Ethiopia's economy hit as major clothing maker closes shop
ABC News
Ethiopia’s once rapidly growing economy is taking another hit tied to its yearlong war, with global clothing manufacturer PVH Corp_ saying it's closing its facility there because of the “speed and volatility of the escalating situation.”
NAIROBI, Kenya -- Ethiopia’s once rapidly growing economy is taking another hit tied to its yearlong war, with global clothing manufacturer PVH Corp. saying it is closing its facility there because of the “speed and volatility of the escalating situation.”
PVH, whose brands include Calvin Klein and Tommy Hilfiger, has been a marquee occupant of Ethiopia’s model industrial park in the city of Hawassa, where Africa’s second-most populous country has made clear its aspirations of rapid, Chinese-style development.
PVH said it is closing its facility after a planned sale was disrupted by the escalating situation in Ethiopia but added it remains committed to its third-party manufacturing partners at the Hawassa park.
The company’s statement, emailed to The Associated Press, comes two weeks after U.S. President Joe Biden announced he would cut Ethiopia from a trade program, the African Growth and Opportunity Act, because of “gross violations of internationally recognized human rights.” The sanction goes into effect on Jan. 1.
