China’s Light House Garment Enters Adama IP to Produce Apparel, Textile

ADDIS ABABA – Light House Garment Manufacturing, a Chinese firm, has signed a shade lease agreement to install an apparel and textiles production plant at Adama Industrial Park.

Shiferaw Solomon, Deputy Chief of the Industrial Park Development Corporation (IPDC), and Chan Wanbing, CEO of Light House Garment, signed the lease contract on Thursday.

The agreement enables the firm to secure the 5,500sqm shade at Adama IP from the IPDC, administrator of state-owned industrial parks in Ethiopia.

The Chinese firm will invest 216 million Birr to erect its manufacturing plant at the Industrial Park for the purpose of producing apparel and textiles, says the IPDC.

In China, Light House Garment has more than 20 years of experience in manufacturing apparel and textiles for both the international and Chinese markets.

The company is expected to bring its huge experience to Ethiopia’ manufacturing sector, said IDPC’S Deputy Chief Solomon.

At Adama IP, the Light House Garment official said it will produce quality apparel and textiles, targeting the Ethiopian market.

The manufacturing firm plans to supply 70% of its products to the local market, and export the remaining 30% to the international market.

The firm also targets 954 million Birr annual output from its investment which will create job opportunities for more than 600 people.

‘Growing sub-sector’

Chinese investment has played a major role in the recent growth of the Ethiopian apparel and textile industry, investing a total of $450 million.

Officials say the sector has grown by 51% on average with over 65 international textile investment projects getting licensed in 2020 alone.

During the last 2021/22 Fiscal year, the textile and apparel export generated $181.4 million in revenue, contributing 46.5% of the total $500 million in export earnings of the manufacturing sector.

Its contribution is expected to grow further in the current 2022/23 Ethiopian fiscal year, according to the Ministry of Industry.

“This fiscal year, we aim to grow this contribution of the manufacturing industry export earnings of $538 million with the textile contributing $250 million,” Industry Minister Melaku Alebel said last week.

The Minister also said the government will remain committed “to making the sector globally competitive” as part of its “path to industrialize Ethiopia.”