UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

INCEPTION PHASE REPORT

CAPACITY-BUILDING AND JOB

CREATION FOR YOUTH AND WOMEN IN

THE TEXTILE SECTOR IN MIGRATION

PRONE AREAS OF ETHIOPIA

Davide Chinigò, international consultant

d.chinigo@unido.org

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Table of Contents

List of acronyms ................................................................................................................ 5

List of tables ....................................................................................................................... 7

List of maps ....................................................................................................................... 7

Executive summary ........................................................................................................... 8

1. Introduction ................................................................................................................. 20

1.1. Project objectives ..............................................................................................................21

1.2. Project background and rationale ...................................................................................21

1.3. Methodology ......................................................................................................................25

1.3.1. Identification of priority sectors and areas of intervention ..........................................25 1.3.2. Private Public Partnership (PPP) approach ..................................................................27 1.3.3. Methods of data collection and analysis for the socio-economic assessment ..............29

1.4. Project priority areas ........................................................................................................30

1.5. Project priority sector targets ..........................................................................................33

1.5. Project beneficiaries ..........................................................................................................35

2. The Textile and Garment Industry in Ethiopia ....................................................... 38

2.1. The T&G industry and employment creation in Ethiopia ............................................41

2.2. The T&G and exports in Ethiopia ...................................................................................44

2.3. Gap analysis of the T&G industry in Ethiopia ...............................................................49

2.3.1. Gaps in technical and soft skills ..................................................................................49 2.3.2. Gaps in creating an enabling environment ...................................................................52

3. The Textile and Garment Industry in Tigray .......................................................... 57

3.1. The Manufacturing Industry in Tigray ..........................................................................58

3.2. The Textile & Garment Industry in Tigray ....................................................................59

3.3. The Mekelle Industrial Park (MIP) .................................................................................61

3.3.1. Challenges facing Industrial Parks ..............................................................................62

3.4. Socio-economic statistics ...................................................................................................64

3.4.1. Tigray Regional State statistics ....................................................................................66 3.4.2. Mekelle Municipality statistics ....................................................................................69 3.4.3. Socio-economic assessment of six wereda surrounding Mekelle municipality ...........72

3.4.3.1. Degua Temben ................................................................................................................... 73 3.4.3.2. Hintallo Wajirat .................................................................................................................. 77 3.4.3.3. Enderta ............................................................................................................................... 80 3.4.3.4. Saharti Samre ..................................................................................................................... 82 3.4.3.5. Wukro Town ...................................................................................................................... 86 3.4.3.6. Kilte Awellalo .................................................................................................................... 89

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3.5. In-depth interviews with workers and trainees ..............................................................92

3.5.1. Thematic analysis ........................................................................................................92 3.5.2. Women empowerment and gender dynamics in the textile industry ...........................97

4. Project Action Plan ................................................................................................... 101

4.1. Site selection for the Centre of Excellence ....................................................................103

4.1.1. Mekelle Garment College Profile ..............................................................................103 4.1.2. The college current capacity ......................................................................................104 4.3.3. Information about machineries ..................................................................................105 4.1.4. Master plan of the available workshops.....................................................................107

4.2. First Public-Private Roundtable discussion ..................................................................109

4.3. Second Public-Private Roundtable discussion ..............................................................111

4.3.1. Technical skills for basic operators ...........................................................................113 4.3.2. Technical skills for middle management ...................................................................115 4.3.3. Training for managers ................................................................................................117 4.3.4. Soft skills training ......................................................................................................119

4.4. Profile of the stakeholders engaged to establish the Centre of Excellence .................123

4.4.1. ETIDI .........................................................................................................................124 4.4.2. H&M ..........................................................................................................................125 4.4.3. DBL ...........................................................................................................................126 4.4.4. Strathmore ..................................................................................................................129 4.4.5. Velocity ......................................................................................................................130 4.4.6. MAA garment ............................................................................................................131 4.4.7. Ethiopian Institute of Science and Technology .........................................................133 4.4.8. Local Government Offices .........................................................................................133 4.4.9. Coordination with Development Stakeholders ..........................................................134

4.4.9.1. Towards a collaboration with GIZ ................................................................................... 135

4.5. Recommendations to formulating a one-year training timeline .................................137

4.5.1. Key findings ...............................................................................................................137 4.5.2. Recommendations on Coordination and a PPPs ........................................................138 4.5.3. Technical skill trainings .............................................................................................140 4.5.4. Soft skill trainings ......................................................................................................143

4.5.4.1. Non-conventional soft skill training activities .................................................................. 144

4.6. Preliminary list of equipment and machineries for the Centre of Excellence ...........145

4.7. Project Logical Framework............................................................................................149

5. References .................................................................................................................. 150

Annex 1. In-depth interviews transcripts ................................................................... 152

Annex 2. Training Manual on Technical Skills for Basic Operators ....................... 169

Annex 3. Training Manual on Middle Management ................................................. 169

Annex 4. Training Manual for Managers ................................................................... 169

Annex 5. Training Manual on Soft Skills.................................................................... 169

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List of acronyms

AGOA: African Growth and Opportunity Act

AICS: Italian Agency for Development Cooperation

BOLSA: Bureau of Labour and Social Affairs

Bureau T&I: Bureau of Trade, Industry and Urban Development

CAMM: Common Agenda on Migration and Mobility

COMESA: Common Market for Eastern and Southern Africa

CSA: Central Statistical Agency

DFID: UK Department for International Development

DGCS: Direzione Generale per la Cooperazione allo Sviluppo

EAC: East African Community

EBA: Everything But Arms

EIT: Ethiopian Institute of Technology

EP: Enterprise Partners

ETIDI: Ethiopian Textile Industry Development Institute

ETGAMA: Ethiopia Textile and Garment Manufacturer's Association

EU: European Union

EUR: euros

FDI: Foreign Direct Investments

GIZ: German Federal Ministry for Economic Cooperation and Development

GoE: Government of Ethiopia

GTP I: Growth and Transformation Plan

GTP II: Growth and Transformation Plan II

IDP: Internally Displaced Persons

IDZ: Industrial Development Zones

ILO: International Labour Organization

IP: Industrial Park

IPDC: Mekelle Industrial Park Development Corporation

ITC: International Trade Centre

JICA: Japanese Development Cooperation

MAECI: Ministero degli Affari Esteri e della Cooperazione Internazionale

MGC: Mekelle Garment College

MoI: Ethiopian Ministry of Industry

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MSE: Micro and Small Scale Enterprises

NGO: Non-Governmental Organisations

OS: Occupational Standard

PCP: Programme for Country Partnership

PPP: Public Private Partnership

RMG: Ready Made Garment

SADC: South African Development Community

SINCE: Stemming Irregular Migration in Northern & Central Ethiopia

SMMIDA: Small and Medium Enterprise Development Agency

SNNPR: Southern Nations, Nationalities and People's Regions

T&G: Textile and Garment

TOT: Training of Trainers

TVET: Technical and Vocational Training

UNIDO: United Nations Industrial Development Organization

UNOCHA: United Nations Office for the Coordination of Humanitarian Affairs

USD: US dollars

VIS: Volontariato Internazionale per lo Sviluppo

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List of tables

Table 1. Employees in the T&G sector, 2013-2016, Central Statistical Agency

Table 2. Ratio of cost of labour to gross value of production by industrial group - public

and private

Table 3. Wage rate distribution in garment

Table 4. T&G export in Ethiopia, 2001-2014, US$ thousands, ITC (2016)

Table 5. Destination of garment export in Ethiopia

Table 6. Cost of energy in Ethiopia

Table 7. Unemployment figures in Tigray disaggregated by education level and Zone

administration (2016-17)

Table 8. Provisional Unemployment figures for 2017-18

Table 9. Trainings for prospective workers in the Mekelle Industrial Park (MIP)

Table 10. Unemployment figures in Mekelle Municipality disaggregated by education

level and Sub City (2016-17)

Table 11. Trainees from Mekelle Municipality to be employed in Mekelle Industrial Park

(Until October 2017)

Table 12. Mekelle Returnees from the Kingdom of Saudi Arabia

List of maps

Map 1. Tigray National Regional State

Map 2. Wereda targeted by socio-economic assessment around Mekelle

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Executive summary

The UNIDO project “Capacity-building and job creation for youth and women in the

textile sector in migration prone areas of Ethiopia” is funded by the Italian Agency for

Development Cooperation (AICS) in Ethiopia. The project is implemented over three

years starting from September 2017, has a total budget of 2.5 million EUR, and is run in

close coordination with the Ethiopian Ministry of Industry (MoI).

As a follow up to the assessment conducted for the Stemming Irregular Migration in

Northern & Central Ethiopia (SINCE) project inception phase, the present project has

been developed to tackle one of the main roots behind irregular migration and

displacement, i.e. youth unemployment and, more broadly, lagging economic

opportunities. The project aims to support the Government of the FDR of Ethiopia (GoE)

in creating decent and productive job opportunities for young women and men through

the strategic development of the Textile and Garment (T&G) sector. Expanding the T&G

sector is done by supporting capacity-building initiatives in the textile industry through a

Public Private Partnership (PPP) approach.

The project responds to a specific official request from the Ethiopian MoI to support the

sector and is articulated in line with the Valletta Action Plan under the chapter

development benefits of migration, which addresses the root causes of irregular migration

and forced displacement. Intervention focuses on Tigray National Regional States, which

is a region where the T&G industry is in rapid expansion, and where significant fluxes of

origin and transit of migrants currently takes place. The project targets two priority areas.

The first is the creation of employment opportunities and revenue-generating activities

through strengthening the professional and soft skills of young people, with a particular

focus on women, as well as broader institutional capacities in Tigray. The second is to

facilitate responsible private investment in Africa agro-industries and boost intra-African

trade and exports of products through increased financial activities.

The project general objective is to contribute to the creation of decent and productive job

opportunities for young people, and women particularly, in the context of the current

expansion of the T&G industry in Tigray. Intervention focuses on Tigray National

Regional States, which is a region where the T&G industry is in rapid expansion, and

where significant fluxes of origin and transit of migrants currently takes place. In this

context, the specific objective is to support the GoE to establish productive and effective

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training capacity at various levels of the textile and garment industry – including

technical skills for basic operators and middle management, managers, as well as soft

skills and institutional capacity. Ultimately, the project aims to support the establishment

a Centre of Excellence for Skill Development in Mekelle, Tigray. The rationale of the

project is to design and develop capacity building and training initiatives through a PPPs

approach, and initially starting from the demands of the private sector. This approach is

meant to enable the strategic engagement of key industrial actors currently in the process

of operating in the region with relevant local, regional, and national public institutions. In

turn this is expected to maximise the effectiveness of technical, managerial and

institutional capacities of the T&G industry.

This report is divided in three parts. The first introduces key aspects of the projects, its

objectives, and discusses the methodology that has been employed to select priority areas

and target sectors. The second part of the report discusses the T&G industry in Ethiopia

and then provides a specific focus on Tigray and the area of Mekelle. This second part

draws on a review of the existing literature as well as on a socio-economic assessment

conducted during the project’s inception phase based on qualitative methods of research

analysis and data collection. The third part of the report outlines the project’s Action Plan

and provides recommendation for implementation.

In recent years the textile and garment sector has proved a vital entry point to creating

new employment opportunities throughout the developing world. Beyond the economic

growth T&G manufacturing brings to developed countries, which most often facilitate the

highest levels of the value chain, it also introduces significant opportunities to developing

countries. As a result, the T&G sector is quickly becoming a significant vehicle to

alleviate poverty through a model of export-oriented economic development. More often

T&G serves as an important mechanism to introduce state of the art technologies. A

trillion-dollar industry, the T&G sector brings new employment opportunities to millions

living in developing countries throughout the world. Providing a foundation for

industrialization, the T&G sector is helping to transform much of the global South. While

Europe remains the largest market for consumers, averaging around 350 billion US

dollars, the greatest amount of exports continue to be produced in China and India (Berhe

et al., 2017).

Through a strategy of converting its largely agricultural economy into manufacturing,

Ethiopia predicts its will reach middle-income status by 2025. In 2002, the Ethiopian

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government prioritized the T&G sector with the Industrial Development Strategy through

an emphasis on labour and exports. As a result, the sector is becoming one of country’s

foremost employers, offering new opportunities for unskilled, and often women, workers

throughout Ethiopia, particularly in the region of Tigray. In 2015, the Ethiopian

government released the Growth and Transformation Plan II (GTPII) setting out strategic

goals to develop manufacturing industries.

Among the aims of the GTPII is to further develop globally linked small-scale

manufacturing, a target that proves central in order to meet the 2025 objective. As a

result, Ethiopia is soon transforming into a significant production and sourcing site for

global T&G buyers worldwide. After the implementation of the GTPII the local

government in Tigray is working to attract new foreign direct investment into the T&G

sector. The region now boasts five vertically integrated T&G factories, offering

thousands of new employment opportunities.

Yet in spite of the T&G sector’s promise current operations in Ethiopia have proved

underproductive and fail to be truly competitive in the global arena. In addition, the

influx of foreign capital seeking cheap labour often undermines local working conditions.

As global trends demonstrate emerging economies are vulnerable to undermining basic

working rights in lieu of attracting foreign investment. While this suggests that cost is the

only factor determining competitiveness on an international scale these trade-offs are not

guaranteed, as investors and customers worldwide take into account working conditions

more and more. Working conditions and living wages, alongside productivity and

competitiveness are becoming important considerations not only for consumers, but also

foreign investors. Creating the conditions for gainful employment and good work

environments boosts productivity and competitiveness. Yet, in Ethiopia important

questions remain about labour. According to Berhe et al. (2017) the majority of

employees working in the textile and garment industry are not unionized, while more

broadly a standard minimum wage has yet to be established. While workers cite

unfavorable conditions to trade unions, management is often in support of unionization as

it boasts productivity and competitiveness.

In Tigray a range of problems undermines further development in the T&G sector.

Specifically labour is a persistent challenge – as the majority of the work force is

equipped with low technical and soft skills. More broadly local institutions have proved

an obstacle as a failure in communication leads to an inability to properly implement

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polices of the central government. In addition, supporting institutions fail to properly

provide relevant market, product and technology related data in a timely manner. Beyond

institutional failures, the shortage of raw materials and necessary replacement parts for

machinery that take a long time to replace is a consistent challenge. Adequate water

supply, transport and facilities are also factors. Lastly, as labour proves inadequately

skilled appropriate training facilitates are deficient throughout the region. As a result it is

necessary to develop training at different levels including technical and soft skills for

basic operators, technical skills for middle management and training for top management.

Accordingly, in order to adequately address the challenges government cooperation will

be necessary at both the regional and central levels.

The T&G sector holds great transformative potential for Ethiopia in order to meet its goal

to reach middle-income status by 2025. Opening up new employment opportunities

across a range of skilled and unskilled labour, the development of the T&G sector holds

the ability to help address economic disparities among Ethiopian society. Yet, economic

and social challenges stand in the way of unlocking the sectors full potential that require

the cooperation of both regional and federal governments in order to overcome.

The geostrategic situation of Ethiopia makes it a source of, a destination for, and a transit

region for migration and refugee flows, mostly within the region but also to the Gulf

countries and Middle East (Eastern Route), Europe (Northern route) and South Africa

(Southern route), as well as of internal displacement. Ethiopia is increasingly becoming a

transit country for mixed migration flows, mainly from Eritrea and Somalia using

primarily the Northern route, as well as a country of departure for migrants mainly using

the Eastern route and to a lesser extent the Southern and Northern routes.

While the country has experienced double-digit economic growth rates during the last

decade, the lack of economic opportunities, as well as of participation in economic life,

are still very high, adding to a sense of disenfranchisement and constituting an important

push factor for displacement.

Within this context, the Ministero degli Affari Esteri e della Cooperazione Internazionale

and Direzione Generale per la Cooperazione allo Sviluppo (MAECI-DGCS) developed

the project Stemming Irregular Migration in Northern and Central Ethiopia (SINCE) with

support from the EU to create employment opportunities for young people and women in

an effort to better understand the reasons behind recent migration trends. As a follow up

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to SINCE, the Embassy of Italy in Addis Ababa requested UNIDO prepare a technical

assistance project proposal to contribute to the reduction of irregular migration from

Northern and Central Ethiopia by creating greater economic and employment

opportunities for young women and men through the development of high potential

sectors such as agro-industries and related (e.g. textile, leather, metal working, edible oil,

etc.). This is the background against which this project was formulated.

In addition, the State Minister of Industry H.E. Bogale Felleke, in charge of the leather

and textile sectors, officially requested UNIDO to provide technical assistance in

improving the institutional capacity of both the Ethiopian Ministry of Industry (MoI) and

the Ethiopian Textile Industry Development Institute (ETIDI), in order to meet the

private sector requirements, facilitate the T&G sector growth, and play a relevant role in

creating skilled labour force.

The T&G sector was selected for numerous reasons. First the T&G sector offers

considerable potential for employment creation and contribution to national GDP. Second

the T&G sector presents significant opportunities for income and employment

multipliers. Third the T&G sector provides significant opportunities for economic

integration of the national economy and in terms of creation of forward and backward

linkages.

In addition to identifying the T&G sector as a main priority sector, the region of Tigray –

and more specifically the area around Mekelle – was identified as the priority area of

intervention. However, while the focus is concentrated on Tigray the project is expected

to produce broader national repercussions, both in terms of capacity building to Federal

institutions such as the MoI and ETIDI, as well as potentially providing a blueprint to

implement skill development initiatives elsewhere in the country.

In recent years the T&G sector in Ethiopia has experienced a remarkable expansion and

managed to attract the attention of key foreign investors and buyers, such as ITACA,

H&M, G&T, Primark, Phillips Van Heusen, Tschibo, Tesco, Marks & Spencer, VF

Corporation, and Inditex. In 2014, 36 T&G foreign direct investments projects were

licensed, with an average capital investment of USD 140 million. These projects employ

an estimated average of 2,500 people each.

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Current figures show that over 136 T&G manufacturing companies, ranging from

medium to large scale, are currently involved at different levels in the segments of

ginning, spinning, weaving, finishing and garment. In addition, a considerable number of

start-ups and micro enterprises are involved in the sector at different levels and both in

‘modern’ and ‘traditional’ apparel production.

T&G is among the most labour intensive sectors within industry and manufacturing. In

providing considerable employment opportunities worldwide – especially to young

women – the T&G sector is characterized by rapid market-driven changes as well as

geographically dispersed production. With a rapidly growing young population and an

increasing trend towards urbanization, Ethiopia offers ideal conditions for a rapid

development of the T&G sector when it comes to labour supply. As noted earlier,

employment creation for youth and women is one the top priorities of the GoE

development strategy.

At the same time, in Ethiopia the cost of labour is lower than in many other T&G

producing countries. However, as productivity of labour remains low, this comparative

advantage does not automatically translate into a competitive advantage for the sector.

Nonetheless, in the coming years the growth of the T&G sector driven by FDIs is

expected to generate considerable job opportunities for women and youth that are either

unemployed, or employed in the informal sector.

The sector has also the potential to attract a large workforce from rural areas previously

engaged in smallholding farming. The sector is believed to offer additional advantages

when it comes to rapid employment creation. These include the capacity of state

bureaucracy to mobilize people up to the micro level, the potential for creating other

labour-intensive spin-off industries – such as accessories and chemicals – as well as

upstream linkages to cotton production for which Ethiopia has tremendous potential.

The T&G industry holds significant potential for rapid employment creation in the

coming few years. Nonetheless, in order to uncap such potential, specific challenges need

to be addressed. Challenges pertaining to employment creation can be divided in two

main groups:

Gaps in technical and soft skills

Gaps in creating an enabling environment

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The gaps in technical and soft skills present numerous challenges, including:

Lack of adequate technical and vocational training (TVET) capacity

Lack of sufficient on the job training

High turnover and absenteeism

Lack of middle management capacity and supervisors

Resistance to change and lack of soft skills

Lack of a market-driven approach

Problems in fulfilling adequate quality standards

The gaps in creating an enabling environment present numerous challenges, including:

Sourcing of inputs

Lack of integration and limits to value addition

Institutional capacity and sector coordination

Access to finance

Upgrading machineries

Limited awareness on how to exploit preferential export markets

Trade promotion capacity

Tackling these challenges is fundamental to uncap the potential of the sector to create

sustainable and productive job opportunities. A key finding of socio-economic

assessment include the following:

The companies surveyed and engaged in the discussion to establish the Centre of

Excellence plan to hire 20,000+ workers in the next three years, and additional

10,000+ to achieve full capacity. These are conservative figures that do not

account for small and medium textile companies, as well as major industrial

operators already in the area such as ITACA/Calzedonia.

While the number of job seekers with a profile suitable for the textile industry

(e.g. 18-25 years old, and Grade 9 or above) in Tigray is significant (~140,000),

only about 5% of these can be sourced from Mekelle Municipality (~7,000). By

implication, it is expected that the expansion of the T&G will be associated with

significant fluxes of migrant workers from elsewhere in the region.

A significant number of workers are potentially available in the six wereda

immediately bordering with Mekelle Municipality (~13,000).

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Existing training institutions (e.g. TVETs) are not able to meet the existing

demand for trainings from both a quantitative and qualitative perspective.

Labour migration raises deeper questions about the transition to industrial life,

which entails economic, social, and cultural transformations that need to be taken

into consideration when developing trainings, particularly on soft skills.

Labour migration is complex and not unidirectional from rural to urban areas.

Peri-urban sites where the industry put its roots become target of multiple fluxes

from both the inner city and rural areas. In addition, at least in the short-term,

labour migration is never permanent, and rather is characterized by frequent

commuting and movements back and forth to the place of origin.

Over 85% of the employees in the textile industry are women with a low socio-

economic profile, and eligible for a minimal entry salary. Industrial work is

unlikely to enfranchise young women from existing social hierarchies within the

household and the broader communities of origin.

While working, women are still expected to perform the same domestic tasks in

the household. This and frequent social and cultural obligations in the community

explain high rates of turnover and absenteeism. A particular concern is childcare

for migrant workers that have no family network in the area where they relocate.

The textile industry and industrialization are regarded as important aspects of the

country’s future, and have attached positive notions of progress, modernity and

development. Industrial jobs have a higher reputation than jobs in other sectors,

even when these pay a better salary. The textile industry is expected to create new

jobs and tackle the problem of youth unemployment.

The fact that the textile industry offers initial low salaries has several

implications. Regardless of how low these salaries are still very important in

consideration of the substantial lack of alternatives that many youth face today,

and of households’ reproductive strategies. Particularly, for those households with

an agriculture background an additional cash income often constitutes an

important risk diversification strategy.

Connected to the question of low initial salaries, work in the textile industry is

usually regarded as a short-term strategy. Young workers plan to get enough skills

and experience to move on to a better life.

In order to better facilitate job growth in the T&G sector job trainings through the

establishment of a Centre of Excellence will be an important resource. The Mekelle

Garment College (MGC) has been identified the ideal institution where to ground the

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Centre of Excellence. The College boasts adequate equipment and facilities. MGC has a

range of equipment suitable to produce a variety of products, with satisfactory facilities to

host soft-skill trainings.

The planning, design and vision for the Centre of Excellence was conceived at two

Public-Private Roundtables held in conjunction with both public and private industry

stakeholders. The first Public-Private Roundtable on skill development in the Tigray

Textile Sector took place in Mekelle on December 12th 2018. The roundtable brought

together major industrial partners and public institutions. The industrial partners that

attended are the following: H&M, Velocity, DBL, Strathmore Trading, and MAA

garment. Representatives of public institutions included the ETIDI, the TVET Tigray

bureau, the Mekelle Garment College, the Industrial Park Development Corporation

(IPDC), and the Ethiopian Institute of Technology (EIT) of Mekelle University. The

roundtable discussion was organized around two main aspects of skill development in the

T&G industry: soft skills and technical skills.

As far as soft skills are concerned all the stakeholders agreed that this is by far a main

challenge hindering the productivity of the industry. The discussion highlighted that there

is a need for skill development initiatives that acquaint workers with the industrial

culture, including how to behave on a factory setting, time management, industrial

psychology, and health & safety regulations. It was stressed that soft skill initiatives must

involve not only basic operators but also line supervisors, middle management, as well as

managers. In addition, it was recognised that soft skill development cannot be dealt with

in isolation from the social and cultural background of the workers. The discussion about

technical skill development was equally productive. The general principle that was

agreed upon was about a dual step training, part to be conducted in the training centre and

part directly in the factory.

The second technical roundtable was held in Mekelle on January 23rd 2018. The

roundtable brought together major industrial partners, along with representatives of local

government offices, as well as of the national ETIDI and the Technology Institute of

Mekelle University. The discussion was organized along 4 main topics: technical skill

development for basic operators, technical skill development for middle management,

skill development for managers, and soft skill development. In line with the previous

roundtable, a general consensus emerged about thinking at the Centre of Excellence not

as a static training centre, but rather as a dynamic, flexible, and adaptable platform to

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provide a wide set of trainings depending on the demand of the industry and the market

of the time. The Centre is expected to work as a platform hosting the most innovative

ideas about how better to perform trainings at a certain point of maturity of the industry

and the job market in the area of Mekelle, and in Ethiopia more broadly. The structure of

the job market will change over time, and the Centre of Excellence will have to be able to

adapt accordingly by providing trainings that are effective to meet a rapid pattern of

change. While it was a general understanding that the current need for basic operators and

middle management staff is the most pressing, the nature of the industry is going to

change as more people get trained, and increasing levels of specialisation and

diversification are achieved. For these reasons, it was general understanding of the

stakeholders involved that a modular approach to the project means that the contents

discussed for each training curriculum will constitute only the initial basis of what will be

offered at the Centre of Excellence.

In line with the project’s PPP methodology, during the inception phase the UNIDO staff

engaged with a number of stakeholders at different levels. In addition to the Italian

Agency for Development Cooperation (AICS) in Ethiopia, these include:

Governmental institutions at Federal and Local level: Ministry of Industry,

Ethiopia Textile Industry Development Institute (ETIDI), Tigray Trade and

Industry Bureau, Tigray TVET Bureau, Tigray Small and Medium Manufacturing

Industry Development Agency (SMMIDA), Mekelle BOLSA, Mekelle Garment

College, Mekelle Urban Job Creation and Food Security Bureau, Ethiopian

Institute of Science and Technology of Mekelle University.

Private sector actors: Ethiopia Textile and Garment Manufacturer's Association

(ETGAMA), Mekelle Industrial Park Development Corporation (IPDC), H&M,

Velocity, DBL, Strathmore Trading PLC, MAA Garment, Calzedonia, Decathlon,

Enterprise Partners (EP).

International Organizations and NGOs: European Union delegation, German

development cooperation (GIZ), International Labour Organization (ILO), UK

development cooperation (DFID), Japanese development cooperation (JICA),

Italian Trade Agency, Don Bosco, Rainbow4Children, Volontariato

Internazionale per lo Sviluppo (VIS).

The Ethiopia Textile Industry Development Institute (ETIDI) is a key partner in

envisioning and developing the Centre of Excellence in Mekelle. The mission and

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expertise of the Institute makes it the natural and ideal governmental partner to

implement the UNIDO project, together and in close collaboration with the Ministry of

Industry. In particular, the expertise and the national reach of ETIDI are critically

important to develop a Centre of Excellence that become a Best Practice to implement

elsewhere in the country. ETIDI staff contributed substantially to the discussion during

the two public-private roundtables in Mekelle, and was instrumental in providing the

project with a soft skill training manual. At a broader level, the Director of the Institute,

Ato Seleshi Lemma, played an invaluable advisory role during periodical meetings that

took place at the Ministry of Industry, at the presence of his Excellency Ato Bogale

Felleke.

H&M has been instrumental in developing and formulating the UNIDO project from the

very beginning. H&M offered support to coordinate training activities at different levels,

and its staff played a very important role during the two roundtables organized in

December 2017 and January 2018. DBL has been instrumental to the inception phase of

the UNIDO project in a number of regards. The company led the development of a

training curriculum for middle management and the staff made a substantial contribution

to both roundtable discussions. Although Strathmore started to establish its presence in

Mekelle during the inception phase of the project, the company committed to participate

to the two roundtables organized in December and January. Strathmore provided a

substantial contribution to the formulation of the technical skills for basic operators

manual. MAA garment has been extremely important to the inception phase of the

UNIDO project. Together with Strathmore Trading the company led the development of a

training curriculum for technical skills for basic operators, and the staff made a

substantial contribution to both roundtable discussions. Velocity expressed a substantial

interest in the UNIDO project in relation to developing the soft skill training component.

The Ethiopian Institute of Science and Technology was initially contacted to discuss

broader issues about potential synergies between Mekelle University and the Centre of

Excellence. After some very productive conversation, staff members were invited to

attend the roundtable discussions. The Institute developed a detailed curriculum for the

training of managers that was very well received by the other public and private

stakeholders. Local government offices at both Regional and Municipal levels

contributed significantly to the discussion during the two roundtables.

19

Training manuals to be employed in the Centre of Excellence on Technical Skills for

Basic Operators, Middle Management, Managers, and Soft Skills have been included to

this report as attachments. The Action Plan provides specific recommendations on how to

implement the activities in the Centre of Excellence on each of these four components. A

preliminary estimation based on data and information collected show that during the

duration of the project (3 years), the Centre of Excellence will be potentially able to train

and place in the job market over 4,700 workers. Among these 4,200 are basic operators,

450 middle management staff, and 60 managers.

20

1. Introduction

The UNIDO project “Capacity-building and job creation for youth and women in the

textile sector in migration prone areas of Ethiopia” is funded by the Italian Agency for

Development Cooperation (AICS) in Ethiopia. The project is implemented over three

years starting from September 2017, has a total budget of 2.5 million EUR, and is run in

close coordination with the Ethiopian Ministry of Industry (MoI).

As a follow up of the assessment conducted for the SINCE project1 inception phase, the

present project has been developed to tackle one of the main roots behind irregular

migration and displacement, i.e. youth unemployment and, more broadly, lagging

economic opportunities. The general objective of this project is to support the

Government of the FDR of Ethiopia (GoE) to create decent and productive job

opportunities for young women and men through the development of the strategic Textile

and Garment (T&G) sector. This is done by supporting capacity-building initiatives in the

textile industry through a Public Private Partnership (PPP) approach. Intervention focuses

on Tigray National Regional States, which is a region where the T&G industry is in rapid

expansion, and where significant fluxes of origin and transit of migrants currently takes

place. The project also responds to a specific official request from the Ethiopian MoI to

support the sector. The project is articulated in line with the Valletta Action Plan2 under

the chapter development benefits of migration, which addresses the root causes of

irregular migration and forced displacement. The project targets two priority areas:

Create employment opportunities and revenue-generating activities through

strengthening the professional and soft skills of young people, with a particular

focus on women, as well as broader institutional capacities in Tigray.

1 “Stemming Irregular Migration in Northern & Central Ethiopia (SINCE)”, SAP 160089. SINCE Project

Output 0 envisages the preparation of a UNIDO technical assistance project proposal - “Output 0 -

Inception Phase: Detailed Final Inception phase report plus a joint (ILO and UNIDO) inception phase

report is produced: including a UNIDO technical assistance project proposal, results oriented ToRs incl.

LOGFRAME, risk and stakeholder analysis, work plan, monitoring plan, budget prepared for SINCE

implementation”. This task has been incorporated within SINCE project activities about Output 0,

specifically, the activity 0.14 “0.14 A UNIDO Technical Assistance Project Proposal for supporting

inclusive and sustainable development of the selected value chains is prepared and submitted to the PSC”. 2 The European Union (EU) has launched in November 2015, at the Valletta Summit, an “Emergency Trust

Fund for stability and for addressing root causes of irregular migration and displaced persons in Africa”,

made up of €1.8 billion from EU budget and European Development Fund, combined with contributions

from EU Member States and other donors.

21

Facilitate responsible private investment in Africa agro-industries and boost intra-

African trade and exports of products through increased financial activities.

1.1. Project objectives

The project general objective is to contribute to the creation of decent and productive job

opportunities for young people, and women particularly, in the context of the current

expansion of the T&G industry in Tigray.

In this context, the specific objective is to support the Government of the FDR of

Ethiopia (GoE) to establish productive and effective training capacity at various levels of

the textile and garment industry – including technical skills for basic operators and

middle management, managers, as well as soft skills and institutional capacity.

Ultimately, the project aims to support the establishment a Centre of Excellence for Skill

Development in Mekelle, Tigray, through a PPP approach that favours the strategic

engagement of key industrial actors currently in the process of operating in the region

with relevant local, regional, and national public institutions.

1.2. Project background and rationale

The European Union (EU) has launched in November 2015, at the Valletta Summit, an

“Emergency Trust Fund for stability and for addressing root causes of irregular migration

and displaced persons in Africa”, made up of 1.8 billion EUR from EU budget and

European Development Fund, combined with contributions from EU Member States and

other donors.

