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TOR-ET-048
Ethiopian Textile Industry Development Institute
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የየየ
Terms of Reference
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1
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ETHIOPIAN TEXTILE INDUSTRY DEVELOPMENT
INSTITUTE
TERMS OF REFERENCE (TOR)
FOR
STUDYING TEXTILE AND APPAREL INDUSTRIES
PROFILE, CONSTRAINTS AND OPPORTUNITIES
FEBRUARY, 2013 E.C
ADDIS ABABA, ETHIOPIA
i
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Doc No.:
TOR-ET-048
Ethiopian Textile Industry Development Institute
Issue No.:
Document Title:
የየየ
Terms of Reference
1
Page
ii of 11
Table of Contents
Contents
Page
1.
INTRODUCTION ................................................................................................................................ 1
2.
OBJECTIVE ......................................................................................................................................... 2
2.1.
GENERAL OBJECTIVE.............................................................................................................. 2
2.2.
SPECIFIC OBJECTIVES ............................................................................................................. 2
3.
SCOPE .................................................................................................................................................. 2
4.
CORE AND SUB – TEAM MEMBERS .............................................................................................. 3
5.
METHODOLOGY ............................................................................................................................... 3
6.
MAJOR ACTIVITIES .......................................................................................................................... 5
7.
ROLES AND RESPONSIBILITIES .................................................................................................... 6
8.
DELIVERABLES ................................................................................................................................. 7
9.
TIMELINE ............................................................................................................................................ 7
10.
BUDGET ALLOCATION ................................................................................................................ 8
11.
MONITORING, EVALUATION AND REPORTING .................................................................... 9
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Doc No.:
TOR-ET-048
Ethiopian Textile Industry Development Institute
Issue No.:
Document Title:
የየየ
Terms of Reference
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1. INTRODUCTION
Ethiopia’s textile and apparel sector is characterized by strong value addition throughout the
entire value chain, from cotton to clothing, with high local processing of cotton lint into textile
and apparel products. The entire segments in the sector includes ginning, spinning,
weaving/knitting, dyeing, printing, finishing, home textiles, and knitted/woven garment
production.
It is important to study the textile and apparel industries profile, constraints and opportunities of
the existing textile & apparel industries in order to identify bottlenecks that can be prospects for
new investment, which will be instrumental for achieving of the strategic plans of the sector. The
analysis helps to show the gaps and indicate possible measures by making an assessment on the
sub-sector so as to make smooth relationships among the value chains. Moreover, the analysis
helps to eliminate constraints in the input delivery, looks market opportunities, for policy
improvement and formulation, product development and advancing sustainable competitiveness
of the industry.
Currently there is lack of coordination between the sector players which is a key barrier to
greater vertical integration, which would require enhanced communication between the different
segments of the value chain. Coordination would also permit for group bargaining and the
consolidation of information in order to enhance the performance of the industry as a whole. A
key issue will be building trust and reducing competition and strong communication will create
harmony between associations so that they come to view each other as partners rather than
competitors.
The study will be conducted by core and sub-team members constituted from five directorates.
The core team members mainly give emphasis to format development for data collection, data
collection and organization, interpretation and analysis and the sub-team members primarily will
1
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TOR-ET-048
Ethiopian Textile Industry Development Institute
Issue No.:
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Terms of Reference
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engage on data collection and organization. This ToR contains objectives, scope, methodology,
major activities, deliverables, roles and responsibilities, budget and action plan parts.
2. OBJECTIVE
2.1. GENERAL OBJECTIVE
The main objective of this study is to assess the textile and apparel industries profile, constraints
and opportunities in order to clearly understand the existing status of the factories, the gaps and
associated limitations of the sector so that it can be used as an initial for future activities with
regard to capacity utilization enhancing, investment promotion and policy formulation by
relevant government bodies.
2.2. SPECIFIC OBJECTIVES
The specific objectives of studying textile and garment industries profile, constraints and
opportunities are:

To identify the existing conditions of the factories mostly with respect to actual &
attainable production capacities, inputs requirement, output/products and level of
technologies.

To examine the gaps between the segments in the sector.

To identify the constraints that affects the performance of industries in the sector.

