Ethiopia has a long history of traditional garment manufacturing, which is endowed with profound national culture up to this date. Cottage industry has been the main style for traditional apparel and has satisfied the demand of the people for centuries. The industrialization process of Ethiopia‘s garment manufacturing started in the 1895''s.In 1958, an Italian took the lead to establish ADDIS garment factory (Augsta), which was nationalized in 1975.The public Akaki garment factory was founded in 1963, followed by Gulele Garment factory in 1983 and Nazereth garment factory in 1992. In 1990''s with the development of market economy, private and foreign capitals began to make investment in garment sub –sector. As a result the garment sector reached 31(29 private owned and 2 state owned) in 2005/06.Currently, Ethiopia has fifteen textile mills including eight vertically integrated mills that produce largely for the domestic market, and forty three apparels factories that supply the domestic and to lesser extent, the export market, and a further 80 in some stage of development. However this does not include the small scale apparel manufacturing firms.