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Modern Garment Making Plant for Export and Re-export

1.      Production Description: The garment work consists of the manufacturing of clothing by cutting and sewing fabrics. Garment is one of the major activities which consume huge labour. The high potential input for garment production is textile which is produced in various textile factories in the country. It has high market demand in the country (including the Amhara Region) and in many prts of the world. Important garment products include shorts, shirts, T-shirts, under wears, fur apparel, pants, trousers, sport wears, work clothes and jackets.


2.      Rationale: Textile and garment industry has enormous potential and opportunities for progress. However, although there is a high potential for the production of raw materials, such as textile and leather, the garment industry has not yet developed in the country. The demand for garment products, in various parts of the world is steadily growing. There is high potential for cotton production; which supplies basic raw materials for the textile factories, which in turn, are major raw material suppliers for the garment industry. Thus, the existing potential for cotton and textile production and the availability of cheap labour is one the major parameters for considering the sub sector as one of the strategic export- promoting sector in the country. Garment industry is labour intensive; requires relatively small capital investment; has high market demand in the world market. Thus, the garment and textile industry has been identified as one of strategic economic areas that have been given great attention and support by the government.


There is an opportunity to get skilled manpower for making the product as there is a textile and Garment Industry Support Institute at the Bahir Dar University for training professional skilled manpower. Given the potential of the raw material and the priority of the government for the textile and garment sub-sector, the garment industry has a major role to play in the Region’s economy in general and export trade in particular.


3.      Market Potential: The demand for garment in the world market is increasing. Garment products of Ethiopia have high market demand in many parts of the world, particularly in the United States of America, Western Europe and Japan. Therefore, there will be sufficient demand for the product in the international markets.

4.      Sources of raw Materials: The main raw materials for the plant will be the textiles factories such as Akkaki Textile Factory, Bahir Dar Textile Factory, Kombolcha Textile Factory and Awassa Textile Factory; and Sometimes raw materials are imported from countries such Italy.


5.      Production Process and Technology: The production process includes designing, measuring and cutting of the fabric. Then sewing machine, machine designed to join pieces of fabric or leather by means of either a lockstitch or a chain stitch is used for the process (tailoring). The lockstitch which is used in modern sewing is formed form two threads and the chain stitch from a single thread. Other machines, such as shuttle, loop and needle are used in the process.


6.      Estimated Investment Cost: The establishment of the plant will require a minimum area of 1,000m2, whose investment cost will be about Birr 4,000,000. Purchase of machinery and equipment may cost Birr 4,000,000. Thus, estimated total investment cost will be about Birr 8,000,000.


7.      Benefits: The garment industry has enormous benefits for the Region as well as for the country. It will create employment opportunity for the growing labour force of the Region. It will generate foreign exchange, since it has an increasing demand in the international market. There will be earnings for the investors in the form of profit. It will generate revenue for the Regional State in the form of income tax and VAT.


8.      Location: Bahir Dar, Kombolcha, Desie, Gondor, Debre Brhan, Debre Markos.