To figure out the potential investment areas in the value chain.

To suggest recommendation inputs for policy improvement and formulation.
3. SCOPE
This paper mainly focuses on the study of textile and apparel industries profile, constraints and
opportunities and suggest a possible recommendations for future improvement. Medium and
large scale industries owned by local and foreign investors located in the industry park and
outside the industry park will be part of the study. All medium and large scale textile industries
will be area of the study and all garment industry in the industry park, exporter factories and
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Terms of Reference
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integrated factories that has garment unit will be part of the study. In addition, most garment
industries apart from the mentioned areas will also be included in the study.
4. CORE AND SUB – TEAM MEMBERS
As indicated below the core study team has 6 members constituted from five directorates. The
sub–teams are formed from the five directorates as mentioned in the table below for the purpose
of data collection and their numbers are considered based on the size of factories from which
data to be collected.
1
2
Name of the Core
Team Members
Teshome Zeleke
Mohammed Ibrahim
3
Gizachew Zeleke
Member
5
4
Freezer Endalkachew
Member
5
5
Misgana Taye
Member
5
6
Yasin
Member
5
S/N
Position in
the Team
Chairperson
Member
Required Sub-Team
Members
2
2
Total
6
Directorates
Engineering Service
Ginning and Spinning
Industry Development
Weaving and Knitting
Industry Development
Finishing Industry
Development
Garment Industry
Development
Plan Preparation, Monitoring
and Evaluation
24
5. METHODOLOGY
The necessary data which are useful for the analysis of the study will be collected from primary
and secondary sources. In the initial stage of the study, desk review will be done using
contemporary and previous research findings conducted by ETIDI and other bodies, sectoral past
performance reports and relevant documents from different directorates. By doing this, available
data and information will be recognized and sorted to use for the study. After desk review the
team will arrange site survey to collect data from factories based on the prepared
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checklists/questionnaire and by making site observation and interview with relevant factory
workers and managers/representatives.
The total thirty core and sub-team members will be grouped in to six teams for data collection
purpose and the core team members coordinates and leads the team. According to the location
and set up of the factories clustering of the factories will be done in six zones to collect the
appropriate data in economic way.
Primary data will be collected from all medium and large scale textile industries located in
the industry park and outside the industry park by the assigned teams. Since the numbers of
garment industries are large, a maximum possible ways will be done to collect data from the
industries. Therefore, data will be collected from all garment industries located in the
industry parks at regions and Addis Ababa. From factories located at different places outside
the industry park, data will be collected from all medium and large scale exporter garment
industries and integrated factories that has garment unit. Apart from the areas described
before, data will also be collected from medium and large scale garment industries as much as
possible. The necessary data from new and expansion projects which are on investment level will
be collected. The expected active sub sectors & investments, and the probable number of
factories and new & expansion investments to be covered for the study are shown below.
S/N
Sub-Sectors
1
2
3
4
Ginning
Spinning
Weaving
Knitting
Finishing
(dyeing, printing and
finishing)
Garment
Industry park
Outside industry
5
6
6.1
6.2
Total
Units
Operational
23
20
36
36
18
15
31
32
Not operational
by various
reasons
3
5
5
4
44
35
9
90
30
60
Under
project
Remarks
2
Unable to
get the
data by
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park
7
Projects on
investment level
Total factories
integrated and
stand-alone except
garment
Total factories
including garment
Page
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factory
name
113
96
17
203
During site visiting the survey will focus utmost on raw materials and other inputs accessibility
and sourcing, the attainable and actual production capacities of the factories, conditions of the
manufacturing machinery and equipment, quantities and qualities of the outputs or products. In
addition, the internal and external constraints of the sectors that have been impeding their
performance will be identified and discussed.
Valuable relevant information will also be collected from the stakeholders such as Ethiopian
Investment Commission, Federal Industry Park Development Corporation, Development Bank of
Ethiopia, Customs, Federal Small and Medium Manufacturing Industry Promotion Authority,
etc.
After collecting the relevant information, the data will be presented using tables, charts, graphs
and other convenient tools. The interpretation and analysis will be carried out by core team
members using excel and other appropriate software.
6. MAJOR ACTIVITIES
The following major tasks will be done in order to conduct the sector profile and gap assessment
on the textile and apparel industry.
 Team forming: as indicated earlier the core team has 6 members comprised of 2 experts
from engineering service directorate and one expert from each sub-sector directorates (4
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experts). There is also sub-team members organized from the respective directorates
including planning mainly for the purpose of data collection.
 Kick-off meeting: a kick-off meeting will be prepared in order to get directions from the
top management.
 Checklist/questionnaire developing: the team will review the previous data collection
formats and develop an appropriate checklist/questionnaire which is used for data
collection.
 Data collection: the team will collect data based on the check list/questionnaire from both
primary and secondary sources through document reviews, site visit and interviews.
 Progress report: a core team will meet every week and evaluate the progress of the tasks
and also make a progress report every 2 weeks to engineering service directorate.
 Data analysis: the collected data is further organized and analyzed to interpret
opportunities and constraints within the chain of the textile & apparel industry.
 Present draft report: the draft report will be presented to experts and management in
order to get comments.
 Submit final report: correcting and submitting the final report of the analysis.
7. ROLES AND RESPONSIBILITIES

