Ethiopia is the New Frontier in Garment Manufacturing, but Ethnic Conflict Stands to Hinder its Growth

But for the past two months, violent conflict in Ethiopia’s northern Tigray region fueled 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, a sector that is hugely important to Ethiopia, as it is aimed to propel its agricultural economy toward a more prosperous future built on providing clothing to consumers in the West.’ ‘In addition to this already-strained business context, the report we published points to what we saw as the greatest challenge of all: ethnic tensions. In Hawassa, for instance, ethnic tension erupted in July 2019 and caused disruptions to the industrial park. The new conflict in Ethiopia’s Tigray region could be the tipping point for foreign investors in the garment industry.’