New Funding Arrives to Back Textile Industry

October 31 , 2020


New Funding Arrives to Back Textile Industry

A partnership between the United Kingdom, Germany and Ethiopia has availed 6.5 million dollars in funding to save textile and garment factory jobs at industrial parks. The fund is set up to support the country’s economic recovery from the Novel Coronavirus (COVID-19). Through the fund, textile factories can apply for wage subsidies – similar to the furlough schemes operating in many countries including the United Kingdom and Germany – and incentives to reward businesses that can adapt in response to COVID-19. The wage subsidy will cover a portion of total employment costs for textile factory workers in Ethiopia’s industrial parks. The Commercial Bank of Ethiopia will assess applications and disburse the funding to factories, while the UK Aid-funded FSD Africa will implement the project in partnership with First Consult. The Jobs Creation Commission estimates that between 1.4 to 2.5 million jobs could go over the next three months. The textile and garment factories in Ethiopia’s industrial parks employ 95,000 people. So far, 13 textile firms have fully stopped operating due to low demand and financial stress.  The funds will provide the factories with liquidity to maintain operations while protecting jobs.


Radar

Leather Industry Struggles to Meet Expectations

The struggling leather industry managed a little over 33 million dollars in export earnings over the first 10 months of the financial year. It is less than half of officials' aspirations to generate 69 million dollars over the same period, and highlights the troubles faced by the industry over the past few years. Exports from finished leather goods plunged 72pc last year from three years ago. Only eight finished leather manufacturers accounted for 89pc of last year's export earnings, sh...


Radar

Corporation Calls on Suppliers for 200,000tn Sugar Procurement

Executives of the Ethiopian Sugar Corporation have taken steps to procure 200,000tn of sugar from international suppliers. The Corporation had invited shortlisted companies to submit offers, after an attempt to procure the sugar through an international tender went awry. However, officials at the Ministry of Finance instructed its executives to scrap the invitation and proceed to float a second bid. The shortlisted suppliers have also been invited to take part in the bidding process. T...


Radar

TAGGED

Youth in the National Theatre area are waiting for the bus to start moving. They have found a handle to grab and accelerate them ones its starts moving as they ride their skateboard. Although skateboarding is nearly unheard of in Ethiopia, over the past few years, young people have developed a taste for it. Safety, though, leaves a lot to be desired...