Low wages draw international textile companies to Ethiopia

Low wages draw international textile companies to Ethiopia
Low wages draw international textile companies to Ethiopia

Low wages, cheap power and a stable political situation have prompted foreign textile companies like H&M to start sourcing from Ethiopia. The country has a huge workforce and would like to become the next international textile hub. But the workers themselves are struggling to make ends meet.

Sewing machines rattle away in the huge GG Super Garment factory in Debre Zeyit, some 45 kilometers (28 miles) southeast of the Ethiopian capital, Addis Ababa. Hundreds of women and a few men are sewing singlets and T-shirts, destined for the Swedish company H&M.

As a result of rising salaries and growing labor unrest in Asia, an increasing number of foreign companies have started moving their production to Ethiopia. According to factory manager Joseph Elisso, the conditions in the East African country are far more favorable.

“Ethiopia is stable and peaceful, electrical power is cheap and labor costs are very low,” he explains.

Entry-level salaries for workers in Ethiopia’s textile industry range from $35 to $40 (32 to 37 euros) per month – lower than Bangladesh’s minimum wage of $68 per month and far below the average wage of $500 in the Chinese textile sector. Ethiopia doesn’t have a minimum wage, and due to high unemployment, workers are often forced to accept whatever wage they are offered.

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