South Korea's Youngone to invest in Ethiopian textiles

Youngone Corporation, a South Korea based textile and footwear manufacturer, is planning to invest in Ethiopia’s textile sector. Youngone wants to invest hugely and make textiles its gateway to the Ethiopian market.

Youngone is ready to engage in textile and apparel manufacturing in Ethiopia as quickly as possible, the company’s chairman Kihak Sung told reporters after meeting prime minister Hailemariam Dessalgen in Addis Ababa, Ethiopian News Agency reported.

Youngone has already carried out feasibility studies in Bole Lemi and Adama industrial parks as part of its plan to invest in Ethiopian textile sector, according to Ethiopia’s ambassador to South Korea, Shiferaw Jarso.

The announcement comes soon after a visit by South Korean president Park Geun-hye’s visit to the African country.

Currently, Ethiopian government is finalising a plan to set up a textile industrial complex for South Korean companies in the central Ethiopian city of Adama. To attract investment, the government is also considering a move to offer tax sops to South Korean textile companies.

By investing and producing finished goods in Ethiopia, South Korean companies can export them to the US and the EU without tariffs, which could give a competitive advantage.