German-Ethiopian
Textile Business Partnership

The past year, the cooperation focused on expanding certified cotton cultivation and improving quality in the preliminary stages. The first results were presented at the ASFW 2024 – African Sourcing & Fashion Week in November. 

False incentives due to foreign exchange control

Ethiopian farmers and textile manufacturers are more directly dependent on each other than in other countries. Foreign exchange controls make sourcing abroad difficult.

Foreign competition is cancelled out and the international market price is virtually no longer a guideline. ‘This leads to very high cotton prices in years with low harvests, which then affect the entire value chain,’ explains Mesele Mekuria, who is supporting the project as a local expert. ‘This harms our international competitiveness.’

 At one table for the first time

Stronger networking between the players should lower prices and give farmers investment security. Cotton farmers, ginners and spinning mills in Ethiopia traditionally trade through middlemen. Disagreements over prices and quality are commonplace, but are rarely discussed directly. In the end, it is often only the middleman who profit, and both sellers and buyers are disappointed. Partner Africa Ethiopia therefore brought all sides together at the leading African trade fair for the sector, ASFW. ‘The lack of transparency must end,’ warns long-term expert Stephan Rehlen, who moderated the talks. Conclusion: With the support of the Ethiopian Ministry of Agriculture, direct negotiations are now taking place on price, quality and strategy for the next season. The establishment of a national exchange is also being discussed.

Sustainable cotton cultivation more than doubled

Much attention was paid at the ASFW to the first project successes in the rapid expansion of certified cotton cultivation. Starting with the Shelle Mella cooperative in the southern Ethiopian region of Arba Minch, numerous other smallholder cooperatives were supported in preparing for certification. Encouraged by the concept, some large farms have also joined the project, contributing the necessary volume for an ‘industry-standard’ harvest of organic fibres. ‘At least 2.5 times more than the previous year at 280 tonnes in 2024,’ says Mesele Mekuria proudly. ‘This will only work with long-term incentives and the justified hope that the cotton produced in this way will find a secure sales market – domestically and perhaps even internationally at some point.’

Selam Abraha (project assistant) and Mesele Mekuria (project cotton expert) at ASFW 2024. Partner Africa Ethiopia presenting certified organic cotton from the Arba Minch pilot region for the first time.