Product details

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Abstract

The Ethiopian economy is on the rise and is currently one of the fastest growing economies in the world. By 2025, Ethiopia wants to become the manufacturing hub of Africa. To maintain growth, the Ethiopian government heavily supports industrial development in different core industry clusters - of which the textile industry is without a doubt one of the most promising. To boost the local textile industry, Ethiopia supports the development of dedicated industrial parks in multiple regions of the country. It currently attracts global textile manufacturers from all over the world. To support those manufacturers in locating their production sites in Ethiopian industrial parks, they are offered a convenient one-stop-shop service concept along with tax exemptions. This case analyses two sides of the same coin. On one side, the Ethiopian strategy to attract foreign manufacturers is outlined; on the other, the case presents the example of an Indian textile manufacturer that has utilized the opportunities provided and located a production site in Ethiopia. The case outlines the supply chain and production process of this manufacturer and discusses the challenges of ramping up its production. Based on the analysis of both sides of the coin, we discuss pathways for merging the two sides.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Africa
Countries:
Ethiopia; India; United States; Djibouti
Location:
Mekelle

About

Abstract

The Ethiopian economy is on the rise and is currently one of the fastest growing economies in the world. By 2025, Ethiopia wants to become the manufacturing hub of Africa. To maintain growth, the Ethiopian government heavily supports industrial development in different core industry clusters - of which the textile industry is without a doubt one of the most promising. To boost the local textile industry, Ethiopia supports the development of dedicated industrial parks in multiple regions of the country. It currently attracts global textile manufacturers from all over the world. To support those manufacturers in locating their production sites in Ethiopian industrial parks, they are offered a convenient one-stop-shop service concept along with tax exemptions. This case analyses two sides of the same coin. On one side, the Ethiopian strategy to attract foreign manufacturers is outlined; on the other, the case presents the example of an Indian textile manufacturer that has utilized the opportunities provided and located a production site in Ethiopia. The case outlines the supply chain and production process of this manufacturer and discusses the challenges of ramping up its production. Based on the analysis of both sides of the coin, we discuss pathways for merging the two sides.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Africa
Countries:
Ethiopia; India; United States; Djibouti
Location:
Mekelle

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