The Minister of Trade and Industry, Girma Birru, said here last week that investors are on the way of establishing up to 70 garment factories in Ethiopia.

During a discussion held between senior officials of the government, including Prime Minister Meles Zenawi and exporters, the Minister said that only a few public-owned factories, which are going to be privatized, are not enough to achieve the goal envisioned in textile and garment sub-sector.

Girma Birru told exporters that the government was working hard in building the confidence of both domestic and foreign investors to engage in various investment areas. "Ethiopia will benefit if it encourages investors and implements the privatization policy efficiently," he added.

According to him, new factories ought to be built in order to increase the capacity of garment supply. The existing textile factories in Ethiopia were not sufficient for domestic garment supply. "As a result, we are expected to undergo the process of expansion."

With regard to how to privatize public-owned enterprises, Girma Birru said the government was trying to hold discussions with foreign investors. And investors had started to show willingness in buying Dire Dawa Textile Factory and others. "A favourable situation would be created for private investors on how they could jointly work with the government or on the private level."

Other sectors, he said, also known as express industries, including the manufacturing of buttons, labeling and others, are considered as new investment areas. To support and assist the existing domestic industry to establish a factory in every sector may not be effective.

The Minister added that importing new technologies and innovations was a vision towards which investment should be geard. "Investors who would like to engage in textile, garment, leather and leather products will be given the same advantage as others," he said. The advantage that the factory gets will also be granted to those in leather and leather products.

Girma Birru indicated that his ministry was seeking ways which would help the country achieve its five-year export plans focusing on the types of factories to be established and the specific place where the factories would be built. "Taking this into account, the ministry will encourage both domestic and foreign investors."

In sectors with problems the government is ready to jointly work with private investors and share their burdens. The government is paving the way on how private investors take some part of the management first and gradually make them shareholders when they are capable of funding development industry, he added.

Prime Minister Meles said that both domestic and foreign powers were influencing his government to privatize all public-owned enterprises. "Where these pressures were on us, with the expectation that the enterprises under the control of the government may show improvement, we had resisted the pressure for the last ten years."

Despite the strenuous effort the government made, the sector never went forward. It is now proved that the enterprises under the control of the government would never satisfy the need of the people, according to Meles.

"We took a firm stand to privatize these industries, as they do not contribute to the development of the textile industry. We would not look back. We have taken measures on this already", the Prime Minister said.

He added that his government had reached the conclusion that privatizing all public-owned enterprises quickly was a way out of the existing problems.

Allafrica.com