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The Leather, Textile and Garment Development
Department under the Ministry of Trade and Industry
(MoTI) is to be restructured as a centre, sources
disclosed. The centre is expected to be the
supervisor of the Leather and Leather Production
Technology Institute (LLPTI), located in Kaliti, and
the Textile and Garment Industry Institute under
construction.
The federal government made the move in a bid to
boost the income it generates from the leather and
textile sector so that it stands on par with
revenues fetched by coffee within three to four
years. After five years, the government has
envisaged to collect 500 million dollars and 300
million dollars from textile and leather sectors,
respectively. Accordingly, the government has been
pushing finance institutions, the Ethiopian
Telecommunications Corporation (ETC), Ethiopian
Electric Power Corporation (EEPCo) and the Addis
Abeba Water and Sewerage Authority (AAWSA) to
facilitate conditions to satisfy investors needs,
MoTI officials told Fortune.
However, the department that is providing support to
the investors has a manpower shortage and its salary
scale has also been discouraging, according to an
expert. Moreover, its structure also had constrained
its support to the investors.
A
garment factory owner told Fortune that
employees of the department are willing to help
investors.
“We have limited human resources, though,” the
factory owner cautioned.
The government has therefore set out to change
course and restructure the department.
MoTI submitted a
restructuring study to the Prime Minister’s Office
stating the number of staff required and the salary
scale and as well, sources disclosed.
The construction of one of the institutes that will
be housed under the centre, the Textile and Garment
Industry Institute, was launched in 2005 with a
projected budget of 189 million Br, and is expected
to be finalised this year.
The major sections of the construction are
installing the structure, procurement and
installation of garment machineries and laboratory
equipments. The building is also expected to have a
hall dedicated for fashion shows.
LLPTI is engaged in
upgrading the human resource capacitates of both
governmental and private institutes, introducing
better technologies to the industry.
In the 2006/07 budget year, Ethiopia exported
leather and leather products worth 89.5 million
dollars. Italy was the leading recipient with 44pc.
In the same year, 12.6 million dollars was secured
from the export of textiles, 23pc being sent to
Italy.
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