UNIDO, UN Global Compact and GIZ support Ethiopia’s textile and garment sector

August 04, 2021

In Ethiopia, the textile and garment industry is witnessing a rapid growth. Several domestic and multinational firms are being engaged in the production of textile and apparel for domestic and global markets. In the path to industrialize Ethiopia, this sector has become a top priority as part of the national goal to become a middle-income country by 2025.

Aiming to support further development, UNIDO has established strategic cooperation with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the United Nations Global Compact (UNGC), China National Textile and Apparel Council (CNTAC) and Ethiopian Textile Industry Development Institute (ETIDI) to increase sustainability of the textile investment and operation in Chinese invested industries, non-Chinese foreign direct investment (FDI), and Ethiopian enterprises, and to provide comprehensive technical support to the Ethiopian government.

In cooperation with the UN Global Compact, UNIDO has successfully conducted two level awareness raising workshops on the “Ten Principles of UN Global Compact” for Ethiopian, non-Chinese FDI and local experts, and higher officials. Moreover, a special workshop was organized for Chinese investors on “Sustainable investment of Chinese investors in the Ethiopia through promoting the Ten Principles of UN Global Compact”.

The workshops provided detailed principles of the UN Global Compact to ensure sustainability in Ethiopia’s textile and garment sector and to promote export. Moreover, case studies from other emerging and developing countries were shared as the best practices to adapt into Ethiopia’s textile sector. Key Ethiopian public institutes, including Ministry of Trade and Industry, Ethiopian Investment Commission, and Industry Park Development Corporation have expressed strong willingness in the support of creating an enabling environment for textile and garment enterprises to enhance their ESG performances and to encourage export.

The workshop was organized under UNIDO’s project “Sustainable textile investment and operation in Ethiopia” aiming to improve the environmental, social and governance (ESG) standards performance of the textile and garment industries in the country.