The Trust Fund is an innovative mechanism under the EU’s Financial Regulation used in

the field of development cooperation to pool large resources from different donors to

enable a swift, common, complementary and flexible response to the different dimensions

of an emergency situation. The Trust Fund benefits a wide range of countries across

Africa that encompasses the major migration routes to Europe. These countries are

among the most fragile economically and most affected by migration, and hence are

expected benefit the most from EU financial assistance.

22

The Trust Fund aims at tackling root causes of irregular migration and forced

displacement in countries of origin and transit, in particular by strengthening the rule of

law, creating economic and education opportunities, and building better governance, and

the effective sustainable return, readmission and reintegration of irregular migrants not

qualifying for protection. This requires a firm commitment to supporting capacity

building of third countries in the field of migration and border management, as well as to

the stabilisation and development of these regions of Africa.

Over the past few years, migration has increasingly become an issue of importance for

the Government of the Federal Democratic Republic of Ethiopia (GoE). Work has been

initiated towards enhancing the framework for legal migration. In June 2015, a

proclamation for the prevention and suppression of trafficking in person as well as

smuggling of migrants was adopted, giving Ethiopia a tool to help prevent and tackle this

increasingly important problem.

Furthermore, the EU and Ethiopia have signed a joint Declaration for a Common Agenda

on Migration and Mobility (CAMM), reflecting the importance of Ethiopia as a key

country of origin, transit and destination of irregular migrants and refugees from the Horn

of Africa on the route to Europe. The GoE has been actively supporting the reintegration

of returnees and is willing to address migration matters in a comprehensive way.

Moreover, the country strategy outlined in the Growth and Transformation Plan II (GTP

II) makes youth and employment a high priority and intends to achieve results in

particular through the development of manufacturing industries, including through the

opening of Industrial Parks (IPs) in the country. The goal of these parks is to promote

industrial development and Foreign Direct Investments (FDIs) that generate employment

and sustain economic growth and development.

Forced displacement, irregular migration, trafficking in human beings and smuggling of

people are transnational challenges that affect Ethiopia to a great extent. A country with

an estimated population close to 100 million inhabitants, Ethiopia hosts over one million

displaced persons, including over 450,000 internally displaced persons (IDPs) and about

730,000 refugees, the largest refugee population in Africa. The geostrategic situation of

Ethiopia makes it a source of, a destination for, and a transit region for migration and

refugee flows, mostly within the region but also to the Gulf countries and Middle East

(Eastern Route), Europe (Northern route) and South Africa (Southern route), as well as of

internal displacement. Ethiopia has an open door policy to migrants and refugees fleeing

23

war, famine and hunger. In this context, it is often difficult to clearly distinguish irregular

migrants from refugees. The concept of mixed migration has thus appeared to describe

these complex population movements including refugees and asylum seekers,

unaccompanied minors, victims of trafficking, economic migrants and others often

travelling in an irregular manner. Ethiopia is increasingly becoming a transit country for

mixed migration flows, mainly from Eritrea and Somalia using primarily the Northern

route, as well as a country of departure for migrants mainly using the Eastern route and to

a lesser extent the Southern and Northern routes.

According to demographic projections, more than two million young Ethiopians enter the

labour market every year. The challenge of their socioeconomic integration is immense.

A lack of success in integrating these young people would be a collective failure and it

could risk destabilising Ethiopia. In addition, Ethiopia is regularly hit by humanitarian

crises.

Although manifested differently according to local contexts, a complex set of drivers

underpins forced displacement and mixed migration in Northern Ethiopia: lack of

economic opportunities, marginalisation, natural disasters, and food insecurity are at the

roots of the problem. While the country has experienced double-digit economic growth

rates during the last decade, the lack of economic opportunities, as well as of

participation in economic life, are still very high, adding to a sense of disenfranchisement

and constituting an important push factor for displacement. Across the country,

population displacement has continued or increased, with returns to places of origin

decreasing, and a growing flow of mixed migrants has also moved across the borders,

fuelling human trafficking and smuggling of migrants. A culture of migration, amplifying

the success stories of those making a good living abroad, spreads throughout the

Ethiopian society and constitutes a strong pull factor. Information may also have a key

role on migration patterns. At the same time, Ethiopia is also a recipient country for

refugees arriving in camps and irregular migrants. They are not allowed to access a

regular work permit and, as a result, they survive relying on informal sector activities

with no legal status. Insufficient data are available on the subject in Ethiopia.

Women, girls and migrants under the age of 20 are increasingly on the move and they

face additional vulnerabilities during their transit or at the point of arrival. Despite the

relatively low overall migration rate in Ethiopia if compared to other countries, migration

rates have been increasing. 86% of all migrants in Ethiopia are working migrants, seeking

24

employment and 25% migrate from rural to urban areas. In Addis Ababa, internal

migrants (all those not residing in the community of their birth) represent nearly half of

the population, although there is a recent migration favouring smaller rural cities. A

majority of migrants are young at the time of departure: the average age of a migrant in

Ethiopia is 24 years old. There is also a large number of unaccompanied minors

continuously arriving in Ethiopia (particularly from Eritrea) who are at high risk of

trafficking and abuse. With more than 8,500 migrant child returnees registered from the

total of over 160,000 deportees from the Kingdom of Saudi Arabia in 2013-2014, the

issue of migrant children is an important focus for Ethiopia.

Within this context, the MAECI-DGCS developed a project initiative, with a budget of 20

millions EUR funded by the EU, entitled: “Stemming Irregular Migration in Northern &

Central Ethiopia (SINCE)” for creating employment opportunities, especially for young

people and women. SINCE operates on the country’s four largest regions: Tigray,

Amhara, SNNPR, Oromia. A specific focus of SINCE are zones, small cities, rural towns,

and major cities including Addis Ababa, where the incidence of potential migrants and

returnees is higher.

As a follow up of the SINCE project, the Embassy of Italy in Addis Ababa requested

UNIDO to prepare a technical assistance project proposal to contribute to the reduction of

irregular migration from Northern and Central Ethiopia by creating greater economic and

employment opportunities for young women and men through the development of high

potential sectors such as agro-industries and related (e.g. textile, leather, metal working,

edible oil, etc.).

The AICS/UNIDO initiative has been designed and developed in close coordination with

the GoE, and the Ministry of Industry (MoI) in particular. During the “High Level MoI-

UNIDO Planning Meeting - Manufacturing Sector” held in Addis Ababa on 14 December

2016, UNIDO received clear instructions from the MoI regarding priority interventions to

be implemented in 2017 within the framework of the PCP-ETH. In this context, the State

Minister of Industry H.E. Bogale Felleke, in charge of the leather and textile sectors,

officially requested UNIDO to provide technical assistance to improve the institutional

capacity of both the MoI and the Ethiopian Textile Industry Development Institute

(ETIDI), in order to meet the private sector requirements, facilitate the T&G sector

growth, and play a relevant role in creating skilled labour force.

25

1.3. Methodology

This section addresses three methodological aspects of the project. First, it discusses the

methodology employed to identify the T&G as a priority sector and Tigray as a priority

area. Second, it focuses on questions about the adoption of a PPPs approach. Third, it

presents the methods of data collection and research analysis employed to conduct the

inception phase’s socio-economic assessment.

1.3.1. Identification of priority sectors and areas of intervention

Identifying sectors that have the capacity to effectively create jobs in line with the

objectives outlined in the GTP II national economic growth strategy is the core of the

intervention and methodology followed by UNIDO. In this regard, an effective

development strategy calls for the support to those sectors that generate higher added

value and employment. The T&G sector was selected for the following reasons:

Offers a considerable potential for employment creation and contribution to

national GDP;

Presents significant opportunities for income and employment multipliers;

Provides significant opportunities for economic integration of the national

economy and in terms of creation of forward and backward linkages.

The project relies on sector and value-chain development strategies targeting the T&G

industry. The labour-intensity of the sector is a key parameters taken into account in the

selection. However, the inclusive and sustainable development of the T&G industry in

Ethiopia goes hand in hand with the creation of quality and productive employment

opportunities.

In order to implement effective interventions with a significant impact on the creation of

employment and economic opportunities, the identification of the areas of interventions

was a priority addressed during the design of the project.

Criteria to identify areas of interventions included the following:

Presence of existing interventions focusing on job creation and value chain

development, in order to build on previous activities’ achievements.

26

Coordination with existing Government socio-economic development plans: the

areas should be part of on-going strategic development plans of the Government

of Ethiopia.

Presence of public and private investments: the areas should be the target of

public and/or private investments on which the project can rely on in terms of

creation of sustainable employment and economic opportunities.

Criteria to identify the priority sectors included the following:

Target areas: areas have been targeted and prioritized based on the employment

creation opportunities, migration prone areas and beneficiaries’ needs base.

Employment: employment and wage levels, particularly for youth and women.

Size of Sector and its relevance to the target group: How labour-intensive is the

sector? What is the share of youth (women and men) and women working or

potentially working in the sector?

Work upgrading potential: After assessing the size and relevance of a sector, the

general characteristics of the sector are assessed together with its potential for

change towards the objective of decent work.

Intervention impacts: Finally the feasibility of stimulating change in a sector

(value chain) is assessed. Change depends on internal and external factors, namely

the capacity of the implementing agency to develop the sector and the capacity of

the target sector to develop (which in turn depends on social capital, market

demand for the products, etc.).

Based on the above-mentioned criteria the project identified the T&G sector as a main

priority sector, and Tigray – and more specifically the area around Mekelle – as the

priority area of intervention. However, the project is expected to produce broader national

repercussions, both in terms of capacity building to Federal institutions such as the MoI

and ETIDI, as well as potentially providing a blueprint to implement skill development

initiatives elsewhere in the country.

27

1.3.2. Private Public Partnership (PPP) approach

The promotion of PPPs3 is central to the mission of UNIDO to ensure effective and

sustainable interventions in the field of industrial development. For the implementation of

this project the adoption of a PPP approach is key from many perspective. First, it allows

the prospected intervention long-term sustainability and a holistic approach to the

enhancement of the T&G value chain. Second, Core Business and Value Chain

Partnerships harness the core strengths of the private sector and/or aim at changing the

way businesses operate to be more in line with social, environmental and development

goals. Third, PPP allow the formulation of training programmes that reflect the practical

needs of the industry, and hence facilitate employability and the creation of productive

jobs.

Co-operation between the public and private sector has become more commonplace in

development circles and takes on various incarnations from the degree of involvement

and amount of risk assumed by the private partner. In the past decade PPPs have garnered

renewed interest. In 2008 the global financial crisis introduced new challenges for the

development sector. Increased limitations on public resources and renewed interest in

infrastructure has led many national administrations to look to the private sector to help

subsidize projects.

These partnerships have been shown to help bolster local economies, improving

infrastructure while improving local business and industry. PPPs introduce new resources

that the public sector alone fails to provide. Most notable comes in the form of the

technology and innovation the private sector can bring to public services and

development initiatives. PPPs help to slowly involve the private sector in public

enterprises, state-owned or operated, ultimately working to heighted the private sector’s

role. As a result, increased skill and technology transfer can take place and allow for

projects that operate with greater efficiency and professionalism.

Another important factor has to do with efficiency. The public sector and development

industry is often criticized for its inefficiency, many proponents of PPPs claim involving

the private sector helps improve time and spending. The World Bank claims, PPPs help

introduce “budgetary certainty by setting present and the future costs of infrastructure

3 Adopting more socially inclusive and environmentally sustainable business operations helps to mitigate

risk, develop new markets, and cultivate sustainable relationships with suppliers, customers and investors.

28

projects over time” (Word Bank 2016). In addition to strengthening the public sector,

PPPs prove beneficial for the local private sector as well. Local firms often act as sub-

contractors, resulting in new opportunities for small-scale local ventures (Word Bank

2016). Lastly, PPPs help mitigate risk, allowing the private sector to shoulder a portion of

the financial, planning and operational burden.

Based on the above-mentioned premises, the inception phase of the project relied

significantly on a PPP approach. The formulation of the Action Plan of the project was

based on the mapping and involvement of key stakeholders from the public sectors –

local and national government institutions and university institutes – the private sectors –

foreign and national big T&G companies – as well as other donors, development partners,

and civil society organizations. Individual meetings with all these actors were followed

by the organizations of two Public-Private Roundtables on Skill Development, held in

Mekelle on December 2017 and January 2018. The roundtables constituted the main tool

through which project priorities, activities, and modalities of intervention were discussed

and agreed upon. The outcomes of the two roundtables are discussed extensively in the

Project Action plan of this Report.

The roundtables enabled discussing practical and conceptual aspects about the

establishment of the Centre of Excellence in Mekelle. They were critical in validating the

identification and selection of the Mekelle Garment College as a suitable institution

where to ground and develop the Centre of Excellence (also discussed in the Action

Plan). In addition, the roundtables enabled the establishment of a network of Private and

Public partners that are now committed to support the establishment of the Centre of

Excellence. This created the conditions for more focused one-to-one discussions to start

discussing specific Project Cooperation Agreements to be signed during the project’s

implementation phase. The PP Platform established during the inception phase of the

project not only represents a space where project’s counterparts discuss and facilitate

project implementation, but also an arena where the private sector continuously interact

with public institutions to ensure the long-term sustainability of the Ethiopian T&G

industry.

At a more practical level for the project, a main outcome of the two roundtables was the

formulation, discussion, and drafting of training manuals to be adopted in the Centre of

Excellence. Private companies led the formulation of specific training manuals on a

variety of topics that were identified as priority during the discussion. Training manuals

29

were developed on technical skills for basic operators, middle management, managers,

and soft skills training. All the manuals have been included as attachments to this Report.

In addition, based on the in-depth analysis conducted during the inception phase and the

experience of private sector actors, further “non-conventional” soft skills training

activities were identified and discussed during the roundtable. The outcome of such

discussion is also included in the Project Action Plan below.

1.3.3. Methods of data collection and analysis for the socio-economic assessment

The socio-economic assessment informing this Report is based on mixed qualitative

methods of data collection and research analysis.4 These include an extensive review of

the available literature on the T&G sector in Ethiopia, and more broadly in developing

countries and the analysis of national and regional policy documents. Socio-economic

statistics on Tigray and Mekelle Municipality were collected at several local government

offices, such SMMIDA, BOLSA, Urban Job Creation and Food Security, and the TEVT

Bureau. Statistical information was discussed in meetings with the officers responsible

for data collection. Informal discussions, formal interviews, and meetings were held with

T&G companies operating in Tigray, relevant national and local government offices,

international development organizations and donors, as well as NGOs and other civil

society organizations. These interactions enabled to discuss details about the project,

mapping relevant partners and stakeholders, verifying potential overlapping and creating

synergies, and eventually establishing a network to organize the two public-private

roundtables discussed above. The same snowball method of formal and informal

discussion was employed to find a suitable institutional location for the Centre of

Excellence in Mekelle.

After a first screening of the data collected, and the outcomes of the two roundtables, it

became clear that the socio-economic assessment required a broader scope than a narrow

focus on the area around Mekelle. The main reason is that the rapid expansion of the

T&G sector is associated with significant labour migration, with increasing amount

workers expected to be sourced from the neighbouring rural localities. For this reason,

further socio-economic assessment was conducted in six wereda bordering with Mekelle

Municipality. Also in this case mixed qualitative research methods were used for the

4 Data collection was conducted with the precious support of the national staff of UNIDO, and particularly

with invaluable help of Mr Tsegabu Teka, and Mr Samson Baraki.

30

investigation. Socio-economic statistical information were collected at relevant wereda

offices, side by side with group discussion with key stakeholders, mainly local

government officials. The aim of this research component was to assess potentials for

labour migration to the industrial areas around Mekelle, as well as evaluating the

institutional capacity in place for trainings.

A further important component of the socio-economic assessment was the collection of

28 in-depth interviews of workers and trainees currently employed in the textile industry.

Interviews of about 30-40 minutes each were collected at the DBL-run training centre in

Qwiha, as well as in the premises of MAA garment. Interviews were aimed at

reconstructing the life trajectories of young workers and trainees in the sector and explore

aspirations, challenges, and attitudes towards industrial work. This research component

was also instrumental to discuss key gender dynamics pertaining the project and the

future development of the textile industry.

1.4. Project priority areas

This section elaborates further on the reasons behind the decision to focus the

AICS/UNIDO intervention on the T&G industry of Tigray, and more specifically to

target the rapidly emerging textile industry in the area around Mekelle. This was initially

motivated by the following reasons:

The labour-intensity of the sector, with projection to employ a great amount of

women and youth over the course of the next few years;

The significant investments currently promoted in the area of Mekelle by major

international T&G corporations, which is going to boost the demand for

manufacturing jobs at various levels, and, in the long run, driving a progressive

specialization and diversification of the sectors to medium and small-scale

enterprises;

The particular incidence of internal and international migratory fluxes in the

region due to a number of reasons, including the proximity with the Eritrean

border, as well as the above-mentioned drivers of the Eastern, Northern, and

Southern route;

The specific dynamic of Mekelle city, and its peri-urban areas more specifically,

which is currently characterized by very high rates of urbanization, and

31

progressive expansion of the city in the surrounding rural areas – this creating

complex and multi-layered movement of young people seeking for new job

opportunities.

Map 1. Tigray National Regional State.

In recent years the T&G sector has experienced a remarkable expansion and managed to

attract the attention of key foreign investors and buyers. In 2014, 36 T&G foreign direct

investments projects were licensed in Ethiopia, with an average capital investment of

USD 140 million. In addition, T&G businesses will play a central role in the 15 Industrial

Parks (IPs) that are currently under construction throughout the country (4 have been

already completed).

Current figures show that over 136 T&G manufacturing companies, ranging from

medium to large scale, are currently involved at different levels in the segments of

ginning, spinning, weaving, finishing and garment. In addition, a considerable number of

start-ups and micro enterprises are involved in the sector at different levels and both in

32

‘modern’ and ‘traditional’ apparel production. Figures from the Central Statistical

Agency (CSA) show the remarkable growth in the number of people employed from

72,899 in 2013 to 250,552 in 2016.

Tigray is at the forefront of this development. The first 12 sheds of Mekelle IP have been

completed and the Park is currently operational as of January 2018. International and

local companies have already booked a vast majority of the space available in the IP. The

Bangladeshi Strathmore has rented over 70% of the Park for its own production. In

addition, important international T&G firms have already invested in new production

plants outside the park. For instance, these include the Indian Velocity, the Bangladeshi

DBL, and the Italian ITACA. In the next couple of years the expanding T&G industry

will therefore require a significant amount of workers with different degrees of

specialization that are currently not readily available in the market.

Interviews with international business operators suggest that Tigray, and the area around

Mekelle more specifically, is considered particularly suitable for the development of the

T&G industry for a number of reasons. These include the prospective construction of an

additional railway line connecting Mekelle to Djibouti, the commitment of the federal

and local institutions to develop the T&G sector in the region, the availability of cheap

water and electricity, and political stability.

With a rapidly growing young population and an increasing trend towards urbanization,

the area around Mekelle is expected to become the next T&G global hub. The sector is

going to require the hiring of thousands of manufacturing workers with different levels

and degrees of specialization. However, the rapid growth of the sector and the extent to

which decent and long terms jobs will be created is met by significant challenges. As

employment creation for youth and women remains a top priority for Ethiopia, and the

T&G sector presents a unique opportunity to achieve such objective, industrialization

articulates significant social, cultural and environmental complexities. One reason why

the Tigray is attracting international investments in the T&G sector is because the cost of

labour is lower than in many other T&G producing countries (a fifth’s of China and half

of Vietnam’s). However, as productivity of labour remains low, this comparative

advantage does not automatically translate into a competitive advantage for the sector.

While there is little doubt about the labour intensity of the T&G industry, as well as its

current potential for rapid expansion, the extent to which the sector offers possibilities for

creating decent job opportunities is more controversial.

33

1.5. Project priority sector targets

Despite the availability of a young and large labour force, Tigray’s T&G sector is

constrained by the lack of sufficiently skilled manpower, in terms of basic operators and

technicians, as well as specialists, designers, mechanics, and management supervisors.

Lack of skills is an overwhelming priority that is directly correlated to low productivity

and quality, and which currently hinders the potential expansion of the sector as a whole,

including spin-offs to local small enterprises. Skill development is crucial for creating

value addition, increasing profitability, as well as meeting buyer requirements. Crucially,

on the side of workers skill development is important for claiming and negotiating better

salaries.

The cost of labour is comparatively lower than in other T&G export oriented countries

such as China, India, Pakistan and Bangladesh, and companies currently offer wages that

in some cases can be as low as 800 ETB per month. While the law provides no minimum

wage, in some cases this limits the possibility for negotiating other essential benefits for

workers, such as health care, overtime, paid leave, and unfair dismissal cases. The lack of

adequate controls, standards, and procedures constitute challenges to the achievement of

decent work conditions. The question of low wages is connected to the very low

productivity of labour, as well as the lack of skilled manpower. On the one hand low

productivity of labour limits the possibilities for increasing wages while keeping the

industry economically sustainable. On the other hand as soon as workers acquire new

skills they immediately look for better salaries elsewhere, and in some cases attempt to

open their own small business, which is often valued much more in comparative terms to

wage employment.

Lack of skills is particularly significant for the downstream segments of the value chain

such as production of finished garments. The lack of basic operators and supervisors

reduces the productivity and quality, whereas the lack of designers limits the capacity of

companies to create value addition. Both hinder the ability of clothing companies to

expand production, and hence hire more workers. A connected issue is that lack of skilled

manpower reduces the potential positive gains in terms of productivity stemming from

the adoption of new machineries and technologies: as many large companies are currently

upgrading their capacity through the adoption of capital intensive equipment, they often

lack qualified staff to operate it. This is also one of the reasons why the T&G industry as

34

a whole, and downstream segments in particular, operate much below full potential

capacity.

Major target areas of the AICS/UNIDO project are the following:

1) Lack of adequate technical and vocational training (TVET) capacity. 5 The

education system in Ethiopia provides for the formation of both skilled and unskilled

workers through a number of curricula at university level, as well as TVET colleges.

However, the institutes have little capacity to produce the required quality and

quantity of manpower.

2) Lack of sufficient on the job training. The lack of an effective TVET system

leaves the burden to prepare a specialized workforce to the private sector. However,

few companies provide adequate trainings, whose scope is often quite narrow.

3) High turnover and absenteeism: Low salaries provide little incentives to enhance

labour productivity and loyalty. Low salaries are coupled by the lack of a working

culture in the large industry, and lead to high levels of turnover and absenteeism.

Currently turnover rate on average is 8.5% / month and absenteeism rate on average is

9.6% / month.

5 As indicated in the document “GROWTH AND TRANSFORMATION PLAN OF THE TVET SECTOR

FOR THE NEXT FIVE YEARS (2015/16-2020)”, prepared by the GoE, the major challenges that need

attention for ensuring TVETs development are the following:

“The structure of the technology army was not built on bases of knowledge, skills and attitudes to

create the army at the expected level.

The development program implementing offices are unable to own the determinant role of assuring

workforce competence and technology capacity building for competitiveness.

There are difficulties in making development programs centre for assessment and training by

certifying occupational competences of professionals who are engaged in works and in selecting

and promoting the best ones as industrial assessors and trainers.

Since institutions have not been expanded at regional and Federal levels, accessibility problem has

been abundant

Since there is no strong connection among universities, research institutions, TVET and the industry,

technology capacity building was not owned collectively and not yet become effective.

There is a wide gap between demand and capacity in the endeavour of transition from agriculture led

to industry led economy.

Our trainers are not in a position to fully imitate technology based on value-chains.

There are constraints in terms of fully ascertaining the equitable benefits of women, the emerging

regions and others who seek for different types of trainings.”

35

4) Poor efficiency: Efficiency is around 20% to 30% (max 45% in seldom cases and

not continuous. The international benchmark for a profitable business is at 65% as a

minimum).

5) Lack of middle management capacity and supervisors: Beside the lack of basic

operators the T&G industry suffers from the absence of middle management

personnel such as line managers supervisors. Management methods are outdated and

do not respond to the current requirements of an industry facing global competition.

The industry depends not only on the availability of man power with the right attitude

but also on the technical competence which extends from operator to production

manager; supporting staff for merchandising as well as mechanics. Looking at the

broad demand on workers issues need to be address at various levels.

6) Resistance to change and lack of soft skills: Workers and managers lack sector-

specific knowledge, and broader behavioural and factory ‘life-style’ trainings. Many

employees come from very different backgrounds and often from a completely

different life-style in agriculture.

7) Lack of Institutional capacities: Both the MoI and ETIDI require technical

assistance in order to support the T&G industrial growth and improve the

coordination among the stakeholders involved both public and private. The

coordination among the activities and initiatives performed within the T&G sector by

the development partners has also to be improved and inserted within the PCP-

Ethiopia framework.

1.5. Project beneficiaries

The objective of the project is to create decent job opportunities in the emerging T&G

industry of Tigray, with a particular focus on women and youth. Trainings are envisaged

to facilitate the employability of basic operators and middle management staff in large

factories operating directly in the T&G or related sectors. The project envisages a

capacity building component whereby an effective system of training is established by

creating stronger ties between private and public sector actors.

36

The project aims to support the establishment of a Centre of Excellence in Mekelle to

provide such trainings based on a Public Private Partnerships (PPPs) approach. A PPP

approach involves TVETs, universities, local and national governmental institutions, and

key private sector actors currently operating in the area around Mekelle.

The Centre of Excellence is envisioned as constituting a main hub to improve the

capacity of the system to create autonomously a sufficient amount of skilled workers –

basic operators, middle management staff and managers – for the industry to develop in a

socially and economically sustainable way. Ultimately, the expectation is to create a

model potentially replicable in the rest of the country. The intervention is expected to

mirror broader positive socio-economic impacts, including better salaries and increased

opportunities for local industrial spin-offs and technology transfer. As a result of the

process of capacity building in general, as well as the technical skill development,

training and institutional support programs for the National Institutions working on the

T&G industry, Ethiopia will benefit from a quality product development and a consumer

protected supply chain.

Furthermore the project aims to support the MoI and ETIDI through institutional capacity

building, i.e. the two national institutions leading and driving the growth and

development of the T&G sector. At this level the project has the objective to strengthen

the coordination of relevant stakeholders, including other international donors and public

and private sector actors. The objective to improve the sector’s coordination aims to fulfil

the guidelines provided by the PCP-Ethiopia framework.

The Tigray Regional State will benefit from the project in terms of increased capacity

stemming from the establishment of the Centre of Excellence. In the next few years the

T&G sector is expected to attract over 30,000 workers that are thus in urgent need for

skill training. Out of these approximately 4,000 will be junior, senior or/and higher

skilled professions. One central concern is that currently available trainings do not match

the requirement of the industry, and therefore do not translate in the creation of decent

and productive jobs. This applies to all levels, from basic operators, middle management,

and managers.

The importance of skill development for the broader trajectory of the textile sector in

Tigray was the topic addressed in a meeting that took place in Mekelle on 9 February

2017, and that brought together international development partners and international

37

private companies. The international retailer H&M provided an estimation of the

workforce needed for establishing a sample factory equipped with 2000 sewing

machines, as follows:

This figure clearly highlight that to develop effectively the industry requires not only

trainings for basic operators, but also for junior and middle management, as well as

managerial staff. This points at the need to establish a training facility – i.e. Centre of

Excellence – that addresses questions about skill training in a broader, holistic manner.

38

2. The Textile and Garment Industry in Ethiopia

While the T&G industry has a long history in Ethiopia dating back to the Italian period

when the first garment factory was established in 1939, since the return to a market

economy in 1990s the sector was given particular consideration by the GoE for its

poverty reduction and economic growth potential, given its labour intensity. Since 2010-

11 the T&G has been identified as one of the priority sector of the Ethiopian industrial

policy. A significant transformation is the transfer of public owned T&G industries to the

private sector.

As part of the development agenda set in the 2010-2015 Growth and Transformation Plan

(GTP I) – whose overall objective was to lay out the structural conditions to transform

Ethiopia into a middle income country by 2025 – the GoE included the T&G sector as

one of the strategic areas for export growth and fast employment creation. While the

ambitious initial plan to generate USD 1 billion worth of the industry’s export by the end

of the GTP I period was not achieved (in 2014/15 accounted for USD 98.9 millions), in

recent years the T&G sector has experienced a remarkable expansion and managed to

attract the attention of key foreign investors and buyers, such as ITACA, H&M, G&T,

Primark, Phillips Van Heusen, Tschibo, Tesco, Marks & Spencer, VF Corporation, and

Inditex. In 2014, 36 T&G foreign direct investments projects were licensed in Ethiopia,

with an average capital investment of USD 140 million. These projects employ an

estimated average of 2,500 people each.

Current figures show that over 136 T&G manufacturing companies, ranging from

medium to large scale, are currently involved at different levels in the segments of

ginning, spinning, weaving, finishing and garment. In addition, a considerable number of

start-ups and micro enterprises are involved in the sector at different levels and both in

‘modern’ and ‘traditional’ apparel production. Figures obtained from the Central

Statistical Agency (CSA) accounting for the T&G sector for the last four years, show the

remarkable growth in the number of people employed from 72,899 in 2013 to 250,552 in

2016 (see Table 1, Employees in the T&G sector, 2013-2016, Central Statistical Agency).

39

Table 1. Employees in the T&G sector, 2013-2016, Central Statistical Agency.

In line with the objectives outlined in the GTP I, the new Growth and Transformation

Plan for the years 2015/16 – 2019/20 (GTP II) reaffirmed the focus on labour-intensive

industrial products where Ethiopia has a comparative advantage given the relative

abundance of labour and low wages during the plan period (GTP II, p. 106). Jobs in the

manufacturing sector are expected to increase on average by 15% annually, from 380,000

in 2014/15 to 758,000 by 2019/20. Women and youth are expected to be the primary

beneficiaries of the job opportunities in the manufacturing sector (GTP II, p. 117). Within

manufacturing, the consolidation of the T&G industry will play a considerable role in

rapid employment creation. At the end of GTP II the sector is planned to manufacture

USD 2.18 billion worth of production, earn USD 779 million in export revenue, and to

create 174,000 additional job opportunities.

The industrial development strategy of Ethiopia is expected to promote the T&G industry

throughout the entirety of the value chain. It is assumed that the overall growth of the

sector will potentially generate significant spill-overs in terms of opportunities for

agriculture development through sustained cotton production – i.e. upstream linkages that

create income for both farmers and investors – as well as laying the foundations for other

industries to develop, such as for accessories, chemical, and other inputs which are

currently imported. More broadly, the GoE approach to promote fast growth in the T&G

industry was developed in the mid-2000s and is known as Top-Down Pulling Strategy.

The strategy casts a primary role to central state intervention in developing the sector, and

is based on a plan to accelerate the development of the apparel segment of the value chain

first. This will in turn create the structural market conditions for pulling the development

of the textile industry, as well as cotton production via increased demand. The strategy

40

assumes that the apparel industry will initially be heavily run by foreign investments and

import of capital-intensive goods such as machineries. However, in the long run a

progressive import-substitution will occur as soon as the apparel segment will achieve a

critical threshold able to drive an expansion of the upstream segments of the value chain.

From an institutional perspective, a significant outcome of the increased emphasis on the

T&G sector by the GoE was the establishment of the Ethiopian Textile Industry

Development Institute (ETIDI) in 2010. The Institute’s main mission is to lead,

coordinate, and monitor the development of the sector, as well as to support the industry

to speed up the establishment and competiveness of textile and apparel industry in

international market. As identified by the ETIDI, in the coming years the T&G sector

holds significant prospect for growth because of the following strategic advantages:

Suitable Agro climatic conditions for cotton production;

Availability of a large and young workforce and relative low cost of labour for

both skilled and unskilled workers;

Low costs for electricity (especially hydraulic energy) and water;

Relative proximity to Europe and preferential market access (e.g. AGOA, EBA,

COMESA).

In addition to these strategic advantages, the GoE has set a number of incentives to attract

FDIs in the T&G industry. The coordination of the FDIs is facilitated by the ETIDI, as

well as the Ethiopian Investment Agency. Incentives include the following:

Significant state support through a number of incentives, tax breaks, profit tax

exemption, reduced rates for land lease, and creation of dedicated industrial

zones;

Advantageous rates for land lease;

Access to credit through the Development Bank of Ethiopia, 70% loan for 30%

own equity;

Duty exemption for imported machinery and raw materials;

Exemption from the profit tax for up to 7 years depending on the size and location

of investment;

Creation of dedicated Industrial Parks to support the T&G industry.

41

2.1. The T&G industry and employment creation in Ethiopia

It is common knowledge that the T&G is among the most labour intensive sectors within

industry and manufacturing. In providing considerable employment opportunities

worldwide – especially to young women – the T&G is characterized by rapid market-

driven changes as well as geographically dispersed production. With a rapidly growing

young population and an increasing trend towards urbanization, Ethiopia offers ideal

conditions for a rapid development of the T&G sector when it comes to labour supply. As

noted earlier, employment creation for youth and women is one the top priorities of the

GoE development strategy. At the same time, in Ethiopia the cost of labour is lower than

in many other T&G producing countries. However, as productivity of labour remains

low, this comparative advantage does not automatically translate into a competitive

advantage for the sector.

