A team of entrepreneurs representing different industrial segments from Tirupur will soon be embarking on a trip to Ethiopia for exploring the possibilities of setting up production bases there and utilise the preferential tariff advantages which Ethiopia enjoys in global markets. The Confederation of Indian Industry (CII) – Tirupur chapter will be coordinating the journey.
Venkatesh, vice-chairman of CII (Tirupur chapter) told The Hindu that the three sectors which were keen on having production and subsequent exports from Ethiopia include textiles, farming and food processing.
“Ethiopia, as an investment destination, is said to be holding distinct advantages for the said three segments when the products manufactured there get exported. This is because of the many trade advantages the country has in advanced markets like the United States”, he said.
Analysing segment-wise, the farming and food processing sector entrepreneurs will be keen on looking at how vast expanses of fertile lands available in Ethiopia, cheap labour and also the availability of water in abundance could be turned to their advantages.
In the case of textiles, the industrialists would analyse whether the availability of cotton in abundance, the surplus workforce at lower cost and availability of land on lease up to 40 years in Ethiopia can be feasible for setting up full-fledged manufacturing units and get the export benefits for a prolonged period.
“The visit will help the interested businessmen to get a first-hand experience of the situations in Ethiopia”, said Mr. Venkatesh.
Source: The Hindu