Ethiopia\’s Cotton Boom Boosts Foreign Revenue, Says Ministry

Ethiopia\’s Cotton Sector Gains Momentum

Ethiopia has made significant strides in its cotton sector over the past three years, leading to a notable increase in foreign exchange earnings while simultaneously meeting domestic consumption needs. This progress is attributed to initiatives focused on improving cotton productivity and quality, which have positioned the sector as a dual contributor to the economy.

The Ministry of Agriculture has been at the forefront of these efforts, emphasizing quality cotton production techniques. By doing so, they have not only met local demand but also generated valuable foreign currency. According to the Ethiopian Textile Industry Development Institute, the country has nearly three million hectares of fertile land suitable for cotton cultivation. This vast potential has prompted the government to work on expanding cotton farming to meet growing demand and fully develop the sector.

By leveraging these resources, Ethiopia aims to boost agricultural output and solidify its position as a competitive player in the global textile industry. In this regard, the Ministry of Agriculture revealed the establishment of a national cotton development stakeholder coalition dedicated to enhancing the cotton value chain.

Investors within the sector have expressed that efforts are being made to increase the volume of cotton available for export. These efforts focus on improving both production quality and overall output while addressing the needs of domestic industries. The initiatives not only satisfy domestic consumption needs but also contribute positively to the country’s forex reserves.

Melkamu Abraham, an investor in the cotton sector, noted the positive impact of the government\’s foreign exchange reforms, which improved the pricing of cotton products in the export market. He also emphasized the importance of improving accessibility and expanding cotton ginning factories, encouraging producers to sell directly to both domestic and export markets to maximize their benefits.

Tsegaye Abebe, Director General of the Ethiopian Cotton Association, stated that the association is actively collaborating with stakeholders to boost cotton productivity and quality. The goal is to ensure an adequate supply for domestic industries while increasing export opportunities, he added.

Agazi Gebreyesus, Secretary General of the Ethiopian Textile and Apparel Manufacturers Association, highlighted the importance of maintaining high standards throughout the entire production process, from seed supply to the final product. Failing to uphold these standards can result in subpar quality and increased waste, ultimately driving up production costs. He warned that poor cotton quality would have a direct negative impact on the textile sector, emphasizing the critical need for stringent quality control.

Samson Assefa, Cotton Development Lead Executive Officer at the Ministry of Agriculture, elaborated that ongoing challenges in the sector are being identified and effectively addressed. He also revealed the establishment of a national cotton development coalition, which will include key stakeholders throughout the cotton production value chain.

Samson mentioned efforts aimed at providing value-added products, introducing improved cotton varieties, and strengthening market linkages and financial support. He emphasized the importance of expanding and modernizing access to cotton ginning factories to enhance overall productivity and efficiency. The efforts to enhance productivity and quality are showing promising results, particularly with a notable increase in production volume over the past three years.

According to him, as productivity has risen, the company has begun supplying small amounts of its products to the foreign market, successfully meeting domestic consumption needs. Samson further said that an estimated 71,000 metric tons of cotton wool is expected to be harvested from 113,000 hectares of land, with harvesting set to commence soon in the Afar and Southern Ethiopian regions.

Over the past three years, significant efforts have been made to enhance cotton productivity and quality, successfully meeting domestic consumption needs while also boosting foreign exchange earnings, he underscored.