Nonetheless, in the coming years the growth of the T&G sector driven by FDIs is

expected to generate considerable job opportunities for women and youth that are either

unemployed, or employed in the informal sector. As explained by one manager in the

T&G industry, the sector has also the potential to attract a large workforce from rural

areas previously engaged in smallholding farming. Table 2 (Ratio of cost of labour to

gross value of production by industrial group - public and private) highlights how the

T&G sector is characterized by a relatively higher labour intensity as compared to other

manufacturing industries in Ethiopia. The sector is believed to offer additional

advantages when it comes to rapid employment creation. These include the capacity of

state bureaucracy to mobilize people up to the micro level, the potential for creating other

labour-intensive spin-off industries – such as accessories and chemicals – as well as

upstream linkages to cotton production for which Ethiopia has a big potential.

42

Table 2. Ratio of cost of labour to gross value of production by industrial group - public

and private. Source: Large and Medium Scale Manufacturing and Electricity Industries

Survey, Central Statistical Agency, 2014/2015.

The gender dynamic within the T&G industry varies quite considerably between small

businesses and large companies. While male dominates the former, especially when it

comes to handloom for traditional garment production, basic operators in large industries

tend to be constituted mostly by women. As in the coming years the growth of the sector

will be mainly driven by FDIs to establish large-scale companies, it is possible to expect

that a majority of the employment opportunities will target young women with a low

socio-economic profile.

While there is little doubt about the labour intensity of the T&G industry, as well as its

current potential for rapid expansion, the extent to which the sector offers possibilities for

creating decent job opportunities is much more controversial. As noted in many

interviews with local government officials, private sector, and NGOs the low cost of

labour is a main reason currently attracting FDIs in the sector. The cost of labour is

comparatively lower than in other T&G export oriented countries such as China, India,

Pakistan and Bangladesh (see Table 3. Wage rate distribution in garment). In some cases

low wages are the reason behind the relatively high turnover in the sector. The head of

the Textile and Garment Federation of the Ethiopian trade union noted that a main

43

problem with the current rapid growth of industry and manufacturing in Ethiopia is the

lack of minimum wage. The T&G sector makes no exception to this picture, and many

companies currently offer wages that in some cases can be as low as 800 ETB per month.

From the perspective of the union the lack of a minimum wage limits the possibility for

discussing and negotiating other essential benefits for workers, such as health care,

overtime, paid leave, and unfair dismissal cases. In addition, the T&G sector presents

specific health hazard issues, for instance when it comes to the chemical processes

employed in dyeing and finishing. The lack of adequate controls, standards, and

procedures constitute challenges to the achievement of decent work conditions.

From the perspective of the big

international investors currently operating

in the country, the question of low wages

is connected to the very low productivity

of labour, as well as the lack of skilled

manpower. On the one hand low

productivity of labour limits the

possibilities for increasing wages while

keeping the industry economically

sustainable. On the other hand as soon as

workers acquire new skills they immediately look for better salaries elsewhere, and in

some cases attempt to open their own small business, which is often valued much more in

comparative terms to wage employment. A further element to consider when it comes to

the objective of creating decent jobs is specific to prospected T&G large manufacturing

plants. Interviews conducted in Tigray with a number of investors that are either currently

planning to start large scale operations or are already operational show that while

manpower is generally available, a specific problem is the recruitment of large numbers

of people in one specific location. For this reason the availability of infrastructure,

facilities, and services is crucial to limit labour turnover, as well as convincing a large

number of people to relocate in the surrounding of newly established production plants.

In light of these issues, many investors in collaboration with the local government are

planning to strengthen existing transport services, as well as planning the construction of

facilities such as medical clinics, housing, as well as shops and other services. Other

elements to take into account are the mechanisms of Social and Corporate Responsibility

of large scale investors, which often commit producers to fulfil basic labour rights, as this

36

Figure 10: Population distribution by age in Ethiopia

Age

Gender 0-14

years

15-24

years

25-54

years

55-64

years

65

years+

Male 21376243 9557462 14023218 1826602 1242171

Female 21308454 9692275 14176263 19191212 1511558

Total 42684697 19249737 28199481 21017814 2753729

Source: CIA Fact book

3.1.3 Lower cost factors of production

Ethiopia has no predetermined minimum wage, and the minimum wages in practice is much

less than other countries, and many folds less than some major textile and apparel

manufacturing countries. Other cost factors of production like energy cost, water cost, land

leasing rate, corporate tax etc. are much less than other countries.

Figure 11: Wage rate distribution in global garments industry

Source: Business Opportunity Report Ethiopia – Textile and Apparel Industry, 2014 Table 3. Wage rate distribution in garment.

44

is demanded by the public opinion purchasing the end product in western markets.

Finally, it seems that while in principle creating quality jobs in the T&G industry is not

the main priority in the current phase of rapid industrial expansion, some specific

conditions may favour in the medium and long run to bring about better work conditions

in the direction of the objective of creating decent job opportunities.

T&G in Ethiopia is a sector that historically attracts a considerable number of migrant

workers. Interviews with Ready Made Garments companies and clusters in Mekelle show

how the workforce employed in the sector rarely originates from the areas surrounding

the production site. For instance evidence from clusters at Gundish Meda in Addis Ababa

show that a majority of the workers employed are migrants from the SNNPR, and

particularly from Gamo Gofa zone. This shows that at different levels a rapid expansion

of the T&G sector has the potential for generating employment opportunities for migrants

or potential migrants. A recent study conducted by regional TVET offices in Tigray put

in correlation the T&G industry with migratory patterns in the region. The study shows

that the T&G industry has the potential to limit the economic migration both internally in

Ethiopia, as well as international migration (Mekelle Textile Garment College 2013).

2.2. The T&G and exports in Ethiopia

In a recent study conducted in collaboration between the International Trade Centre (ITC)

and ETIDI the export of apparel in Ethiopia is projected to increase annually of 35% to

reach in 2020 US$ 320 million. Over 200 new firms are expected to enter the sector,

which is going to provide additional 45,000 jobs through the development of 600 new

production lines in yarn, textile, and apparel production. If these projections will be

confirmed export-oriented garment production will become one of the driving force of

the Ethiopian economy, and a central pillar of its industrialization policy. With

appropriate support, the sub-sector holds the potential to generate significant employment

opportunities in the very short term.

The expansion of the downstream segments of the T&G sector for export is driven by at

least two factors. First, apparel manufacturing has been included among the main

strategic priorities in the long-term development strategy of Ethiopia. Currently,

measures to promote a rapid expansion of this segment of the T&G value chain include

cheap land lease and rent in industrial villages, low interest rates for loan through the

Development Bank of Ethiopia, institutional support by various government bodies in

45

marketing, duty free privileges and tax holidays. It is important to note that the same

kinds of incentives are not provided for businesses operating in the local market. Apparel

enterprises are restricted from operating in the domestic market because of the heavier the

tax regime as well as lack of institutional incentives and support. As noted in interviews

with private sector actors, it is worth noting that in recent years these incentives attracted

the attention not only of international T&G firms but also of many local investors with

little apparel manufacturing experience. After starting operation, the apparel enterprises

encountered challenges that were not originally anticipated. It was assumed by many that

fabrics could be easily sourced both from abroad and locally. In practice this was seldom

the case.

As considerable government support is offered for speeding up the competitiveness of

downstream segments of the value chain, in the short term the production of apparel and

to some extent yarns for export is expected to grow rapidly. This is in line with available

data (see Table 4, T&G export in Ethiopia, 2001-2014) showing that the majority of

growth in the past five years was due to an expansion of apparel exports (74%), followed

by home textiles and carpets (22%), and textiles (10%).

Table 4. T&G export in Ethiopia, 2001-2014, US$ thousands, ITC (2016).

Currently the export share of textile from total manufacturing export is 23.2%, whereas

export share of textile from total export of the country is 3.5% (ETIDI 2016). While

export of textile and apparel has increased markedly in the last few years (although from

a very low base), since 2012/3 Ethiopia has become a net-importer of cotton due to the

rapid rise in demand from upper stream value chain. Given also the current structure of

the international market – characterised by an increasing demand for flexible and ‘full

46

package’ services – the industry will be mainly driven by large international retailers

seeking for a production of finished or semi-finished garments. As result, from the

perspective of the labour market, in the very short period the demand for skilled and

unskilled workforce to employ in large factories is likely to increase sharply. This is

confirmed by available evidence in recent policy and sector development reports (ETIDI

2016; ETGAMA 2014), as well as confirmed by interviews with relevant government

bodies and private sector actors.

Beyond strong government support to strengthen export as a way to earn hard foreign

currency – as well as the availability of a young and cheap workforce – a main reason

currently attracting FDIs in T&G production for export is the preferential access to the

EU and US, as well as the continental market. Together with other 39 countries in Sub-

Saharan Africa, in 2001 Ethiopia became a beneficiary of the African Growth and

Opportunity Act (AGOA). AGOA allows Ethiopia to export qualified products to the US

market duty free, as well as without quota limitations. Evidence from ETGAMA (2014)

shows that the growth of the apparel sub-sector in countries such as Swaziland, Lesotho,

and Botswana has been largely driven by the impact of AGOA. While Ethiopia is still

lagging behind, the potential for making the most of AGOA is significant. In a similar

way, and still in 2001, the EU adopted the Everything But Arms (EBA) initiative to 49

developing countries. Under EBA Ethiopian exports except arms and ammunition are

granted duty free access to the European common market. EBA is expected to operate in

the long run, as in principle it is not subjected to periodical renewal. Under EBA

quantitative restrictions are not mandatory, and they were imposed for a limited period

only to products such as bananas, sugar, and rice. Available figures show that over 80%

of the total exports of T&G in Ethiopia are directed to the European common market.

Ethiopia enjoys preferential market access also within the Common Market for East and

South Africa (COMESA), while a free trade agreement is in the process of being finalised

between COMESA, the East African Community (EAC), and the South African

Development Community (SADC). In showing the main export countries for garment

production Table 5 (Destination of garment export in Ethiopia) highlights that a vast

majority of finished apparel is currently exported to Germany (~75% of the total), with

AGOA accounting for only 12.3% of total garment exports.

47

Table 5. Destination of garment export in Ethiopia

A further reason why the apparel segment of the value chain currently holds considerable

potential for rapid expansion in the short run is the (potential) availability of essential

inputs, such as cotton, as well as cheap water and electricity. It was noted earlier that

cotton production offers considerable opportunities for expansion. While vast areas of the

country offer suitable agro-climatic conditions, structural and market inefficiencies

currently constrain the sub-sector. However, as soon as the growing demand from the

downstream T&G industry will drive an increase in prices and hence the profitability of

the sub-sector as compared to other cash crops, production is likely to increase sharply

(see paragraph 6.3.3.1). Nonetheless, it is unlikely that such transformations will take

place in the very short run. For instance, the conversion of large tracts of land to cotton

farming may meet the opposition of farming communities, and hence raise issues of

social justice. As noted by some private sector actors these issues are currently very

important to branding strategies in T&G sector, as well as the Corporate and Social

Responsibility of international companies and retailers.

Availability of water and affordable energy is central for successful and sustained

production in the T&G industry. Ethiopia holds a considerable strategic advantage in this

regard, especially if compared to other country in the region and in Africa more broadly.

Available figures show that the cost of energy is much cheaper than in other export-

oriented T&G countries such as China, India and Bangladesh (see Table 6, Cost of

energy in Ethiopia). As lamented by some private sector actors the supply of electricity

and water is not always stable, with power and water cuts potentially jeopardizing

production being quite frequent. However, it is expected that in the short to medium term

these supply and distribution issues will be addressed and solved. The GoE is currently

investing in the modernization of the power grid, and the forthcoming opening of large

hydroelectric plants (such as the Millennium Dam) is expected to guarantee a sustained

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000

Germany

USA

Italy

Sudan

UK

Total

2015

2014

48

supply of cheap energy. In addition, the fact that the bulk of electricity in Ethiopia is or

will be produced through renewable sources (primarily hydroelectric) is seen as an

important added value for the branding of garments in western markets.

Table 6. Cost of energy in Ethiopia

As far as the potential for developing backward and forward linkages is concerned it was

noted earlier how a main challenge of the T&G sector in general – and garment

production for export in particular – is the lack of vertical integration of the value chain.

While the most promising backward linkage is that between cotton production and

downstream segments of the value chain, it is unlikely that this is going to be developed

in the very short term. However, the current trend seeing international investors

establishing integrated T&G factories, particularly in Tigray and forthcoming Industrial

Parks, speaks to the potential for enhanced integration of garment production with upper

stream segments of the value chain. In the medium term, this is likely to create conditions

for other spin-off industries – such as for accessories – to develop, as it will be shown in

the next paragraphs.

The garment segment of the value chain is expected to grow rapidly in the next few

months, and with it the need for specialised manpower in a variety of fields, including

basic textile operators, middle management staff, mechanics, etc. This is confirmed by

interviews with private sector actors, government officials, as well as civil society

organizations.

37

Figure 12: Energy consumption in global garments industry

Source: Business Opportunity Report Ethiopia – Textile and Apparel Industry, 2014

Table 6: Cost Factors of Production among various RMG exporting countries

Comparison of Cost Factor of Production

Attribute

Unit cost Ethiopia Bangladesh India Pakistan Turkey China

Minimum

wages

USD per

Month

40 74 125 80 600 175

Electricity

Cost

USD per

KWH

0.04 0.11 0.10 0.08 0.10 0.28

Vietna

m 0.95

Bank

interest

rate

Annual

rate of

Interest

%

7.5-8.5

(Govt)

12-13

(com.

bank

13-15

(Govt)

14-17 (com.

Bank)

7-9 (Govt)

12-14

(commercial

bank)

7.5

(Govt) 13

(

commerc

ial bank )

10 (Govt)

10 (

commercia

l bank )

5.5

(Govt)

5.5 (

commer

cial bank )

Water

consumpti

on

USD per

Cubic

meter

0.31 0.34

$ 0.38/CM

ETP

Myanmar

0.88

Land

leasing

rate

USD per

Square

meter

.30-.75

(IP) 0.35

– 2 non

(IP)

2.75 (EPZ)

49

2.3. Gap analysis of the T&G industry in Ethiopia

Based on what highlighted above the T&G industry holds significant potential for rapid

employment creation in the coming few years. Nonetheless, in order to uncap such

potential, specific challenges need to be addressed. It is worth noting that the following

gap analysis is specifically thought in relation to the specific objective about promoting

rapid employment creation. Challenges pertaining to employment creation can be divided

in two main groups:

1) Gaps in technical and soft skills;

2) Gaps in creating an enabling environment.

2.3.1. Gaps in technical and soft skills

Despite the availability of a young and large labour force, Ethiopia’s T&G sector is

constrained by the lack of sufficiently skilled manpower, in terms of basic operators and

technicians, as well as specialists, designers, mechanics, and management supervisors. As

noted in interviews with entrepreneurs and government officials, lack of skills is an

overwhelming priority that is directly correlated to low productivity and quality, and

which currently hinders the potential expansion of the sector as a whole. Skill

development is crucial for creating value addition, increasing profitability, as well as

meeting buyer requirements. Skill development is also directly connected to the

employability of a significant amount of workers in the short term. Lack of skills is

particularly significant for the downstream segments of the value chain such as

production of finished garments. The lack of basic operators and supervisors reduces the

productivity and quality, whereas the lack of designers limits the capacity of companies

to create value addition. Both hinder the ability of clothing companies to expand

production, and hence hire more workers. A connected issue is that lack of skilled

manpower reduces the potential positive gains in terms of productivity stemming from

the adoption of new machineries and technologies: as many large companies are currently

upgrading their capacity through the adoption of capital intensive equipment, they often

lack qualified staff to operate it. This is also one of the reasons why the T&G industry as

a whole, and downstream segments in particular, operate much below full potential

capacity. There are several factors that currently constrain skill development. A screening

of available literature and documents highlight the following:

50

A. Lack of adequate technical and vocational training (TVET) capacity

The education system in Ethiopia provides for the formation of both skilled and unskilled

workers through a number of curricula at university level, as well as around 100 TVET

colleges throughout the country that are specialized in the T&G sector. However, the

institutes have little capacity to produce the required quality of manpower. Despite some

notable improvement recently, specific problems include lack of adequate equipment and

machineries, curricula not responding with the need of the industry, lack of qualified

teachers, weak links between universities, TVET and the private sector actors. For

instance, teachers lack knowledge of international best practices within the sector, as well

as modern management practices that would stimulate more efficient practices. A further

fundamental problem is the absence of internship programmes and quality standard

certifications for the T&G sector, which limits the possibilities for students to gain

enough practical experience. While the quality of training institutions is a main concern,

the current capacity of TVET is well below the demand of the industry also from a

quantitative perspective. As the T&G industry is expected to expand rapidly in the

coming years, strengthening the capacity of TVET will increasingly become an

overwhelming priority.

B. Lack of sufficient on the job training

The lack of an effective TVET system leaves the burden to prepare a specialized

workforce to the private sector. Given the current conditions there is a very strong

correlation between effective on the job training and sustainable/successful business.

However, few companies provide adequate trainings, whose scope is often quite narrow.

A significant issue is that only large companies can afford adequate on the job training

courses and appropriate HR development facilities. This is a significant bottleneck

constraining the development of small entrepreneurial initiatives, and more broadly the

growth of a competitive domestic T&G industry. More broadly, a gap exists between the

expertise that can be accessed by local firms and that which can be accessed by foreign-

owned companies: locally owned companies have weaker management in place. As local

owners often lack access to significant expertise in the provision of trainings, in the

medium term this may lead to a mismatch in which foreign companies gain an uneven

edge in the competition with local firms.

C. High turnover and absenteeism

While we noted earlier that low wages as compared to other T&G exporting countries are

a main reason behind the current growth and potential of the sector in Ethiopia, this also

51

produces side effects. Low salaries, as well as the lack of financial incentives provide

little incentives to enhance labour productivity and loyalty. Low salaries are coupled by

the lack of a working culture in the large industry, and lead to high levels of turnover and

absenteeism. As noted by some entrepreneurs, many workers skip work when presented

with better paying job opportunities. In other cases assembly line workers are said to

resist fixed shifts, this creating significant problems with overall factory management and

organization. Poor working conditions, lack of adequate housing, medical services, and

other amenities, also provide little incentives to loyalty and accountability. Additional

issues leading to turnover and absenteeism include the lack of reliable transportations, as

well as baby care for women. High turnover affects many companies’ productivity as

trained workers are then replaced by untrained substitutes. Especially in the case of

smaller companies this reduces the opportunity/cost of investing in quality trainings, as it

limits the ability to capitalize from acquired skill sets.

D. Lack of middle management capacity and supervisors

Beside the lack of basic operators the T&G industry suffers from the absence of middle

management personnel such as line managers supervisors. A majority of existing

managers were trained at a time when the T&G industry – and more broadly the bulk of

the economy – was under public sector management and planning. As result management

methods are out-dated and informed by practices not responding with the current

requirement of an industry facing global competition. As noted in interviews with

entrepreneurs, main issues constraining the performance of managers include the limited

knowledge of modern technologies, market requirements, flexible models of production,

modern machineries, as well as IT and HR management practices. Training in generic

management skills such as planning, costing and pricing are currently highly demanded

by the industry.

E. Resistance to change and lack of soft skills

Given that a ‘modern’ T&G industry is currently under establishment, workers and

managers lack sector-specific knowledge. Many employees come from very different

backgrounds, at best from other industrial sectors, but most often from a completely

different life-style in agriculture. In this sense it is of overwhelming importance for the

education system to offer not only sector-specific trainings, but also broader behavioural

and factory ‘life-style’ trainings. These include security, time management, and other

trainings that would lead to more productive employees. As the industry stands currently,

many workers and managers prove to have a strong resistance to change. These issues

52

can be addressed only by creating tighter connection between universities, TVETs, and

on the job private-led trainings.

F. Lack of a market-driven approach

A specific dimension behind the structural inefficiencies characterising the downstream

segments of the T&G value chain are connected to the lack of a market-driven approach.

Many of the former public owned large companies, as well as the bulk of medium and

small enterprises are production-driven. Disconnections are particularly evident between

producers and final buyers, but virtually characterises each segment of the value chain

from cotton production to yarn spinning, weaving and knitting, and finishing. Lack of

integration is a problem affecting small and medium companies especially, which are

often unable to align product development with supply chain management, as well as

coordinating effective skill development with the demands of final buyers. Reasons

include lack of trade information, as well as lack of market-oriented mentality on the side

of managers. Unsuccessful clustering and twinning experiences are precisely

characterised by the lack of effective trade support networks, as well as the inability to

make the most of shared information and research, such as contacts with potential

customers.

G. Problems in fulfilling adequate quality standards

Another key constraint currently inhibiting the T&G sector to operate at its full capacity –

especially in relation to clustering and twinning experiments – is the lack of capacity to

fulfil adequate quality standards for each segment of the value chain. This limits the

ability of entrepreneurial initiatives to capture significant value addition, particularly

when it comes to export markets. Furthermore, this inhibits the development of side

industries such as that for accessories, and in turn force companies to rely on expensive

import materials. A central concern is the poor understanding among firms throughout the

value chain of the importance to establish and develop control systems within the

production structures.

2.3.2. Gaps in creating an enabling environment

Despite its significant prospects for growth, the T&G sector is constrained by the lack of

vertical integration of the value chain which limits the potential for significant value

addition, and hence rapid employment creation. While this reflects the nascent status of

the industry, at several levels urgent measures need to be taken to establish an enabling

53

environment for the sector to develop. Institutional support is crucial especially for

effectively twinning and clustering medium and small businesses in a context where

considerable market opportunities exist and can be exploited by fostering coordination

and the structural integration of the sector. We noted earlier that streamlining the T&G

sector is one among the top priorities of the GoE. However, while conducive policies and

conditions have been set to promote export, less so has been done to favour the

development of the domestic market. In addition, questions remain on the actual quality

and effectiveness of institutional support, as well as the measures put in place to attract

foreign and domestic investments in the sector. Gaps in the creation of a suitable

environment include the alignment of the priority of public institutions with the needs of

the industry; the establishment of an effective framework for cooperation between

enterprises; the support to international accreditation and quality infrastructure; the

certification of the production standards for export and targeted markets; effectiveness of

Custom services and transportation; and access to finance. Issues connected to the

creation of an enabling environment reflect the following gaps and bottlenecks:

1. Sourcing of inputs

With the exception of labour and energy, at virtually each segment of the value chain a

significant amount of inputs is not readily available and has to be sourced from abroad.

This is particularly relevant for downstream segments of the value chain – particularly

finished garment production – where the lack of locally sourced fabrics, accessories,

buttons, threads, and packaging hinders the potential for value addition and expansion. In

most of Ethiopia’s Asian competitors conditions for import as well as domestic supply for

inputs are faster and easier. At a moment where the industry is ready for take-off this

limits the dynamicity and flexibility through which production can adapt and respond to

buyer demands. As far as domestic production is concerned, garment factories and

especially small and medium scale enterprises have very limited knowledge in sourcing

their own material. A main gap to the sourcing of inputs is that garment producers are not

aware of best practices with regards to sourcing. Current and forthcoming international

investments in the sector address this problem by creating vertically integrated textile

mills sourcing inputs throughout the entirety of the value chain. While this is positive for

export this put domestic producers in a condition of further disadvantage vis-à-vis the

rapidly emerging large corporations for export. In addition, limited know-how, value

addition, and quality jobs are likely to be created in Ethiopia in the short and medium

periods. The textiles and fabrics sourced locally are often of inadequate both in terms of

quantity and quality. The same applies for accessories and other side industries. Investors

54

see the domestic market as too small to be attractive with bureaucratic hurdles, costs for

transport and sourcing further constraining potential for profitability.

2. Lack of integration and limits to value addition

The sector current focus on the production of basic and low-costs goods is likely to boost

the employment of low skilled manpower in the short term. However, the development

and consolidation of domestic entrepreneurship needs to be compounded by adequate

managerial skills, such as for design. Institutional mechanisms establishing spill-overs of

know-how from the large industry to the small and medium companies are largely

missing. A gap exists in the current ability of the T&G sector to enhance coordination

between different actors as well as fully exploiting the potential value addition from

uncapping the local entrepreneurship potential. A connected issue is the limited use of

trade intelligence to adapt to the demands of an increasingly flexible global market, as

well as the persistence of a production driven attitude. Potential for twinning, clustering

and PPPs is significant for rapid and quality employment creation in the short to medium

run.

3. Institutional capacity and sector coordination

The nascent status of the T&G industry in Ethiopia reflects the lack of effective sector

associations enabling the coordination of market intelligence, supply, quality

requirements, as well as other services fostering integration. The same applies for the

labour side, with union and workers organizations having little organizational capacity to

support the objective of decent and stable job creation. The lack of institutional capacity

hinders the provision of quality services in the fields of policy advocacy, trade promotion,

quality management, worker rights, and health hazards. Improvements in these fields will

allow the sector to meet market requirements, as well as sourcing a motivated and more

productive manpower. Market expansion and employment creation are two

interconnected objectives that can be promoted through promotion services and

awareness campaigns from both the side of entrepreneurs and workers. A further gap

exists in the capacity of public institutions to coordinate sector participants effectively.

This produces an environment of mistrust and suspicion between companies, government

institutions, TVETs and higher education institutions. Efforts needs to be done in creating

an environment of trust in which different actors actively seek and make the most of

increased integration and cooperation. This is an especially crucial element for effective

twinning and clustering initiatives. Lack of coordination and cooperation hinders value

addition and the vertical integration of the value chain. Enhancing communication

55

between different segments would allow for a more effective consolidation of industrial

orders, a more flexible production, as well as more fruitful bargaining between different

actors. Building trust is essential to transform unhealthy competition between companies

and institutions into structural advantages for the sector to develop rapidly.

4. Access to finance

The development of the T&G sector is significantly constrained by problems affecting

access to credit, especially for small and medium entrepreneurial initiatives. Access to

finance in Ethiopia still very much suffers from bureaucratic hurdles inherited from

previous systems of state planning of the economy. The microfinance sector is largely in

the hands of public-controlled institutions lacking skills for performing appropriate risk

and loan analysis, as well as following heavily bureaucratized protocols and procedures

not necessarily meeting the requirement of a rapidly transforming market. In comparison

to other textile export oriented countries, companies in Ethiopia are forced to get credit at

unfavourable terms with stringent collateral requirements that are difficult to meet

especially at early stages of business development. Shortage of foreign exchange and

working capital further limit the accessibility to flexible and advantageous financial

products needed for the sector to take off in the domestic market. Banks are often slow,

inefficient, and offer services that are quite expensive. Despite the Development Bank of

Ethiopia is currently attempting to tailor products for the T&G sector that would facilitate

access to credit there is still a long way to go for the market of capitals to be effective. A

bias against small businesses – which in turn are those more in need for support – is

particularly evident. Small and medium entrepreneurship schemes are those suffering the

most from a properly functioning financial system which limits their capacity to engage

in adequate capital upgrading, as well as to invest in value addition.

5. Upgrading machineries

Reliance on outdate technology is a problem that affect the productivity of the sector –

especially small and medium entrepreneurial initiatives – from many different

perspectives. While only few companies have the capacity to upgrade their equipment, up

to date machineries are directly correlated to greater value addition, as well as quality

production. Even when equipment is up to date they are seldom used at their full

capacity. In fact, the capacity to upgrade technology is affected by shortage of capital, as

well as the availability of skilled manpower to operate new equipment. Lack of upgrading

puts domestic small and medium enterprises in a position of disadvantage vis-à-vis other

domestic and foreign large firms. Another issue constraining the adoption of up to date

56

equipment is the difficulty in identifying the appropriate technology. Many managers

often lack exposure to international best practices and have little knowledge on what is

available on the market, as well as how to tailor the needs of the production line with

appropriate machineries. Lack of maintenance and budgeting are further issues

constraining the adoption of new technology. Spare parts are sometimes difficult to find

either because it is a problem to source them in the international market, or because

suppliers have stopped producing them because too old.

6. Limited awareness on how to exploit preferential export markets

Ethiopia benefits from a number of conditions that allow preferential access to global

market, namely, locally produced goods can enter some of the most competitive regional

and global markets duty free. Throughout the past decade these factors have proved

significant to the rising growth of the Ethiopian T&G sector. These factors

notwithstanding, the main gap is that stakeholders are often unable to fully exploit

preferential market access opportunities. A key restraint proves limited awareness to both

the available market opportunities and the requirements of entry. Available market

opportunities are constrained by the lack of trade intelligence and information to guide

firms to make the most of preferential trade agreements. In addition exporters fail to fully

understand market entry requirements and when they are understood they are unable to

meet the rigorous demands of preferential markets (i.e. price competitiveness, delivery

time, quality, etc.). While improving trade intelligence will help to alleviate some of these

concerns, it must be developed in tandem with an overall improvement in the quality of

products being produced for export.

7. Trade promotion capacity

In order to enter new markets and expand in existing sites stakeholders must engage in

more effective trade promotion efforts. A main gap in micro and medium

entrepreneurship initiatives proves a lack of skills in marketing and publicity, with

effective marketing and sales strategies being absent. The lack of skilled managers

constitutes a challenge that universities and other training institutions fail to properly

address in order to serve the industry. Institutional support also proves lacking, for

instance this is evident in regard to buyer-seller meetings and integrating supply-and-

demand markets, as well as weakened capacities in the fields of coordination and

technical support.

57

3. The Textile and Garment Industry in Tigray

This section brings together data collected at several local government institutions in

Tigray; individual and collective interviews with corporate actors in the area of Mekelle,

including major international firms; individual and collective interviews collected with

workers and trainees of the T&G industry. Interviews with workers and trainees were

collected at two sites: the MAA garment factory premises; the Qwiha training centre run

by DBL.

The following is a list that includes the main stakeholders contacted and interviewed:

Organization Contact person Email

Ethiopian Textile Industry

Development Institute

(ETIDI)

Seleshi Lemma Sileshilemma2002@gmail.c

om

ETGAMA/MAA garment

Fassil Taddesse Fassil58@gmail.com

Tigray Trade and Industry

Bureau

Ambassador Addis Alem

Balema

abalema@gmail.com

Bureau of Labour and

Social Affairs (BOLSA)

Ato Assefa Tegegne

Ato Assefa Hadush

Asefa1973@gmail.com

Haddisassefa2@gmail.com

Technical and Vocational

Training (TVET) bureau

Dr Mulugeta Hadis Weldu Mulaxum2005@gmail.com

Mekelle Garment College

Ato Getahun Legesse

Woldemariam

getahun2nd@gmail.com

Urban Job Creation and

Food Security Office

Kahsay Tesfay Muleg2all@gmail.com

Small and Medium

Manufacturing Industry

Development Agency

Tilahun Tarke Weldu tilazye@yahoo.com

Mekelle Industrial Park

Development Corporation

(IPDC)

Goitom Gebrekidan goygebret1@gmail.com

H&M Bezait Amare Bezait.Amare@hm.com

Velocity

Tefetawit Gebremedhin training.eth@vogue-

intl.com

Calzedonia Federico Fraboni Federico.Fraboni@calzedon

58

ia.it

DBL

Libelo Gebreselassie libelo@dbl-group.com

Strathmore Trading

(Ananta Group)

Sanjeeva Iperluma sanjeevai@ananta-bd.com

MAA garment

Abebe Girmay abebe@maatextiles.com

Decathlon Vingneshwaran Sukumar Vigneshwaran.sukumar@de

cathlon.com

College of Science and

Technology (Mekelle

University)

Ashenafi Aregawi Ashari1998@gmail.com

Rainbow4Children

Kunom Hailu Kunom2010@yahoo.com

Don Bosco

Hagos Medhin Hagos_mm@yahoo.com

VIS Chiara Lombardi Programme.eastafrica@voli

nt.it

ILO

Kidist Chala kidist@ilo.org

Marta Tsehay Sewasew tsehay@ilo.org

EU delegation Carl Daspect Carl.Daspect@eeas.europa.e

u

Maria-Elena Ruiz Maria-Elena.Ruiz-

Roman@eeas.europa.eu

DFID Lindi Hlanze l-hlanze@dfid.gov.uk

Enterprise Partners (EP) Michael Addisu Michael_Addisu@enterpris

epartners.org

GIZ Ulrich Plein Ulrich.Plein@giz.de

Elisaveta Kostova elisaveta.kostova@giz.de

3.1. The Manufacturing Industry in Tigray

A central component of Ethiopia’s development strategy resides in transferring from an

agricultural to an industrial economy. As a result, the Ethiopian government has drafted

an industrial development strategy to delineate a framework for transformation. Through

the Growth and Transformation Plan II (GTP II), the Ethiopian government set out a

target to reach an annual GDP growth rate of 11%. The GTP II sets out to guide far

reaching economic development, while increasing the manufacturing sector’s efficiency,

productivity and competitiveness. During the GTP II’s second phase the manufacturing

sector is expected to produce meaningful economic growth. The central government

59

anticipates that through developing the manufacturing sector significant gains will be

made in the global performance of Ethiopian exports. The T&G sector is one of eight

manufacturing sectors pegged to play a considerable role in transforming the Ethiopian

economy.