The engineering service directorate director supports the team by coordinating,
monitoring and evaluating the progress of the study.

The project core team coordinates the whole process, checklist/questionnaire
development, undertakes site visiting, collecting, analyzing and interpreting data, prepare
document, reports the progress based on schedule, presents to concerned management
body, correcting the feedback and submit final document in order to implement the final
result.

The sub-team members mainly engage in data collecting and organization and submit to
the core team.
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TOR-ET-048
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 ETIDI supports the team by facilitating budget and other required resources.
8. DELIVERABLES
The deliverable of this study is a document that contains the assessment of textile and apparel
industries profile, constraints and opportunities including possible recommendations. The document
includes:

Ethiopian textile and apparel industries situations with respect to inputs, production
capacity, technology level and outputs on each segment.

Well stated gaps and constraints among the segments.

The investment and market potential areas in the sector.

Recommendations based on the findings for future improvement.
9. TIMELINE
The study will be completed within 3 months and the detail is discussed below.
Timeline in Weeks
S/N
Activities
1
Team forming
2
Kick-off meeting
Developing check
list
Data collection and
organization
Progress report
3
4
5
6
8
W-2
W-3
W-4
W-5
W-6
W-7
W-8
W-9
W-10
W-11
W-12
Data analysis and
interpretation
10
Progress report
Document
preparation
Present draft report
11
Submit final report
12
Final presentation
9
W-1
7
W-13
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10. BUDGET ALLOCATION
The estimated required budget for the implementation of the study is indicated below.
S/N
1
1.1
1.2
Description
Unit
measurement
Number
of
persons
Number
of days
Unit cost
(Birr)
Total cost
(Birr)
Days
30
35
477
500,850
Days
6
30
477
85,860
Away from
Addis Ababa
40,000
For use in the
industry park
and other areas
Remark
Perdiem
Site survey for data
collection
(All Teams)
Document preparation
(Core Team)
2
Transportation
2.1
Transport facility
(Car Rent)
3
Air Transport
3.1
Air Ticket
(Round- trips)
Lump sum
Number
8
Grand Total
3,000
24,000
650,710
Note:

180 operational textile and apparel factories are suggested for the study and 3 days is estimated
for collecting data from a single factory. Hence, if 2 persons are allocated for one factory 36
working days are required for data collection.

For calculation purpose, Perdiem is taken birr 477 per day which is the highest from the regional
capital cities.

Air ticket assumption is for Hawassa, Dire Dawa, Bahir Dar and Kombolcha trips.
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MONITORING, EVALUATION AND REPORTING
The overall aim of this monitoring, evaluation and reporting is to ensure that the textile and
apparel sector profile and gaps assessment study is going as per the schedule and hence
achieving key results set in the deliverable section. The assigned core team will have regular
weekly meeting to evaluate the progress of the study and prepare and submit the progress report
every two weeks to engineering service directorate for evaluation and feedback with respect to
study objectives. The team will arrange progress and final presentation of the report for the
concerned experts and top management and improve the document using the feedback
forwarded.
9