ASSESSMENT OF THE EXPORT PERFORMANCE OF SELECTED GARMENT FACTORIES IN LEBU INDUSTRY ZONE, ADDIS ABABA

Abstract

This study examines the export performance of selected garment factories in Lebu industry zone based on different dimensions that have direct relevance to the export performance construct. Both primary and secondary sources of data were used to assess the export performance. The researcher has used personal observation, semi-structured interview and questionnaire to collect the data. Results showed that despite the improvement in export figures in the last five years, the companies’ export performance was at a low stage compared to plenty of incentives given by government, the capacity they have, companies ‘goals and major competitors. The researcher has forwarded important recommendations that need to be followed and performed by the companies and other shareholders to enhance the export performance of the assessed and other similar companies as a whole. The companies need to reduce their SMV by enhancing current skill of their workers, finding new work methods, improving line balances and others (Example: Reducing the SMV of basic t-shirt from 7 to 4.5), reduce the level of rework and second grade to 2-2.5% and 1% respectively, reduce the absenteeism rate to 2%, increase their capacity utilization to 85%, enhance the technology of their machineries by introducing some semi-automatic machines for special operations. Moreover, the government institutions such as ETIDI should work in building the capacity of these companies, searching markets, disseminating market information, making researches, proposing new incentive systems, and the actual practice of ETIDI experts 70% facilitation versus 30% technical support should be reversed.