The T&G sector has played a significant role throughout the developing world – building

economic growth, social development, and creating new employment opportunities.

Ethiopia offers great potential to not only produce raw material, but also its low wages

and energy costs offer a comparative advantage over other developing countries. Modern

manufacturing proves a recent development in the region of Tigray. The regional

government is relying on sector’s potential for job creation and actively seeking foreign

investment. As a result, five vertically integrated large industries have emerged.

3.2. The Textile & Garment Industry in Tigray

Espoused for its ability to create jobs the T&G sector has steadily become the focus of

the national development strategy. With the full support of numerous human resource

development schemes, the T&G sector holds the potential to generate employment for

skilled and unskilled women throughout Ethiopia (Bureau of T&I, 2014). According

Bureau of Trade, Industry and Urban Development (Bureau T&I) Tigray supplies over

10,000 initiatives in the T&G sector of which five are vertically integrated large

industries, with the remainder relatively small operations.

From the perspective of the central government the T&G sector holds transformative

potential to bolster trade and aid in reaching the nation’s development agenda. The

potential benefits are contingent on the quantity and quality of the exported end product

that is determined by the development of skilled labor and a dependable supply of raw

materials and equipment. As a result, it will be vital to overcome bureaucratic obstacles

both at the level of international supply, while expanding infrastructure to support the

domestic production of raw materials. Lastly, while manufacturing promises an increased

standard of living, T&G provides the lowest wages of all the manufacturing sectors

(Bureau of T&I, 2014).

Manufacturing has proved a huge economic driver in the region of Tigray. The regional

government has implemented an industrial development plan founded on import

substitution, export development and technological transfer (Bureau of T&I, 2014). At

the plan’s conclusion manufacturing is anticipated to play a main role in regional

60

development and provide a significant source of employment. Following the national

government’s T&G sector is quickly transforming investment efforts throughout the

region. Currently, Tigray boasts six licensed large-scale and over 10,000 small-scale

T&G endeavours.

Trade unions are viewed as a positive resource, with management supporting new income

generating undertakings conceived by local unions. In the T&G sector unions are united

under the Confederation of Ethiopian Trade Union (CETU). Yet, despite institutional

support employees prove reluctant to join trade unions.

In Tigray T&G manufactures are currently producing below capacity. Current challenges

include a lack of experience, skill and knowledge at different levels, subpar quality, a

lack of synthesis between downstream and upstream value chains, poor quality and

dependability of raw materials. The poor productivity of T&G firms in Tigray

corresponds to the shortage of raw materials. For example, notwithstanding the ability to

produce domestic cotton, the entire yield is under the necessary demand of local firms.

While local gins hold the potential to produce around 70,000 tons of cotton, in 2013 total

production was nearly half of capacity. As a result, T&G firms locally operating must

turn to imports to meet their requirements. This results in major delays, as the lead-time

of importing raw materials is quite significant, granting firms less flexibility to respond to

the changing demands and trends of the global market. Despite the large pool of local

labor, the T&G sector is undermined by the absence of a skilled workforce. The absence

of skilled operators, technicians and management directly contributes to lower

productivity and quality – ultimately undermining competitiveness and profitability in the

international arena. In addition, the absence of skilled labor undermines the ability of

local firms to expand into higher levels of the T&G value chain. The need for skilled

labor across all levels undermines growth and profitability, while limiting the potential

gains (ETIDI, 2013).

Another major hurdle is the lack of understanding for quality requirements across the

global market. Due to an absence of basic knowledge regarding practices and market

requirements quality control is often largely ignored. This reflects not only a lack of

awareness from the T&G organizations but is equally a result of low standards across the

national level. Additionally, a key feature of the T&G sector is the rapid adoption of new

technologies – a factor that requires new equipment every decade. As a result the T&G

sector in Tigray fails to expand, because of the lack of resources available to reinvest in

61

machinery production is carried out on often antiquated technology. If firms had better

access to financing machinery could be regularly updated – increasing the regions

viability on the global market.

Another main obstacle is the capacity of public institutions to offer support to T&G firms

in Tigray. Federal institutions have inadequate resources to advocate effectively for

policy, offer market research, promote trade, and support management in regional T&G

firms. In addition, the T&G sector in Tigray also lacks coordination between firms, which

results in the inability to vertically integrate the value chain. As a result, the lack of

coordination the sectors influence on the global market.

Perhaps most significant, beyond institutional limitations in Tigray to the T&G sector, the

region lacks a sufficient supply of water. In the dyeing and finishing process water is a

vital ingredient. Currently, only one firm in Tigray has access to an adequate supply of

water. Without addressing the water limitations, growth in Tigray will remain limited.

An additional avenue to maximizing both efficiency and potential in the industry is by

expanding infrastructure. As a land locked country the end product must travel great

lengths to export. Firms average a cost of 4,000 USD to ship a sea container from

Ethiopia to Kenya. In comparison to China, Ethiopian T&G firms spend 60% more in

shipping from Djibouti to the US and European markets. As a result T&G firms in Asia

often prove more competitive than their counterparts in Ethiopia.

3.3. The Mekelle Industrial Park (MIP)

As part of the strategic initiative Industrial Development Zones (IDZs) have been created

throughout the country to promote growth in the T&G sector. For developing countries

IDZs provide important infrastructure, aid investment, promote job growth and increase

exports. IDZs have been shown to increase productivity and overall competitiveness.

Among the benefits of IDZs includes their proximity to airports or ports to enhance

exports, basic infrastructure and duty-free imports of production-related raw materials

and inputs. Additionally, IDZs are appealing to foreign investors and have the full

support of the Ethiopian government.

The Ethiopian government has taken a numerous steps to ensure the success of IDZs, for

example providing essential infrastructures like roads, power, and water. The central

government has provided significant consideration to the various export sectors that

62

include the creation of industrial zones – among the various export sectors the T&G

sector takes precedence. IDZs are allocated to foreign investors who mobilize additional

foreign investment. Currently, industrial estates have been granted to investors from

China, Turkey, India, Egypt and Bangladesh.

IDZs are composed of clusters, a group of companies that are not only geographically

linked but constitute similar fields in order to maximize shared resources like markets,

technologies, and skilled labour. Cluster is a promising model in order to promote

industrial development along for small and medium-sized initiatives. The cluster model

not only improves industrial competitiveness, but also has been shown to help ease

poverty by providing sustainable employment, while allowing for sustainable credit.

Mekelle Industrial Park is pegged to become a huge source of regional employment,

while generating foreign currency income, and helping to achieve the nation’s goals of

rapid industrialization. Due to its development Tigray has received a swell of

international private investment. The Mekelle Industrial Park faces the same problems

discussed earlier, including the availability of water and manpower, availability,

infrastructure, and requires broad institutional support. It is also of vital importance that a

climate favorable to business is further developed in order ensure investment. In

conjunction with Mekelle Garment College, Mekelle Industrial Park hopes to train up to

10,000 operators annually. However, this will still be insufficient as the park demands

more skilled labor. Various strategies have been planned in order to assure long-term

employee retention, these include providing employees a sense of ownership as well as

strong relationships between employee and employer.

3.3.1. Challenges facing Industrial Parks

While Industrial Parks hold enormous potential they are not without challenges. One of

the most pervasive problems has proved the shortage of skilled labour. While Ethiopia

has a large trainable workforce yet the T&G sector continues to face a scarcity of skilled

manpower. A variety of skilled labour is required at different stages of the manufacturing

process from operators, technical, supervisors, and managers.

Employees prove under skilled and lacking in basic knowledge due to inadequate training

resources throughout the nation. As a result of inadequate training many investors send

employees to Southeast Asia to build capacity. Additionally resources prove poorly

integrated. For example an integrated channel between the textile industry institute, the

63

Ethiopian government, technical, vocational education and training centres, and other

higher education institutes is not in place. As a result many technical, vocational

education and training centres are simply unable to provide an adequate number of

trained manpower. These challenges are impacting overall productivity and

competitiveness.

An additional obstacle is insufficient infrastructure. Facilities are in difficult conditions

including on-going power cuts, unreliable water supply, insufficient telecommunications,

difficult custom procedures and protracted procedures to obtaining appropriate visa and

work permits, and inadequate logistic systems. While the lack of integration between

industrial parks and the city planning limit the potential for necessary of health care,

accommodations and transport for staff. While during the early stages of construction

proper infrastructure is consistently lacking. Another significant obstacle proves

insufficient financial capital through foreign investment, as well as access to foreign

currency. Banks are not providing the necessary financial support.

An additional concern has to do with insufficient salaries, which impacts productivity.

Salary disputes are consistently raised by employees, who cite low wages, yet from the

perspective of the government the low cost of labour is seen as an advantage. As a result

some factories have begun to introduce incentive schemes to improve productivity.

Yet employee turnover continues to be a major obstacle, undermining not only

productivity, but also quality and product deliverability. High turnover also results in the

need to constantly retrain its workforce, leading to greater expense and lead-time.

Employee accommodation proves another challenge, as an insufficient supply of housing

results in workers having to rent high cost accommodations.

Another hurdle concerns construction. For example preliminary designs often fail to

match the final product. In addition industrial parks face difficulties finding quarry sites

and disposal areas during the construction phase. Another important factor has to do with

political stability on a regional and national level.

In order to streamline the integration of industrial parks certifications prove paramount.

These certifications are related to environmental management and compliance,

management, social, productivity, labor, market competition, capacity utilization,

production capability, waste management and other forms of compliance.

64

3.4. Socio-economic statistics

This section compiles statistics that were collected at several local government offices in

Tigray. These include data at regional, zone, and municipality levels from a number of

institutions: the Small and Medium Enterprise Development Agency (SMMIDA), the

Bureau of Labour and Social Affairs (BOLSA), the Urban Job Creation and Food

Security Agency, the Technical and Vocational Training (TVET) Agency, and the

Mekelle Industrial Park Development Corporation.

Information was collected on available employment and unemployment figures, number

of graduates, returnees from Middle Eastern countries, textile and garment trainees for

the Mekelle Industrial Park. Data are disaggregated by gender, age and administrative

unit, and are aimed at providing a picture of how many potential employees can serve the

emerging textile and garment industry around Mekelle. The regional and zone statistics

serve to contextualise the data for the area around Mekelle, and to assess potential for

labour migration.

In addition detailed reports were compiled for six wereda surrounding Mekelle

municipality. Each report summarizes key socio-economic statistics, as well as the

discussion of key points with local government officials and other relevant informants.

The decision to pay particular attention to these wereda is motivated by the expectation

that a significant amount of workers serving the textile industry and its expansion will

come from outside Mekelle. The aim was to assess how many employees could be

sourced from secondary towns within a 50 km radius from Mekelle, as well as current

availability of trainings and awareness of the emerging textile industry.

Main findings from the data and information collected are the following:

The number of job seeker in the region is significant (367,916 people). Assuming

that the textile industry targets employees that completed at least Grade 10, the

total figure of approximately 140,000 people is still very significant (see Table 7).

The municipality of Mekelle accounts for only 5,54% of the total number of job

seekers in the Region. The Municipality is also the zone administration with the

lowest number of job seekers (20,408). By implication, it is very likely that the

industry will need to source employees elsewhere in the Region (see Table 7).

Figures available for Mekelle Municipality highlight that the highest number of

job seekers concentrates within the bracket Grade 9-12. As the textile industry

65

seeks for Grade 10 and above employees, it can be contended that the needs of the

industry match the supply available in the labour market (see Table 10).

Only about 12% of the trainings to prepare workers to the Mekelle Industrial Park

are conducted with people coming from Mekelle Municipality (13,7% pre-

screening; 12,3% grading; 11,9% soft skills). This highlights that a vast majority

of workers in the textile industry around Mekelle will not be sourced locally but

elsewhere in the Region (see Table 9).

Table 9 and 11 clearly show that women are the main target of trainings. On

average, only about 15% of the total people enrolled in trainings are men, and

about 85% are women. The fact that this ratio is more or less the same across the

region, at zone level, and in each of the sub cities of Mekelle, clearly highlights

that a quota system is implemented in the training system.

66

3.4.1. Tigray Regional State statistics

Table 7. Unemployment figures in Tigray disaggregated by education level and Zone administration (2016-17)

Zone Uneducated Grade 1-8 Grade 9-12 TVET Graduates University

Graduates

M F Sum M F Sum M F Sum M F Sum M F Sum

S.East 7110 5005 12115 5640 4459 10099 4525 3683 8208 1198 810 2008 209 77 286

East 4006 3442 7448 12519 7972 20491 13911 10272 24183 1135 881 2016 703 395 1098

West 3549 3853 7402 9015 6275 15290 5315 3714 9029 156 142 298 24 15 39

Central 12388 8572 20960 30633 15420 46053 20161 14811 35427 1218 1025 2243 862 415 1277

N.West 10053 9514 19567 16968 14346 31314 9462 9976 19438 644 663 1307 257 165 422

South 8713 8341 17054 7499 6086 13585 7861 6099 13960 2008 1965 3973 611 303 914

Mekelle 324 592 916 2023 3267 5290 4429 5177 9606 1285 1622 2907 859 830 1689

Total 46143 39319 85462 84297 57825 142122 66119 53732 119851 7644 7108 14572 3525 2200 5725

Zone Total

M F Sum

1 S.East 18686 14034 32720

2 East 32274 22962 55236

3 West 18059 13999 32058

4 Central 65171 40243 105960

5 N.West 37384 34664 72048

6 South 26692 22794 49486

7 Mekelle 8920 11488 20408

Total 207732 160184 367916

Data collected from the SMMIDA regional

office. Figures capture the number of people that

are currently seeking employment. Data are

disaggregated by level of education, gender, and

Zone.

67

Table 8. Provisional Unemployment figures for 2017-18 (until May 2017)

Level of Education Male Female Sum

1 B.A. Degree 2289 1828 4117

2 TVET/Diploma 5073 5480 10553

3 Grade 9-12 22169 23883 46052

4 Grade1-8 13475 15389 28864

5 Uneducated 3872 5119 8991

Total Sum 46887 51662 98549

Data collected at the Urban Job Creation & Food Security Agency. The table compiles provisional unemployment data for the Tigray

Region, as they have been collected in the current year (2017/18) up to May 2017.

68

Table 9. Trainings for prospective workers in the Mekelle Industrial Park (MIP) (until 2017)

Zone Screening Graduated Soft Skill Training

M F Sum M F Sum M F Sum

1 South East 833 1044 1877 350 401 751 350 401 751

2 East 885 7928 8813 851 5440 6291 851 5134 5985

3 West 1326 4769 6095 1002 3845 4847 996 3703 4699

4 Central 1262 6200 7462 1031 5380 6411 320 4635 4955

5 North West 102 1741 102 96 1638 1734 96 1637 1733

6 South 808 2924 3732 720 2374 3094 720 2388 3108

7 Mekelle 242 4239 4481 200 3061 3261 192 2696 2888

Total Sum 5458 27104 32562 4250 22139 26389 3525 20594 24119

Data collected from the Regional TVET Agency, refers to aggregate figures up to October 2017. The table shows the number of

people that were pre-screened for training, graduated from training, and received specific Soft Skills training in the whole region. The

data is meant to capture availability of workforce to source the Mekelle Industrial Park.

69

3.4.2. Mekelle Municipality statistics

Table 10. Unemployment figures in Mekelle Municipality disaggregated by education level and Sub City (2016-17)

Sub City B.A. degree TVET Grade 1-8 Grade 9-12 Uneducated Total

M F T M F T M F T M F T M F T M F T

Hwelti 86 90 176 65 219 284 504 686 1190 612 653 1265 0 0 0 1267 1648 2915

Ayder 53 28 81 61 94 155 161 43 204 563 389 952 0 0 0 838 554 1392

Kedamay

Weyane 155 133 288 187 145 332 200 245 445 444 417 861 0 0 0 986 940 1926

Qwiha 14 21 35 29 43 72 177 286 463 801 681 1482 12 24 36 1033 1055 2088

Semien 290 375 665 428 498 926 606 820 1426 806 1017 1823 0 0 0 2130 2710 4840

Adi Haqi 56 44 100 37 82 119 123 163 286 191 210 401 28 26 54 435 525 960

Hadnet 84 65 149 201 247 448 569 548 1117 713 714 1427 43 69 112 1610 1643 3253

Sum 738 756 1494 1008 1328 2336 2340 2791 5131 4130 4081 8211 83 119 202 8299 9075 17374

Data collected from the BoLSA office. Figures capture the number of people that are currently registered in the employment registry

in Mekelle. Data are disaggregated by level of education, gender, and Sun City administration.

70

Table 11. Trainees from Mekelle Municipality to be employed in Mekelle Industrial Park (Until October 2017)

Data collected from the Mekelle SMMIDA office (until October 2017). The table shows the number of people that were pre-screened

for training, graduated from TVET, and received specific Soft Skills training after graduation in Mekelle. The data is meant to capture

availability of workforce to source the Mekelle Industrial Park.

Sub-city

Registered at

Regional SMMIDA

(Data from Mekelle

SMMIDA)

Achieved graduation

Under training in Soft

Skills (after graduation in

the TVETs)

M F Sum M F Sum M F Sum

1 Qwiha 24 397 421 18 305 336 14 318 332

2 Adi Haqi 46 860 906 35 563 598 35 563 598

3 Hawelti 41 701 742 36 568 604 36 568 604

4 Hadnet 66 1003 1069 83 927 1010 64 852 916

5 Ayder 20 468 488 18 379 397 20 329 349

6 Semien 30 571 601 24 429 453 20 403 423

7 K/Weyane 15 239 254 15 197 212 15 196 211

Total 242 4239 4481 229 3368 3610 204 3229 3433

71

Table 12. Mekelle Returnees from the Kingdom of Saudi Arabia

N.o

Sub City

Male

Female

Total

1 Ayder 20 69 89

2 Hadnet 21 30 51

3 Semien 34 81 115

4 Adi Haqi 7 19 26

5 Kuiha 17 36 53

6 Hawelti 38 82 120

7 Kedamay Weyane 10 31 41

Total 147 348 495

Data collected at the BOLSA office in Mekelle. The figures refers to the number of returnees from the Kingdom of Saudi Arabia that

have been registered in the list compiled by the BOLSA.

72

3.4.3. Socio-economic assessment of six wereda surrounding Mekelle municipality

While initially the socio-economic assessment was thought in relation to Mekelle Municipality,

in the course of the research it became clear that the projected expansion of the textile industry in

Mekelle would soon require the sourcing of labour from the surrounding areas. The evidence

presented in the previous paragraph clearly reflects that, also from an institutional perspective,

existing trainings already started targeting potential workers from the neighbouring districts and

the whole region more broadly.

For this reason, the geographic reach of the assessment was expanded to include the rural towns

within a 50 km radius from Mekelle. This section compiles detailed reports for six wereda

surrounding Mekelle municipality. Each report summarizes key socio-economic statistics, as

well as the discussion through semi-structured interviews of key points with local government

officials and other relevant informants.

The decision to pay particular attention to these wereda is motivated by the expectation that a

significant amount of workers serving the textile industry and its expansion will come from

outside Mekelle. The analysis indeed reflects that training activities are currently conducted in

each of the wereda investigated. Another finding is that, like in the area of Mekelle, the textile

industry has generated significant expectations for new job opportunities. Map 2 below shows

the location of the six wereda where data were collected. These wereda are Degua Temben,

Hintallo Wajirat, Enderta, Saharti Samre, Wukro Town, and Kilte Aewlallo.

73

Map 2. Wereda targeted by socio-economic assessment around Mekelle

3.4.3.1. Degua Temben

Degua Temben wereda administration is located in Hagereselam town 50 KM far from the

region’s capital Mekelle. The wereda has approximately 24 Tabias, small administration units, of

which three are small cities, Hagresselam, Endamariam and Tukule.

A. Estimated Population and households for 2017/18

Type

Total population Number &

%age

Number of HH

Male Female Total Male Female Total

Number of

Population & HH 63,346 66,461 129,807 23,591 8,120 31,711

% age share 48.8 51.2 100 74.4 25.6 100

74

B. Number of Students and schools for 2017/18

Education level

Number of students Number of

school Male Female Total

Elementary school 16,210 15,205 31,415 61

Secondary school 1,932 1,733 3,665 3

High school 365 193 558 1

Total 18,507 17,131 35,638 65

%age share 51.9% 48.1% 100

C. Number of unemployed youth and women registered for 2017

Level of Education

No. of unemployed

Male Female Total

Illiteracte 1,438 1,016 2,454

Elementary school (1-8 Grade) 2,587 1,495 4,082

Secondary school (9-10 Grade) 1,063 843 1,906

High school (11-12 Grade) 32 20 52

Certificate and Diploma 59 47 106

Above Degree graduate 9 2 11

Total 5,188 3,423 8,611

%age share 60.2% 39.8% 100

75

D. Number of students enrolled in the TVET Center by sector for 2017/2018

Sector

Number of registered students 2017/18

Male Female Total

Construction 58 26 84

ICT 29 33 62

Accounting (level I and II) 38 39 77

GM 0 31 31

Total 125 129 254

%age share 49.2% 50.8% 100

E. Number of trainees for Mekelle Industrial Park until August 2017 (Grade 8-12)

Item

Number of people registered for

training

Number of people that completed

training

Male Female Total Male Female Total

Registered and

Trained 250 450 700 21 387 408

% age share 35.7% 64.3% 100 5.1% 94.9% 100

F. Qualitative in depth discussion with stakeholders

Two experts from the wereda Small and Medium Manufacturing Industry office and one team

leader from the wereda Social and Labour Affairs, explained that, due to its labour intensive

nature the textile sector creates a lot of permanent job opportunities for a large number of

unemployed Ethiopians in the wereda/region. The regional government and wereda

administration has been creating public awareness through media (local radio, TV) and by

organizing public conferences about Mekelle Industrial Park. As a result, the community in the

wereda has developed a better understanding of the Park’s ongoing activities. In addition, around

700 young people received a 5 days soft skills and technical training on textile and garment. The

76

training created high expectations among the participants and, as it was conducted a while ago,

trainees were now putting pressure on the local TVET about when they would be employed in

the industrial park. There are also many individuals in the wereda who were already engaged in

established industries in Mekelle, like Velocity. These workers were generally happy about their

job in the industry, stable income and skill development, but expressed dissatisfaction regarding

salary which is low in comparison to purchasing power and with the existing labour wages in

Mekelle.

Youth attending the public awareness conferences and based in Mekelle expressed an interest to

work, and are eagerly awaiting the opening of the Mekelle Industrial Park. In general, those

interviewees expressed a preference about finding job in Mekelle rather than seeking it

elsewhere, for example going to Middle Eastern countries.

The respective wereda office representatives such as TVET, Manufacturing, and Youth and

Sport Affairs have experience in organizing and providing soft skill training. During the

discussion, they explained that three experts from TVET and one expert from the Manufacturing

office (SMMID office) have already received three days of practical training from the regional

government on delivering soft skill training. A wereda representative expressed an interest to

host the soft skill training in local towns and agreed to support the local TVET through the

Manufacturing Sector and Youth and Sport Affairs office. They are also looking to have TOT

training, manuals and transportation costs from respective offices.

Contact list

Name Organization Mobile Number

Kindeya Girmay Planning and Finance Office 0923413835

Haftu Yehdego SMMID office 0914202445

Mearg G/yohans SMMID Office 0914861040

Gebretsadik Leake SMMID Office 0914794367

Aregawi H/kiros Social and Labour Affairs 0914037683

Abeba Tadesse Agriculture 0921997944

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3.4.3.2. Hintallo Wajirat

A. Estimated population and HH 2017/18

Type Total population Number of HH

Male Female Total Male Female Total

Number of

Population & HH 89,945 92,820 182,765 30,984 10,869 41,853

%age share 49.2% 50.8% 100 74.0% 26.0% 100

B. Number of enrolled students and school number for the year 2017/18

Education level

Enrolment Number of

schools Male Female Total

Elementary school (1-8) 21,068 20,233 41,301 83

Secondary school (9-10) 3,283 3,337 6,620 4

Preparatory 691 456 1,147 1

Total 25,042 24,026 49,068 88

%age share 51.0% 49.0% 100

C. Number of unemployed people

Level of Education No. of unemployed

Male Female Total

Illiteracy 203 97 300

Elementary school (1-8 Grade ) 467 310 777

78

Secondary school (9-10 Grade) 4,033 2,778 6,813

High school (11-12 Grade) 15 11 26

Certificate and Diploma 83 71 153

Above Degree graduate 36 9 45

Total 4,837 3,276 8,114

%age share 59.6% 40.4% 100

D. Number of enrolled students in 2017/2018 in Adigudom TVET center

Sector (level I-IV)

Number of registered students 2017/18

Male Female Total

Auto 76 20 96

Construction 60 7 67

ICT 98 30 128

GMFA 19 8 27

Furniture Making 36 0 36

Electrical 18 64 82

Accounting 49 34 83

Total 356 163 519

%age share 68.6% 31.4% 100

79

E. Number of people registered and trained for soft skills in Mekelle Industrial Park in

August 2017 (Grade 8-12)

Number of people registered Number of people trained ***

Male Female Total Male Female Total

Registered

and Trained 632 1,276

1,908

66 674

740

%age share 33.1% 66.9% 100 8.9% 91.1% 100

*** Trainings were given in 4 wereda towns for 5 days.

F. Qualitative in depth discussion with stakeholders

Discussion was undertaken with 7 representatives from the following offices: TVET (2), Youth

and Sport Office (1), Labour and Social Affairs Office (1), MSE Office (3) and Small and

Medium Manufacturing Industry Development Office (1).

Public awareness about Mekelle Industrial Park was generated through local media, a

conference, and the organization of an exposure visit. As a result of these initiatives there is a

better public understanding that the park will create a large number of jobs due to its labour

intensive nature. It is also expected that the Park will help solve the existing problem of

unemployment for youth and women. More broadly, the textile industry will offer great benefits

by creating job opportunities, technology transfer to local people and technical skill know-how.

During registration and provision of training participants raised the following points. Participants

manifested a deep interest and willingness to work in the textile industry and are willing to

relocate closer to the Industrial park. In the registration format there is a question concerning

interest to permanently move to the Industrial Park, and all the participants answered “YES”.

Nonetheless, questions about salaries and work conditions were raised in a number of occasions.

Local officials raised concerns that their wereda will not be able to benefit from the activities

conducted at the Centre of Excellence in Mekelle. They believed that coverage will be limited if

soft skill training is provided by the Center of Excellence. They believe that the soft skill training

should be provided by the wereda, and they have the willingness to host the training themselves,

led by TVET and the Manufacturing Office with the support of the SME Office, Youth and Sport

80

and Labour and Social Affairs Office. It was reported that three experts for TVET and one expert

from the Manufacturing Office have already received three days training organized by the

Regional TVET Bureau in Axum town. Local capacity to deliver trainings would benefit from

additional TOT training, manuals and sharing of experience.

Contacts

S/n Name Organization Mobile Number

1 Tadelu Kindeya Plan and finance office 0914025589

2 Aekelom Eyasu Plan and Finance Office 0914325777

3 Girmay Mekonen TVET 0914500982

4 Tsegay Negasi TVET 0914210113

5 Kelali G/Mikael Youth and Sport office 0914370784

6 Shumuye Gezoe Social and labour affair 0914119917

7 Mekonnen Hagos MSEs office 0914779596

8 Kedir Umer MSEs office 0914112918

8 Yemane Hadera SMMIDA (manufacturing ) office 0914810473

9 Tesfay Heylom MSEs office 0914547018

3.4.3.3. Enderta

A. Estimated population and households for 2017/18

Type Total population Number &

% age

Number of HH

Male Female Total Male Female Total

Population & HH 64,173 64,555 128,728 15,329 12,593 27,922

%age share 49.9% 50.1% 100 54.9% 45.1% 100

81

B. Number of enrolled students and school number for 2017/18

Level of Education

Number of enrolment students Number of

school Male Female Total

Elementary school ( 1-8) 12,240 12,204 25,444 55

Secondary school (9-10) 970 1,024 1,994 5

Preparatory 88 35 12

Total 14,298 13,263 27,561 60

%age share 51.9% 48.1% 100

C. Number of unemployed people

Level of Education No. of unemployed by gender

Male Female Total

Illiteracy 625 532 1,157

Elementary school (1-8 Grade ) 1,163 1,236 2,399

Secondary school (9-10 Grade)

662 781 1,443 High school (11-12 Grade)

Certificate and Diploma 154 99 253

Above Degree graduates 48 28 76

Total 2,652 2,676 5,328

%age share 49.8 50.2 100

82

D. Number of registered and trained youth and women for Mekelle Industrial Park in

August 2017 ( from Grade 8th to 12 Grade )

Item Number of registered for the training Number of trained

Male Female Total Male Female Total

Registered

and

Trained 10 560 570 10 299 309

%age share 1.8% 98.2% 3.2% 96.8%

There is no TVET centre in the wereda.

Contact list

S/n Name Organization Mobile Number

1 Desta Hailu Education office 0914760605

2 Woldu Ayele Plan and Finance 0914730319

3 Bemnet Tsegay SMMID office 09148269884

4 Selomon Hagos SMMID office 0974619315

5 Tedros Youth and sport office 0914753989

3.4.3.4. Saharti Samre

A. Estimated population and households for 2017/18

Type Total population Number of households

Male Female Total Male Female Total

Number of

Population & HH 71,508 73,019 144,527 23,845 7,531 31,376

%age share 49.5% 50.5% 100 76.0% 24.0% 100

83

B. Number of enrolled students and schools for 2017/18

Education level Number of students enrolled ** Number of schools

Male Female Total

Elementary school ( 1-8) 17,207 16,598 33,805 55

Secondary school (9-10) 1,838 1,918 3,756 3

Preparatory 449 242 691 2

Total 19,494 18,758 38,252 60

%age share 51.0% 49.0% 100

** The TVET college is very new and began teaching in the last academic year.

C. Number of registered unemployed youth and women

Level of Education No. of unemployed ***

Male Female Total

Illiteracy 3,015 1,910 4,925

Elementary school (1-8 Grade ) 1,606 1,290 2,896

Secondary school (9-10 Grade)

910 656 1,566 High school (11-12 Grade)

Certificate and Diploma 75 98 173

Above Degree graduate 85 25 110

Total 5,691 3,979 9,670

%age share 58.9% 41.1% 100

*** Registered unemployed

84

D. Number of enrolled students by department for 2017/2018 in Samre TVET collage

Sector

Number of registered students 2017/18

Male Female Total

Construction (Level II and IV) 62 63 115

ICT (Level II and IV) 24 75 99

Accounting (Level IV) 12 11 31

Auto (Level II) 16 13 29

Electrical (Level II) 14 28 42

Furniture (Level II) 7 9 16

Total 135 199 334

%age share 40.4% 59.6% 100

E. Number of people registered and trained for soft skills for Mekelle Industrial Park until

August 2017 (from grade 8-12)

Item Number of people registered**** Number of people trained

Male Female Total Male Female Total

Registered

and Trained 449 607 1056 31 502 533

%age share 42.5% 57.5% 100 5.8% 94.2% 100

**** Age of registration: - limited to 18-35 years old.

F. Qualitative in depth discussion with stakeholders

The qualitative in-depth discussion was comprised of five participants including the wereda

administrator, the heads of the wereda MSE Office, Labour and Social Affairs Office, and the

TVET Vice Dean and Youth and Sport Office. The discussion was very encouraging and

participants were actively involved.

85

A first issue discussed was the definition of unemployed. The following 5 criteria applies to

individuals that register as unemployed, determining their relative position in the rank: 1) the

definition is limited to people in the 18-35 bracket; 2) landless youth and women living in rural

areas; 3) youth without permanent employment; 4) youth without a source of income; 5) students

in school were not taken into consideration.

Local officials explained that awareness about the textile industry was generated among civil

servants and people at different levels through local media, conferences, local TV, newsletters,

and radio since the establishment of the Industry park in Mekelle.

The participants contended that the wereda will be a major beneficiary of the Mekelle Industrial

Park (MIP). The Park is expected to create permanent employment opportunities, acquiring skill

and knowledge training, and technology transfer. The wereda has received a quota from the

regional government to register youth for employment opportunities at MIP and to provide soft

skill training. Accordingly, registration and soft skill training for about 533 was already

successfully given. Registration was limited to 90% and 10% for young women and men,

respectively, as the textile industry has a greater demand for women than men.

The wereda administration and the youth in general expressed concern regarding low wages. The

community, and youth in particular, have expressed high expectations to find permanent jobs in

the industries establishing in Mekelle. Registration and training were conducted in September

2017, and now participants are eager to start working as soon as possible.

Concerning hosting soft skill training, the wereda administration stated clearly that institutes

such as TVET, Manufacturing Office have no other responsibility apart from creating

employment opportunities for the youth and they consider the provision of soft skill training to

be their main mandate. However, they are keen to receiver additional capacity building, printed

materials, manuals, and incentives.

