Cotton Productivity Drive Boosts Ethiopia’s Foreign Earnings, Say Agriculture Ministry

Addis Ababa, October 1, 2025 (ENA)— Initiatives over the past three years to enhance cotton productivity and quality have led to a substantial increase in Ethiopia's foreign exchange earnings while meeting domestic consumption, according to the Ministry of Agriculture.

Focusing on quality cotton production techniques, the Ministry has successfully positioned the cotton sector as a dual contributor to the economy, meeting local demand while also generating valuable foreign currency.

 According to the Ethiopian Textile Industry Development Institute, the country has nearly three million hectares of fertile land suitable for cotton cultivation.

 Recognizing this vast potential, the government is working to expand cotton farming to meet the growing demand and fully develop the sector.

By harnessing these resources, Ethiopia aims to boost agricultural output and solidify its economic position as a competitive player in the global textile industry.

 In this regard, the Ministry of Agriculture revealed the establishment of a national cotton development stakeholder coalition dedicated to enhancing cotton value chain. 

 Investors within the sector have expressed that efforts are being made to increase the volume of cotton available for export, focusing on improving both production quality and overall output, while also addressing the needs of domestic industries.

 The efforts not only satisfy domestic consumption needs but also contribute positively to the country’s forex reserves.

 Melkamu Abraham, an investor in the cotton sector, noted the positive impact of the government's foreign exchange reforms, which improved the pricing of cotton products in the export market.

 He also emphasized the importance of improving accessibility and expanding cotton ginning factories, while also encouraging producers to sell directly to both domestic and export markets in order to maximize their benefits.

 Tsegaye Abebe, Ethiopian Cotton Association Director General, on his part said that the association is actively collaborating with stakeholders to boost cotton productivity and quality.

 The goal is to ensure an adequate supply for domestic industries while also increasing export opportunities, he added.

 On his part, Ethiopian Textile and Apparel Manufacturers Association Secretary General, Agazi Gebreyesus noted the importance of maintaining high standards throughout the entire production process, from seed supply to the final product in a bid to guarantee the quality of cotton production.

Failing to uphold production standards can result in subpar quality and increased waste, ultimately driving up production costs, he emphasized.

He further warned that poor cotton quality would have a direct negative impact on the textile sector, emphasizing the critical need for stringent quality control throughout the production process.

 Samson Assefa, Cotton Development Lead Executive Officer at Ministry of Agriculture, elaborated that ongoing challenges in the sector are being identified and effectively addressed.

 He also revealed the establishment of a national cotton development coalition, which will include key stakeholders throughout the cotton production value chain.

 Samson stated efforts aimed at providing value-added products, introducing improved cotton varieties, and strengthening market linkages and financial support.

 The importance of expanding and modernizing access to cotton ginning factories to enhance overall productivity and efficiency, the lead executive officer underscored, adding  that the efforts to enhance productivity and quality are showing promising results, particularly with a notable increase in production volume over the past three years.

 According to him, as productivity has risen, the company has begun supplying small amount of its products to the foreign market, successfully meeting domestic consumption needs.

 Samson further said that an estimated 71,000 metric tons of cotton wool is expected to be harvested from 113,000 hectares of land, with harvesting set to commence soon in the Afar and Southern Ethiopian regions.

 Over the past three years, significant efforts have been made to enhance cotton productivity and quality, successfully meeting domestic consumption needs while also boosting foreign exchange earnings, he underscored.