By William Davison |
Ethiopia’s Almeda Textiles, a clothes manufacturer, plans to increase revenue by 50 percent to $30 million a year by 2018 by upgrading factory equipment and training staff.
The company will invest in its only plant near the city of Adwa, in Ethiopia’s northern Tigray region, Almeda’s General Manager Libelo Gebreselassie said in an interview on Monday. He declined to say how much will be spent. The company, which began operations in 1998, could boost supply of t-shirts if productivity improves, he said.
“We’re upgrading our internal capacity,” Libelo said at Almeda’s offices in the capital, Addis Ababa. If the company can boost capacity and reliability at the plant, it may attract more orders, he said.
Ethiopia’s government plans to invest about $1 billion a year in export-focused industrial parks that will contain textile factories among other manufacturing sites, Arkebe Oqubay, a special adviser to Prime Minister Hailemariam Desalegn, said last month. While Africa’s second most-populous nation has a target to earn $1 billion this year from textiles and clothing exports, it shipped only $70 million worth in the nine months through March, according to the Trade Ministry.
About 90 percent of Almeda’s dyed fabrics and garments are sold in Ethiopia, with large orders from the army and police force for uniforms, Libelo said. The company’s sales will probably be $20 million in the fiscal year ending July 7, up from annual revenue of about $15 million in the two previous years, he said.
Source: Bloomberg Business
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