Contacts

Name Organization Mobile Number

Tesfay Yohanes Education Office 09145364762

G/slasia H/Mariam SMMID Office 0914117262

86

Teklemedihin G/kiros TVET 0914834174

Tadesse Desta TVET 0914009477

Shishay h/slasia Youth and Sport office 0919432131

Said Salih MSE 0914127828

Bry Hadgu Social and Labour Office 0914023157

Haftum Tsegay Youth and Sport Office 0914834174

Mebrat Bezabeh Wereda Administration 0914726583

3.4.3.5. Wukro Town

A. Estimated population and HH for 2017/18

Type Total population Number of households

Male Female Total Male Female Total

Population & HH 24,320 25,760 50,080 9,802 4,201 14,003

%age share 48.6% 51.4% 100 70.0% 30.0%

B. Number of enrolled students and school for 2017/18

Education level

Number of students Number of

school Male Female Total

Elementary school ( 1-8) 3,610 3,441 7051 7

Secondary school (9-10) 1967

2004

3971

4

Preparatory 444

443

887

1

Total 6,021 5,888 11,909

12

87

%age share 50.6% 49.4% 100

C. Number of people unemployed

Level of Education No. of unemployed by gender

Male Female Total

Illiteracy 4 17 21

Elementary school (1-8 Grade ) 84 265 349

Secondary school (9-10 Grade) 457 623 1080

High school (11-12 Grade) 35 65 100

Certificate and Diploma 38 75 113

Above Degree graduate 26 17 43

Total 644 1062 1706

%age share 37.7% 62.3% 100

D. Number of enrolled students by sector in Wukro TVET center for 2017/2018

Sector

Number of registered students

2017/18

Male Female Total

Accounting (Level II & IV) 41 102 143

General Motor Fabrication Assembly (Level II & IV) 63 35 98

Auto (Level II & IV) 75 26 101

88

Industrial Electrical machine Drive (Level II & IV) 76 26 102

Barbending (Level II & IV) 77 26 103

Survey (Level II & IV) 38 35 73

Building Electrical Installation (Level II & IV) 31 7 38

Hard Ware & Networking (Level II & IV) 8 45 53

Secretary (Level II & IV) 0 61 61

Sanitary 11 12 23

Masonry (Level II & IV) 6 11 17

Kitchen Operation (Level II ) 27 29 56

Total 453 415 868

%age share 52.2% 47.8% 100

The TVET centre also provides a non-formal training for the duration of 5 days to those who

want to establish their own small businesses in different sector. Accordingly the TVET centre in

Wukro town has trained around 2,538 people from September 2017 to mid of February 2018.

E. Number of people registered and trained in soft skills for Mekelle Industrial Park in

August 2017 (Grade 8-12)

Number of registered people Number of trained people **

Male Female Total Male Female Total

Registered

and Trained 0 740 740 571 571

%age share 100% 100%

** The training was given by Wukro TVET centre in collaboration with Wereda Small and

Medium Manufacturing Industry office for 5 days

89

3.4.3.6. Kilte Awellalo

A. Estimated population and HH for 2017/18

Type Total population Number of households

Male Female Total Male Female Total

Population & HH 66,199 69,302 135,501 21,558 9,438 30,996

%age share 48.9% 51.1% 100 69.6% 30.4% 100

B. Number of enrolled students and schools in 2017/18

Education level

Number of students Number of

schools Male Female Total

Elementary school (1-8) 13771 12,988 26,759 61

Secondary school (9-10) 1,419 1,519 2,938 3

Preparatory 155 62 217 1

Total 15,345 14,569 29,914 65

%age share 51.3% 48.7% 100

C. Number of unemployed youth and women in the wereda

Level of Education No. of unemployed people

Male Female Total

Illiteracy 76 35 111

Elementary school (1-8 Grade ) 912 186 1,098

Secondary school (9-10 Grade) 924 496 1,420

90

High school (11-12 Grade) 31 7 38

Certificate and Diploma 9 4 13

Above Degree graduate 2 0 2

Total 1,954 728 2,682

%age share 72.9% 27.1% 100

D. Number of people registered and trained in soft skills for Mekelle Industrial Park

August 2017 (Grade 8-12)

Item Number of people registered Number of people trained

Male Female Total Male Female Total

Registered and

Trained 149 1,097

1,246

49 899

948

%age share 12.0% 88.0% 100 5.2% 94.8% 100

E. Qualitative in depth discussion with stakeholders

The in-depth discussion was carried out with four representatives of Wukro Town and Kilte

Aewlallo wereda experts/coordinators from different offices (Head of Micro and Small

Enterprises Development Office, Representative from Wukro Town TVET Office,

Representative from the Youth and Women Affairs Office and the coordinator of the town’s

Small and Medium Manufacturing Industry Office).

Concerning public awareness in the town and wereda about the textile industry, public

perception is positive and information is circulated through the media and conferences organized

in the wereda. Accordingly, most of the public recognized that the establishment of the textile

industry around Mekelle would help address the problem of youth unemployed in both the

wereda and region.

Meeting participants claimed at this time most of the wereda’s inhabitants have expressed an

interest to work in the textile industry. They believe the textile sector offer better opportunity to

91

acquire new basic and specialized technical skills and generate stable income, with the potential

to start their own business with the knowledge and skills acquired. However, concern was

expressed that those currently working in the textile sector are making low salaries, far less than

those employed by small business owners.

Meeting participants also claimed that youth living in the wereda and Wukro were willing to

move to Mekelle to secure permanent employment in Mekelle Industrial park. During orientation

and registration for the Mekelle Industrial Park a majority of the applications were filled within

one week. The wereda has also trained experts (4 experts for three days) and has experience in

delivering soft skill training. Generally speaking, they have an interest and willingness to host

the soft skill training at wereda/town level. However, meeting participants noted that trainings

hosted by the Center of Excellence must be made available to the wereda through the local

TVET.

Contacts

Name Organization Mobile Number

Gatu Tilahun Plan and Finance office 09147832062

Mehari G/slassia Social and Labour affair 0914150011

Aeziab G/medihin Plan and Finance office 0919067603

Amare Desta MSE office 0914005827

Gidey Berhe TVET center 0914733673

Hailu Abrha Youth and Women Affair 0918819248

Temesghen Asmelash SMMID office 0923413164

Abba G/here Yohannes St. Maire College 0911712374

Brhane G/hiwot Youth and sport office 0921587280

Zufan Halefom Education office 0923352441

Brehane Asefa Plan and Finance office 0914091940

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3.5. In-depth interviews with workers and trainees

In this section, the discussion draws on 28 in-depth interviews with workers and trainees

in the T&G industry conducted in the premises of MAA garment factory and in the

Qwiha training centre, where at that time DBL group conducted trainings for workers.

Full transcripts of these interviews have been compiled in Annex 1. Findings from the

interviews have been grouped into themes and discussed in relation to the broader

development trajectory of the T&G in Tigray, as well as socio-economic statistics of

previous sections. Findings have also been contextualised and balanced through other

formal and informal interactions with industry operators, local and regional government

officials, as well as other informants during several fieldwork visits between October

2017 and January 2018.

3.5.1. Thematic analysis

Expectation and aspiration of a better future

The textile industry is regarded as a fundamental step to build a better future for Tigray

and Ethiopia. From a broad perspective industrialization is intrinsically attached to

views of modernity and progress, and for this reason a consistent theme emerging in

interviews is that the current is an important and potentially turning point in the history of

the country. Young trainees and workers regard industry and industrial life as the future

especially in opposition to agriculture and rural life, which is rather seen as the past.

There is therefore a strong developmental ethos attached to the transition to industry. This

mirrors official and institutional discourses about the importance to invest on

industrialization, attract foreign capital, and make the most of the current conjuncture to

create a lasting legacy for future generations, with in mind the objective of achieving

“middle income status” by 2025 outlined in GTP2. As a result of this broader vision it is

common opinion among young workers and trainees that in ten years Mekelle and

Ethiopia “will look like a developed country”. Therefore, the current conjuncture is

characterised by considerable expectations about what industrialization will deliver, and

is associated with broad notions of economic development for Ethiopia.

At the level of the individual, these expectations are more pragmatically translated into

questions about new job and employment opportunities. Interviewees identify in

unemployment and increasing cost of living as the two major challenges that people

currently face. Industrialization is not only about expectations for a better and vague

93

future for the country as whole, but it is about tackling important societal challenges, the

main one being youth unemployment. In a context where a growing number of young

people complete Grade 10 education, interviewees contend that today basic education

does no longer automatically translates into jobs. For this reason the textile industry

presents important opportunities for younger generations. Getting a job is attached with

the value about independence and building own families. Getting a job in a modern

setting – this is how many see industry – has the additional value of participating in the

building of the country’s future. Industrial life is regarded as driving a broad-based socio-

economic upliftment of Mekelle, Tigray, and Ethiopia.

Interviews further highlight that the reputation of the textile industry is higher than other

sectors even when these sectors pay more and offer better conditions. One young woman

interviewed decided to leave a better-paid job that in her mind had no prospects, for the

opportunity to become textile worker because “this allows me to grow”. Working in the

industry is seen as an investment in the future. What attracts young workers is to acquire

new skills that they can then use in different ways and pursue further studies. Also

attractive is the perspective of job stability and access to a number of facilities and

services offered by the industry, such as the health clinic.

Transition to industrial life

A main recurrent theme emerging from interviews points at issues related to the transition

to an industrial life. This is a complex process that goes beyond the transfer and

acquisition of new skills, and that entails deeper economic, cultural and social

transformation.

At a basic level, working in the industry raises issues about personal and family time

management. A majority of the prospective workers in the textile industry is not used to

work on a precise time schedule. However, lack of punctuality and absenteeism must be

regarded as practices that are beyond the control and decision of the individual.

Interviews show that main reasons are not because of lack of commitment or laziness.

Workers are late and/or don’t show up to work because they often have to perform a

number of social and cultural obligations that are beyond their own individual decisions.

Young women are for instance expected to discharge a number of tasks in the household

– such as fetching water, taking care of children, preparing food, cleaning, etc. – that are

time-consuming and that cannot always be performed before or after work. In addition,

cultural and religious obligations – such as wedding and funeral ceremonies – play a

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significant role in the social life of communities, and are often prioritized to work.

Trainings that focus on individual time management are likely to not be successful in this

context. Time management is about the role of individual within broader household

economic and reproductive strategies, as well as broader community cultural and social

practices.

A second issue connected to the transition to industrial life has to do with the place of

origin of workers. While so far a majority of the workers and trainees are from Mekelle

or its immediate surroundings, it is clear that given the magnitude of the demand of

workers required by the industry, an increasing number of labourer will be sourced from

neighbouring towns and rural areas. This highlights the tight link between transition to

industry and migration. Evidence collected – as well as a screening of relevant

literature – shows that in the context of industrialization, migratory patterns are very

complex, not only unidirectional from rural to urban areas. Parallel to in-migration from

rural areas, the increasing cost of living in inner urban sites produces out migration to

peri urban areas. The T&G industry in Tigray is precisely developing in peri-urban

settings – such as the area around Qwiha – that have the potentiality to become important

industrial hub, and hence need to host an increasing number of migrant labourers. In the

long term the trend is one that lead to the formation of peri-urban settlements to serve a

growing and consolidated industry. The initial, short-term dynamic is characterised by

frequent movements of people back and forth to their place of origin. The latter dynamic

captures the current stage of industrial development around Mekelle. A good number of

workers and potential employees are unlikely to relocate immediately around industrial

premises, but rather prefer to keep a strong link with their place of origin, partly to

discharge other economic, social, and cultural obligations, partly as a risk diversification

strategy.

A third issue has to do with the transition from agriculture to industry. Interviews of

workers and trainees originating in rural areas highlight that for many households

industry is likely to accelerate existing trends towards the transition to a cash-based

economy. This is crucial because it helps to contextualise the significance of salaried jobs

for workers in the T&G industry. Rural households in Tigray rely on a combination of

agricultural production for internal consumption and for the market. The ratio depends on

many factors, and often on the relative wealth of the household and its ability to

accumulate enough capital for strategic investments in productivity, such as fertilizers

and oxen. Normally, households are wealthy when they are able to sell high value cash

95

crops such as teff, and/or have access to irrigated land for fresh vegetables. The important

point emerging from interviews is that, in this context of partial and incomplete

marketization of agricultural production, adding to the household income a salary from

industrial work has significant implications. Rural households are normally large, and one

main priority is risk diversification. While farming is normally dominated by men,

women discharge other activities, which range from domestic tasks to other cash based

works. In a context where the T&G industry is mainly seeking to employ young women,

from a household perspective this constitutes a potential important avenue for risk

diversification. For rural households, receiving a salary – no matter how low – facilitates

capitalization in a context of partial and incomplete transition to cash based economy. In

addition, the fact that women are being sent to work does not substantially alter the

ability of the whole household to farm. From a household perspective industrialization

can therefore considerably improve and sustain the creation of livelihoods.

Making a living

While from a household perspective, especially in those cases where textile workers

come from rural areas, a monetary salary is an important risk diversification strategy, the

extent to which this has a transformative impact for young people approaching the sector

is more difficult to assess. On the one hand industrial work empowers and enfranchise

youth providing more autonomy and power to take decisions. On the other hand, the

entry salary in the textile industry is not enough to allow for a full living. As noted by

many interviewees, working in the textile industry at the current salary level makes sense

only in the context of a broader household strategy. From this perspective, rather than

enfranchising young people, industrial work may reproduce existing dynamics of

dependence and subordination within the household and the broader community.

In a context where the cost of living is increasing sharply, current entry salary in the

industry is barely sufficient to cover immediate necessities. A main cost is house rent.

Assuming that a majority of the workers relocate from elsewhere to seek employment

and, in many cases a full salary is barely sufficient to cover house rent and minimal

subsistence expenses. This has two consequences that clearly emerge from interviews.

First, work in the textile industry does not allow for any form of saving or capital

accumulation unless salary is combined with other activities. Second, none of the

interviewees regarded their job in the industry as a long-term strategy. This despite

considering ‘industry’ and ‘industrialization’ of critical importance for their future and

for the future of Tigray and Ethiopia.

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Trainees and employees regarded the opportunity offered by the textile sector as

short-term strategies through which acquire enough skills and move on with their life.

Interviews highlight that one positive about working in the industry is that it allows time

to enrol on evening classes. Many of the workers that were taking evening classes

considered the work in the industry as a temporary measure that they performed while

completing additional education. This highlights that work in the industry is performed

only because of the lack of alternatives and without particular commitment to the future.

Those interviewees that were not pursuing additional education often also regarded textile

work as a temporary measure. One common aspiration was to open a small business by

making the most of the skills acquired during training and work. Although it is unclear

what kind of business people have in mind, this clearly reflect a short-term attitude

towards industrial work. It is significant how none of the interviewees expressed the will

to settle in the industry permanently. Those workers that have already been working in

the industry for a long time represent a partial exception. But again, it seems that lack of

alternatives, rather than genuine aspiration is the main reason motivating people to stay in

the industry.

The question of salaries seems therefore central in determining short-term and long-term

strategies of workers in the textile industry. One central issue is the lack of alternatives

in a context where the textile sector is likely to play an important role in pushing

employment creation. Youth unemployment is considered by far a more serious concern

than the lack of adequate salaries. This is often synthetized by the slogan “low salary is

better than no jobs”. But there is also more. Precisely because of the good reputation of

industrial life, working in the textile sector is often seen as an investment for the future,

rather than the satisfaction of immediate needs. Many youth see this as a necessary step

to approach adult life and making a better living later on.

A further important theme connected to the question of salaries emerges from interviews

with trainees. When asked about the salary expectation after they complete the training,

some had no answer and just stated that they heard that the initial salary is generally low,

while a vast majority had expectations that far exceed the reality. This reflects several

issues. First, as industrial work is associated to a certain degree of social standing, the

expectation is that salaries reflect such standards. Second, many trainees and workers

believed that even basic training courses entitled them with better salaries. This is also the

reason why some people decided to attend trainings despite having jobs that provided

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them salaries that far exceed those of the industry. The perception is that textile jobs

allowed levels of specialization and skills that could be useful elsewhere to get other jobs,

or to claim a higher salary. More broadly, for many workers and trainees, information

about salaries and their contracts were very obscure. Many workers felt that they were not

entitled to raise questions and pertinent information. In the most extreme cases workers

believed that contravening the stipulation of their contract was punishable by law and by

the government directly.

3.5.2. Women empowerment and gender dynamics in the textile industry

A vast majority of the workers in the textile and garment industry are young women.

Companies that already started production, like Velocity and MAA garment, reported that

women constitute over 80% of the total workforce. This is relevant for our discussion

from many different perspectives. A first dimension is that, while women constitute a

vast majority of employees, these are almost entirely positions of basic operators, which

means the least remunerated jobs. Men are hired for other jobs that either require physical

strength or different levels of specialization. More broadly, at a basic level – and hence

for a majority of the workforce – the division of labour in the textile industry mirrors a

strict division of tasks between women and men. As noted in informal conversation with

trainers the reason why “men are hired for printing while women for sewing is because it

is difficult to keep men sitting all day”. Therefore, one important dimension about the

gender dynamic in the textile industry is that the policy of hiring is based on a normative

approach that attributes a priori roles to women and men. Issues about discipline and

attitude towards an assembly like type of work are important initial determinants of the

gender division in the industry.

To an extent, and in a broader context where youth unemployment is a main challenge,

the fact that the textile industry offers job opportunities mainly to women can be regarded

as progressive. Women are normally in a disadvantaged position vis-à-vis men when it

comes to find employment opportunities and gain degrees of autonomy and

independence. It is undeniable that the textile industry presents young women with this

opportunity. But it is also true that this is to some extent a superficial reading of gender

dynamics in the industry. This perspective takes into account the perspective of

individuals – young women – as if their decisions were independent from the broader

economic, cultural and social context within which they are immersed. As we have noted

above, this is seldom the case of present day Tigray and Ethiopia in the context of the

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transition to industrial life. In particular, there are at least three main dimensions that

affect the ways in which young women are affected by industrial life. These are issues

about salaries, decision making within the household and the community, and migration.

I have noted earlier that the initial salary for basic operators is very low. Anecdotal

evidence suggest that entry salaries can be as little as 800-900 ETB/month, and young

female workers certainly fall in this category when they first start working as basic

operator. Considering the current cost of living this salary does not allow for full

subsistence. This means that for young women it is very difficult – if not impossible – to

start an independent life even when in theory they would be allowed to do so. Evidence

collected suggest that in no case the women interviewed would have been able to sustain

themselves without the direct or indirect support of relatives or other kin. The question

about salaries not sustainable to make an independent living raises questions about the

extent to which jobs in the textile industry provides effective women empowerment. It

seems that in a good number of cases women remain bounded to original patterns of

subordination and dependence with the additional burden of a workload in the industry.

Must not be forgotten that women are also expected to perform a number of tasks in the

household before and after they go to work that sum up to their daily workload regardless

of whether they are employed in the industry or not. These include taking care of

children, fetching water, preparing food, cleaning the household, etc.

In many interviews the question about childcare was an important determinant of the

attitude towards work. Women that could rely on family support for taking care of

children were those who were lucky enough to be based in the surrounding of the factory.

Assuming that a majority of the labour force will be sourced from neighbouring localities

childcare is going to constitute a very serious concerns for women workers. At least three

of the interviews illustrate the matter stake. These are women that in the past had quitted

their job or that were considering quitting in the future in consideration of the fact that the

cost of a baby sitter is sometimes higher than the average salary earned. Evidence

collected highlights that in absence of family network, women with children are likely to

resign because the full cost of a helper at home is similar and sometimes higher than their

salary. The same consideration applies to high levels of absenteeism and punctuality: the

main reason why women were absent from or late for work is connected with the fact that

they had to take care of children or other siblings. This is a particularly significant issue if

we consider that workers will be increasingly sourced from neighbouring towns and

people will leave behind family support.

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A second issue brings into focus questions about decision-making practices. I noted

earlier how in the context of relatively poor households, decisions are very unlikely taken

by individuals, but fall within broader and more complex strategies. To put it simple,

where income generation is not enough to sustain individual livelihoods, decision-making

strategies have the household as the central term of reference. This also explains why

large households are prevalent in these contexts. Risk diversification becomes an

imperative, especially for households that rely on agriculture as a primary source of

living. We have seen how in such a context adding an extra cash income through the

employment of one or more young women can constitute an important risk diversification

strategy. It guarantees some cash to the household, without jeopardizing its ability to

perform the bulk of agricultural activities.

While from a household perspective, especially in those cases where textile workers

come from rural areas, a monetary salary is an important risk diversification strategy, the

extent to which this has a transformative impact for young women approaching the sector

is more controversial. On the one hand industrial work empowers and enfranchise

women, providing more autonomy and power to take autonomous decisions. On the other

hand, entry level salaries make for a sustainable living only in the context of a broader

household strategy. From this perspective, rather than enfranchising young women,

industrial work may reproduce existing dynamics of dependence and subordination

within the household and the broader community.

These issues highlight that in the current context of transition to industrial life income

generating strategies are complex and determined by the overlapping of multiple

rationalities. Young women approaching the industrial life are in midst of complex

decision making processes that are far beyond their own individual will. The household

and the broader community where they live are important determinant of their degree of

commitment to industrial work, whether they will show up in time, and whether they will

have to prioritize other commitments or not. The rationality of young women

approaching the industry should be regarded against these complex decision-making

processes in which aspirations to a better future are balanced against immediate needs, a

changing reality of the local and national economy, as well as existing social and

economic hierarchies that relegate them at the margins.

100

Trainings – and workers-companies relationships more broadly – need to take into

account these complex dynamics if a mutually beneficial environment is to be built.

Understanding these issues, and incorporating them in industrial and human resources

planning, can have a positive impact in terms of increased productivity of labour, while

providing young women with the means to build a better future for themselves and the

generations to come.

As emerged in a roundtable discussion with industrial and local government stakeholders,

the current turn to industrialization in Tigray is not about focusing on short-term,

immediate matters, but it is about envisioning the future of Ethiopia. Trainings and

development activities – and the resulting benefit for young women – will be successful

only if they take a long-term perspective. As noted by one of the participants “building a

sustainable future is about thinking how we want to see Mekelle, Tigray and Ethiopia not

in two but in thirty years”.

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4. Project Action Plan

In order to formulate the project’s action plan, during the inception phase the UNIDO

staff has conducted a number of preliminary meetings with local public institutions,

Mekelle University institutes, and private sector actors. Following a PPP methodology,

these preliminary meetings were meant to establish a network stakeholders willing to

contribute to different extents to the establishment of the Centre of Excellence for

training development in Mekelle. The involvement of private sector actors was of

particular importance due to the need to design training programmes that take into

account the requirements of the industry. One of the main gaps identified was indeed that

existing training programmes do not provide workers with skills that meet the demand of

prospective employers. In other words, establishing a network of stakeholders able to

design effective demand-driven trainings was a central undertaking of the inception

phase. While all the major textile and garment industrial producers were approached, the

following table provides a list of those companies who finally committed to participate in

roundtable discussions and to provide a contribution to establish the Centre of Excellence

for skill development. In addition, for the purpose of developing high level trainings for

the top management, the Institute of Science and Technology of Mekelle University was

involved in the discussion and preparation of the training modules.

Organization Contact person Email

H&M Bezait Amare Bezait.Amare@hm.com

Velocity

Tefetawit Gebremedhin training.eth@vogue-

intl.com

DBL

Libelo Gebreselassie libelo@dbl-group.com

Strathmore Trading

(Ananta Group)

Sanjeeva Iperluma sanjeevai@ananta-bd.com

MAA garment

Abebe Girmay abebe@maatextiles.com

College of Science and

Technology (Mekelle

University)

Ashenafi Aregawi Ashari1998@gmail.com

For the purpose of the inception phase, the discussion with these private stakeholders – a

majority of whom is in the process of starting their operations, and hence to seek

employable work force – was motivated by two objectives. The first was to collect data

102

and evidence of how many workers, and the relative levels of specialization, major actors

in the T&G industry are going seek to employ in the next few years. The second was to

draft training manuals to be adopted in the Centre of Excellence that are formulated based

on the demands of the industry, and that could constitute the basis of the UNIDO

project’s Action Plan.

After individual meetings with public and private stakeholders, two consecutive public-

private roundtables were held in Mekelle in December 2017 and January 2018

respectively. The aim of the first roundtable was to discuss initial commitment of the

companies as well as to address the main gaps affecting the labour relations in the

industry. The discussion was focused on how to design an effective Centre of Excellence

for skill development that would take into account existing shortcomings. The second

roundtable was convened to discuss draft contents of training manuals on the four main

topics about technical skills for basic operators; technical skills for middle management;

training course for top management; training course for soft skill development. The

manuals for each subject are enclosed to this report as Annexes.

Another major undertaking of the inception phase was to find potential institutions

willing, and with the capacity to host the Centre of Excellence. While several location

were visited, the ideal conditions were found at the Mekelle Garment College, the public

TVET for the sector that has also been targeted nationally by the Ministry of Education as

a priority institute were to establish a Centre of Excellence. All the private and public

stakeholders interviewed also agreed that the College potentially offers ideal conditions

for hosting the training centre of the UNIDO project. As discussed in the following

sections, the Centre is endowed with new workshop that are currently idle and that can be

used to establish the Centre of Excellence. The management of the College and all the

relevant government offices expressed enthusiasm in potentially having the UNIDO

Centre of Excellence hosted in the premises of the Mekelle Garment College.

The following sections will present the profile of the Mekelle Garment College (the

recommended site to host the Centre of Excellence), the details addressed at the two PP

roundtables; the profile of the industrial actors involved; recommendations to formulate

one year timeline at the Centre of Excellence; and a tentative list of machinery required to

equip the workshops.

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4.1. Site selection for the Centre of Excellence

During the inception phase other possible locations were considered and investigated to

host the Centre for Excellence. However, after thorough review the Mekelle Garment

College (MGC) was selected for the following reasons:

Strategic Location: MGC is located in Mekelle and is in close proximity to the

Industrial Park where the majority of the Tigray T&G workforce will be based.

Public (TVET) Institution: TVET Institutions are crucial to the overall framework

of national development. Working with public institutions helps facilitate and

strengthen existing TVET centres to provide skill development and job

opportunities for the local workforce.

Facility and Resources: The facility is one of the few in the region capable of

hosting trainings for 300+ trainees at one time and provide classes for the training

of middle and senior management.

Government Approval: The MGC was selected by the Ministry of Education as a

one of the TVET of eligible to become Centre for Excellence.

4.1.1. Mekelle Garment College Profile

Established in 2002, Mekelle Garment College (MGC) did not begin its formal activity as

TVET until 2008. The College has been identified by the Ministry of Education as one of

the priority institutions where to develop a Centre of Excellence. Currently, there are two

courses operating out of the Garment Department: 1) Apparel Design and Technology (4

years) 108 students began enrolment in 2017; 2) Advanced Apparel Production (3 years)-

42 students began enrolment in 2017. Both courses include on-the-job training and

education. The College boasts adequate equipment and facilities. The Garment

Department has 6 workshops, including 1 Pattern Lab, and 5 Garment Technology Labs.

Additionally, MGC has one Production Unit working in collaboration of DBL Group.

MGC has a range of equipment suitable to produce a variety of products. Currently, the

Production Unit professionally manufactures t-shirts for distribution. The facilities have

adequate classrooms to host soft-skill trainings. MGC has adequate industry software,

and while lacking appropriate software standard in the Garment Industry, plan to equip

the facility with new technology. Additionally, the library is currently without internet

access.

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4.1.2. The college current capacity

The table below refers to short-term trainings provided in 2016-2017. Trainings were

conducted for one month on technical skills. The age of the graduates is 18-25 years old.

The aggregate data (1731) refers the current capacity of the college to provide trainings

over the course of one year.

The table below refers to short-term trainings on soft skills (July-August 2017) conducted

in Mekelle. Out of 4200 enrolled in the training, 3802 passed the course and were

selected for the industrial park as potential candidates or employees. The age of the

graduates are from 18-25 years old only as per the need of the industry.

Occupation

Degree

TVET

Certificate

m

F

Tota

l

m

F

Tota

l

m

F

Tota

l

Garment 20 23 43 65 141 206 131 187 318

Total 20 23 43 65 141 206 131 187 318

Occupation

Grade 10

Under Grade 10

Total

m

F

To

tal

m

F

To

tal

m

F

To

tal

Garment 278 823 1101 40 125 165 433 1298 1731

Total 278 823 1101 40 125 165 433 1298 1731

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4.3.3. Information about machineries

SL Machine Type Model Qty Functional Non

Functional

Remark

1 Cutting and spreading table (if

available also in automatic)

0

2 Automatic knifes -band knife 0 0

Round knife 1 1

Stand knife 1 1

3 CAD system for pattern and

layer making

0 0

4 Iron vacuum tables 4 – 5 3

5 4 -5 monitors for the trainings

(projector )

1

6 Industrial single needle lock

stitch sewing machine

(light/medium weight fabric)

211 170 41 motor

and spare

p/m

7 Industrial two needle five and

three thread safty stitch over

lock machine

20 17 03 motor

and spare

p/m

8 Three needle, five thread

cylindrical interlock m/c

3 3

9 Three needle, five thread flat

bed interlock m/c

4 4

10 Industrial double needle lock

stitch machine organize split

needle bar

10 10

11 Two needle feet of the arm 10 10

Occupation

Graduates

Remark

m

F

Tota

l

Basic garment operation 214 3588 3802 All are above

grade 8th

Total 214 3588 3802

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machine

12 Button hole m/c 3 3

13 Bar tacking machine 1 1

14 Industrial single needle lock

stitch button attaching machine

4 3 1 motor and

spare p/m

15 Straight knife cutting machine 1 1 motor and

spare p/m

16 Ironing unit with irons, boards

and movable boiler

3 3

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4.1.4. Master plan of the available workshops A separate version is also available in .dwg format.

108

109

4.2. First Public-Private Roundtable discussion

A Public-Private Roundtable on skill development in the Tigray Textile Sector took place

in Mekelle on December 12th 2018. The roundtable brought together major industrial

partners and public institutions. The industrial partners that attended are the following:

H&M, Velocity, DBL, Strathmore Trading, and MAA garment. Representatives of public

institutions included the ETIDI, the TVET Tigray bureau, the Mekelle Garment College,

the Industrial Park Development Corporation (IPDC), and the Ethiopian Institute of

Technology (EIT) of Mekelle University. A main follow-up to the roundtable was the

organization of a second, more technical roundtable to discuss and formulate skill

development manuals.

The roundtable discussion was organized around two main aspects of skill development

in the T&G industry: soft skills and technical skills. As far as soft skills are concerned all

the stakeholders agreed that this is by far a main challenge hindering the productivity of

the industry. The discussion highlighted that there is need of skill development initiatives

that acquaint the workers with the industrial culture, including how to behave on a factory

setting, time management, industrial psychology, and health & safety regulations. It was

stressed that soft skill initiatives must involve not only basic operators but also line

supervisors, middle management, as well as managers. In addition, it was recognised that

soft skill development cannot be dealt with in isolation from the social and cultural

background of the workers. This also mirrors the evidence of the qualitative assessment

presented in previous sections. Initiatives have to take into account the very context

where workers come from, including issues about transition from agriculture to industrial

life, as well as gender dynamics. For this reason it was suggested that complementary soft

skill development initiatives must be thought in a way that involves the broader

communities where the workers come from. Finally, in order to maximise the benefits of

industrial development in the country there is need to think at soft skill development as

part of a broader effort to build the future of Mekelle, Tigray, and Ethiopia, and not

merely as initiatives that aim to create employment in the short term.

The discussion about technical skill development was equally productive. The general

principle that was agreed upon was about a dual step training, part to be conducted in

the training centre and part directly in the factory. The roundtable recognised the

importance of developing appropriate training manuals effectively. A point that was

stressed with vigour is that the formulation of Curricula must start from the demands and

110

be driven by the private sector. It was also acknowledged that effective trainings are

required for both basic operators and middle management. As part of the project, some

activities will necessarily have to focus on Training of Trainers (ToTs). This is

important to assure technology transfer in the long run, and can be achieved by involving

international experts. Another arrangement to assure a continual and effective training

programme is to think at options that involve trainers of the Centre of Excellence to

follow up with training initiatives in the factories.

A separate set of issues was raised for the potential training of managers. It was agreed

upon that initiatives in this field should be framed around synergies between the

University of Mekelle and the Centre of Excellence. Training of managers is strategic for

ensuring the project’s sustainability in the long run, as well as generating lasting change

in the structure of the local and national economy.

All the private sector actors except Velocity expressed an interest to develop both soft

and technical skill training initiatives. Velocity expressed an interest in collaborating in

regard to the soft skills component only. It was agreed upon that the formulation of each

training component is to be led by one or more of the companies, depending on the

interests manifested during discussion. H&M committed to play a broader role of

coordination and intellectual contribution to each of the components.

