Will Ethiopia manage to meet its textile export target? Just last week the Ethiopian Textile Industry Development Institute (ETIDI) made it known that exports in the first six months of the Ethiopian fiscal year 2015-16 fell short of the set target. While the target was to earn $60.07 million from the export of textiles, the country could only manage to export goods worth $41.1 million. That is about 70% of the plan.
This despite the government formulating several ambitious plans to boost the sector’s performance by furnishing attractive incentives to investors. Duty-free import of spare parts of 15% of capital goods for the first five years in business and the option to hire expatriates free from income tax provided they stay for no more than two years are some of these incentives. Reconciliation of VAT was another incentive offered by the government. This is only offered for materials purchased locally during the project. It’s mandatory to declare the same within 6 months to avail the reconciliation. For More details visit us at: ethiopian textile industry