Foreign Direct Investment in Ethiopia’s textile and garment sector is growing and so is its yield. Major brands such as Ikea, H&M, PVH and Decathlon are a few of their notable customers, but European buyers of all sizes are taking notice.
However Ethiopia comes with its own challenges in terms of commerce, labour and the environement.
Both importing needed materials to and exporting finished products from Ethiopia to European markets can be complicated and time consuming.
Inefficiency, due to an untrained workforce is high, and as of 2019 this often translates into a product with a low quality and a long lead-time.
A key concern amongst stakeholders and potential buyers are issues around workers rights. Particularly worries about the lack of freedom of association and the living wage.
Reported wages are sometimes as low as 26 USD, which is far below the World Bank poverty line. Bottom Up! hopes to improve labour conditions by “providing training and knowledge on social and labour standards” among participating companies.
Cotton farming and textile production is highly resource-intensive. Both can see massive waste of clean water.
Additionally cotton is often treated with hazardous pesticides that can damage the ecosystem, while waste water from the dyeing of textiles is a major source of pollution in many of the major textile producing countries.
Bottom UP! Ethiopia
How do companies go about doing business in Ethiopia? What are the main challenges they face? Can they combine sourcing with their sustainability and ethical standards?
To answer these questions and offer options for European buyers to source ethically from Ethiopia, Solidaridad, Abtf's Cotton Made in Africa, the Danish Ethical Trading Initiative, and MVO Nederland have launched the EU-sponsored Bottom Up! Ethiopia development programme.
Bottom UP! is designed to help Ethiopian factories improve their environmental and ethical standards by developing sustainable and equitable production processes. It supports improving workers rights and work conditions and encourages the use of sustainably grown cotton through workshops, technical support, and awareness raising among European consumers. Bottom Up! works with 14 producers, 19,200 workers and 2,000 farmers to prevent a race to the bottom in Ethiopia.
Bottom UP! will help European buyers transition ethically to Ethiopian sourcing by connecting them with Ethiopian business through trade missions and by educating them on the challenges and solutions through webinars and reports.
Join us for the Bottom Up! Ethiopia Trade Mission for a first-hand experience of the cotton and textile production in Ethiopia.
Is Ethiopia the ‘new textile and garment hub’?
Join one of our upcoming webinars to learn more.
To learn more about Abtf's Cotton Made In Africa you can reach out to Sebastian Mueller at email@example.com.
To learn more about the Danish Ethical Trading Initiative you can reach out to Janine Dortmundt at firstname.lastname@example.org.
To learn more about MVO Nederlands you can reach out to Fran Tilstra at email@example.com.