Ethiopia’s Textile Industry
Development Institute (TIDI) has forecast $ one billion in annual
revenue from textile and garment export during the second phase of the
growth and transformation plan (GTP II), according to media reports in
the country.
In a bid to make the nation the
major exporter of textile products, the government has extended
attractive incentive packages to boost production of the manufacturing
industry subsector.
“We are working to be a
leading country in light manufacturing in Africa which will lay the
foundation for heavy and high tech industries by 2025,” TIDI director
general Sileshi Lemma said at a recent workshop to brief manufacturers
on the government’s plans for the sector.
According to the director general, more than 152 new investments are
expected during the second growth and transformation plan, while at
least $ one billion is anticipated from the sector’s export. The GTP II
is also expected to create more than 170,000 job opportunities.
In order to realise the ambitious plan, Sileshi said that the country
is building at least ten industrial zones and all of them will be set up
by the government.
Textile Industry is
considered as a number one priority by the Government’s Industrial
Development Strategy even during the current GTP which ends in June
2015. However, the sector’s performance has not been satisfactory during
the GTP I period with annual earnings from export not exceeding $100
million. The sector has also been plagued with shortage of raw
materials, inefficiency, and lack of technological applications.
But the government insists that the future for the sector is bright. It
has provided incentive for private sectors so as to attract more
investment in the sector with 100 per cent duty free import of
machineries and equipment.
Similarly, duty free
import of spare parts of 15 per cent of capital goods for the first five
years of operation, the possibility to hire expatriates free from
income tax provided they stay for no more than two years, and
reconciliation of VAT for materials purchased locally during the project
period is possible if declared in six months, are among the incentives
provided by the government. (SH)
Source: fibre2fashion.com
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