May 2019 Report Release
MADE IN ETHIOPIA: CHALLENGES IN THE GARMENT INDUSTRY’S NEW FRONTIER
Paul M. Barrett and Dorothée Baumann-Pauly
Ethiopia has the lowest wages in any garment-producing country.
One place for the apparel industry to start is ensuring that Ethiopian factory employees are well-trained, motivated, and paid enough to afford basic necessities.
Or Ethiopia can end up like Bangladesh.
Top fashion brands are sourcing from Ethiopia’s Hawassa Industrial Park.
Drawn by newly built industrial parks and a range of financial incentives, manufacturers for some of the world’s best-known brands—among them, H&M, Hanes, and PVH (Calvin Klein, Izod, Tommy Hilfiger)—employ tens of thousands of Ethiopian workers in a nascent sector the government predicts will one day have billions of dollars in sales. Read our 5 recommendations for foreign manufacturers and Western brands.
(An earlier version of this report inaccurately stated that Gap Inc. sources from Ethiopia.)