PRODUCEPRODUCE COTTONCOTTON ININ ETHIOPIAETHIOPIA FORFOR AA BLBL O O O O MING MING TEXTILETEXTILE INDUSTRYINDUSTRY WHY INVEST IN ? Vision 2025: Making Ethiopia the leading manufacturing hub in Africa Growing economy, abundant & competitive labor force, proximity & access to global markets Fastest growing economy: Annual GDP growth rate of 11% for the last 12 years Africa’s 2nd most populous country: Close to 100 million & growing at 2.3 million annually Active labor force of more than 45 million Geographic & market access advantages: Proximity to EU, USA, Middle East & Asia Duty-free market access to USA & EU through AGOA & EBA Preferential duty treatment to markets such as China, India, Japan, Canada, & Australia Competitive infrastructure & skills development New electric-driven railway: 4-12 hours from industrial parks to port Africa’s aviation hub: Ethiopian Airlines serving 93 international destinations Current electricity rate at 3 US cents/kwh: one of the lowest in the world Trainable workforce with competitive wage More than 50 Universities with ½ million student population, and >1,300 technical & vocational education and training schools with annual intake of 1 million students Emerging manufacturing hub in Africa State-of-the art industrial parks that focus on textile and apparel Attracted leading global players in textile and apparel

Cotton Production Affordable & competitive labor force Production potential:3 million hectares of land suitable for cotton production

Investment Opportunities:Commercial cotton production, spinning, weaving, etc. SOMALI REGIONAL STATE- Cotton Plantation Project in Area Somali Regional State has a total land mass of 32 million hectares out of which 19% (6 million hectares) is arable land It is the 2nd largest prospective cotton production region in Ethiopia Location: the region is located in the East & South-East of Ethiopia and shares borders with Somalia, Kenya, and Djibouti Population: 4.7 million in and 457, 086 in Sitti Zone. Out of the total population more than 50% is active labor force Resource: ample arable land, abundant ground water, and livestock

o Land: 267, 680 hectares of flat land convenient for mechanized farming o Location of land: in 3 districts in Sitti Zone, i.e., Shinile (132, 254 hectares of land), Hadigala (89,223 hectares of land), and (51, 910 hectares of land)

3 o Ground water: 637 million m /y ground water that could be put to use for irrigation of cotton farms without any storage mechanism/ reservoir Climate:

o Agro- climate: warm –to- hot, arid agro-climatic zone; suitable for cotton 0 o Temperature: ranges from 25 to 27.5 C o Soil: very deep soil (>150 cm); dominantly dark-brown, light- to- yellowish-brown; Eutric- fluvisol alluvial deposits and moderately drained Infrastructure & services:

o Road & railway: road & railway from Addis Ababa to Djibouti passes through proposed cotton production area in Sitti Zone

o Proximity to port : 315 kms to Port of Djibouti o Airport: 15 kms to International Airport (up to four flights daily to Addis Ababa )

o Electricity & telecommunication: access to electricity & telecommunication

Hawassa Eco-Industrial Park Largest Textile & Apparel Park in Africa Tel: +251 (0) 115 510031 Fax: +251 (0) 115 514396 Email: [email protected] Web: www.investethiopia.gov.et EIC/Ref. no. 01/2017

Ministry of Industry Ethiopian Textile Industry Development Institute Industrial Parks Development Corporation Tel: +251 (0) 115 507542 Tel: +251 (0) 114 394999/+251 (0) 114 395003/5019 Tel: +251 (0) 116 616674/+251 (0) 116 616986 Web: www.moin.gov.et Web: www.tidi.gov.et Web: www.ipdc.gov.et