Korea has been participating in Ethiopian development endeavors in a constructive and mutually beneficial manner, especially in priority sectors such as textile, infrastructure development and construction
Ethio-Korea Business Forum discussed growth opportunities in the textile industry and trade cooperation between the two countries here yesterday.
The Forum also discussed ways of strengthening cooperation between bilateral companies and generating new business opportunities. State Minister of Industry, Tadesse Haile on the occasion said that special industrial zones and industrial parks had been setup in Ethiopia with one-stop shop services with the view to expand the manufacturing sector. The notable example, according to him is that, Shin Textile Solutions Co. of the Republic of Korea had moved into the existing industrial park at Bole Lemi in October, employing over 3,000 people. Furthermore, other parks have also been developed in Hawassa, Makalle, Dire Dawa and Kombolcha towns.
Korea has been participating in Ethiopian development endeavors in a constructive and mutually beneficial manner, especially in priority sectors such as textile, infrastructure development and construction, the State Minister added.
He said the trade balance is in favor of Korea and there is a strong belief that the strategic intervention through Foreign Direct Investment will gradually makeup for this gap.
He said there is vast preferential market access to Europe, the United States and Asia (through various preferential trade agreements) for Ethiopia’s products.
“We would like to see an increased share of value added items such as garments, leather products as well as processed agricultural products,” Tadesse said adding, “We welcome the intervention of Korean investors to meet these goals.”
Lee, Jae-Hoon, Programme Officer at the Korean Institute for Development Studies told members of the media that the Korean delegation consisted of some 40 potential investors, chief executive officers and owners of companies. The CEOs are mostly from textile and garment industries.
According to him, the main challenge of textile manufacturers in Ethiopia is the fact that the logistic cost is quite expensive. However, Lee said: “What I always emphasize is that it is ok that there is higher logistic cost in Ethiopia vis-à-vis competitors in East Africa. The main thing is, if we can reduce our cost elsewhere, then the total cost will be smaller. And this is key to the competition.
He also added that there are numerous investment opportunities in Ethiopia. “Investors are coming to Ethiopia and we have to attract these investors and accommodate and facilitate their needs. Every country faces challenges in this regard. The point is whether we are seriously trying to facilitate their needs. And this is what the Ethiopian private and public sector have to do,” the Programme officer noted.
According to the Ethiopian Textile and Garment Manufacturers’ Association, the export value of the Textile and Garment Sector had reached 100 Million USD in 2013 and export value of 500 million USD is expected from the sector in 2016.
The Korean delegation included chairman of the Korean Federation of Textile Industries, representatives of the Korean business community and the Director General for Trade and Cooperation Bureau under the Ministry of Trade, Industry and Energy of the Republic of Korea.
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