Textile and
apparel industry are rapidly growing because of high demand and increasing
purchase ability. In compare to previous years the fundamental clothing
production is growing at 4.4% CAGR and expected to grow event faster after
2024. (Source).
If we look
into the global textile and apparel industry today, it is radically changing.
And china is no more the fastest growing apparel and textile manufacturers.
Rather countries like Bangladesh and Vietnam are growing to beat China soon. On
the other hand, US is no more the largest fashion market in the world, China
has crossed that milestone in the previous year.
Yet there is
even more potential growth among African nations which can define the entire industry
for the future of textile and apparel industry. Ethiopia, Kenya, Tanzania and
Madagascar are some of the textile and apparel manufacturing nations expected
to become world’s leading textile and apparel manufacturers in near future.
According to African News, these four nations including some
others are the world’s largest free trade zone in the world.
According to
AfCFTA Ethiopia can push their textile and apparel export to USD 30 billion by
2030. And the building of specialized free trade zones in various areas are
providing much witness of the government’s intention. Similarly, Kenya,
Tanzania and Madagascar are going strong with textile and apparel
manufacturing.
Growth
Opportunities of This Textile Manufacturing Nations
The growth
opportunities in the Ethiopia and other three nations are huge because of its
free trade opportunities. Government of AfCFTA zones have taken multiple
measure to boost their economy with the development of the textile and apparel
industry.
Due to the
development of digitalized marketplaces, a lot of companies are opening new
factories. This might look really illogical right? No, its real because many of
those companies are being listed as textile manufactures on marketplace so that they can get query
from buyers from around the world. Because they don’t need to put much effort
to sell, companies are hopeful.
Free
Trade Facility
As a matter
of fact, buyers are highly interested in these east African manufacturers and
one of the biggest reasons is free trade opportunities. Ethiopian government is
much more open to this business ideology and attracting a significant number of
buyers from largest fashion market like US and EU countries. Similarly,
Ethiopia is also wining export opportunities in middle east and Saudi Arabia
and UAE are the largest importer of Ethiopian textile and apparel.
Developing
Infrastructure for Business
Madagascar is the most potential place to grow
this industry because they have been in the rapid growth of their transport
facility. The government of Madagascar believes that if they can develop a
better transportation system everything has be developed. Besides all the
others nations of this economic zones are doing really well especially
Ethiopia.
Ethiopia is
a single nation in the pact to become the next Bangladesh in the textile and
apparel manufacturing. If we compare this African nation with Bangladesh, we
will be able to see that they have been creating economic zone in many
different parts of their nation. All of them to be highly efficient in
production and production growth.
23
African Nations Support the Pact
This is the
biggest privilege for this zone to thrive in the market. It has been a decade; these
23 nations have been successfully developing the notion of AfCFTA and that is
the reason Ethiopia and other nations like it are thriving in the market. These
nations have been supporting each other for textile and apparel trade. They
combinedly running this pact to keep the entire zone free market trade so that
they can capture the entire market. And if this continues this way it has to
become the largest textile and apparel manufacturing zone in the world.
Political
Stability
The zone is
keeping up with the business well because the political stability is
impeccable. Unlike other largest manufacturing nations like Bangladesh,
Vietnam, Turkey, India etc. African nations are highly stable in terms of
political environment. Ethiopia, Tanzania and Madagascar are some of the most
politically stable nations in the zone. Following the others Madagascar is also
doing pretty well.
Accessibility
of Land
Accessibility
of Land is another factor for foreign investors to move into this zone. From
last couple of years, a significant number of investors have been coming to
these nations and they find the trading policy as one of the most flexible one
in the world. The growth of the textile and apparel is rising up because it is
the leasing system of Ethiopian and other countries land. And due to that most
of the foreign investors are ready and interested to do business in these east
African nations.
Overall the
textile and apparel industrial growth is very appreciable in these African
nations. The export growth is rising because of number of facts including
stability of political condition and tax-free trade facility. Besides accessibility of land by foreign
investors is another important thing. The labor cost is also cheap in compare
to other countries. On the other hand government is rapidly developing economic
zones and transport facilities so that the export growth don’t be interrupted.
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