Ethiopian Textile Industry Complains about Bonda Growth

A new study by the Ethiopian Textile and Garments Manufacturers Association (ETGMA) has shed light on the challenge faced by the local textile industry. The study reports that bonda clothes now make up 53% of the textile market of Ethiopia. This is mostly because a lot of these clothes are being illegally brought into the country. Second-hand garments are locally known as “bonda clothes” in Ethiopia.

The study by the Ethiopian Textile and Garment Manufacturers Association (ETGAMA) shows that the growth of second-hand clothing is a big challenge for local textile producers. Ethiopians like bonda clothes because they are cheap and thought to be of good quality. These clothes often come from famous brands in Europe and America.

There are three main types of Bonda clothes. The first category, locally known as Taiwan, contains relatively better quality clothes. These are dry cleaned and tags are attached to them to make the clothes look like brand new items. They are later then distributed to boutiques in different corners of Addis Ababa as well as other regional cities.

The second category of clothes is called Efoyta, which literally means relief. It contains medium-quality clothes, which are sold in bulk. These clothes normally do not have different sizes or colors as they are imported in bulk together with other outfits.

The third category of clothes is called ‘Enken’, which literally means defect. These are the kinds of second hand clothes that need more repairs, some to the extent of sewing as well as washing and ironing.

These second-hand clothes enter Ethiopia through different ways, including border towns such as Moyale, and Dire Dawa, and even using Ethiopian Airlines. There are over 10,000 shops legally selling these clothes. ETGMA complains that the government of Ethiopia is not doing enough to stop the illegal imports and sales of Bonda clothes.

ETGAMA says Ethiopia is potentially losing around 2.5 billion birr each year in taxes because second hand clothes are brought in without paying taxes at the border. The global second-hand clothes market is worth $71.22 billion and is expected to grow four times by 2030.

Moreover, to help the textile industry, the Ethiopian government made a 10-year plan to support manufacturing. They want to raise the share of local products from 30% to 60% and increase production capacity from 50% to 85%.

The survey of ETGAMA showed other problems too faced by the textile industry, including not enough good materials, lack of foreign money, complicated import-export rules, and high shipping costs. Additionally, these factors make it hard for local manufacturers in Ethiopia to do business and the cheap second-hand clothes make it even worse.
The manufacturing sector of Ethiopia makes up 6.8% of its GDP, and exports are 5.1% of the total in 2021/22, as reported by the IMF. This is lower than nearby countries like Kenya (14.2%) and Rwanda (11.1%). This shows Ethiopia needs to do a lot to make its manufacturing industry grow.

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