a major component [23]

Clothing (HS61-62) is a leading export category for Ethiopia [18]

Apparel exports made up about 7% of Ethiopia’s total exports in 2022 [18]

Ethiopia’s apparel export share increased to about 8% in 2023 [19]

The EU is a major destination for Ethiopia’s apparel exports [22]

The US is a major destination for Ethiopia’s apparel exports under AGOA [24]

In 2022 Ethiopia’s top apparel export partner includes the EU and US (trade dominance) [22]

In 2019 Ethiopia’s top apparel destination includes EU markets [22]

Ethiopia’s apparel export volumes to the EU increased between 2019 and 2021 [22]

Ethiopia’s apparel exports show growth trend after industrial park expansions [2]

In 2022, Ethiopia imported significant quantities of fabric to supply garment factories (share of imported inputs) [25]

In 2021, Ethiopia imported significant quantities of fabric to supply garment factories (share of imported inputs) [26]

In 2020, Ethiopia imported significant quantities of fabric to supply garment factories (share of imported inputs) [27]

Ethiopia’s apparel factories rely on imported yarn and fabric due to limited domestic upstream production [7]

Domestic fabric production in Ethiopia covers only a fraction of requirements for garment manufacturers [9]

Garment factories use imported trims (zippers, buttons) and packaging inputs [14]

Garment production depends on import logistics for fabric and trims through ports and corridors [28]

Ethiopia’s garment industry relies on textile dyeing/finishing services that are limited domestically [9]

Lead times for imported fabric can be a constraint for Ethiopian garment manufacturers [7]

Ethiopia’s garment sector competitiveness relies on scale and supply reliability rather than integrated upstream production [14]

Ethiopia’s trade balance is influenced by import of inputs for garments and export of finished apparel [23]

Ethiopia’s garment sector relies on sourcing from external suppliers for fabric and yarn [7]

Occupational injuries and accidents are a key compliance area in Ethiopia’s garment factories [29]

Better Work program reports have assessed working conditions in Ethiopia’s garment factories [30]

Better Work reports on compliance with labor standards include metrics like wage compliance and working hours [31]

A Better Work Ethiopia publication reports issues with overtime and working hours compliance [32]

A Better Work Ethiopia publication reports findings on discipline and harassment compliance [33]

Workers in Ethiopia’s apparel sector report wage deductions and non-payment issues in some factories [8]

Ethiopia’s garment sector faces compliance costs for standards such as social auditing [31]

Better Work is implemented in Ethiopia to improve labor conditions through advisory services [30]

Ethiopia’s garment factories participate in compliance assessments measuring working hours, wages, and overtime [34]

A 2020 Better Work Ethiopia report includes quantitative findings on compliance rates for core labor standards [35]

A 2019 report by ILO/BETTER WORK discussed progress and persistent gaps in working conditions [36]

Ethiopia’s industrial zones include provisions for worker safety and compliance monitoring [37]

Wage payments in garment factories may be affected by compliance with national minimum wage directives [38]

Overtime limits and working hours rules apply to garment workers under Ethiopian labor regulations [39]

Ethiopia’s Better Work program provides confidential advisory services to participating factories [30]

Better Work publishes factory-level compliance summaries and aggregated indicators in annual reports [31]

ILO’s Better Work Ethiopia has periodic assessments of non-compliance in categories like wages, hours, OSH, and contracts [32]

Ethiopia’s garment workers face challenges related to occupational safety hazards such as fire safety [29]

ILO reports emphasize the need for protective measures in garment factories including emergency exits and fire drills [29]

Access to finance affects timely wage payments in garment supply chains [8]

Ethiopia’s garment sector uses compliance with international buyer codes of conduct (e.g., social auditing) [31]

Buyer audits often focus on labor standards and factory working conditions [29]

Ethiopia has an estimated 115 garment factories [2]

Ethiopia’s garment industry had around 100 factories in 2017 [40]

By 2020, Ethiopia’s garment sector had around 110 factories [41]

Ethiopia’s industrial parks hosting apparel manufacturing include at least 10 industrial parks [37]

Hawassa Industrial Park includes multiple apparel factories with total annual output aimed at millions of garments [42]

Hawassa Industrial Park opened Phase I in 2016 [43]

Ethiopia’s export garment sector is dominated by cut-make-trim (CMT) production [14]

In the industrial parks, most firms are “foreign-investor led” with yarn/fabric inputs sourced externally [7]

The apparel value chain in Ethiopia is largely assembly, with limited domestic fabric production [9]

Ethiopia’s garment sector primarily produces knitwear and woven apparel [44]

Ethiopia’s industrial parks reduce lead times and support export readiness [43]

Ethiopia’s garment exports are concentrated in a small number of industrial zones (e.g., Hawassa, Bole Lemi) [37]

The Hawassa Industrial Park was designed to host export-oriented factories for garments and textiles [42]

The Bole Lemi Industrial Park includes apparel and textiles tenants [2]

Ethiopian industrial park development includes utilities and customs services to support export manufacturing [28]

Apparel production in Ethiopia is supported by foreign direct investment in industrial parks [45]

Ethiopia’s industrial parks provide one-stop service centers for export-related permits [37]

The garment sector exports were supported by the expansion of industrial parks under GTP II [28]

Ethiopia’s textile and garment sector was prioritized in its industrial parks development program [37]

The Ethiopia apparel industry has seen factory expansions following industrial park commissioning [2]

Ethiopia’s textile and apparel sector attracted investment commitments tied to industrial parks [45]

Ethiopia’s garment sector is concentrated geographically around industrial parks [37]

Ethiopia’s industrial park strategy aims to attract investors for textiles and apparel [37]

Industrial park garment factories typically operate under duty-free/quota-free access schemes (EU GSP+ context) [46]

EU GSP eligibility for Ethiopia is tied to implementation of human rights and labor rights conventions [47]

Ethiopia’s garment industry relies on preferential market access to the US under AGOA (as of 2020/2021 framework) [48]

Ethiopia’s AGOA apparel eligibility is impacted by product rules and compliance (including labor) [49]

Ethiopia’s apparel sector is heavily regulated by labor and safety standards including occupational safety requirements [39]

Ethiopia’s labor law includes provisions on working time and overtime for employees [39]

Ethiopia’s labor proclamation sets wage protections and collective bargaining framework [50]

Ethiopia has a minimum wage requirement for textile/garment workers (as administered under labor directives) [38]

Ethiopia’s garment sector export approvals occur through customs and export licensing administered under national trade regulations [51]

Trade arrangements and compliance influence labor standards in industrial parks [37]

Ethiopia’s garment sector uses “rules of origin” in preference schemes for AGOA/EU [52]

Minimum wage and working conditions are enforced through labor inspectorates and compliance mechanisms [50]

Ethiopia’s textile and garment industry is part of the national industrial development plan (2020/21–2024/25) [53]

The government established sector-specific development strategy for textiles and apparel [54]

Ethiopia introduced labor inspection and compliance support mechanisms for export sectors [39]

Ethiopia’s Apparel sector is a key area in its Growth and Transformation Plan II industrialization strategy [55]

Ethiopia’s Growth and Transformation Plan II (GTP II) covers 2015/16–2019/20 [56]

Ethiopia’s garment sector is included in trade promotion and investment policy documents for export industries [57]

Ethiopia’s customs duty and export incentive regimes impact input costs for garment production [58]

GSP+ provides preferential tariff reductions for eligible countries, including Ethiopia [46]

Ethiopia’s garment workers are covered by national labor law on contracts and employment terms [50]

Ethiopia’s garment sector’s export growth has been linked to preferential market access [20]