The table below summarizes the outcome of such discussion:

Soft Skill development Technical Skill

development

Basic Operators Led by Velocity Led by Strathmore Trading

and MAA garment

Middle Management Led by Velocity Led by DBL

Managers Led by Mekelle University and H&M

Each stakeholder committed to prepare a draft of the modules for the segments it is acting

as leader and to send an expert to discuss and finalize contents at the following technical

roundtable.

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List of participants to the roundtable

4.3. Second Public-Private Roundtable discussion

The second technical roundtable was held in Mekelle on January 23rd 2018. The

roundtable brought together major industrial partners, along with representatives of local

government offices, as well as of the national ETIDI and the Technology Institute of

Mekelle University. The discussion was organized along 4 main topics: technical skill

development for basic operators, technical skill development for middle

management, skill development for managers, and soft skill development. In each

case one or more of the stakeholders presented their inputs based on the preference

expressed during the previous roundtable. The discussion focused on draft documents of

manuals to be adopted in the Centre of Excellence, and as the basis for developing the

Textile Project’s action plan and timeline.

Name of participants Organization Tel number

1 Getahun Legesse Mekelle Garment College +251(0)913-380837

2 Akari Yamamoto JICA +251(0)924-484921

3 Delo Benka ETIDI +251(0)911-917308

4 Goitom Gebrekidan MIP +251(0)914-732657

5 Tefetawit Gemedhin Velocity +251(0)914-013349

6 Sawrabe Verma H&M +251(0)966-269350

7 Sanjeeva Ileperuma Strathmore Trading +251(0)975-273283

8 Bezait Amare H&M +251(0)966-269351

9 Dr. Kinfe Tsegay Mekelle university +251(0)914-706550

10 Abraha Haile Mekelle University +251(0)914-756095

11 Meressa Abraha DBL +251(0)944-248024

12 Asfaw Girmay DBL +251(0)914-746730

13 Libelo G/slassie DBL +251(0)914-301963

14 Abebe Girmay MAA Garment +251(0)914-003953

15 Dr. Mulugeta Hadis Tigray TVET +251(0)912-121282

16 Tsegabu Teka UNIDO +251(0)914-705057

17 Filmon lebelo UNIDO +251(0)920-791948

18 Samson Baraki UNIDO +251(0)911-487149

19 Davide Chinigò UNIDO +251(0)929-135705

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On the topic of technical skills for basic operators MAA garment and Strathmore Trading

offered a joint presentation. DBL provided a presentation of a draft document on middle

management. The morning session was concluded by a presentation by the Technology

Institute of Mekelle University on a handbook for the training of managers. The

afternoon session focused on the topic of soft skills development, with presentations

offered by ETIDI, MAA garment, and H&M. Presentations were followed by extensive

group discussion. Comments served the purpose to amend the original draft documents.

Each stakeholder committed to integrate comments into the initial draft and share the

revised documents to the broader group for a final round of feedback.

The following sections will provide a detailed account of the discussion for each of the

four topics. In line with the previous roundtable, a general consensus emerged about

thinking at the Centre of Excellence not as a static training centre, but rather as a

dynamic, flexible, and adaptable platform to provide a wide set of trainings

depending on the demand of the industry and the market of the time. The demand-

driven feature of the modules and the curricula to be offered at the Centre is a main

strength that stakeholders kept emphasising. The Centre is expected to work as a platform

hosting the most innovative ideas about how better to perform trainings at a certain point

of maturity of the industry and the job market in the area of Mekelle, and in Ethiopia

more broadly. The structure of the job market will change over time, and the Centre of

Excellence will have to be able to adapt accordingly by providing trainings that are

effective to meet a rapid pattern of change. While it was general understanding that

currently the needs for basic operators and middle management staff is the most pressing,

the nature of the industry is going to change as more people get trained, and increasing

levels of specialisation and diversification are achieved.

For these reasons, it was general understanding of the stakeholders involved that a

modular approach to the project means that the contents discussed for each training

curriculum will constitute only the initial basis of what will be offered at the Centre

of Excellence. Over time modules and curricula will have to meet the demands of a

changing industry, and/or address specific requirements of specific industrial actors, who

commit to lead on the initiation of a new module. Being a public institute the Mekelle

Garment College will benefit from increased capacity of its staff and its structure.

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List of participants

S/N Name of participants Organization Email address

1 Getahun Legesse Mekelle garment center Getahun2nd@gmail.com

2 Delo Benka ETIDI deloked@gmail.com

3 Genet Measha Tigray ReSMMIDA 0914701013

4 Jennifer Lembe GIZ STEP/EIT-U Jennifer.lemke@giz.de

0929499103

5 Janaka Atapalty STRATHMORE PLC janaka@ananta-bd.com

6 Bezait Amare H&M Bezait.Amare@hm.com

7 Dr. Kinfe Tsegay Mekelle university Kinfe.tsegay@mu.edu.et

8 Ashenafi G/kidan MAA Garment ashenafi@maatextiles.com

0914150680

9 Meressa Abraha DBL Meressa.abraha@dbl-

group.com

10 Libelo G/slassie DBL libelo@dbl-group.com

11 Asfaw Girmay DBL Asfaw.girmay@gmail.com

12 Abebe Girmay MAA Garment abebe@maatextiles.com

13 Kedir Abederahaman Tigray TVET Kedro1000@yahoo.com

0914210152

14 Wondwosen Zeleke H&M Wondwosen.zeleke@HM.com

0912051537

15 Gebrehiwot Assefa Mekelle Industry Park

16 Davide Chinigo’ UNIDO d.chinigo@unido.org

17 Tsegabu Teka UNIDO T.gebreyessus@unido.org

4.3.1. Technical skills for basic operators

Mr. Ashenafi G/kidan from MAA garment h presented a draft module of technical skill

for basic operators. MAA garment and STRATHMORE Trading PLC jointly developed

the contents of the presentation. The presentation focused on the following major areas:

Selection criteria For Sewing trainees (using Peg Board Test , Color blindness

and Visual Dexterity)

The contents training discussed include the following:

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a. Naming Sewing Machine Parts

b. Knowledge of the types of Needles, Threads, and Fabrics

c. Knowledge about the Sewing Machine

d. Ergonomics

e. Starting Technical Training with Paper Exercise

f. Understanding Sewing Operation

g. Understanding of Different Stitch Types

h. Sewing Defects

i. Work Area Maintenance

The duration of the training module is estimated in 45 working days.

Comments and Q&A

All the participants of the workshop appreciated the presentation of the draft training

module by MAA garment and STRATHMORE Trading PLC, which was judged of very

good quality. Comments focused on issues that the participants felt were missing, and

that needed to be incorporated. These include the following:

More attention on Occupational Health and Safety;

A closer attention to buyer’s needs;

The participants agreed on the importance to provide technical skill training

side by side with soft skill training. A main outcome of the discussion was that

marking a line between the two is often very difficult, and that they should be

provided in an integrated way, because they are complementary in reality. Issues

raised for instance included awareness about taxation and salaries; conflict

management and absenteeism; team work and behaviour on the assembly line;

Another question addressed in the discussion was about trainings that require

special machineries. This was raised particularly by Strathmore Trading, as the

company project to produce mainly sweaters and suites, and basic workers will

need to be given training on particular machineries. The outcome of the

discussion emphasised that the Centre of Excellence should be built through a

modular approach. This means that while general trainings can be provided to

all the workers, companies that require specific training on specific machineries

can coordinate and lead on the preparation of these modules and provide their

input in terms of human capacity and machinery requirement.

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A modular approach will allow establishing a Centre of Excellence that provides

different operations for workers at basic level. One way to do that is by

establishing advanced modules for basic operators – for instance on pressing,

spreading and cutting – in a way that meets the demand of the industry. H&M

remarked that having different modules in such a way is what makes the

difference between a normal training centre and a Centre of Excellence. To be

successful the Centre of Excellence has to be able to respond to the question not

only about what kind of trainings the industry of the present needs, but also

the industry of the future. Having a long-term perspective means focusing not

only of the priority of the industry today, but on the potential challenges of the

industry of the future.

4.3.2. Technical skills for middle management

The course curriculum for training of middle management was presented by Mr.

Meressa Abraha, DBL group. The manual is organized along 8 modules, each one to be

taken over the course of two weeks (84 hours). The final manual will also include the

equipment list required to run the modules. The manual included the following modules:

Production floor supervisors

Merchandising, Sampling and Planning

Pattern making and CAD system

Marker, Spreading and Cutting

Industrial Engineering- I.E.

Quality control, Lab Test, Washing, Finishing and packing, Ware housing

Maintenance

Common modules (soft skills)

Main points addressed during the presentation are the following: to create job

opportunities immediately after the training; what should be the trainees minimum entry

level; how to source qualified trainers; the media and language of trainings.

Comments and Q&A

The overall feedback over the module was positive, and suggestions for improving the

manual were the following:

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Adding cost consciousness practices; waste management training; Health and

Safety component; a component of mechanical engineering to be added in

maintenance module.

A more general point that was raised is about workforce management, or what

was referred to as “human interaction”. Middle management staff needs critical

leadership skills that allow them to understand and manage the operators they

supervise. For instance, these include conflict management and communication

skills. For this reason, the discussion emphasised that these is need for more

articulated and longer middle management training modules. Leadership and

communication skills are something that cannot be trained over the course of two

weeks only.

The previous point brought the conversation to broader issues about how to

define middle management. The entry level of middle management staff should

require people with a degree form the university and at least one year of work

experience.

The conversation then shifted to how to translate these principles into practice, especially

in relation to the Centre of Excellence. Options suggested are the following:

Trainees can be workers already employed in one company and that are selected

for middle management trainings to be undertaken at the Centre of Excellence;

Another option is to provide for paid in-factory internships of university students

about the work culture of the industry;

Middle management training needs to be tailored on the specific requirement of

each company. For this reason, the Centre of Excellence can provide a more

general module, while specific companies can led more specialised courses. This

once again follows the principle of the modular approach highlighted before.

Another important issue is to create connections with universities that provide courses

on Textile and Garment. It was highlighted that the country has already 6 universities

providing such trainings, although Mekelle University is not yet among these. There is a

course that started to be provided but it is still at an early stage. The Centre of Excellence

should favour the integration of modules for internship programmes with the

universities that run garment programmes.

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The question about where to source prospective trainees raised the broader point about

how to establish connections between the Centre of Excellence and other institutions. The

following suggestions were provided:

Establish links with the Career Centre of Mekelle University;

Linking the Centre of Excellence with the web platform EthioJobs;

Disseminate information about the Centre of Excellence through job fairs;

Strengthening the connection with other donors and international organizations

working on similar projects such as GIZ, DFID, World Bank, etc.;

ETIDI runs a national database of graduates and a placement programme

from textile and garment institutes that can be shared with the Centre of

Excellence.

A further point that was raised was again about the Centre of Excellence being informed

by a modular approach. While general modules can be provided at the Centre of

Excellence, product specific modules that need specific machineries/skills will be

provided in each factory.

A final point discussed is about what kind of certification trainees will obtain upon

attending courses at the Centre of Excellence. It was agreed that while in the long run

efforts to streamline curricula into the public system (TVET) will be pursued, in the short

term the Centre can issue Private Certification that draw on the reputation of the

consortium of companies and institutions running it.

4.3.3. Training for managers

A draft module for the training of managers was prepared and presented by Dr. Kinfe

Tsegay from the Technology Institute of Mekelle University. The draft module

presentation focused on the following major topics:

Broad introduction and global trends of the textile sector

Key challenges of the sector in Ethiopia

Possible solution and directions

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Key skills for managers include strategic thinking, collaboration, emotional

intelligence, critical thinking, communication, coaching, making values visible

and viral.

The proposed modules are the following:

a. Problem solving and decision making

b. Team building and management

c. Negotiation skills

d. Strategic leadership

e. Project and risk management

f. Marketing management

g. Quality management

h. Time and self-management

Training schedule (estimated 18 days for all modules)

Comments and Q&A

While the presentation was well received by participants, the discussion focused on

questions about the duration of training, target trainees and trainers, and synergies

between the Centre of Excellence, University and the private sector. Once central point is

to design trainings that make use of non-traditional, interactive methodologies, such as

approaches based on case studies, exposure sharing, scenario planning, and sharing of

experiences. Participants felt that managers require trainings also on issues about

customer handling and global scenario of the sector. Discussion focused on the following

issues:

Trainings should focus on practices of knowledge transfer and experience

sharing. A central question for the training of managers is to make the most of the

expertise of international companies that have a global outlook of the sector. One

connected question is to address with trainings is the cultural gap between locals

and foreigners. Trainings should address questions about understanding of

different cultures on communication and interpersonal skills.

Another question addressed is about who should, and has the capacity, to deliver

trainings for managers. The debate here was between those who privileged

trainers with more practical experience of management in the sector (this view

was mainly supported by the private sector) and trainers with theoretical

experience. It was agreed that an ideal course should involve a combination of

both.

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General trainings can be provided in collaboration with the university, other

trainings by invited guests sourced through the international companies. The

general understanding is that there should be a tandem between academics and

practitioners in the provision of trainings for managers.

Connected is the question about budget and costs of high-level trainings. As

international experts might require significant budget, one option is to make the

most of international experts that pay visit to international companies for other

business reasons and ask them to provide a training session while in the country.

Expensive is also buying time of managers for further training. For instance it

was noted that no company could afford to send a top manager for training for 18

consecutive days. For this reason, trainings should be flexible and organized in the

form of seminars that will take place once a certain number of people enroll. More

broadly, the question of time requires a modular organization of trainings. For

instance, it was emphasised the importance of providing trainings to staff already

employed to update and upgrade skills and knowledge over specific topics.

One other question raised is whether trainings for managers are a task that goes

beyond the scope of the Centre of Excellence. In such regard, the role of the

Centre should be to facilitate and coordinate trainings that are mainly provided by

the University and Private companies.

Modules for the training of managers are perhaps those that require most

flexibility and be delivered on a demand-driven basis. Requirements need to be

set by the industry, and will change over time depending on the state of maturity

of the sector.

4.3.4. Soft skills training

The soft skill training component was presented by Mr. Delo Benka from ETIDI, Mr.

Abebe Girmay from MAA garment, and Ms. Bezait Amare from H&M.

Mr. Delo presented the soft skill training manual developed by ETIDI which is currently

used for trainings of workers in Hawassa Industrial Park. The handbook encompasses 7

modules:

Personality Development

Group dynamics and Team Building

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Value of Time and Time Management

Personal Finance

Communication in Organization

Value and workplace Ethics

Workplace safety and Hygiene

Mr. Abebe addressed questions of soft skills training from the perspective of existing

legislation, and the labour law more specifically. The presentation focused on the

following points:

Definition of different terms (work rules and working conditions)

Contract of employment

Probation period (45 days)

Obligation of the parties

Unlawful activities

Termination of contract of employment

Minimum work conditions

Special leaves

Occupational safety & health

Additional information HIV/AIDS issues, personal hygiene

Ms. Bezait presented a less conventional approach to soft skills training, whose rationale

is that soft skills are about an intercultural exchange that entails several layers of

social mediation. Conventional soft skills trainings are about changing the mentality of

people in order to prepare them to work in the factory. The approach suggested by H&M

is that soft skills trainings should take into account the cultural background, as well as the

social and economic baseline of the communities where prospective workers come from.

For this reason Ms Bezait proposed an approach to training whereby the “Centre of

Excellence goes to the communities” and not only vice versa. The starting point was

expressed through the following diagram, explaining the tripartite interaction between the

Industry, the Centre of Excellence and the Local Communities where workers are

sources:

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Based on past experiences of H&M, the rationale of the suggested approach is to design

trainings whereby the Centre of Excellence performs trainings directly in the

communities where a majority of workers come from, and finds culturally appropriated

ways to perform soft skills trainings, that take into account local social and economic

specificities. From a practical perspective this approach can be implemented through the

following:

Gatekeepers approach. Focus on some influential people in the workforce.

They are targeted with trainings and then they are asked to share their experience

with the rest of workers (for instance what does it means to be punctual and to

work on an assembly line). These are neither managers nor supervisors; these are

normal workers sharing their experience. They are selected on the basis of their

leadership and charismatic skills as potential social/cultural influencer of other

workers.

Mobile trainings. Some general training can be performed directly in the

communities where a majority of workers come from. Mobile trainings can tackle

the problem about wrongful and incorrect information about the industry that are

sourced by word of mouth.

Voluntary Social Engagement. This approach stems from understanding the

engagement of local communities as based on their social and economic needs,

rather than based on the needs of the industry. Very often workers do not respect

basi behavioural rules – such as punctuality and absenteeism – because of other

social, cultural, and economic obligations they have to perform in their own

communities. This is particularly significant for women, who within their

household are expected to fulfil a number of other tasks, including domestic work,

childcare, etc. Voluntary Social Engagement approach is based on the premises to

discuss these issues and potential solution with the local communities directly, as

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a way to find socially acceptable solutions that take into account the needs of the

industry and of the local communities.

Using Media. Information about the industry can be disseminated through local

media. Radio is the most accessible and common example. The goal is to reach

out the communities through selected awareness campaigns about the implications

of the industrial life.

Comments and Q&A

The discussion focused on the following points:

Soft skills training should be applied at all levels of the career ladder, and planned

as part of an integrated approach to Career Development for workers.

Soft skills training needs to take into account general laws and legislations as well

as policies of the specific factories.

For managers and middle management, questions about emotional intelligence,

should be central components of soft skills trainings

The manual presented by ETIDI is a good starting point for providing general soft

skills training courses at the Centre of Excellence. Nonetheless, a “classroom

approach” to training is not enough. It is important to think at soft skills training

by going beyond traditional methods. Non-conventional methodologies, such as

those suggested by H&M and by Mekelle University for managers, are equally

important. One other example is having motivational talks.

Soft skills development is a learning process that entails a mutual understanding

between the industry and the society. If it is necessary for the private sector that

the culture of the people adapt to the requirement of industrial life, this should be

done in such a way that take into consideration the cultural, social and economic

needs of local communities. This means that the private sectors should adapt and

tailor strategies of labour enrolment to the needs and requirement of society. Soft

skills training operates on two parallel levels: changing the culture of people,

and adapting to the culture of the people.

One approach to “change the culture of the private sector” is designing specific

soft skills trainings for middle management and managers that encompass

strategies to manage the workforce in a culturally appropriate manner.

Soft skills trainings have to take into account broader structural issues at play in

the Ethiopian society, such as the transition from agriculture to industrial life.

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Strong relationship between the government and the private sector is very

important to provide sound soft skills trainings.

4.4. Profile of the stakeholders engaged to establish the Centre of Excellence

Following a Public-Private Partnership (PPPs) methodology, during the inception phase

the UNIDO staff engaged with a number of stakeholders at different levels. In addition to

the Italian Agency for Development Cooperation (AICS) in Ethiopia, these include:

Governmental institutions at Federal and Local level: Ministry of Industry,

Ethiopia Textile Industry Development Institute (ETIDI), Tigray Trade and

Industry Bureau, Tigray TVET Bureau, Tigray Small and Medium Manufacturing

Industry Development Agency (SMMIDA), Mekelle BOLSA, Mekelle Garment

College, Mekelle Urban Job Creation and Food Security Bureau, Ethiopian

Institute of Science and Technology of Mekelle University.

Private sector actors: Ethiopia Textile and Garment Manufacturer's Association

(ETGAMA), Mekelle Industrial Park Development Corporation (IPDC), H&M,

Velocity, DBL, Strathmore Trading PLC, MAA Garment, Calzedonia, Decathlon,

Enterprise Partners (EP).

International Organizations and NGOs: European Union delegation, German

development cooperation (GIZ), International Labour Organization (ILO), UK

development cooperation (DFID), Japanese development cooperation (JICA),

Italian Trade Agency, Don Bosco, Rainbow4Children, Volontariato

Internazionale per lo Sviluppo (VIS).

While formal and informal discussion took place with all these actors, the following

sections provide details of those stakeholders that actively participated in the two

roundtable discussions for the formulation of the project’s action plan and the curricula

for the Centre of Excellence. The Mekelle Garment College is not included here because

details have been provided in earlier sections. The following sections pay particular

attention to the private sector actors involved.

The private companies were asked to provide details about their employment plan for the

coming years, as well as information about trainings. Taking the labour demand of the

four big companies involved in the roundtable discussions, the industry is expected to

hire over 30,000 new workers in the next few years. This is a very conservative figure

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because it accounts for a non-exhaustive list of the textile and garment actors currently or

in the process of operating around Mekelle, and does not include potentially connected

and spin-off sectors. This clearly highlights the criticality and timeliness of UNIDO

intervention.

4.4.1. ETIDI

The Ethiopia Textile Industry Development Institute (ETIDI) is a key partner in

envisioning and developing the Centre of Excellence in Mekelle. The mission and

expertise of the Institute makes it the natural and ideal governmental partner to

implement the UNIDO project, together and in close collaboration with the Ministry of

Industry. In particular, the expertise and the national reach of ETIDI is critically

important to develop a Centre of Excellence that become a Best Practice to implement

elsewhere in the country. ETIDI staff contributed substantially to the discussion during

the two public-private roundtables in Mekelle, and was instrumental in providing the

project with a soft skill training manual. At a broader level, the Director of the Institute,

Ato Seleshi Lemma, played an invaluable advisory role during periodical meetings that

took place at the Ministry of Industry, at the presence of his Excellency Ato Bogale

Felleke.

ETIDI was established by the Ethiopian Council of Ministers in 2010 in an effort to

achieve the Ethiopian Government’s five year strategic Growth and Transformation Plan

(GTP1). The Institute is meant to provide continuous support to the development of the

T&G sector, which is a central component in Ethiopia’s Industrial Development Strategy.

ETIDI is instrumental in facilitating the large-scale development of infrastructure to

increase competiveness in the T&G sector. By supporting public and private partnerships

ETIDI establishes and executes strategic initiatives to stimulate the cotton, textile and

apparel industries in Ethiopia. ETIDI helps build international collaboration for capacity

building in order to establish Ethiopia as an international standard in the T&G industry.

ETIDI’s mandate is far reaching and includes promoting foreign investment, secure

workforce training, research and development and offering market support. The Institute

aims to better facilitate the global competitiveness of the Ethiopian textile industry.

Overall the Institute conducts market studies and circulates data, advises investors,

provides technical support to enterprises, offers services for quality monitoring, helps

streamline waste-water treatment, in addition to establishing growth in the textile and

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garment sector. Due to the intensive labour requirements of the T&C sector the ETIDI is

tasked with creating a skilled workforce by providing trainings and education.

Personnel contacted during the inception phase:

Seleshi Lemma Sileshilemma2002@gmail.com +251(0)114391990

Yared Mesfin Yared_Mesfin@yahoo.com +251(0)911466981

Delo Benka deloked@gmail.com +251(0)911917308

4.4.2. H&M

H&M has been instrumental in developing and formulating the UNIDO project from the

very beginning. Initial contact with the company were taken by UNIDO at the time of the

inception phase for the SINCE project. At that time already emerged the willingness in

embarking on a project to support the development of skills for the growing industry. A

more formal meeting between, among others, H&M, UNIDO, and GIZ was held in

Mekelle in February 2017. The meeting highlighted the need to develop training

programmes at different levels (e.g. basic operators, middle management, managers)

through strategic partnerships between industrial actors, government institutions, and

international organizations. Since then H&M has been a central pillar of the UNIDO

project, also for its ability to converge the interest of a number of production companies

in the area of Mekelle.

H&M offered support to coordinate training activities at different levels, and its staff

played a very important role during the two roundtables organized in December 2017 and

January 2018. H&M staff was particularly committed to design non-conventional soft

skill training activities that take into account the deeper cultural and social underpinnings

of trainees and prospective workers in the industry. Details about non-conventional skill

training are discussed in the Recommendation section of this Report.

The Swedish retailor has invested in the Ethiopian garment industry, sourcing products

from numerous Ethiopian manufacturers including DBL and MAA garment. H&M has

secured multiple production sources in Ethiopia and works with numerous independent

suppliers. With 80% of production sourced by Asian producers the incorporation of

Ethiopia marks an important supply shift for the retailor. Of the producers operating out

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of Ethiopia H&M has expressed the firmest commitment to DBL, committing to

becoming a long-term buyer and supporting the factor with knowledge in sustainable

textile production.

Personnel contacted during the inception phase:

Bezait Amare Bezait.Amare@hm.com +251(0)947690668

Sawrabe Verma Saurabh.verma@hm.com +251(0)966269350

Pierre Borjesson Pierre.Borjesson@hm.com +251(0)966269349

4.4.3. DBL

DBL has been instrumental to the inception phase of the UNIDO project in a number of

regards. The company led the development of a training curriculum for middle

management and the staff made a substantial contribution to both roundtable discussions.

The manual has been included as annex to this Report. In addition, DBL was instrumental

in facilitating UNIDO staff to conduct interviews with trainees at the Qwiha training

centre for the in-depth qualitative assessment.

DBL is an international Textile & Garment group with headquarters in Bangladesh. In

Ethiopia the Group committed an investment of 100 million USD.6 At the time of this

writing the Group was not yet operational in Ethiopia. DBL is planning to complete the

construction of the factory in the course of 2018, and operations are planned over two

phases. Phase 1 encompasses operations on Ready Made Garment (RMG), Printing and

Accessory. Phase 2 will add Dyeing and Knitting to the production cycle. When the

company will reach full capacity the number of employees will reach approximately

12,000. Below are reported details about the hiring plan for the next three years.

Currently employed by DBL

Age Gender Education

Male Female MSC/MBA/

BSC/BA

Diploma

(Technical

School &

12th /10th

Grade

complete

6 http://www.thedailystar.net/business/dbl-group-set-100m-garment-factory-ethiopia-1229974

127

College

Diploma)

and below

20-43 24 12 11 4 11

Three years workforce plans

Over the course of the next three years the company plans to employ approximately 5,300

new workers.

1st Phase

RMG Printing Accessory

2551 1043 310

1st phase disaggregated by qualification

Unit Managers Middle

Managers

Other staffs Operator

Printing 9 5 22 203

RMG 35 41 69 2406

Accessory 18 28 23 974

2nd Phase

Dyeing Knitting

926 471

2nd phase disaggregated by qualification

Unit Managers Middle

Managers

Other staffs Operator

Dyeing 17 21 65 823

Knitting 4 8 62 377

Training plan

Since June 2017 DBL is providing trainings for Sewing and Printing operators in

collaboration with the Mekelle Garment College at the Qwiha sub city workshop, and by

December 2017, 920 sewing & printing operators have been trained.

Further details about the training of the workforce for the next year are the following:

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DBL developed course Curriculum and schedule for Knitwear Industry Garments and

Machine Operation. The duration of this course is 192 Hours (1 Month and 24 days).

DBL is committed to provide a substantial contribution to the Centre of Excellence. DBL

suggests that “experienced Sewing trainers and technicians, Garmenting, textile and

Industrial engineers are required to run the Centre of Excellence. And, DBL industries

will be in continuous relation in developing the training curriculum and supporting Skill

Full Trainer at the right time when needed.”

The company expectation “is that the Centre of Excellence will include all facilities

needed so that all graduated trainees are able to have thorough knowledge on textile and

textile materials, machinery used in the Knitwear, Machine control, identified relevant

trims and accessories- fabrics, needle types, stitch types, garments process, work

knowledge, self-assessment, sewing different process and styles of knit garments”.

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Personnel contacted during the inception phase:

Mahmudul Hasan mhasan@dbl-group.com +251(0)936011709

Libelo Gebreselassie libelo@dbl-group.com +251(0)914301963

Meressa Abraha Meressa.abraha@dbl-group.com +251(0)944-248024

Asfaw Girmay Asfaw.girmay@gmail.com +251(0)914-746730

4.4.4. Strathmore

Although Strathmore started to establish its presence in Mekelle during the inception

phase of the project, the company committed to participate to the two roundtables

organized in December and January. Strathmore provided a substantial contribution to the

formulation of the technical skills for basic operators manual. The manual has been

included as annex to this Report. The company has a deep interest in skill training, and

committed to support the establishment of the Centre of Excellence.

Strathmore is a controlled company of the Bangladesh based Ananta Group. Strathmore

is the only company involved in the UNIDO project that will operate inside the premises

of the Mekelle Industrial Park. The company rents over 70% of the total space currently

available in the Industrial Park (8 of the 12 sheds). To set up its state-of-the-art

manufacturing project in Mekelle Industrial Park, Strathmore committed an investment of

approximately 35 million USD for two product categories: Mens Suits and Sweaters

(Fine and Coarse Gauge).

Reasons that made the company opt for operating inside the Industrial Park, rather than

building their own premises are the following: the park is considered a world-class

sustainable eco-park ready for ‘plug & play’; provision of essential infrastructure,

including dedicated power substations and centralized waste treatment facilities (zero

liquid discharge); the Park is operational by Jan 2018 while building a new factory takes

time; building lease conditions are very advantageous (15+ years at nominal rates,

starting at 2 USD/sqm); additional land is also potentially available for lease within the

park to construct own building.

Strathmore plans to hire over 10,000 workers in the next three years. For sweater

production, there are 12 different segments of technical training that are required, and the

company itself is planning to have 82 trainers to train 1000 trainees at a time. The blazer

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production will require 50 trainers that will train 500 workers at a time. Training manuals

for both segments are already available. The company plans to give 45 days training on

soft skills and then complete the rest of the training in-house or on specific training

facilities at the Centre of Excellence. In this regard one option discussed is that the

company provides specific machineries for its specific training requirements. The

company can also provide the trainers for special operation like Linking and Knitting.

The blazer training requires 30 days training for basic operations, and additional 40 days

training for specialized operations.

Personnel contacted during the inception phase:

Sanjeeva Ileperuma sanjeevai@ananta-bd.com +251(0)975-273283

Janaka Atapalty janaka@ananta-bd.com +251(0)966674106

4.4.5. Velocity

Velocity expressed a substantial interest in the UNIDO project in relation to developing

the soft skill training component. As explained by the training manager, high levels of

turnover, punctuality, and absenteeism point at questions about how to better implement

soft skill trainings. The company provides technical skill training directly in factory.

A subsidiary of Dubai-based Vogue International Agency, Velocity officially launched

their Mekelle operation in 2016. The factory predominately manufactures jeans and knit

garments, supplying for companies like Levi-Strauss, Vanity Fair, Zara, H&M and Under

Amour. Fully automated the Velocity operation touts a sustainable production model that

relies on wind and LED light, as well as claiming its own water treatment facilities on-

site.

Velocity operation currently employs around 1250 women and 198 men. Workers are

required to have achieved at least Grade 8 education, and be at least 18 years old. So far

the company has tried to hire people from Mekelle and its immediate surroundings.

Currently the turnover rate is 2% of the overall workforce per month, while absenteeism

is 8.5% per month. The employment target of the factory is 10,000 workers, and hiring

will be required in the next few years to reach this figure. Of these 95% of will be

women. The company is currently completing the second factory workshop that will

enable to significantly increase the production.

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Trainings are currently operated as follows. As the company recruits new joining

members, workers are trained for one month on both soft skill & hard skill. Further

trainings are given directly on the assembly line. Velocity is interested in trainees from

the Centre of Excellence who have been trained on soft skills and that can then be trained

further in-house on hard skills.

Personnel contacted during the inception phase:

Tefetawit Gebremedhin training.eth@vogue-intl.com +251(0)914013349

Ephrem Haile hrmanager01.eth@vogue-

intl.com

+251(0)930284776

Charles Smith cbdo@et.vogue-intl.com +251(0)930466870

4.4.6. MAA garment

MAA garment has been extremely important to the inception phase of the UNIDO

project. Together with Strathmore Trading the company led the development of a training

curriculum for technical skills for basic operators, and the staff made a substantial

contribution to both roundtable discussions. The manual has been included as annex to

this Report. The HR manager also provided a very important document/presentation on

industrial relations and the labour law, which is included as attachment to this report for

the soft skills training component. In addition, MAA Garment was instrumental in

facilitating UNIDO staff to conduct interviews with workers for the in-depth qualitative

assessment.

Established in 2004, MAA Garment is one of the largest fully integrated textile facilities

operating in the region of Mekelle. MAA is entirely privately and Ethiopian owned. The

operation includes, spinning, knitting, dyeing, cutting, sewing, and packaging of finished

goods. The project’s success has allowed for expansion into woven garments as well.

Ninety percent of the goods are exported into the foreign market, producing around 4.2

million pieces for distribution with total sales of 7 million (USD). Clients include H&M

and Tesco/Primark.

