According to the US Department of Commerce’s Office of Textiles and Clothing, Ethiopia exported $223.526 million worth of textiles and apparel to the US in 2020. (OTEXA). Retailers in the United States who used to source from Ethiopia are now more inclined to look elsewhere.
West Africa, which is already a significant cotton grower, will most certainly benefit from any sourcing move (Benin, Ivory Coast and Burkina Faso respectively rank sixth, seventh, and eighth in the world in terms of cotton production). However, just 2% of the cotton farmed there is now used to make textiles, with the rest being exported to other nations (over 90 percent ends up in Asia for further processing).
The imposition of sanctions on Ethiopia is anticipated to provide additional incentive to relevant governments in West African countries to attract textile-related investment and strengthen transportation and logistics. They will benefit from the establishment of the African Continental Free Trade Area (AfCFTA), which took effect on January 1 this year and has lowered tariffs on products sold within the region by up to 90%.
