The document analyzes the traditional cloth production value chain in the Sidama National Regional State of Ethiopia, emphasizing the importance of handloom weaving as a source of income and cultural heritage. It identifies challenges such as shortages of raw materials, traditional production methods, and lack of skilled labor, proposing solutions for improving the industry through technology transfer and training. The analysis aims to enhance the competitiveness and sustainability of the traditional cloth sector, benefiting small and medium enterprises and local farmers while promoting economic growth.