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Viewing cable 06ASMARA794, ERITREA: TEXTILES AND APPAREL SECTOR

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Reference ID Created Released Classification Origin
06ASMARA794 2006-10-03 04:19 2011-08-25 00:00 UNCLASSIFIED Embassy Asmara
VZCZCXYZ0000
RR RUEHWEB

DE RUEHAE #0794 2760419
ZNR UUUUU ZZH
R 030419Z OCT 06
FM AMEMBASSY ASMARA
TO RUEHC/SECSTATE WASHDC 8449
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ASMARA 000794 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EB/TPP/ABT: THOMAS LERSTEN 
DEPT ALSO FOR AF/EPS AND AF/E 
COMMERCE FOR ITA/OTEXA: MARIA D'ANDREA 
STATE PASS TO USTR FOR ABIOLA HEYLIGER 
 
E.O. 12958 DECL:  N/A 
TAGS: ECON ETRD KTEX ER
SUBJECT:  ERITREA: TEXTILES AND APPAREL SECTOR 
 
REF:  STATE 138090 
 
1. In response to reftel, post provides the short narrative below. 
The Government of the State of Eritrea (GSE) strictly controls the 
economy of Eritrea and nearly all of the industries. It shares 
almost no information on the textile industry, (or other industries) 
publicly.  To the best of post's knowledge, Eritrea has no 
import/export business in textiles with the U.S.  Government 
policies do not encourage private sector growth and post is unaware 
of government plans to expand production in the textile industry. 
Since Jan 2005, the GSE has severely limited imports and most 
production in Eritrea is for local consumption.  There are a few 
exporting industries.  The Italian owned shirt factory, Zambiati, 
described in para. 4 is one example. 
 
2.  Eritrea has limited trade partnerships and does not maintain 
formal trade relationships with its immediate neighbors, Sudan and 
Ethiopia.  Eritrea does engage in trade with regional partners, such 
as Djibouti, Yemen, UAE, Saudi Arabia, and Italy. The 2005 
International Monetary Fund's Article IV Consultation estimated 2005 
exports at a total of USD 12 million, with manufactured goods, such 
as textiles, being only an estimated 10 percent of exports.  At this 
time, post is unaware of Eritrea participating in any free trade 
agreements. 
 
3.  Presently, three textile factories operate in Eritrea.  The 
government owns two of the companies and the third is privately 
owned.  As noted, the government does not make available statistics 
and data from the two government-owned factories.  Post has no 
reliable data on either industrial production value or number of 
persons employed by these enterprises.  Post did ascertain that one 
factory produces T-shirts and military uniforms and the other shirts 
for school uniforms. 
 
4.  Zambiati Eritrea (ZAER) is a privately held Italian company 
producing dress shirts for men and women.  The company imports the 
raw materials, such as cotton, from Italy to be woven into fabrics 
and sewn into shirts.  They also import woven fabric for production. 
 ZAER produces 15,000 shirts per month, most exported to Italy, 
where they retail for EURO 85.  In October 2006, the company plans 
to increase production to 21,000 shirts each month.  Zambiati also 
exports woven cotton yarn, about 25,000 kilos per year with plans to 
expand production to 45,000 kilos.  Zambiati employs 250 women. 
 
DeLisi