Tag Archives: Apparel
Apparel: Latest News
Staff, 1:00 am
By moving manufacturing to Ethiopia, Chinese textile companies are moving closer to their raw material base, the cotton-producing countries. This is part of their value chain repositioning, a strategy most Chinese companies are adopting. They’re are also using Africa as a gateway to emerging markets on and off the continent. Products made in Ethiopia can be exported duty- and quota free to the U.S. under the African Growth and Opportunity Act (AGOA). The same benefits apply to the E.U. Ethiopia also offers cheap electricity at US$0.04 cents per kilowatt hour. It’s now the second-largest electricity producer in sub-Sahara due to its hydropower dams.
Dana Sanchez, 4:10 pm
For many Western companies, Africa is a fresh start — an opportunity to build facilities and processes that are environmentally friendly and safe. And don’t forget the tax breaks. Manufacturing in Africa is expensive, training and the quality control are expensive. Most apparel will continue to be made in Asian countries where labor is still relatively cheap and infrastructure, in place. But in China, the world’s apparel manufacturing leader, wages have increased 80% since 2010.
Staff, 12:02 am
You’d be hard pressed to find a country in the world that has cheaper labor than Ethiopia. However, manufacturing as a share of GDP in Ethiopia is 5 percent, well below the African average of 10 percent. The country also scores below the African average on diversification, export competitiveness, productivity and tech upgrading. Despite this, it’s not a long shot to predict that Ethiopia will soon catch up with countries like China and Vietnam in some low-tech manufacturing industries. These are industries for which labor costs are very important. Beyond these obvious industries, there are reasons to believe Ethiopia might be on the right track to catch up with more advanced economies.
Dana Sanchez, 1:37 pm
Apparel and footwear — but especially footwear — are among the U.S. industries that benefited most from the African Growth and Opportunity Act. But if you think only U.S. or global brands are looking to set up shop in Ethiopian factories, you’d be wrong. Kenyan footwear designer Emo Rugene is moving his shoe brand, Afroshoes, to Ethiopia. To start production, he needs more funding so he’s doing a Kickstarter campaign. Here are 10 top sourcing destinations in Africa for apparel companies.
Dana Sanchez, 8:11 pm
Turkey hopes to double its ready-to-wear exports to Africa within three years. Cameroon is seen as the leading force in the Central African Economic and Monetary Community. “We see Cameroon as a stepping stone to expand more into Africa,” a Turkish stakeholder said. “We already have trade relations with Nigeria…We are also planning to reach six more countries and a market of 35 million people via Cameroon.”
Makula Dunbar, 12:22 pm
UK retailers are increasingly turning to Mauritius in favour of the Far East for the manufacture of jerseys, knits and denim, attracted by shorter lead times and lack of export tariffs. Arcadia, Marks & Spencer, Primark and Asos are already sourcing from the country, but others including lifestyle brand Joules and home shopping group N Brown are now mulling the move.
Makula Dunbar, 1:23 pm
The textile and apparel exports of Botswana, a landlocked country located in Southern Africa, may continue to decline due to the withdrawal of tax incentives by the US and the EU
Makula Dunbar, 12:03 am
Designer Mario Guillot to launch his brand IV Play in India
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