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Viewing cable 07ASMARA762, ERITREA: TEXTILES AND APPAREL SECTOR

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Reference ID Created Released Classification Origin
07ASMARA762 2007-09-27 14:37 2011-08-25 00:00 UNCLASSIFIED Embassy Asmara
VZCZCXYZ0000
RR RUEHWEB

DE RUEHAE #0762 2701437
ZNR UUUUU ZZH
R 271437Z SEP 07
FM AMEMBASSY ASMARA
TO RUEHC/SECSTATE WASHDC 9126
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ASMARA 000762 
 
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 114799 
 
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. The GSE 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 January 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 
Eritrea, 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 is in partnership with 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, bath towels, men's pants, 
and pajamas for men and women. Zambiati makes children's clothing as 
well. The company imports the raw materials, such as cotton, from 
Italy and Turkey to be woven into fabrics.  They also import woven 
fabric for production.  Zambiati produces 21,000 shirts per month, 
most exported to Italy, where they retail for EURO 85.  Zambiati 
also exports woven cotton yarn, about 25,000 kilos per year with 
plans to expand production to 45,000 kilos.  Zambiati employs 250 
individuals, mostly women. 
 
MCINTYRE