Italian hosiery manufacturer Calzedonia has officially opened its ITACA Textile factory at the Mekelle Industrial Park in Ethiopia.
The plant was inaugurated on 18 October. Local press reports suggest Calzedonia invested US$15m in the plant.
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According to the Ethiopian Investment Commission’s website, the factory – which employs 1,100 people – expects to export ETB22m (US$787,000) worth of clothes per month to European countries.
Fitsum Arega, the Prime Minister’s chief of staff, said in a tweet that the Ethiopian Prime Minister Abiy Ahmed congratulated the Calzedonia team.
Calzedonia, one of Italy’s biggest apparel manufacturer, inaugurated its first #Africa factory in #Mekele. Given the logistical proximity to #Massawa, the investment will strengthen the regional economy. PM Abiy congratulates the Calzedonia’s team. #Ethiopia #Eritrea. pic.twitter.com/oX9Mn8xCr0
— Fitsum Arega (@fitsumaregaa) 19 October 2018
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Ethiopia is proving to be a promising new country when it comes to apparel sourcing. It exports under duty-free access to the US through the AGOA agreement, according to online strategic planning tool re:source by just-style, and also benefits from duty-free access to the EU under the Everything But Arms Initiative (EBA).
Earlier this month Ethiopia rolled out plans for three industrial parks in Aysha, Semera and Assosa to be completed by July 2019.
Two days earlier, an industrial park in Adama – 100km east of the capital Addis Ababa – which specialises in textile and apparel production was also inaugurated. This park is expected to generate more than US$38m from export of goods, with global apparel brands including PVH, H&M, Zara and Decathlon all renting sheds there.
Other parks in Dire Dawa, Hawassa, Mekele and Kombolcha are also up-and-running.
Through its five-year ‘Growth and Transformation Plan’ (GTP-II), which runs to 2020, Ethiopia plans to construct 15 industrial parks with a budget of more than US$1bn.
