ETHIOPIA 2050 –

Challenges and Opportunities

(International Conference)

The Journey to Circular Production:

(Resource Efficiency Performance Assessment of Ethiopian
Textile Processing Factories)

By: Matias Taye (Industrial Operations Consultant) &

Tesfaye Chalchisa (Environmental Scientist)

December 19-20, 2019 Addis Ababa, Ethiopia

 Global Picture of the Textile Sector

• The clothing sector accounts for a combined global turnover of 1.13 trillion
EUR and employs more than 300 million people throughout the entire
value chain.

• In the last 15 years, clothing production is seen to have doubled and is estimated
that the demand for textile fibers is expected to increase by 84% in the next
20 years

• In the year 2017, 99 million tons were produced globally, a 2.5 %

growth per year and is expected to reach 130 - 145 million metric tons
by 2025

Koszewska, Malgorzata 2018: Circular Economy – Challenges for the Textile and Clothing Industry.
Ellen MacArthur Foundation 2017a: A new Textiles Economy: Redesigning Fashion’s Future, Circular Fibres Initiative
 Overview of the Textile Sector in Ethiopia

• The textile industry is the number one priority sector by

Ethiopia’s industrial development policy due to:
– high amount of easily trainable abundant available workforce at
very competitive costs
– good climatic and soil conditions for cotton development.

• 194 textile factories in operation as of 2018

Ginning Spinning Weaving and Integrated Garment Cultural
knitting

19 3 29 22 115 6

MOI (ETIDI)
 Overview of the Textile Sector in Ethiopia

• In the second GTP period (2015/16 through 2019/20), the plan

for the textile sector is
– to manufacture $2.18 billion USD worth of production,
– earn $1 billion USD in export revenue
– create 174,000 job opportunities,

– Attract 132 new projects with 45.1 billion investment capital

 Overview of the Textile Sector in Ethiopia

600000

500000
Earnings from Export
400000

300000

200000

100000

0
Year 2015 2016 2017 2018
Textile ('000 USD) 77971 89300 109028 153500
Manufacturing ('000 USD) 390242.8 436728 487541 546045.92
Share of textile sector from
19.98 20.45 22.36 28.11
manufacturing

Plan: $1 billion USD in export revenue

MOI (ETIDI) Achieved thus far: 430 USD (43% performance)
 Strategic Importance of Sustainability

Countries granting preferences to Ethiopian products

(ITC NTM Business Survey in Ethiopia, 2015-2016)

 Strategic Importance of Sustainability

A study on European retailers shows:

• the proportion of sustainable products sales is reaching 60% of the total in the
year 2017.

• 92% of the retailers expect sustainable product sales to increase in the next
five years and align with this trend and sustain business

• Implementing sustainability standards is on the rise

Oeko-Tex: 20%, Fairtrade: 11% and the Global Organic Textile Standard (GOTS): 10%

• Another study conducted in 2015 on the global textile product consumers of 60

countries also depict a growing trend in the demand for sustainably produced
products and 68% are willing to pay extra for sustainably manufactured goods.

The European Union Market For Sustainable Products, International Trade Centre, European Commission, 2019
Strategic Importance of Sustainability

Study conducted on 209

main exporters in
Ethiopia

(ITC NTM Business Survey in Ethiopia, 2015-2016)

Share of surveyed companies affected by burdensome NTMs,
by sector, size and destination/origin markets
….continued
Burdensome NTMs by Type of NTM-related
sector and source obstacles for exporters
….continued
 Resource Efficiency & Circular Production (RECP) as an Enabler

• The main elements of CP are:

Re-design, Reduce, Reuse, and Recycle.

• The three strategies for ensuring circular production are:

close the loop, optimize the loop and value the loop

•Circular Transition Indicators, 2019, World Business Council for Sustainable Development (WBCSD)
 Resource Efficiency & Circular Production (RECP) as an Enabler

• Currently, the value chains in the world are only

9% circular
• If we continue with the current wasteful trend,
by 2030, we will need more than 1.7
planets to meet our resource needs

•Aiginger, K. (2014) Industrial Policy for a sustainable growth path, Policy Paper no 13, Welfare, Wealth and Work for Europe Project
 Resource Efficiency & Circular Production (RECP) as an Enabler
Driving Forces Pointing to RECP

Ø Combating climate change: need to reduce the sector’s

environmental impact and resource use

Ø Resource or raw materials becoming scarce: water

shortages, increase cost of chemicals and electricity could
lead to increased raw materials

Ø National or international environmental and social

regulations /standards become stringent.