While the company is well established and the bulk of the workforce is operational and

receives periodical trainings, MAA garment has the objective to expand current

operations. The plan is to increase its knit capacity from 9.6 tons to 20 tons per day and to

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build a new plant for woven items.7 In addition the staff explained that periodically new

hiring are required to replace workers that resign. Records of the company show that this

requires hiring 500 new workers every year. Current information about the workforce

are reported in the following tables:

Workforce by age and Sex

S/N Age Manpower Total

M F

1 18-24 190 502 692

2 25-30 179 512 691

3 31 & above 98 168 266

Total 1.649

Workforce by Education and Sex

S/N Education Manpower Total

M F

1 < 8th Grade 21 103 124

2 9th - 12th Grade 261 963 1224

3 10+1 - 10+4 139 67 206

4 Degree & above 68 27 95

Total 1.649

Workforce by Age and Education

S/

N

Age Education Total

< 8th grade 9th - 12th 10+1 - 10+4 Degree &

above

1 18-24 23 618 63 15 719

2 25-30 53 509 79 66 707

3 31 &

above

48 97 64 14 223

Total 124 1224 206 95 1.649

7 https://www.just-style.com/analysis/ethiopia-textile-and-apparel-investments-accelerate_id126505.aspx

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Personnel contacted during the inception phase:

Fassil Taddesse Fassil58@gmail.com +251(0)911200242

Abebe Girmay abebe@maatextiles.com +251(0)914-003953

Ashenafi G/kidan ashenafi@maatextiles.com +251(0)914150680

4.4.7. Ethiopian Institute of Science and Technology

The Ethiopian Institute of Science and Technology was initially contacted to discuss

broader issues about potential synergies between Mekelle University and the Centre of

Excellence. After some very productive conversation, staff members were invited to

attend the roundtable discussions. The Institute developed a detailed curriculum for the

training of managers that was very well received by the other public and private

stakeholders. The manual has been included as annex to this Report.

Personnel contacted during the inception phase:

Dr. Kinfe Tsegay Kinfe.tsegay@mu.edu.et +251(0)914706550

Abraha Haile Abraha.h2002@yahoo.com +251(0)914756095

4.4.8. Local Government Offices

Local government offices at both Regional and Municipal levels contributed significantly

to the discussion during the two roundtables. The project has been welcomed by all the

government stakeholders approached, who in turn, provided substantial support through

sharing of statistical data and other information that have been used to compile the socio-

economic assessment of this Report. UNIDO staff noticed that behind the nascent textile

industry there is an important and rather effective teamwork between different local

government offices, the Mekelle Garment College, and the Mekelle Industrial Park

Development Corporation.

In a context where the textile sector is going to require substantial infrastructural

development and hire thousands of workers in the next few years, coordination between

local government offices is essential to maximise the societal impacts of industrialization,

while minimizing its social and environmental costs. As far as training programmes are

concerned, the productive sourcing of the workforce within the framing of the Centre of

Excellence is an effort that requires maximising the capacity of local institutions. UNIDO

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is committed to keep strengthening the collaboration with local government offices as

ultimately the success and long-term sustainability of the textile project and the Centre of

Excellence depends upon such effort.

The local government offices that were approached are the following:

Trade and Industry

Bureau

Addis Alem

Balema

abalema@gmail.com +251(0)342400351

Eyasu

Gebremariam

Eyassugebremariam2@gmail.com +251(0)978450003

TVET Tigray bureau Dr Mulugeta Hadis

Weldu

Mulaxum2005@gmail.com +251(0)912121282

SMMIDA Tilahun Tarke

Weldu

tilazye@yahoo.com +251(0)912060652

BOLSA

Ato Assefa

Tegegne

Asefa1973@gmail.com +251(0)914763116

Ato Assefa Hadush Haddisassefa2@gmail.com

Urban Job Creation

and Food Security

Kahsay Tesfay Muleg2all@gmail.com +251(0)914747737

4.4.9. Coordination with Development Stakeholders

The rapid expansion of the Textile and Garment industry in Tigray – and in Ethiopia

more broadly – has attracted a significant deal of attention in the donor community. Many

institutional donors, development agencies, and non-governmental organizations today

focus on projects to support the industrial ambition of the country and, at the same time,

mitigating its potential adverse social and environmental effects. The socio-economic

assessment conducted in this Report highlights that the area around Mekelle is going to

be affected by significant economic, social, and cultural transformations in the coming

years. Particular attention needs to be paid to the peri-urban areas where the textile

industry is currently rooting, and the connected migratory fluxes from both the

countryside and the inner city. Precisely because of the extremely rapid the pace of such

transformations, the federal and local government requires institutional support on a wide

range of topics.

While the UNIDO project focuses on capacity development at different levels, such

intervention does not take place in a vacuum. Several other interventions are currently

under implementation, or are likely to kick off soon. For this reason, there is a significant

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need of coordination between international donors, agencies, and NGOs that operate at

the same time to support the textile sector in Tigray. This is to avoid overlapping

interventions and to maximise the collective developmental impact of the initiatives

altogether. Need for coordination also emerged in the recommendations received during a

meeting with the European Union Delegation in Addis Ababa in November 2017.

During the inception phase the UNIDO staff has conducted several coordination meetings

with organization that to different degrees and in different ways work on issues related

connected with the Textile industry in Tigray. A main outcome of all these meeting is

that there is urgent need to convene a coordination roundtable that put together all the

different development stakeholders currently or in the process of implementing projects

on the textile sector in Tigray. Stakeholders that were contacted and that were identified

as to share an interest on the textile and garment sector in Tigray – and hence to

potentially involve in a coordination table – are the following:

GIZ Ulrich Plein Ulrich.Plein@giz.de +251(0)911949895

Elisaveta Kostova elisaveta.kostova@giz.de +251(0)910121800

ILO Kidist Chala kidist@ilo.org +251(0)911618076

Marta Tsehay Sewasew tsehay@ilo.org +251(0)913242156

EU Carl Daspect Carl.Daspect@eeas.europa.eu +251(0)929007552

Maria-Elena Ruiz Maria-Elena.Ruiz-

Roman@eeas.europa.eu

DFID Lindi Hlanze l-hlanze@dfid.gov.uk +251(0)930105560

NGOs implementing projects on themes relevant to the UNIDO projects in the area of

Mekelle and that were contacted during the project’s inception phase are the following:

VIS Chiara Lombardi Programme.eastafrica@volint.it +251(0)968603748

Rainbow4

Children

Kathryn Robinson kwrlachen27@gmail.com +251(0)912964966

Don

Bosco

Hagos Medhin Hagos_mm@yahoo.com +251(0)910531688

4.4.9.1. Towards a collaboration with GIZ

During the Inception Phase of the project, the UNIDO staff had several meeting with

personnel of GIZ involved in different ways in projects about the textile and garment

industry. GIZ was the other major development partner that attended the meeting with

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H&M in February 2017, a meeting that as was remarked above proved to be central in

conceptualizing the UNIDO project and framing it through a PPPs approach. GIZ

followed a similar route and developed a project that has some similarities with the

intervention of AICS/UNIDO. GIZ’s project is based on a strategic partnership with DBL

and H&M to develop middle management trainings in the premises of DBL factory.

Therefore, it is self-evident that there is urgent need of some degrees of coordination

between UNIDO and GIZ initiatives. A GIZ staff member attended the second public-

private roundtable held in January 2018, and in that occasion also government institutions

and private companies raised questions about how to coordinate the two interventions.

One possible avenue that was discussed is to establish a specific coordination on the

middle management trainings, including sharing curriculum manuals, and learning from

the experiences of both projects. This could lay the foundation for the two initiatives to

merge after the completion of respective implementation phases. A Centre of Excellence

operating through a modular approach – as discussed in the second roundtable – could

constitute a potential joint platform for such effort. From the perspective of

AICS/UNIDO this would present the additional advantage to guarantee stronger long-

term sustainability of the Centre of Excellence. What it is suggested here is to address

this matter as soon as possible at the beginning of implementation phase. The

recommended tool is to establish a joint Project Cooperation Agreement between

AICS/UNIDO and GIZ.

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4.5. Recommendations to formulating a one-year training timeline

Based on the findings of the study this section provides a set of recommendations for

implementation of the project, with in mind the objective to formulate a one-year timeline

of trainings at the Centre of Excellence. Recommendations have been grouped into sub-

categories to facilitate reading. These include the four main training components

discussed during Public-Private roundtables, as well as institutional recommendations on

how to follow up the PPP initiated in connection with the Centre of Excellence and

relationship with other implementation agencies operating on the textile sector in Tigray.

Before this, the first section summarizes key findings of the Report that inform the

recommendations of following sections.

4.5.1. Key findings

The textile industry around Mekelle is going to require a significant number of

workers in the next few years. By themselves, the companies surveyed and

engaged in the discussion to establish the Centre of Excellence plan to hire

20,000+ workers in the next three years, and additional 10,000+ to achieve full

capacity. These are conservative figures that do not account for small and

medium textile companies, as well as major industrial operators already in the

area such as ITACA/Calzedonia.

While the number of job seekers with a profile suitable for the textile industry

(e.g. 18-25 years old, and Grade 9 or above) in Tigray is significant (~140,000),

only about 5% of these can be sourced from Mekelle Municipality (~7,000). By

implication, it is expected that the expansion of the T&G will be associated with

significant fluxes of migrant workers from elsewhere in the region.

A significant number of workers are potentially available in the six wereda

immediately bordering with Mekelle Municipality (~13,000).

Existing training institutions (e.g. TVETs) are not able to meet the existing

demand for trainings from both a quantitative and qualitative perspective.

Labour migration raises deeper questions about the transition to industrial life,

which entails economic, social, and cultural transformations that need to be taken

into consideration when developing trainings, particularly on soft skills.

Labour migration is complex and not unidirectional from rural to urban areas.

Peri-urban sites where the industry put its roots become target of multiple fluxes

from both the inner city and rural areas. In addition, at least in the short-term,

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labour migration is never permanent, and rather is characterized by frequent

commuting and movements back and forth to the place of origin.

Over 85% of the employees in the textile industry are women with a low

socio-economic profile, and eligible for a minimal entry salary. Industrial work is

unlikely to enfranchise young women from existing social hierarchies within the

household and the broader communities of origin.

While working, women are still expected to perform the same domestic tasks in

the household. This and frequent social and cultural obligations in the community

explain high rates of turnover and absenteeism. A particular concern is childcare

for migrant workers that have no family network in the area where they relocate.

The textile industry and industrialization are regarded as important aspects of

the country’s future, and have attached positive notions of progress, modernity

and development. Industrial jobs have a higher reputation than jobs in other

sectors, even when these pay a better salary. The textile industry is expected to

create new jobs and tackle the problem of youth unemployment.

The fact that the textile industry offers initial low salaries has several

implications. Regardless of how low these salaries are still very important in

consideration of the substantial lack of alternatives that many youth face today,

and of households’ reproductive strategies. Particularly, for those households with

an agriculture background an additional cash income often constitutes an

important risk diversification strategy.

Connected to the question of low initial salaries, work in the textile industry is

usually regarded as a short-term strategy. Young workers plan to get enough

skills and experience to move on to a better life.

4.5.2. Recommendations on Coordination and a PPPs

The continued coordination with the MoI is fundamental to guarantee the long-

term sustainability of the project and the potential creation of a model to

implement elsewhere in the country.

The continued collaboration and involvement of ETIDI at all levels is also

extremely important for the long-term sustainability of the project.

The two roundtables organized during the inception phase consolidated a network

of public and private stakeholders committed to support the establishment of the

Centre of Excellence. The relationship with these actors needs to be nurtured and

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consolidated further. It is recommended that the private and public actors engaged

will constitute the initial members of the Centre of Excellence Steering

Committee. This is to guarantee long-run effectiveness and sustainability of the

project.

It is recommended that the Centre of Excellence is informed by the principles

that emerged during the two roundtable discussions. These include: the flexibility

and adaptability of trainings to changing industrial conditions; a modular

approach in which the provision of basic trainings takes place side by side with

more specialised one depending on specific circumstances; the creation of strong

links with textile colleges and other textile education institutions throughout the

country; the coordination with the Career Centre of Mekelle University, local

public employment institutions, and other national databases of graduates (for

instance through ETIDI).

ETIDI should be empowered to play the role of strengthening the Centre of

Excellence’s upstream and downstream linkages with other education institutions

and the job market (for instance through the placement programme).

The role of the Mekelle Garment College as host of the Centre of Excellence

needs to be formalized through appropriate institutional agreements. It is

recommended that throughout the duration of the project UNIDO staff work in

close coordination with the management of the Garment College to assure a

timely and effective implementation. One option is basing a UNIDO office inside

the premises of the College.

The collaboration with the industrial partners involved in the inception phase (i.e.

H&M, DBL, Strathmore, MAA garment, and Velocity) needs to be formalized as

soon as possible through arrangements (for instance Project Cooperation

Agreements) that detail their role and commitments in supporting the Centre of

Excellence.

It is also recommended that Project Cooperation Agreements are signed with GIZ

to coordinate activities about trainings for middle management, and the Institute

of Science and Technology of Mekelle University to coordinate activities

connected to the training of managers.

A coordination roundtable with other development agencies and donors (e.g.

GIZ, DFID, ILO, World Bank, etc.) currently or in the process of operating in the

textile sector in Tigray needs to be convened the soonest.

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It is recommended that, at least at an initial stage, the Centre of Excellence will

release a Private Certification building on the reputation of the Steering

Committee.

It is also recommended that during the project implementation appropriate steps

are taken to start the procedures for the standardisation of the training manuals

and their integration within the national TVET system via the revision of

Occupational Standards and Curricula. This will guarantee a much wider and

long-term impact of the project.

It is recommended that information about the Centre of Excellence is

disseminated widely through different tools, including placement programmes at

times of graduation, job fairs, radio and TV adverts. Available opportunities for

trainings, vacancies, and other information are constantly updated on the Centre

of Excellence website, and triangulated with other web portals (such as

EthioJobs.net).

4.5.3. Technical skill trainings

Considering that the industry will require ~20,000 new workers during the course of the

project implementation (i.e. the next three years), following estimations provided by

H&M for a sample factory (see section 1.5.), the subdivision of the workforce needed

among different departments can be estimated as follows.

Department Number of workers

Sewing operators 12,000

Helper (sew+cut+fin) 6,084

Cutting department 36

Sewing department 936

Finishing department 120

Industrial engineering department 42

Merchandising team 84

Others 618

Based on the above, and still following the template/estimation provided by H&M, it is

possible to estimate that the approximate requirement of trained workers that the textile

industry around Mekelle will require in the next three years is the following:

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Skill requirement Number of workers Training segment

Helper (sew+cut+fin) 6,084 Basic operators

Sewing operators 12,000

Junior management 1,560 Middle management

Middle management 324

Top management 48 Managers

The roundtable discussion on technical skills for basic operators and the manual

produced thereafter (attached to this Report) formulated training sessions with a total

duration of 45 days. Considering festivities and breaks it is plausible to estimate that

every year the Centre of Excellence will be able to host 7 sessions of trainings. For every

15 trainees 1 trainer is required. Estimating a capacity of 200 trainees at a time,8 the

Centre of Excellence will be potentially able to graduate 700 basic operators every

year. Information are summarised in the following table.

Technical skills for basic operators

Duration of one training session 45 days

N. of training sessions/year 7

N. of trainees at each session 200

N. of trainers per 100 trainees 13

Total trainees graduated/year 700

Total trainees graduated during the project 4,200

The roundtable discussion on middle management and the manual produced thereafter

(attached to this Report) formulated training sessions organized in 7 modules of 2 weeks

each. A full training cycle encompassing all the modules takes 14 weeks. Considering

festivities and breaks it is plausible to estimate that every year the Centre of Excellence

will be able to host 3 sessions of trainings. Estimating a capacity of 50 trainees at a

time, 9 the Centre of Excellence will be potentially able to graduate 150 middle

8 The maximum capacity available at the MGC is workshop space to host 300 trainees at a time. However,

the number of trainees at any given time will depend on the allocation of the budget for any single training

activity of the project. 9 Classrooms available at the Mekelle Garment College can host much larger classes. However, the number

of trainees depends on the allocation of the budget for any single training activity of the project.

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management staff every year. For every 20 trainees up to 1 trainer is required.

Information are summarised in the following table.

Middle management trainings

Duration of one training session 14 weeks

N. of training sessions/year 3

N. of trainees at each session 50

N. of trainers per training cycle 3

Total trainees graduated/year 150

Total trainees graduated during the project 450

The roundtable discussion on managers highlighted that it is difficult to estimate exact

numbers of how many people can be trained. Training sessions will need to be based on

seminars and case study discussions, and be mainly driven by the industry and the

university. The recommendation is to explore the possibility to allocate some project

budget to the organization of 4 seminar sessions for managers every year. The main

expense incurred in this regard is providing for the cost of national/international experts

that give the training. Using personnel of international companies that visit the country

for other business related reasons can reduce substantially this cost. Initially, these

sessions can be provided by the College of Science and Technology of Mekelle

University following the manual compiled as Annex to this Report. The manual

encompasses 8 modules for a total duration of 18 days.

Trainings of top managers

Duration of one seminar session 1/2 days

N. of training sessions/year 4

N. of trainees at each session 10/20

N. of trainers per session 1

Total trainings provided during the project 40/80

Additional recommendations on technical skill training:

The general arrangement agreed upon during roundtable discussions was to

design trainings based on a dual step approach. Under this arrangement the

general part of the training is provided at the Centre of Excellence, while more

specialized training is given by each factory in house.

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More broadly a modular approach to trainings is what should best describe the

structure/organization of the Centre of Excellence. Under this arrangement, basic

trainings are provided side by side with more specialised one depending on

specific circumstances, and taking into account the evolution of the industry over

time. When required, companies can for instance discuss and implement specific

training modules on specialized lines of production.

For both basic operators and middle management the project has to account for

additional Trainings of Trainers (ToTs). The private sector partners engaged in

the discussion have the capacity to provide ToTs, and it is recommended that

arrangements on this matter to be fully discussed as part of the stipulation of

project cooperation agreements.

Internships, exposure visits, and other exchanges with education institutions,

universities, and private sector actors must be incorporated and developed as part

of the training activities of the Centre of Excellence. This enables to strengthen

the overall quality of trainings and generate more competitive workers.

4.5.4. Soft skill trainings

Findings from the socio-economic assessment, as well as outcomes of the

roundtable discussion with public and private sector actors point at the criticality

of soft skill training. The current low productivity of labour is strongly connected

with issues about attitudinal change and adaptation to an industrial life.

It is recommended that all the trainees at all levels of specialization undertake

soft skill trainings.

Basic operators need soft skill trainings that acquaint them with the industrial

culture, including how to behave on a factory setting, time management, industrial

psychology, and health & safety regulations. A training manual on this topic is

provided as Annex to this Report. As the language of the manual is Amharic, it

might need translation into Tigigna.

In addition it is recommended that all trainees be provided with trainings about

their duty and responsibility as provided by the current labour law. A training

manual on this topic is provided as attachment to this Report.

It is recommended that soft skill initiatives must also involve line supervisors,

middle management, as well as managers. These professional figures require

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qualities such as leadership, as well as understanding the social and cultural

background of the workers that they manage under them.

Soft skill initiatives must take in consideration the social and cultural background

of the workers, and more broadly issues related to the transition to an industrial

life. Initiatives have to take into account the very context where workers come

from, including the agricultural background of many workers, as well as the

gender dynamics of the industry.

Soft skill initiatives must be thought as part of a broader effort to build the future

of Mekelle, Tigray, and Ethiopia, and not merely as initiatives that aim to create

employment in the short term.

4.5.4.1. Non-conventional soft skill training activities

Roundtable discussions as well as the socio-economic assessment recognised that soft

skill training need to deal with complex social, cultural and economic transformation. For

this reason conventional soft skills initiatives are not always effective. The encounter

between workers and the industry should be one of mutual understanding in which both

sides make steps towards the other. For this reason, it is suggested that complementary

soft skill development initiatives are designed in a way that goes beyond “traditional” soft

skill trainings taught in a class or as part of a broader curriculum.

A main outcome of discussion is that there is need of trainings that involve the broader

communities where the workers come from. As remarked by H&M staff members there

is need to think soft skill activities where the “Centre of Excellence goes to the

communities, and not only vice versa”. Industry based approach to soft skill training need

to be complemented by the creation of strong ties and linkages with the communities of

provenance of workers. In other words there is need to creating industrial culture at

community level.

It is therefore suggested that the project develop some of the following activities in the

peri-urban sites in Mekelle around the main industrial conglomerates, as well as in the six

wereda around Mekelle Municipality that were screened as part of the socio-economic

assessment.

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The following potential activities have been suggested by H&M. The company expressed

the will to discuss the formulation of a full concept note and manual and take the lead in

implementation.

Soft skill training activities on the industrial life are provided at community level

directly, in the form of meetings and/or workshops. These can include topics such

as hygiene, saving (personal financial literacy), reproductive health etc.

Community motivation initiatives through entrepreneurship development linked

with industrialization.

Initiative aimed at capacitating workers union to become service and product

suppliers for their community and the industry needs (e.g. supply of food items

for industrial zone, production of community consumables, etc.)

Providing more focused soft skill trainings to community gatekeepers that in turn

are able to communicate and culturally translate key messages about the industry.

This can complement existing mass training approaches.

Development of mobile training initiatives for communities (e.g. mobile cinema).

Documentaries based on true stories of industry workers that show the

opportunities presented by industrialization as well as the challenges related with

the difference of culture between ruler and industrial life.

Documentaries explaining in a culturally appropriate manner what the industrial

life and industrialization entail for the communities and for Ethiopia.

The above potential initiatives may require partnership of several stakeholders, such as

local government offices, local and national media, worker unions, micro-finance

institutions, and other development partners.

4.6. Preliminary list of equipment and machineries for the Centre of Excellence

The list below was compiled by ETIDI in collaboration with major industrial actors. The

list is meant to provide a comprehensive checklist of items potentially required to equip

the Mekelle Garment College to establish the Centre of Excellence. The list includes

machinery, raw materials, equipment, and tools for trainings to be performed in relation

to Occupational Standard (OS) levels from one to five.

146

Section Machineries Raw materials and

Chemicals Equipment/Tools Ratio Remark

CAD-

Pattern

Making

&

Embroid

er Design

Machiner

y (Soft-

Ware)

A. Embroidery

Software: Wave fill

Fireworks, Auto

digitizer, Font

creator, Custom

cornering & Design

manager

A. Embroidery

Assist Window

Advanced Server

Cad: Lay License

B. Dongle: As

key

B. Completed

CAD System :for

Pattern & Marker

Making , Grading

tools and printing

software

C. CAD Assyst

Window

Advanced Server

Cad: Lay

Liscence

D. Dongle: As

key

E. Digitizer: With

complete

adjustable foot

support

F. Paper / A3 and A4/

1. Eraser

2. Album Materials

3. Marker pens/chalk

4. Pattern paper

5. Tracing paper

6. Marker

7. sketches, drawings,

illustrations,

photographs

8. samples of fabrics

and garments

9. written descriptions

and instructions

10. specification sheets

11. storyboards/chart

12. Paper and fabric

Scissors

13. Tape measure

14. Pattern notcher

15. Ruler (metal)one

meter

16. Square rule

17. Hole punch

18. Fashion triangle

19. French curve

20. Paper weight

21. Opener

22. Masking tape

23. Sticking tape

24. Triangle (45º-

90º)

25. Pattern hook

26. L-square

27. Tracing wheel

28. Hip curve

29. Thimble

30. cartridge paper

31. crayons

32. pencils , Pencil

sharpener

33. Pins

34. Scotch tape

35. Image capturing

devices

36. Drills

37. Metal die

38. Computer and

appropriate

software

39. Marker

card/paper

40. Seating

41. Cutting table

1. The ratio of

each Machines

will be 1:20

2. The ratio of

each tools will

be 1:1

3. The raw

material is

difficult to

express in

terms of ratio

.but at least it

must be

available in the

work shop.

Generally,

there are

different

types of soft

ware in

designing

department,

but at least

one type of

software

must be

available for

both CAD

Pattern

making and

Embroidery.

Fabric

Spreadin

g

&Cutting

Machiner

y

1. Non blowing

Spreading Table:

2. End cutter

3. Straight knife

Cutting Machine

4. Round knife

cutting machine

5. Automatic Bias

Cutting Machine

6. Embroidery

Machine

7. Fusing Press

Machine

42. Paper / A3 and A4/

43. Fabric ( denim, wool

suiting ,corduroy

,satins , chiffon

,rayons ,knits such

as: polar fleece

double knits, single

knits, tricot)

44. Marker pens/chalk

45. Pattern paper

46. Tailor’s chalk

47. Marker

48. sketches, drawings,

illustrations,

photographs

53. Paper and fabric

Scissors

54. Tape measure

55. Paper weight

56. Masking tape

57. Sticking tape

58. Pattern hook

59. Hole punch

60. Thimble

61. pencils , Pencil

sharpener

62. Pins

63. Image capturing

devices

64. Drills

4. The ratio of

each

Machines

will be 1:20

5. The ratio of

each tools

will be 1:1

6. The raw

material is

difficult to

express in

terms of ratio

.but it must

be available

in the work

Generally,

there are

different

types of

fabric

spreading &

Cutting

department,

but at least

some types of

machineries

must be

available.

147

Section Machineries Raw materials and

Chemicals Equipment/Tools Ratio Remark

49. samples of fabrics

and garments

50. written descriptions

and instructions

51. specification sheets

52. storyboards/chart

65. Metal die

66. Computer and

appropriate

software

67. Marker

card/paper

68. Cutting table

69. Air flow and

flotation tables

70. Pressing tools

shop.

Sewing

Machiner

y

Single needle

lock stitch

machine with

under bed

trimmer

Double needle

lock stitch

machine with

organized split

needle bar

Feed of the arm

machine

Two Needle

Four thread over

lock machine

Two Needle five

thread over lock

machine

Thread Cylinder

Bed type

interlock

machine for

hemming

operation

Thread flat Bed

type interlock

machine for

binding

operation with

bind

Multi needle

double chain

stitch machine

equipped with

puller for

waistband

operations

Computer

controlled bar

tacking machine

Computer

controlled High

speed lock stitch

71. Fabric ( denim, wool

suiting ,corduroy

,satins , chiffon

,rayon’s ,knits such

as: polar fleece

double knits, single

knits, tricot)

72. Eraser

73. Tailor’s chalk

74. Sewing thread

75. sketches, drawings,

illustrations,

photographs

76. samples of fabrics

and garments

77. written descriptions

and instructions

78. specification sheets

79. storyboards/chart

80. Trimmers and

fabric Scissors

81. Tape measure

82. Opener

83. Needles

84. Adjustable

wrench

85. Allen key

86. Screw drive

87. Masking tape

88. Sticking tape

89. Thimble

90. Masking tape

91. Scotch tape

92. Seating

93. Pressing tools

7. The ratio of

each

8. Basic (Single

needle lock

stitch

machine) and

Tool &

equipment

=1:1

9. Moderate And

special (Feed

of the arm

mach, Two

Needle five

thread over

lock, Thread

flat Bed type

interlock,

Multi needle

double chain

stitch

machine,

Computer

controlled bar

tacking,

Computer

controlled

High speed

lock stitch

button

sewing,

Computer

controlled

high speed

lock stitch

button holing,

Pneumatic

Snaps fixing

and Blind

Stitching)

=1:10

10. The

raw material is

Generally,

There are

different

types of

sewing

machinery in

this

department,

but at least

some types of

machineries

must be

available

based on the

ration.

148

Section Machineries Raw materials and

Chemicals Equipment/Tools Ratio Remark

button sewing

machine

Computer

controlled high

speed lock stitch

button holing

machine

Pneumatic Snaps

fixing machine

Blind Stitching

machine

difficult to

express in terms

of ratio .but it

must be

available in the

work shop.

Garment

Finishing

Machiner

y

A. Electrically

heated steam

iron with

Vacuum ironing

table

B. Boiler

C. Different forms

94. Album Materials

95. Samples of fabrics

and garments

96. Written descriptions

and instructions

97. Specification sheets

98. Storyboards/chart

99. Trimmers

100. Tape measure

101. Opener

102. Masking tape

103. Sticking tape

104. Thimble

105. Masking tape

106. Seating

107. Air flow and

flotation tables

108. Pressing tools

11. The

ratio of each

Machines =

1:20

12. The ratio of

each tools will

be 1:1

13. The raw

material is

difficult to

express in

terms of ratio

.but at least it

must be

available in the

work shop.

After design,

cutting, and

sewing over

the final

finishing will

be done by

the listed

machineries

as per the

ratio.

Some of the mentioned machine are miniature

149

4.7. Project Logical Framework

150

5. References

Ali, M. (2012), Government’s role in cluster development for MSEs. Lessons from

Ethiopia, Chr. Michelsen Institute (CMI), Stockholm.

Ali, M., O. Godart, H. Gorg, and A. Seric (2016), Cluster Development Programs in

Ethiopia: Evidence and Policy Implications, Kiel Institute for the World Economy.

Abdella, M. and G. Ayele (2008), Agri-chain analysis of Cotton Sub-sector in Ethiopia,

Report No. 10, Ethiopian Development Research Institute, Addis Ababa.

Berhe, H., T. Tesfay, K. Tsegay, A. Abraha, Z. Haileslasie, Z. Gebremeskel (2017), A

Study On Sustainable Development Of Textile And Garment Industry In Tigray, Mekelle

University, Mekelle.

Enterprise Partners (2016), Cotton, Textile, and Apparel Sector Strategy, Addis Ababa.

ETGAMA (2014), Ethiopian Textile Sector Profile, Addis Ababa.

ETIDI (2016), Textile Sector Profile, Addis Ababa.

ETIDI (2013), Textile and Clothing Value Chain Roadmap, Ethiopian Textile Industries

Development Institute, Addis Ababa, Ethiopia.

FDRE (2016), Growth and Transformation Plan 2, National Planning Commission,

Addis Ababa.

FDRE (2011), Growth and Transformation Plan 1, National Planning Commission,

Addis Ababa.

International Trade Centre (2016), Textile & Clothing Value Chain Roadmap of Ethiopia,

Addis Ababa.

Kassaw, M. (2013), Competitiveness Model Development for Ethiopian Traditional

Fashions in the Global Market, Addis Ababa University, Addis Ababa.

151

Martin, R., and P. Sunley (2003), Deconstructing Clusters: Chaotic Concept or Policy

Panacea?, Journal of Economic Geography, 3(1): 5–35.

Mekelle Textile Garment College (2013), Research on Textile, Clothes Products and

Leather Products, Mekelle.

Tigray Bureau of Trade and Industry (Bureau of T&I) (2014), Textile, Garment And

Leather Products Potential Growth, Tigray Regional Bureau Of Trade, Industry And

Urban Development and Bureau of TVET, Mekelle.

World Bank (2016). Government Objectives: Benefits and Risks of PPPs. [Available]

http://ppp.worldbank.org/public-private-partnership/overview/ppp-objectives

World Bank (2009). World Development Report: Reshaping Economic Geography,

World Bank, Washington, D.C.

Yoshino, Y. (ed.) (2011), Industrial clusters and micro and small enterprises in Africa:

From survival to growth. Directions in Development—Private Sector Development,

World Bank, Washington, D.C.

152

Annex 1. In-depth interviews transcripts

Qwiha training centre (December 2017)

A preliminary discussion I had with one trainer highlighted that gender roles are assigned

already at the stage of training. Men are hired for printing while women for sewing. A

main reason the trainer gave is because “it is difficult to keep men sitting all day”.

1) Female, 27 years old. Before enrolling for the training she spent two years working as

time keeper for a construction company in the area between Harar and Dire Dawa.

Because of the protests and conflict that erupted in the area – especially connected to

students – she decided to move back to Mekelle. Her education level is Grade 10. She is

married, with 2 children of 5 and 12 years old, her husband works in the construction

sector as carpenter at a place called Meremiti, 7 birr by minibus far away from Qwiha.

The reason why she joined the training is because she was still looking for a job after she

relocated, and she heard about the training from some brokers in Qwiha. For the training

she is given 20 birr/day to cover basic transport and food. She has been attending the

training for 12 days now, and she is very happy and eager to learn a lot about the textile

industry. They did not have a discussion about salary, and she does not know how much

basic workers get when first employed. She heard that entry salary is very low. She also

heard that the industrial life is tough because you have to work through shifts, maybe for

one month you work at night, and the following month during the day. She also heard

that often you have to stay in the workplace longer at night. Despite these issues she is

very eager to get employment in the sector, especially because these days there are no

many job opportunities for young people. Her husband currently earns about 2500

ETB/month, altogether their monthly budget is about 3000 ETB. Considering all the

expenses, she contends this is not enough. The house rent is 600 ETB, school fees

300/month for each child. Decisions about how to spend the budget are taken jointly

between her and her husband. She believes that working for a company is what is best in

the long run, even if the initial salary can be low. Her ultimate dream is to become

manager of one big company. The positive aspect of working in a company is the

possibility to get career advancements. She never tried to establish a MSE, also because

she does not believe in that model.

