CHALLENGES AND PROSPECTS OF TEXTILE AND APPAREL MANUFACTURING SECTOR IN ETHIOPIA: THE CASE OF ADDIS ABABA

Abstract

The Ethiopian government has prioritized the textile sub sector as the focal area in its Growth and Transformation Plan aiming the manufacturing sector the major driving force of the economy. This research paper focuses on challenges and prospects of textile and apparel manufacturing sector in Ethiopia particularly in the case of Addis Ababa. The main purpose is to examine the sector contribution to foreign direct investment, job creation and to find the factors that hinder production capacity of textile firms. The primary information was obtained through interviews and secondary data were collected and analyzed using descriptive analysis. The findings revealed the challenges that hinder the overall performance of the sector. The sector has shown a little or no progress as opposed to GTP II target set for the sector. Based on findings, recommendations to different stakeholders forwarded.