Inspired by China’s special economic zones, Ethiopia has built 22 industrial parks designed to attract foreign investment and grow its textile sector. Backed by an estimated $250 million investment in the flagship Hawassa Industrial Park, the strategy has drawn more than 300 investors and created tens of thousands of jobs, particularly for women, who make up the majority of workers in several parks. However, progress has been slowed by the COVID-19 pandemic, the Tigray civil war, supply chain disruptions, and Ethiopia’s suspension from the African Growth and Opportunity Act (AGOA), which limited tariff-free access to the US market. Industry figures argue Ethiopia must now invest in its domestic cotton value chain, improve infrastructure, streamline logistics, and strengthen workforce training to sustain export growth.
African Business