Coping with shocks: Resilience in Ethiopia’s ready-made garment industry

Ethiopia’s industrial exports depend on the ready-made garment industry mostly located in industrial parks. In addition to the pandemic, factories in Ethiopia faced another shock related to the conflict in the northern parts of the country and the resulting removal of Ethiopia from the free trade privileges provided by the Africa Growth and Opportunity Act (AGOA). This shock has affected firms in the global value chain that depended on this privilege to invest in Ethiopia. One prominent firm has closed its doors due to this policy. It is important to understand the impact of these shocks and devise strategies to cope with these shocks.

This event is organized to provide a learning platform from the global experience and Ethiopian ready-made garment industry. Dr. Macchiavello’s presentation focuses on alternative strategies of sourcing inputs in the global value chain during shocks. Dr Meyer’s presentation focuses on the impact of downsizing due to shocks on employees. Both are pertinent challenges facing the Ethiopia industrial sector in general and can provide useful insights for policymakers and stakeholders.