Ethiopia Textile Industry Wants To Attract India'S Participation

Recently,

The Embassy in India held a seminar with the Federation of India industries. Zewdie, Ambassador of the Indian Ambassador to India, said that Ethiopia was eager to attract India to invest in the textile sector. The textile industry hoped to learn from the development experience of India textile enterprises to further enhance the industrial strength and participate in the international market competition.

According to introducing, in the past few years, India's investment growth in Ethiopia is due to Ethiopia's favorable trade policy and the potential for good profits.

In Ethiopia, the import of the necessary means of production for the purpose of establishing a factory is exempt from tax, and also includes raw materials needed for the production of export products.

In the textile and garment industry, the export products are all duty-free.

In some cases, the exemption period of 6 years' income tax can be extended to 8 years.

There is a set of safety protection measures for foreign investment.

In addition, for foreign-invested enterprises, its professional advisers and trainers provide 75% of the financial support and 70% low interest loans for the introduction of equipment.

So far, Ethiopia has attracted about $5 billion from India.

In Ethiopia, the textile and clothing sector has made significant progress in the past few years, but its

The export volume is very small, and only a small amount of cotton yarn and grey cloth are exported to EU countries.

Experts believe that the textile and clothing sector will enhance the competitiveness of the industry through attracting investment.

To this end, the Ethiopian government listed the textile industry as a priority to encourage investment.

Ethiopia has signed bilateral investment promotion and protection agreements with many countries in the world, especially the African Growth and Opportunity Act (AGOA) and universal preferential system.

With the implementation of the bill, textiles in Ethiopia can enter the US and European markets with tax exemption and quota free restrictions.

At present, a cowboy clothing production company in India is negotiating with the relevant departments of the Ethiopia government to set up a textile enterprise in Ethiopia.

The company plans to invest $100 million to produce and operate in Ethiopia.