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An Ethiopian delegation led by Beyene G. Meskel,
director general of the Privatization and Public
Enterprises Supervisory Agency (PPESA), flew to
Turkey on Monday August 11, 2008, to lobby major
Turkish textile companies to invest in Ethiopia.
The government of Ethiopia plans to bring in six
giant companies from the global textile industry to
the country during the 2008/2009 financial year. It
has turned its attention to Turkey because it
believed that it could provide a large share of this
investment.
Tadesse Haile, the Minister of Trade and Industry
says, “Turkey is a strategic partner for this plan.”
Having first flourished in Europe, the textile
industry is now moving to Asia and Africa. Turkey,
which is expected to join the European Union,
possesses the largest textile industry in Europe.
“Turkish investors tend to transfer their
establishments to Africa and Asia because of the
increasing labour and production costs there,” a
source close to the sector told Fortune.
Ayka Textile Industry and Trade Incorporated is one
such example. Founded in Istanbul in 1988, the
Turkish company has relocated its textile and
garment factory to Ethiopia.
Ayka Addis Plc - with a capital of 100 million Br
and registered under three shareholders, Ayka
Textile, Yusuf Aydanic and Gurkay Kavalirli - was
established in June 2006 as a local subsidiary to
the company.
The big factory is situated in the outskirts of
Addis Abeba, in Alemgena town of Oromia Regional
State.
When it goes fully operational, the factory will
spin 20 tonnes of cotton and generate 80 million
dollars of revenue a year.
The relocation of Ayka to Ethiopia is not only good
news in itself, but it also planted the idea with
Government officials to try and encourage similar
companies to move their operations to Ethiopia.
Along with Beyene, the delegation includes, Sileshi
Lema, director general of the newly set up Textile
and Leather Products Development Centre and other
experts.
The team is expected hold discussions with people
from approximately ten major players in the Turkish
textile industry, and clarify any queries the
companies may have.
A source from MoTI says the potential investors will
be briefed about the incentives the government will
offer them and the joint venture options they have.
The textile industry is one of the priority sectors
the Ministry of Trade and Industry (MoTI) wants to
boost to generate export earnings. The sector is
expected to have an annual revenue of 500 million
dollars by 2011.
For this to happen, MoTI must succeed in attracting
191 companies with an aggregate capital of over 1.6
billion dollars to the country.
The plan is to engage 48 of these companies in
threading, 31 in grey textile production, 22 in
knitted textiles, six in painted, printed and
finished textiles, 53 in woven and 31 others in
garment lines of the textile industry. |
