China’s national textile association China National Textile and Apparel Council (CNTAC) has confirmed its interest in investing in Africa’s fastest-growing economy, Ethiopia. The association that deals in the textile industry seek for investment opportunities in the country. The Non-Profit Organization (NGO) will join other Chinese firms already established in the country to grow the East Asian’s foreign direct investments in the East African nation.
A delegation of 52 members was in the sub-Saharan country to discuss the possibilities of investing with the Head of State Mulatu Teshome. The growing and promising market of Ethiopia has lured many investors into the economy as they look to seize business opportunities in East Africa’s investment hub. From Swiss to Indians, Americans to Turkish, and now German companies, Ethiopia has wooed different companies with its economic outlook speculation.
China’s textile industry is the world’s largest both in production and exports, dominating the industry since 1994. The increasing demand in the apparel market has flourished the nation’s sector and has changed the economic performance of the world’s most populous country. China’s industrial clusters have played a pivotal role in the growth of the textile and apparel sector. The Chinese Government has sought for keeping a balance in the economy by nurturing the industry.
According to CNTAC’s president Sun Ruizhe who led the representatives, he acknowledged several factors that accounted for the rapid rise of investors in the nation. Business incentives to drive more FDIs was a paramount factor as entrepreneurs look for investment opportunities. The Government policy of the country has proven to be business-friendly hence wooing more companies. The availability of cotton and labour were other factors for eyeing the Ethiopian market.
Ethiopia plans on generating close to $30 million in exports from the textile and apparel sector by 2030, a vision that will see textile firms joining to achieve the goal.