A new fund set up by the United Kingdom and Germany in collaboration with Ethiopia could save thousands of jobs in the east African country’s textile and garment industry while helping support its economic recovery from COVID-19. With $6.5 million invested at its recent launch, the partnership aims at helping safeguard an important industry.
Textile factories in the country’s industrial parks can apply for wage subsidies and incentives to reward businesses that are able to adapt in response to the pandemic.
The partnership may further expand its reach through additional support in the coming months, according to a UK media report.
Ethiopia’s textile and garment industry is a leading provider of jobs in the country’s manufacturing sector. However, the collapse of demand both in the country and globally is expected to hit the sector hard. Ethiopia’s Jobs Creation Commission estimates that between 1.4 and 2.5 million jobs could vanish over the next three months.