Ø Increased social awareness on impact of environmental

pollution. It is moral to save environment and workers
safety and health
 Resource Efficiency & Circular Production (RECP) as an Enabler

Driving Forces Pointing to RECP

Ø Implementation of RECP improve resource utilization and

hence reduce production expense which will in turn
maximize profit margin

Ø International buyers and end customers are highly

concerned with RECP and compliance issues. RECP become
a business opportunity
 Project Description

Project Name: “Strengthening the Competitiveness of the Ethiopian

Clothing Sector – Resource Efficient (RE) and Circular
Production (CP) Processes”

Program: Trade for Sustainable Development (T4SD)

Project Owner: The International Trade Centre (ITC), a joint agency of

the World Trade Organization and the United Nations,
and financed by the German Federal Ministry for
Economic Cooperation and Development (BMZ).
 Aim of the Project

• Implement Resource Efficient and Circular Production Processes at

textile factories so as to strengthen the competitiveness of the
Ethiopian clothing sector.

• The project also aimed at raising awareness on the significance of

compliance with sustainability requirements of international buyers
to establish new or maintain existing supply relationships.
Methodology
 Major Findings

Main Resoiurce Areas

Water Energy Chemicals
• Saving from insulation • Avoiding the use of
• Water leakage unnecessary
• Condensate recovery
control chemicals
• Recycle or reuse of • Saving from
• Recycling/reuse of
rinsing water from compressed air leakage
chemicals or liquor
Interventions process
• Saving from boiler (it also saves water
(Measures) • Re use or recycle of
system performance
cooling water • Chemical saving
improvement
• Condensate from reducing ETP
recovery • Re-use of cooling water load

• Saving from electric

power performance
improvement

• Saving from lighting

 Major Findings

Annual Resource Savings of 5 companies

Company
Water m3 Electricity Fuel (L) Chemical (Kg)
(KWH)
Company 1 28,686 2,579,963 - -
Company 2
25,060 - 184,975 (LFO) -

Company 3 39,474 4,318,891 - 14,021

Company 4 14,717 2,826,010 28,000
Company 5 1,925 m3
10,127 - -
wood

Company 1, 3 & 4 use electric boilers, thus electricity savings are from thermal energy
savings
Company 2 uses fuel fired boiler
Company 5 uses wood fired boiler
 Major Findings

Assessment of chemical and waste management systems and practices

Scores based on BMPs Questionnaires (%)

Description Company 1 Company 2 Company 3 Company 4 Company 5
Chemical management
37.5 30.0 46.4 39.0 19.5
system/practices
Waste management
35.7 33.3 46.1 58.3 25
practices
 Major Findings
Combined annual financial savings of 5 companies

No of Total investment Total savings Overall

Company measures cost (birr) (birr Benefit to
identified cost ratio

Company 1 8 1,151,530 2,326,284 2.02

Company 2 6 792,580 3,713,393

4.69

Company 3 6
4,467,635
747,280 5.98

Company 4 5
2,687,669
649,800 4.14

Company 5 4
803,680 2,011,092
2.50

Total 27 4,144,870 15,206,073

 Interventions Underway & the Way Forward

• Plant level awareness creation on resource efficiency

•Implementation of house keeping measures and simple interventions

so as to reap the low-hanging fruits

ብክነትን የመለየት ትኩረትን ማዳበር

ከብክነት ጋር አብሮ መኖርን መላመድ
(Waste hides in plain view)
 Interventions Underway & the Way Forward
•Incorporation of resource efficiency as a
strategic pillar in business

•Implementation of management systems

(Water, Energy, Chemical & Waste)
 Findings in Pictures

Water leakages (pumping station) Opportunity to recycle rinse water

 Findings in Pictures
Opportunity to reuse or recycle cooling water from dyeing m/cs
 Findings in Pictures

Water saving….
Reuse final rinse water. right raw water, Water recycling/reusing of final rinse from
left rinse water from dyeing m/c winch and hydro-extractor machines
 Findings in Pictures

Recycle of caustic soda drain from weight reducing m/c

 Findings in Pictures
Water recycling practice from wet finishing machines
 Findings in Pictures

Hot water and lightly polluted water recycling-schematic diagram

 Findings in Pictures

Waste water recycling – with ZLD application

 Findings in Pictures

Automatic chemical dozing Safety data sheet displayed

 Findings in Pictures

Chemical policy displayed

Chemical mixing and transferring
 Findings in Pictures

Automatic dispenser (recipe preparation)

Calibration of measuring devices

 Findings in Pictures

Bare Boiler Surface

Temperature Not pre-heated Burner Oil Economizer system
 Findings in Pictures

Insulation Practices at Valves and Pipings at Steam Headers

 Findings in Pictures

Condensate Utilization Practices at Different Factories

Findings in Pictures

Compressor related losses

 Findings in Pictures

Day light utilization practice

 Thank you!
አናመሰግናለን !!
Matias Taye, matiastaye@gmail.com, (0904143453 / 0911844670)
Tesfaye Chalchisa, chalchotesfi@gmail.com , +251912154929