This review systematically maps the literature on the transformation of the Ethiopian garment industry over 30 years (from 1995 to 2025). The main objective is to plot and evaluate how academic research has described the transition of the sector, previously a craft‐based heritage cottage industry where, for instance, traditional attire such as the Habesha kemis was known, to a modern‐manufacturing policy logic. Using a bibliometric approach informed by the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) protocol, the review examines publications retrieved from the Scopus index in order to uncover patterns of research, leading author engagement, and theme direction. The results suggest a remarkable rise in academic papers after 2019, but they focus on industrial policy, foreign direct investment (FDI), and labor issues. The review provides analyses of the key issues that influence the sector and success in industrialization, focusing on government intervention to attract FDI with an offer package and eco‐industrial parks, which have led to job creation and exports. However, they are also mitigated by several challenges, including insufficient backward integration of the local supply chain and heavy dependence on import refits under preferential treatment agreements, African Growth and Opportunity Act (AGOA) suspension had an extreme impact, as well as significant socioeconomic problems such as very low wages and high staff turnover. The report finds that while substantial progress has been made, the sector’s full potential is yet to be achieved due to lingering salient structural weaknesses, a situation that necessitates policies that foster deeper local integration, improved labor standards, and greater resilience to external shocks.
Abuhay et al. (Thu,) studied this question.