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Manufacturing
The manufacturing sector contributed 5% of GDP and 37.8% to the total value of industrial production in 2008/09 (Central Statistical Agency Statistical Abstract 2009). The major manufacturing activities are production of food, beverages, tobacco, textiles and garments, leather goods, paper, metallic and non-metallic mineral products, cement and chemicals. Under the export-led industrial development strategy, production of textile and garments, leather products and agro-processing are priority areas for investment. a) Textile and garmentThe textile industry is the largest manufacturing industry in the country. There are a number of state-owned and private textile and garment factories. The industry contributes the lion-share of employment in the manufacturing sub-sector. The main textile products manufactured are cotton and nylon fabrics, acrylic yarn, wool and waste cotton blankets and sewing thread.The availability of inexpensive labour and the main raw material, cotton, are the major factors for considering this industrial sector as one of the strategic industries for export development. b) Leather productsEthiopia exports processed and semi-processed hides and skins to the world market. Some of the products, such as Ethiopian highland sheepskin (which has gained an international reputation for making gloves), are known for their quality and natural characteristics. Ethiopian hide and skin exports include pickled sheep skin, wet blue sheep skin, crust sheep skin, wet blue goat skin, crust goat skin, crust cow hides, finished garment leather, finished glove leather, lining/upper leather, suede leather, full grain leather, embossed leather and patent leather.The manufacturing and export potential of finished leather and leather products (such as leather garments, footwear, gloves, bags and other leather articles) is also highly promising. c) Agro-processingEthiopia has tremendous potential for investment in agro-processing. Many of its agricultural products can be exported without being processed, while others can be processed before they are brought to domestic and foreign markets. The government has also placed a priority on the export of processed products, which involves and stimulates the growth of the agro-processing sector.Specific opportunities in agro-processing include:
d) OtherOther investment opportunities include manufacturing of:
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