New Funding Arrives to Back Textile Industry

Oct 31 , 2020

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.


Ministry Ponders Tax Waivers for Rural Energy Solutions

Tax exemptions for off-grid energy technologies like solar pumps and mini-grids are under discussion, spearheaded by the Ministry of Water & Energy. Commonly used by rural households, officials disclose their simultaneous plan to develop 300 mini-grids in the next six years. According to Birhanu Weldu, the lead executive of rural energy technology development, the initiative tackles the country's low electrification rate and reliance on charcoal and firewood. Charcoal, fuel wood, and...


Rural Land Proclamation Comes to Light

A landmark legislation that grants title holders in rural areas the right to use the property as collateral was unanimously ratified by Parliament last week. It primarily focuses on extending access to finance for farmers and pastoralists, through a structured land title system. It also introduces criminal penalties for the illegal transfer of property. Replacing the 18-year-old proclamation for rural land management, the law sentences individuals engaging in land invasions and unauthoris...


Ethiopian Unveils $50m Domestic Terminal Renovation

With a rising demand for domestic travel, Ethiopian Airlines has renovated its terminal at Addis Abeba Bole International Airport with 50 million dollars to handle customers. The expanded terminal has doubled its previous size to 25,750Sqm and accommodates 200 daily flights to and from 22 domestic destinations. It includes four contact gates, 10 remote departure gates, 22 check-in counters with automated baggage screening systems, shops and restaurants. The terminal also features a dedica...