"Ethnic conflict could unravel Ethiopia’s valuable garment industry"

Ethiopia has long been considered one of Africa’s economic wunderkinds... But, for the past two months, violent conflict in Ethiopia’s northern Tigray region fuelled by ethnic power politics has threatened the country’s stability... The scale of the conflict could scare off foreign investment in the country’s garment industry. This sector is hugely important to Ethiopia, which aimed to propel its agricultural economy toward a more prosperous future built on providing clothing to consumers in the West...

The collapse of this sector would be disastrous. Tens of thousands of people would lose their jobs and the investments made in this enterprise wasted. In addition, foreign investors and the Ethiopian government need to understand that its collapse could have a symbolic knock-on effect in the region – Ethiopia’s garment sector is often seen as a pioneering experiment proving that structural transformation in Africa is possible...

At this critical moment, clothing companies and manufacturers invested in Ethiopia need to double down on their commitments to business in Ethiopia. This means they need to stay in the country and speak up to support human rights. Once ethnic tensions are defused, more work will still need to be done by both the government and foreign manufacturers to strengthen the sector. This includes developing a domestic supply chain and establishing a minimum wage that ensures decent living conditions for workers.