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.”
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.
H&M, another high-profile occupant at the Hawassa park, told the AP that “we are following all developments carefully but refrain from taking any decision regarding our long-term presence in the country.”have led some in the business world to press Prime Minister Abiy Ahmed and his government for a cease-fire and humanitarian access to the blockaded Tigray region, echoing efforts by envoys from both the U.S. and African Union.
“We continue to emphasize to the government of Ethiopia the need for all parties to facilitate the delivery of humanitarian aid and supplies to those who need it, and see this as a first step toward the cessation of hostilities and a process that will result in lasting peace,” Stephen Lamar, president of the American Apparel & Footwear Association, told the AP in an email.
The trade program announcement “is making people in the business world especially anxious. It certainly makes it less economically smart to be there,” said Mike Posner, assistant secretary of state for democracy, human rights and labor in the Obama administration.
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