Thursday, October 22, 2009

Turkish textile firm invests in Ethiopia

Turkish textile producer and exporter Saygın Textile has finalized preparations to shift its factory operations to the Oromia region of Ethiopia, according to an Oct. 17 story by The Reporter, an Ethiopia-based daily.

Saygın has secured 17 hectares of land in a central Ethiopia town called Sebeta, where it will build an integrated textile factory, Oromia Investment Commissioner Ismail Yassin told the publication.

The company has entered into a joint venture with the Ethiopian government, called Saygın Dima Textile, which will have a minor stake.

The firm has invested nearly $60 million and will employ some 900 workers once the facility is operating at full capacity, The Reporter wrote.

A few years ago, another Turkish textile manufacturer, Ayka Textile Industry and Trade, entered the Ethiopian market with its Ayka Addis Group subsidiary. The company wanted to take advantage of cheap labor and incentives the Ethiopian government provided for foreign investors.

Currently, Ayka is the biggest Turkish investment in Ethiopia, which has also revealed plans to take advantage of the African Growth and Opportunity Act, or AGOA.

AGOA assists economies in sub-Saharan Africa and works to improve economic relations between the United States and the impoverished region.

Currently, another five Turkish textile companies are moving facilities to Ethiopia, while many more have expressed interest, The Reporter wrote.

According to the paper, a group of Turkish investors announced plans in August to build an industrial zone in the Legetafo locality.