Textile Exports Target Fail By Half In GTP I
Textile export plan in GTP I failed by more than half, according to Ethiopian Textile Industry Development Institute (ETIDI).
ETIDI aimed revenue in billion dollars but managed only 456 million dollars. It also targeted to secure 2.5 billion dollars in gross value of the products (GVP), yet achieved 1.2 billion dollars.
Low production of cotton is cited as a major challenge for the failure by the Institute. Thus, the demand and supply gap was 32 percent in GTP I.
Lack of diversification in products, the quality and limited productivity affected the export performance, the Institute report states.
Textile factories average productive capacity in Ethiopia was 40 percent in 2010/11 when GTP I commenced. The plan was to reach 90 percent by the end of GTP I, yet it only increased by 60.5 percent in 2013/14 and 67 percent by 2014/15. The current production capacity of garment factories is 54 percent.
The report up to the 11th month of last year’s GTP performance by Ministry of Industry (MoI) states, the problem was associated with frequent power interruptions.