2) Female, 18 years, Grade 10. She is originally from Qwiha, but she currently lives some

ten km away from town, the cost of transport is about 10 ETB. She lives with her mother,

and two other brothers, both working in the construction sector, 1 at the site where DBL

153

is constructing its facility, the other for a company called Zaram. The mother has got 0,5

hectares of land and she produces sorghum, wheat and teff. This was her father’s land

who passed away sometimes back. All the production goes to family consumption. They

also have 2 oxen and 1 cow that produces enough milk for the family. They use fertilisers

(50kg DAP, 50 kg UREA) that they pay for in advance as it is no longer possible to have

them on credit. Rather than working the land like her mother does, she would prefer to

get a job in the textile industry. In an industrial setting you learn skills that you can then

employ to create your own business. She contends that the same does not apply for

agriculture, in other words her perception is that industry offers her more opportunity in

the long run, rather than agriculture. Her two brothers built a house in the mother’s

property and they share with her half of their salary, they get every month 2000 and 1500

ETB. She contends that the cash income plus the product of the land make up for a decent

household living. She is happy that she could now get her own salary from working in the

textile industry, because this is what she defines as “her own interest”. She would like to

get enough skills to be able to develop her own garment business in the future. She was

not told what are the working conditions in the industry, including salaries. She heard that

the salary is minimum initially, but that it can increase over time depending on your

ambition. She also heard that shifts can be tough, but she is ok with that. Her ultimate

dream is to start her own garment business.

3) Male, 20, from Qwiha, completed Grade 12. He is enrolled into an evening course on

management at the Sheba College in Mekelle. He lives with her mother and they are the

only two people in the household. His mother owns a shop of groceries. He decided to

enrol in the textile training because he believes this is the future. He really likes the

training that is attending, which focuses on printing mainly. The training lasts for one

month only and he is eager to make the most of it. While he heard about the training in

town, he does not have information on other textile companies in the area that are also

seeking for employees. He has got two sisters and one brother. One sister lives in Dubai.

She works there as maid, the other one lives with his father. The brother works in the

construction sector as carpenter. His father is a policeman, but he has got another family

now and lives in a different house. His mother has got also some land some 30 km away

from Qwiha. Her uncle is in charge of farming and he shares some profit with his mother.

Although salaries are low, he sees the training as an investment for the future, rather than

for the present. He would have no problem in taking shifts and earning a low salary

initially. I then ask the question about how his friends see the career he wants to pursue.

He contends that his friends are very happy – it seems there is no peer stigma on jobs in

154

the textile sector. Rather, it is seen as the future for Tigray. His ultimate dream is to learn

how to handle a business better than Bill Gates.

4) Female, 22, completed Grade 12, from Mekelle, currently living in the area around the

university. Her household is composed of 5 people. Two brothers are 25 and 28

respectively, one is a bajaj driver, and the other is married and lives in the same family

compound, although in a separate house. This latter brother is a farmer and works some

family land at a location a bit far away from home. He produces wheat, teff, and sorghum

and has got 4 oxen. Recently he harvested 3 quintals of wheat and 2,5 quintals of teff. All

the harvest is used for family consumption and is not traded. Her brother works alone and

has no permanent workers, he only occasionally hire daily workers for harvest.

Additionally, they also have some 5 timads (0,75ha) that they share with other family

members in two different locations. One piece of land is about two timads and harvested

13 quintals of wheat. For the other 3 timads they are still waiting to know the extent of

the harvest. She actively participate in many of the agricultural activities, including

helping with harvest, and removing alien plants from the field. In the past she was also

helping with threshing, but not this and last year because she was busy with school.

Although she is now enrolled in the training, because it is currently harvesting season,

after work she joins her family and help as much as she can. She contends that if she will

get the textile job she will have to help with the land anyway, although she will try to

prioritise the job as much as possible. She contends that her father also agrees that if she

is employed she will not be able to fully help with the land. Other daily domestic tasks

that she perform include fetching the water and baking injera together with her mother.

They have two donkeys and she is in charge of them during the night time. Her mother is

very supportive and she believes it is important that she started the training. She heard

from other people about how it is working in the textile industry. A cousin of her is

employed at Velocity. This is how she came to know about the training opportunity

offered by DBL. Her cousin started with a very minimum salary, 600 ETB, and now after

2 years she gets about 1000 ETB. Good thing is that they provide lunch and there is a

clinic for any health issue. She is attracted about the opportunity to get a job in the

industry because this gives you the chance to grow. It is tough, but given the current

condition of high unemployment, the textile industry represents a pathway for uplifting.

Her cousin is happy about the shifts and all the other work arrangements at Velocity.

Initially she also wanted to register at Velocity, but when she found out it was already too

late and they closed subscriptions. Her dream is to become self-sufficient, she does not

155

want to depend on other people. For instance, when she will get married, she will still

want to retain some economic independence from her husband.

5) Female, 19, completed Grade 10. She lives in Houseba, a village nearby the wind farm

that is possible to spot also from Mekelle airport. From Qwiha you have to get a 10 birr

minibus, plus walking for an additional 30 mins. Her family is quite large, they are 11

altogether in her household, 6 brothers and 3 sisters plus her parents. Her two sisters are 4

and 7 years old, and alongside 4 of the brothers are minors that are either at home or

attend primary school. The other two of her brothers are 16 and 21, this last one is a

student at Arba Minch University. The family’s main source of income is from farming.

They have 7 timad of land (1,75 ha), but they also rent from other additional 3 timads.

They have 3 oxen, 2 cows, and 3 donkeys. Except for the first born who was sent to

university, the rest of the household members are all involved in agricultural activities.

She also helps as much as she can. However, if she will start working in the textile

company she’ll not have time for that. She heard about the training offered by DBL one

day when she went at the market in Qwiha. Other tasks that she performs in the

household include baking injera, fetching water, cleaning the stable, and preparing the

flour for injera. The only income that the family currently raise is from the product of the

land. They have just harvested 25 quintals of wheat, 15 of sorghum, and 6 of lentils.

These are all products that they sell at the market, while retaining a portion for their own

consumption. They do not grow teff because the land where they are sitting is not suitable

for it. Her parents are very happy that she was able to enrol in the training. Both her

mother and father think that a job in the industry comes first. Some of her friends are

currently working in the sector. They contend that although the salary is very low this is

the only way to get a job these days. Having a poorly paid job is better than having no

job. Her dream in life is to achieve self-sufficiency and to get married.

6) Female, 20, completed Grade 10, from Qwiha. Her household encompasses 7 people, 3

sisters and 2 brothers. Except one of the sisters – who currently run a coffee house – all

the other siblings are students. Her father was a teacher and is now retired, her mother

housewife. She heard about the training from some people she knows. Before that she

was also helping her other sister with the coffee house. She is very happy about the

training, the first couple of days she found it a bit difficult, but now she is completely on

top of it. Her perspective is that she likes the job, but she not given information about

salaries and other issues. She knows salaries are low, but they tend to get better in the

longer run. At home she is in charge of several tasks, including washing clothes,

156

cleaning, baking injera, fetching water. These are tasks that she will be asked to perform

regardless of whether she’ll get the job. Her dream is to be able to get some extra

education and then migrating to Israel.

7) Female, 21, from Mekelle, completed Grade 10. She currently lives by herself in

Qwiha, and she works at a coffee house. This business was not part of the Micro and

Small Enterprises scheme, she opened it independently without getting resources and

support from local government offices. Before moving to Qwiha she lived in Shire and

was working as an employee for another coffee house, her salary was 1500 ETB/month.

Her salary at the coffee house in Qwiha is currently 2000 ETB/month. She decided to

enrol in the training because she wanted to try something else and make the most of the

opportunity. She heard about the training from some friends. She knows that the initial

salary in the industry is about 800 ETB/month. Despite this being considerably lower

than that she would make at the coffee shop, she believes that trying to work in the textile

sector is an investment on her future. She contends that 800 ETB is still a fine salary if

you are living with your family. If you live by yourself it is not sustainable. What she

likes about the textile industry and the reasons why she would be willing to get a lower

salary are the following: the working environment is clean; you can still study in the

evening by taking night class from 5 to 8pm; alternatively she can still work at the coffee

shop after 5pm and diversify her income; work in the factory helps you to grow and to

build a better future, whereas the job at the coffee shop has no prospects of growth. The

overall dream she has is to be self-sufficient and independent.

MAA Garment factory (January 2018)

8) Male, 22, completed Grade 12, from Qwiha. He has been working at MAA garment

for 3 years now, and is currently enrolled for a degree in accounting at Sheba University

College. He currently works in the cutting section. He has got 3 sisters and 1 brother, but

they all live in different households. He lives by himself with his mother, who just keeps

the house. He provides for her. Working at MAA is good because it is close to where he

lives and in the evening he can attend class at college. There is a career ladder and he is

currently operator level 3. But his dream is to work in bank after completing his degree.

He also speaks decent English. He contends that the industry is providing very good

opportunity for the people in Mekelle, especially for women and youth. The textile

industry is currently one of the few opportunities for people with little education. More

broadly the industrial turn is good for the people, because it is potentially enfranchising,

and for the country’s growth. He started with a salary of 728 ETB/month, now he gets

157

1622. They have a rent of 800 ETB, this making the salary not enough for living. He is

taking this period of his life as a transition. He wants to work hard and get further

education first, then he will think at getting married and getting a better job.

9) Male, 30, has worked for the company for the past 13 years. He is a mechanic in

charge of maintenance. He was a basic operator until 5 years ago. While he was operator

he graduated at the TVET in General Mechanics. He studied during the evening shift.

Before getting employed he had Grade 8 education only. He first got grade 9 and 10 and

then he enrolled in the TVET. He has married twice, and with the current partner he has a

son of 1 year and 5 months. During his first marriage we used to live in the surroundings

of Qwiha, afterwards he relocated in the city centre. His current wife used to work for

MAA garment for two years. Then, when the baby was born, she decided to stay at home:

her salary was 1000 ETB/month, getting a servant that serves as baby sitter costs more

than that. His salary is quite good though, he gets 3800 ETB/month, although he

mentions that when he started his initial salary was 150 ETB during the training and 230

ETB first employment. Considering that the rent for the house is 700 ETB, his income

allows his family a decent living, although he is not able to save any money. In the future

he would like to start his own mechanics firm. He would quit his job only if he gets a

better salary elsewhere, or if he can open his business. He contends that the opportunities

provided by the textile industry are very important for Mekelle and Ethiopia. He only

wishes that jobs could pay better salaries. But the main focus now should be on creating

as many job opportunities as possible. In his experience he sees that the main reason

behind high turnover rates is because of low salaries. People have high initially

expectations about working in the industry, and then they get disillusioned after a while.

Many workers resign after the first month. The reason why people stay nonetheless, is

because a career ladder makes salary increases possible.

10) Female, 27, has worked at MAA garment for 7 years. When she started she was a

helper, she is now operator level 3 after taking several trainings. She works in the sewing

segment. While working at MAA she managed to get a diploma in accounting at the Nile

College. She is married and has two daughters of 3,5 and 9 years old. They live in Qwiha.

Her husband has a permanent job in a construction company. No other people live in the

household. Her husband on average gets 3/4000 ETB/month. Her gross salary is 1620

ETB/month, the net salary is 1390. Because they live close enough to her mother, the

children after school are taken care by their grandmother. The family income is enough

because they own the house where they live. Her dream is to start running her own

158

business at some point. She contends that decisions about how to spend the family budget

are on her. Her husband gives her a majority of the salary and he keeps only some for

personal expenses. The textile industry, and she refers to the industrial park more

specifically, is very good for the future of the people and of the country. Her personal

view is however that she prefers running her own business rather than working as

operator. For her children she wishes that they will become civil servants, that kind of life

is much smoother. If she opens her own business they will be able to continue it after she

retires.

11) Female, 18, has worked at MAA for the past 6 months. She has got Grade 10 at

school and this is her first job. After she graduated, she spent some time looking for jobs

but what she could find was only employment as daily labourer. What she likes about this

job is working in a clean environment and to have job security/stability. She lives with

her parents. She has three sisters – all older than her, all married and live with their

husbands – and 1 older brother living at home. Her brother completed Grade 10 four

years ago, but has been unemployed since then. Her parents do not have proper jobs,

although they have 2 houses that they rent at 500 ETB each. The 1000 ETB household

income is then integrated by some remittances of one of her sisters, who lives in Addis,

and who sends money from time to time. Her other sisters are both housewives and live

in Qwiha. Her father used to work as guard for the kindergarten. Her initial salary at

MAA was 800 ETB, now increased to 1020 ETB. This is therefore a very significant

contribution to family budget, she gives it to her mother almost in its entirety. She also

mentions that often the salary is less because she is absent. For instance this month she

did not go to work one day because she had to attend the wedding of a relative from her

mother’s side of the family. In this case, considering that it was only for one day and that

she asked permission in advance, they will deduct it from her annual leaves. I then notice

that she has a wedding ring and I ask if she is married. She says that she is not married

but that she keeps the ring to protect herself from inopportune people. Her dream is not

one very definite, she just wishes herself for the best and a better future. She is ready to

move elsewhere in case she’ll find better job opportunities. But rather than employed in a

company she would prefer to start her own business, a hair saloon for instance. Her

brother sometimes gets daily jobs around Qwiha and he even started working at MAA,

but he stayed only for 1 month. She contends he is lazy and prefers to stay at home doing

nothing. Her parents always complain about him, but he has no motivation. She decided

to work for MAA because it is a very well established company and is very well known

in Qwiha. She took a 45 days training. Initially she thought that work could be difficult,

159

but soon after she realized that it was about very simple tasks. During the training she

also got a salary of about 700 ETB.

12) Female, 21, has been working for MAA garment for the past 5 months. She has

Grade 10 from school and a diploma in accounting that she got from the Libanos College

in Qwiha. She would like to specialise on printing, she already agreed with her

supervisors that as soon as the company will organise the next training they’ll make sure

to include her. She is now categorised as helper, meaning that she assists other operators

in doing their job. She is married and currently lives with her husband, they have one son

of 1 year and 4 months. Her husband is a civil servant and works at the electrical

authority. He gets between 2000 and 2500 ETB/month. Her gross salary is 1200 ETB, net

becoming 1040 ETB. However, as she is often absent, she normally gets around 800

ETB. The reason why she is often absent is because she has no family support for her

child and she often has to take care of him. The baby goes to kindergarten and when he is

sick she has no other option but to skip work. They are originally from a place about 70

km from Qwiha from which they relocated 5 years ago, and they have no one that can

take care of the children. Main expenses are rent (600 ETB) and kindergarten (300 ETB).

Their total income is sufficient but they do not manage to save. She also notes that

currently she is pregnant and that soon another baby will add additional pressure on

family budget. MAA provides maternity of about 3-4 months. However, she is not sure

whether she will be able to come back to work after the maternity leaves. It very much

depends if someone else from her family will be able to join and help. Her dream is to go

back to school and upgrade her diploma on accounting. In Qwiha there is a University

College that offers such possibility. She believes that current industrial development in

Tigray is a very positive development because it will generate new job opportunities.

13) Female, 21, has been working in the company for 1 years and 5 months, her current

level is Operator 2. She received a technical training of 1 month at the beginning. She has

got a Grade 10 and she is currently studying to get a Diploma at the Libanos College in

Qwuiha. The Diploma degree runs over 3 years and she’s currently half way through. The

fee for College is 200 ETB/month, and classes run from 6 to 9pm every day. Before

enrolling in the training she had her own cooperative association (a MSE) and they

produced cobblestones. The got a public contract from the city administration for 3

months, but this goes on rotation, and after the initial period the contract was not renewed

because it was given to a different company. As a result the company went out of

business because no one else would give them jobs. In those 3 months when they had the

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public contract she managed to make a profit of 20000ETB, so it was a very profitable

business, but without public contracts very unsustainable. After that she worked at the

MAA cafeteria for about a year, her salary was about 728 ETB. She then became an

operator and initially the salary was the same, but now she gets about 1200 ETB/month.

She attended a 1 month training, which she enjoyed very much, and was not difficult to

understand. She never gets absent, unless there are very compelling and urgent matters.

She is originally from Quiha and she currently lives by herself because her parents live

nearby the Mekelle Industrial Park, on the other end of the city. Rent is 350/month plus

the utilities. As her salary is never enough, she gets support from her family, often in

kind. But she is determined to complete her diploma, which is the main reason why she is

in Qwiha. It’s been 3 years since she’s been living by herself, before she was living with

one of her sisters, who also lives in Qwiha. She has some money on the side because of

the cobblestone business, and her dream is to open at some point in time her own

business, perhaps juice shop. The current trend of industrial development is positive

because it provides new job opportunities, it helps people to get critical skills, and is good

for the development of the country as a whole.

14) Female, 32, she has been working for MAA for the past 7 months. She graduated in

2005 and then took care of her two daughters at home. She is married and her two

daughters are 8 and 14. She took a training of 45 days before starting the job on both

technical and soft skills. Initially a ‘helper’, after the training she was promoted to

Operator 1. Her husband is the deputy director of a high school and his salary is 4800

ETB (6000 gross). They pay a rent of 580 ETB which includes also utilities. She decided

to start working because life is getting increasingly expensive, her net salary is currently

1044 ETB. She’s never been absent because her daughters go to school. She perform her

household duties after work when she comes back. The work schedule is from Monday to

Friday until 5pm, Saturday until 2pm. She does not like the textile job very much, but this

is far better than staying idle in a context where life is getting increasingly expensive.

Working is important because you get skills that can help you in the future. What she

does not like is that the management is not flexible when it comes to grant permission for

holidays and days off, and that different supervisors give her different instructions and

then they rebuke her because she is not doing what she was told initially. Also salaries are

very low considering the amount of work. But she does not see her future in the industry

anyway. They are currently building their own house and the idea is to also build a small

shop attached to the property. So after the construction phase will be completed she will

resign from work.

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15) Female, 24, she has worked for MAA garment in the past 6 years. She is currently

Operator 3, and she attended training when she started of 1 month. She attended an

additional 3 days training on entrepreneurship sometimes after. She lives with her

parents, who are traders of traditional Ethiopian garment and textile. Altogether they are

3 sisters and 2 brothers. Two of the sisters now live by themselves as they established

their own family. The other sister is a student currently enrolled on Grade 10. One of the

two brothers is also a student currently attending Grade 5, the other already graduated and

works at the airport in the field of maintenance while attending college. Her gross salary

is 1600, net 1390 ETB. Her family does not ask to contribute to family budget. She retain

a majority of her salary for herself. She has got an equb worth 500 ETB/month, which

means that she saves at lest 6000 ETB/year. In general she likes working at MAA

because this allows her to learn skills that she can use in the future. Negative aspects are

that salaries are low; the supervisors are not always efficient and helpful with basic

operators; she’s been working here for a long time now, but the initial expectations to

climb rapidly the career ladder have not me the reality quite yet. Her goal is to save some

more money to then be able to open her own business, ideally a cosmetic boutique. She

thinks that by next year she will have enough money from the equb. In general the current

trend towards industrialization is positive for Mekelle because it is creating job

opportunities for unemployed youth. She also hopes that more factories will mean more

competitions for labour force and therefore better salaries. But she is currently not

interested to move to a different company, her focus is on her own business. Once she

will establish the business she plans to start college as well.

16) Female, 28, has been working at MAA for the past 8 years. Before that she was a

student, she obtained Grade 10. Between her studies and employment she spent one year

looking for jobs. She lives by herself. Her family’s house is 40km away from the factory.

She has 1 child of 9 years and she is divorced. Her net salary is 1390 ETB/month, when

she started it was 320 ETB. Currently her rent is 600 ETB. As her salary is not enough,

her father sends her money quite regularly. She also receives help in kind from other

family members from time to time. She is always at work and she tries her best to be

absent as less as possible. She never tried to find alternative jobs because she believes her

qualification does not allow her to find something better. Her dream is to start her own

business. Ideally she would like to buy her own sewing machine and start her own

garment shop. While initially she had high expectations about the factory job, she

believes that the fact that her salary is so low does not allow any real change in her life.

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However, this is the best that is currently available as no many alternatives are out there

waiting for her. The textile industry has the advantage that creates many jobs for young

unemployed people; however the problem is that this never translates into the expected

change for a higher lifestyle.

17) Female, 24, she has been working at MAA for the past 8 years. Her education

background is Grade 10, then she took a training at the TVET college on garment for two

years before finding employment at MAA. Before starting she took an additional 1 month

in-factory training. She is a senior operator, her gross salary is 1720 ETB, net 1490 ETB.

She lives with her parents in Mekelle, she has got 1 sister and 2 brothers, who are all

living at home. She is the oldest sibling; all of her brothers and sisters are still studying. 1

is at college, 1 is currently taking Grade 10, and 1 is at the university. Her father is a

retired civil servant, while her mother is housewife. Most of her money salary contributes

to her family budget: this is needed to cover the studying fees of her siblings. What she

likes about her job at MAA is that she can get skills for her future and that she can

currently provide substantial financial support to her family. However, the cost of life is

increasing sharply and salaries as they stand now are very low. Her dream is to open a

shop in Mekelle. She is currently trying to save some money, but she is also looking at

the opportunity to borrow some money through microfinance institutions. In the past 8

years she nonetheless did not look for other jobs, she was fine at MAA and she believes it

is difficult for her to find a better alternative considering her education level. In general,

the current industrialization trend is positive for Mekelle because it is opening up new job

opportunities.

Qwiha training centre (January 2018)

18) Female, 26, Grade 10 completed 5 years ago. This is her third week of training at the

DBL facility. For 5 years she worked in Saudi Arabia as a housekeeper, and 5 months

ago came back. Going back was her own decision and not because of repatriation of

Ethiopians. She contends that as development was coming to Ethiopia she wanted to

explore job opportunities back home. She lives at the house of her sister, her 4 children,

and her father, who is now retired and gets a pension. The four children are all students,

between Grade 2 and 10. Her sister is a cleaner at a military base in the area, she

approximately gets 1000 ETB/month. Her sister’s husband was working in the military

and is now retired. She believes that the textile industry is a very good opportunity for

people around Mekelle. She likes the training very much, and she feels this is good for

her future. Through the training she feels she can get jobs not only at DBL, but also at

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some other companies. Her ultimate aspiration is to be able to open her own business.

However, she thinks that after the training she’ll get a good salary in the textile sector. In

broad terms she is confident that the textile sector will bring development to the local

economy, and particularly job opportunities for youth and women. In her view, thanks to

the textile sector and other industrial developments, Mekelle in 10 years is going to look

like a developed country.

19) Female, 21, she was awarded a diploma in water supply management 3 years ago at

the Water Technology Institute, Open University in Mekelle. She thought that we the

diploma degree she would have been able to find a job in the field of water management,

but so far her expectations were not met by reality. She tried the avenue of civil service,

and particularly local government offices, but they all look for candidates with job

experience. This discarded her from being competitive. She also applied to other jobs but

unsuccessfully. Her last application was for a position of messenger but was

unsuccessful. She lives with her father and 3 sisters. Her father runs a construction

business. One sister works in the police, one in the marching band of the police

department, the third is a secretary. Her expectations about the training is to get

employment as soon as possible with DBL, and at the same time to get critical skills that

allow to seek for job in the industry at large. She heard about the training from other

people that attended it before. Her preference would be to get employment at DBL

because she thinks they are serious and the training is very well done. More broadly, the

textile industry and industrialization are positive for Tigray because they can provide jobs

to unemployed youth and women. In 10 years Mekelle will be very different only if the

youth of today will find proper jobs. Asked about she sees herself in ten years, she

responded that she will try her best to have an established business that create jobs for

other people. She really likes the training and how the trainers teach in the class. The

training is meeting her expectations; she is positively impressed about the openness of

trainers to listen and to respond to questions.

20) Female, 19, completed Grade 10 in 2015, then she started a 2 years degree at college

which she is going to complete next year. Her diploma is in accounting and as she takes

the evening class, she has enough time to work during the day. She thought that taking

the training would have helped her to find a job. Getting a job in the textile industry

would be a good way to earn some money in the mean time she finds a better job in

accounting. She lives with her uncle from the father side, at a locality known as Laj,

which is approximately 10 ETB away from the Qwiha training centre. The training

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organization gives her 20 ETB every day to pay for transport and other minimal costs.

Her uncle was a guard and is now retired with pension. His wife works at home. They

also have a daughter, who has a PhD degree and now works in Addis Ababa. From the

training she expects to get enough skills to be able to find employment in the sector.

Where she lives now is close by to Velocity. She actually learnt about the training

through a friend that works there. She also wanted to apply for a job at Velocity but at the

time she started looking they had already filled all the positions. She considers the

experience of her friend not very positive. She was asked to sign a contract for 3 years at

800 ETB/month. Ultimately she did not sign the contract because she thought it was

unfair, and because of fear of retaliation in case she would quit the job earlier than the 3

years. Considering how she was treated during training she believes that DBL is a better

employer. She feels she can leave any time and there are no particular obligations. She

did not discuss details about work conditions, but she expects a minimum salary of 1500

ETB/month after graduating from the training. In broad terms, the expectation about all

the big companies currently investing in Tigray is that they will create jobs bringing

development for the area of Mekelle, and for Ethiopia more broadly. In ten years she sees

herself running her own business, and hopefully giving jobs to other people.

21) Female, 19, she completed Grade 10 one year ago. She then started a job as time

keeper in one of the military bases around Mekelle. When she heard about the

opportunity offered by DBL with the training she decided to quit her job and start the

training. Her job was paid much more than the average starting salary in the textile, with

over time the salary could reach 1800 ETB/month. The reason why she quit is because

she is confident that she can go back and work at the military base if the textile job does

not turn out as expected. She obtained a letter certifying her competences, so she is pretty

much sure that she can go back anytime. The problem with that job is that she did not see

a future in it. For instance she mentions that there was even a bus service bringing her

back and forth to the city. Originally she is from the countryside, about 20 km away from

Qwiha, 7 ETB by minibus. But she now lives in Qwiha because of the training. Her sister

is also attending the same training, so they have rented a house together, paying a rent of

450 ETB. Her father is a farmer. He has about 1 ha of land but scattered in several small

plots. In addition they have a small plot of irrigated land. In the former they produce

wheat, sorghum and teff, in the latter vegetables. While the non-irrigated land is for their

own family consumption, the irrigated one produces vegetable for the market. Altogether

they are 3 sisters and 3 brothers, all involved in agricultural activities with the family

land. Her sister was previously also working at the open market for the kebele. She

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quitted the job to get the opportunity of the training with DBL. She mentions that her

fathers left them quite free to choose what to do. She actually encouraged them to find

jobs out of agriculture. The decision to quit the job at the military base and to start the

training was her own choice. She really respects her father (who is also a priest) and

helped her to open a bank account to save the money that she made with the military job.

Once she will start the textile job she expects an initial salary of about 1000 ETB that

then can grow over time.

22) Female, 20, she completed Grade 10 three years ago but struggled to find a job after

that. Originally she comes from the surroundings of Adwa. She learnt about the training

from some friends a neighbouring village who also took the opportunity. To cut the costs

she and these two friends decided to share a house altogether in Qwiha. They get 20

ETB/day from DBL, plus she gets support from her family. She really like the training

and she is eager to learn as many things as possible in order to be able to get a job in the

sector. Her father is a farmer. He has 0,25 ha of land and he produces staple crops for

family consumption. She has 5 between brothers and sisters and they are all living at

home. Some of them are student, but in different ways and extents they all help with the

land. Once she learnt about the training her father encouraged her to take the chance and

do the training. Her primary focus is now to find a job as soon as possible so that she can

help her family.

23) Male, 19, completed Grade 10 three years ago. He lives with his parents just outside

of Qwiha. In the past 5 months he worked in the construction site of DBL as daily

workers. His task was being ‘helper’ of other metal workers. After some time he became

a welder. Initially he was making 60-70 ETB/day, then 120 ETB/day. He now enrolled in

the training for printing. He would prefer to get a job in printing rather than keep working

as a welder. But the main reason why he decided to do the training is because after the

construction will be completed he still wants to try to work for DBL. For the duration of

training he lives in Qwiha together with a friend, they share a rent of 300 ETB/month. He

has 3 brothers. 2 are married and live very close to the family house. The third in the

summertime he helps with agricultural works on the family land, in winter he works for a

cooperative producing cobblestones. They have 1,5 hectares of land. Her father and

mother are divorced, his brother and him are living with her mother, and the land belongs

to her. They produce wheat, sorghum and teff. Sometimes they sell some wheat, but they

consume most of what they produce. From the printing job he expects an initial salary of

1500 ETB, but with the expectation that this will increase over time. Industrialization is

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very positive for Tigray and for the country. Big companies are important because they

expose Mekelle to the international context. Asked how he will see himself in 10 years,

he contends that if he gets the DBL job he will get married and have many children.

24) Male, 19, completed Grade 10 last June and has been unemployed for the past 5-6

months. He is originally from the area of Adwa. But one of his older brothers lives in

Qwiha, so he started looking for jobs in the area. He learnt about the textile job from a

friend. What he expects from the training is to become competent in basic operations and

acquire enough skills to get a good job. His brother is employed in a construction

company, they are currently building a new plastic factory. When he relocated from his

home village he thought to find employment in the construction sector like his brother,

but now that he is taking the training he is more interested in getting a textile job. His

dream is to start his own textile related business by himself. His parents live still around

Adwa. His father also works on construction, his mother at home. He has also two young

sisters that currently are students. The current trend towards industrialization is very

positive for Ethiopia. The main problem today is unemployment. Youth need to be given

the opportunity to build their own future.

25-26) Two females, both 20. They came to enrol in the training while I was concluding

another interview. I then asked them to stay a bit longer to be interviewed, and they

agreed. They are both from Mekelle. They heard about the training from a friend who is

already registered. One of the two is attending Grade 10 now, the other completed it 4

years ago. During this period of time she has been unemployed for three years, then she

worked for 1 year as shop attendant. She decided to quit because her salary was 500

ETB/month. What they expect from the training is to get some skills to be employable in

the textile industry, hopefully with DBL. Their dream is however not to work for big

companies, but rather to be able to set up their own business. Asked why it is so difficult

to find a job for young people today in Ethiopia, they respond that many people just stay

at home and don’t get exposed to information about potential opportunities. This

generates anxiety and as a result depression. Another reason is that young people are very

selective these days about the jobs they want to do. They believe they can immediately

get very well paid positions, without thinking that they have to start from less competitive

jobs first. They are picky. Other people have in their mind a career as civil servant as

their ideal job. Starting your own business is today very complicated because you need

capital and a very good business plan. Both of their families are relatively wealthy. The

parents of one of the two girls are civil servants; the others are working for good

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companies. They mention that the decision to enrol in the training was their own, and that

their family did not push nor encourage them. They expect an initial salary of about 1500

ETB/month when they will start working at DBL. They will however also accept less

than that provided that they can get into a career ladder. But most importantly now, they

need to find a job for their future.

27) Female, 25. Before starting the training, for the past 3 years she worked for a nursery

of plants managed by a private company getting contracts from the Ministry of

agriculture. Recently they had to restructure the company because the business was losing

money, so she was fired. She spent the past year at home and not particularly looking for

a job. She is married and has a 6 years old son. Her husband works at the Ministry of

agriculture. She does not know exactly how much is his salary, but he gives her 3000

ETB for household expenses. On top of that he has a small workshop where he does

woodwork privately. They live in Mekelle and they have a rent of 1000 ETB/month.

From the training she expects to get skills that will help her to find a job in the sector. She

known no one that works on other textile companies, so she does not know exactly what

are the work conditions. As life is getting more and more expensive, her husband and she

agree that they need some extra money, this is why she is seeking employment. While she

is at work her son will be at school, so a job in the textile industry would be ideal. In ten

years she would see herself starting her own business. This could be related to the textile

industry or about something else, a normal shop.

28) Female, 26. She has a certificate for teaching at school (TTI) that she got in Adwa,

where she is originally from. She worked as a teacher for REST, the Tigrayan veterans

association. She had a permanent position there, but then she decided to move to Saudi

Arabia to work as a domestic worker. She went there legally, worked for 8 months, then

she faced a lot of problems and then she had to come back. She came back approximately

4 years ago. For two years she was working in a coffee house but it did not go as

expected. So for the past two years she tried to move again to Saudi Arabia but she was

not successful. She also considered to go to Italy via the illegal migration route. She was

finally convinced by her family who was strongly against that. She also explored the

opportunity to go back working for REST, but the problem there is that they now hire

teacher with a diploma, a certificate is no longer enough. After she returned from Saudi

Arabia she tried to upgrade her education but she did not manage to complete her

diploma studies. Ultimately, she really regrets that she decided to move to Saudi Arabia

in the first place. To go there she had to pay 16000 ETB. Half of it came from savings,

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half from her family. When she came back from Saudi Arabia she had 5000 ETB. Her

hope is that she will be able to find a job that meet her expectations. She considers herself

as hardworking but unlucky so far. Her salary expectation from the training is

1500ETB/month with increasing of payment over time.

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Annex 2. Training Manual on Technical Skills for Basic Operators

The Annex has been attached as a separate file.

Annex 3. Training Manual on Middle Management

The Annex has been attached as a separate file.

Annex 4. Training Manual for Managers

The Annex has been attached as a separate file.

Annex 5. Training Manual on Soft Skills

The Annex has been attached as a separate file.