The agreement, signed on 1 February 2024 and spearheaded by the Ethiopian Textile Industries Development Institute zeroes in on promoting circular economy principles through the adoption of resource-efficient technologies.

The project allocated $3m from UNIDO’s share and is financed through collaboration with the Global Environmental Facility (GEF).

The endeavour is expected to spotlight waste management practices within the industry, by prioritising recycling and minimising losses in the production process.

Additionally, it seeks to bolster regulatory frameworks and institutional capacities.

Local news sites described UNIDO’s involvement in Ethiopia’s industrial development journey as not new.

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With a focus on sectors such as textiles, leather, and agro-processing, UNIDO has been instrumental in providing technical expertise and capacity-building support.

The Programme for Capacity Partnership (PCP), a flagship initiative, epitomises a collaborative approach aimed at fortifying value chains, fostering economic transition, and harnessing the full potential of Ethiopia’s manufacturing landscape.

Semereta Sewasew, state minister of finance emphasised the government’s steadfast commitment to industrialisation and import substitution during the signing ceremony according to a report by

Sewasew also highlighted UNIDO’s continued support as a crucial catalyst for Ethiopia’s industrial aspirations.

The agreement was formally endorsed by Sewasew and Calabro Aurelia Patrizia, UNIDO representative in Ethiopia and Hassan Mohammed, state minister of industry.

In 2017, UNIDO signed a € 2.5m project with Italy aimed at capacity building and job creation for youth and women in the textile sector in migration-prone areas of Ethiopia.

The agreement was funded by the Italian Agency for Development Cooperation and was implemented in Tigray and Addis Ababa for three years.

 The project also built the capacities of entrepreneurs and workers within the textile sector and strengthened the know-how of the Ministry of Industry of Ethiopia.