Government to quadruple revenue from textile, garment export

(19 July 2007)

Various activities are underway to quadruple the 120 million birr revenue the country earned from garment and textile export this budget year, Minister of Trade and Industry said.

The Minister, Grima Biru, said that the government has been implementing a plan to raise the current amount of revenue to 500 million birr by 2010 through textile and garment export in due quantity, quality and type.

To realize the plan there is a need to build the capacity of manufacturing competent textile and garment products, Girma said, adding that measures have also been taken to encourage investors engaged in the sector.

A textile and garment training institute, under construction with 200 million birr to train adequate human power with the required quality, is expected to go operational in January 2008.

The government is trying to alleviate the administrative problems of textile industries in its possession by privatizing them to well experienced companies and investors on lease and sale.

The government will also provide the necessary support to the factories in their efforts to improve their export, he said, adding that expansion projects have been underway to build the production capacity of the factories that are not privatized.

Minister Girma further pointed out that the government’s efforts to engage foreign investors in textile and garment industries in the country is bearing encouraging results.