The fund is an international collaboration between the UK, Germany and Ethiopia that will protect some of Ethiopia’s most vulnerable workers
Addis Ababa, 29 October 2020: A landmark fund set up between the UK and Germany in collaboration with the Government of Ethiopia could save thousands of jobs in Ethiopia’s textile and garments industry, while helping to support the country’s economic recovery from COVID-19. With $6.5 million invested at launch, the partnership aims to help safeguard a critical industry and protect the livelihoods of those working within it.
Through the fund, textile factories in Ethiopia’s industrial parks can apply for wage subsidies – similar to the furlough schemes operating in many countries including the UK and Germany – and incentives to reward businesses that are able to adapt in response to COVID-19. The funding announced today will kickstart the facility and the partnership may further expand its reach through additional support in the coming months.
Our support forms part of the work FSD Africa is doing in financial markets across Africa to build resilience and help drive the economic recovery from COVID-19. This fund brings together UK and German funding and technical expertise to deliver real benefits for vulnerable households and ensure that Ethiopia’s patient efforts to build manufacturing capacity over many years are preserved
Mark Napier, CEO, FSD Africa