Ethiopia’s textile and garment industry, once hailed as a pillar of the nation’s industrialization strategy, is under growing pressure due to critical policy gaps and the absence of a statutory minimum wage. Experts, labor advocates, and manufacturers are now issuing urgent calls for reform to safeguard the sector’s sustainability and competitiveness.
At a recent roundtable organized by the Forum for Social Studies (FSS), key stakeholders painted a troubling picture of an industry plagued by a shortage of skilled labor, high worker turnover, and declining professional appeal. Dr. Tolera Aderie, former executive member of the Ethiopian Textile and Apparel National Association, emphasized that employers’ increasing reliance on low-skilled, underpaid labor has led to an alarming erosion of workforce quality and productivity.
“Employers may see immediate savings, but the long-term consequences of ignoring skilled labor development are severe,” Dr. Tolera warned.
A central concern raised during the discussions is the Ethiopian government’s ongoing delay in introducing a national minimum wage—a policy measure seen as essential for stabilizing the sector. Tesfaye Abdisa, President of the Ethiopian Textile Federation, stressed that the lack of wage legislation is hurting not only workers but also businesses. “Without a minimum wage framework, factories struggle to retain talent and operate efficiently,” he said.
Managers from industrial parks in Hawassa, Bole Lemi, and Kombolcha echoed these concerns, citing workforce instability and poor retention as major obstacles. A 2023 FSS study revealed particularly harsh conditions for female workers in industrial parks and small- and medium-sized enterprises (SMEs), where low wages and weak legal protections prevail.
Ethiopia’s garment sector has some of the lowest wages globally, with the International Labour Organization (ILO) reporting an average monthly wage of just 3,000 birr (approximately $52). Alarmingly, worker attrition rates at some foreign-owned factories have exceeded 50%, as employees leave jobs in search of better pay and conditions.
Turnover and absenteeism are also significant challenges, with some parks experiencing annual turnover rates near 100% and monthly absenteeism as high as 10%. Industry experts believe these trends are directly linked to unsustainable wage levels and weak labor protections.
Despite the government’s efforts to attract foreign investment through 13 dedicated industrial parks and ambitious plans to create 350,000 textile jobs by 2025, the sector is struggling to meet expectations. Outdated vocational training curricula, a lack of industry-aligned skills development, and insufficient training infrastructure have left manufacturers ill-equipped for modern production demands.
“The industry can’t evolve with training programs stuck in the past,” said one factory manager in Kombolcha, citing the need for curriculum reform and greater investment in training centers.
Labor advocates and industry leaders are now urging the Ethiopian government to take immediate action. Their recommendations include the swift implementation of a fair and enforceable national minimum wage, updates to the country’s technical and vocational training programs, and increased protections for workers—particularly women and youth.
With international buyers increasingly prioritizing ethical sourcing and labor standards, stakeholders warn that Ethiopia risks losing its competitive edge if these issues are not addressed. “For Ethiopia to remain a viable player in global textile supply chains, it must put its workers first,” Tesfaye Abdisa concluded.
As pressure mounts, the future of Ethiopia’s textile and garment sector hinges on whether policymakers can close the widening gap between growth ambitions and ground realities.
