February 1, 2024: Ethiopia signs a 28 million USD (approximately 1.57 billion Birr) project agreement with the United Nations Industrial Development Organization (UNIDO) to enhance the growth of the textile and garments industry in Ethiopia.
At a signing ceremony held in the Ministry of Finance, it was disclosed that the project will be financed in collaboration with the Global Environmental Facility (GEF) of which UNIDO’s share of the program is 3 million USD.
The project which will be implemented by Ethiopian Textile Industries Development Institute in the next five years will focus on the promotion of a circular economy in the textile and garment sector through the introduction of resource-efficient technologies. Moreover, the project is expected to focus on recycling waste in the industry to minimize losses and maximize gains in the production process as well as enhance regulator and institutional capacity in the textile and garment industry.
UNIDO has been providing capacity-building and technical support to the industrial development efforts of Ethiopia focusing on the textile, leather, and agro-processing manufacturing sectors. UNIDO’s flagship program in Ethiopia namely the Programme for Capacity Partnership (PCP) founded on a multistakeholder partnership to ensure institutional capacity development, strengthening of value chains, creation of value additions, and economic transition efforts all aimed at harnessing the potential of the manufacturing sector in Ethiopia.
H.E. Semereta Sewasew, State Minister of Finance, during the discussion, stated that following the expression of the government’s ongoing and planned efforts to enhance the manufacturing sector and substitute imports she affirmed that the commitment of UNIDO will continue supporting the journey of industrialization in Ethiopia.
The agreement was signed by H.E. Semereta Sewasew, State Minister of Finance, and Mrs. Calabro Aurelia Patrizia, UNIDO representative in Ethiopia with the attendance of H.E. Hassan Mohammed, State Minister of Industry.

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