Ananta Apparels Limited, a subsidiary of Bangladesh’s Ananta Group, has announced plans to invest US $8 million to establish a new apparel manufacturing facility in Ethiopia, marking another significant step in the growing overseas expansion of Bangladeshi textile companies.
The company has already submitted a formal proposal to Bangladesh Bank, seeking approval to initiate the foreign investment. According to the firm, the entire $8 million will come from its own funds, while any additional financial requirement may be sourced from multinational institutions such as the International Finance Corporation (IFC).
Following standard regulatory procedures, the central bank has now forwarded Ananta’s proposal to the Ministry of Finance, as final approval for overseas investments rests with the Government of Bangladesh.
Ethiopia Emerges as a Strategic Investment Hub for Bangladeshi Firms
Ananta Apparels is the latest among several Bangladeshi companies to show strong interest in Ethiopia as a new manufacturing destination. Out of the seven Bangladeshi companies that have received approval to invest abroad, Akij Jute Mills previously secured permission to invest $20 million for the acquisition of two Malaysian firms.
According to Ananta Group, the duty benefits offered by the Ethiopian government were the primary motivation behind the investment decision. In addition, the availability of a skilled and cost-competitive labor force has made the African nation an increasingly attractive destination for apparel manufacturing.
Read More: Ethiopia’s Textile Sector Faces Crisis Amid Calls for Minimum Wage Reform and Policy Overhaul
A senior company official also pointed out that Bangladesh is expected to face higher taxation once it graduates to a developing nation, making it strategically important for manufacturers to diversify operations to fast-growing industrial hubs like Ethiopia.
However, the move has also drawn calls for careful evaluation. Former Caretaker Government Adviser A.B. Mirza Azizul Islam stated that the government should thoroughly assess whether the investment will remain profitable under the existing tax incentives before granting final approval.
With growing interest from Bangladeshi textile and apparel manufacturers, Ethiopia is rapidly positioning itself as a new regional hub for global apparel sourcing, supported by favorable trade policies, export incentives, and international financing partnerships.
