1. Ethiopian Textile & Textile Garment and Leather & Leather Products Sub- sectors Performance Problems Sector Performance Objective of the study Data issue problems The main findings The policy implications Challenges

2. SECTORS PERFORMANCE

3. Objective of the study The sub-sectors investment performance process lagging behind the action plan. Because of the sub-sectors poor performance the expected products /out put become ineffective both in quantity & time bound.

4. Data Issue Problems a. Questionnaire Arrangement..There was bulky and unnecessary questions.. No aid material available. b. Sample population selection.. No random selection.

5. Continued c. Data Collection..Interviews take place after many appointments..no patience for large questions..Shortage of transport. d. Data Organization..Shortage of working materials.. Lack of modern system.

6. The Main Findings Deficient Land acquisition Poor Loan service & Infrastructure Facilities Shortage of Building Raw materials Weak assessment of Factory Inputs Inaccessibility of Trained Man power No Coordinated Support & Reliable Information Un realistic Project Feasibility study

7. The Policy Implications 1. Municipalities and regional land administration offices to take the initiative of appropriate site selection and land preparation & development works and provide those outstanding projects. 2. Establish sustainable Land preparation and development system & Implement the investment Land acquisition process according to the time bound stated on the investment law.

8. Continued… 3. The government offices engaged in infrastructure development service areas has to give priority attention for those entangled investment projects and simultaneously develop a system to incorporate investment projects in their annual plan. 4. The Ethiopian development bank has to give due attention to improve its loan policy and build its capacity and accordingly give priority for those projects which have comparative advantage.

9. Continued… 5. The government encourages and gives special incentives for those companies to produce or import raw materials at sufficient amount. 6. The value chain process has to be strengthened. i.e. those industries engaged in factory inputs export has to grant supply priority to domestic industries like textile and garment and leather & leather products.

10. Continued… 7. The government has to deliver support to those industries that supply factory inputs and simultaneously monitor the products standard. 8. The government has to offer more attractive duty free incentives for those companies that import & supply accessory factory inputs for textile garment and leather & leather products industries.

11. Continued… 9. The government has to support them in a way of coordinating appropriate training programmes and strengthen some training centers to open specialized departments in the priority sectors. 10. The government has to allocate the necessary budget for the capacity building programmes and also monitor both federal and regional offices especially which have close attachment to investors. In addition to this, the government has provided support in external market detection activities on partnership basis.

12. Continued… 11. The Ethiopian investment agency has a responsibility to give advice and look in to their project proposals.

13. Challenge 1. The problem of data selection by using their convenience in terms of nearest & available data. 2. The problem of data organizing & analysis by using the manual system. 3. Shortage of supporting materials and accessories by referring libraries & websites, discussions, working on PC late hours in the office. 4. Shortage of transport vehicles by frequent visit and explanation to logistic officers.