Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/East African textile sector tipped on maximising technology

East African textile sector tipped on maximising technology

East African textile sector tipped on maximising technology
Published date:
Friday, 20 October 2017
Author:
JAMES KARUHANGA

Textile industry players in the region have been challenged to start making garments that require low level technology and skills as the East African Community (EAC) countries prepare to phase-out imported used clothes.

Lilian Awinja, the Executive Director of the East African Business Council (EABC), said the sector can manufacture apparels such as inner garments, ties, scarfs that require low level technology and skills.

“It is a high time that EAC countries embarked on manufacturing apparels such as inner garments, ties, scarfs that require low level technology and skills as the region works on a phase out approach of imported second hand clothes,” said Awinja.

In 2016, the five EAC members - Uganda, Kenya, Burundi, Rwanda and Tanzania – agreed on phased plan and eventual ban on the importation of used clothes and leather products by 2018 to support industrialisation and job-creation in the region.

Awinja was speaking ahead of the second East African Business and Entrepreneurship Conference and Exhibition scheduled for November 14 to 16 in Dar es salaam, Tanzania.

The event is meant to provide a platform to create synergies and linkages between the local cotton and textile industries with local suppliers and the fashion and design industry. The meeting is also expected to devise an action plan outlining the policies and modalities to promote the sector performance, productivity and quality, according to a statement from organisers.

According to EABC, cotton production, processing and trade is highly influenced by policies of major producing countries through price support, tariff protection, production subsidies and stock piling that destabilise cotton prices.

The region’s cotton industry also faces huge challenges, including low yields, low ginning out-turn ratio and inefficient value addition, which affect its competitiveness, the apex body of private sector and corporate firms in bloc added.

Awinja said the textile industry needs to innovate and embrace value addition to produce aesthetic accessories, interior designs and fashion and hence create more job opportunities in the EAC. The EABC official said only 15 per cent of EAC cotton is processed locally, while 85 per cent is exported in form of lint to other countries.

She challenged regional sector players and governments to put in place programmes that will help reverse the trend, saying the lint should work as “a raw material base for textile and apparel manufacturing in the region”.

The upcoming regional business and entrepreneurship conference and exhibition will also feature fashion show for designers and firms to showcase the creations and forge market ties. It will also act as a platform to encourage East Africans to consume products made in the region, a move organisers say is crucial to strengthen local value chains.

Key fashion and textiles industry players, including Sunny Dolat from HEVA Fund, are expected to discuss ways of building synergies between cotton growers and the textile industry, and the untapped market opportunities in the region.

According to Awinja, the African fashion and design industry will have a huge opportunity “to be in the limelight on the international market”.

During the conference, there will also be discussions on information communication technology, urbanisation, cotton and textile, patents and copyrights in the creative industry, trade and gender, health, agri-business, and e-commerce. In addition, the East African Diaspora will be engaged to increase investment into the region. The simultaneous exhibition will give participants big opportunities to network and forge partnerships with other organisations and businesses, according to the organisers.

The event will also host a “Start-up Corner” to boost entrepreneurship and attract investments in the East Africa region.

Read related news articles

Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade

The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....

19 March 2024

AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth

The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...

08 August 2023

US fashion brands urge early renewal of AGOA

US fashion companies are calling for the early renewal of the African Growth and Opportunity Act (AGOA), a trade program that allows thousands of African products to enter the United States duty-free. They argue that a longer-term arrangement would not only benefit African economies but also boost investment in the region. The AGOA was first enacted in 2000 and is currently set to expire in 2025. However, US officials have indicated that the...

31 July 2023

'US-EAC trade pact comes into life amid disharmony'

The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region. On July 18, Trade ministers from Tanzania, Uganda,...

23 July 2023

US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]

The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach.  Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...

17 July 2023

US boosts Kenya apparel industry with $55m in new trade deals

The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...

29 April 2023

Africa seeks bigger US trade slice for AGOA to make sense

African countries may need more trade privileges with the US even as Washington reviews the African Growth and Opportunity Act (Agoa) meant to expand what the continent will export. At the end of the US-Africa summit in December, Washington pledged to renew Agoa, bringing clarity to uncertainties that had befell exporters from countries such as Kenya. But now experts say the narrow view of Agoa should be expanded to allow them to export more...

11 January 2023

Nigeria: Garment factory to create 2,000 direct jobs, utilize AGOA

Kwara State Governor, AbdulRahman AbdulRazaq, at the weekend, said the state’s garment factory will be inaugurated this year with a take off capacity to hire 2,000 direct labour. Speaking with dozens of APC youths, progressive social media influencers, and some online news publishers on Saturday, the governor said the idea is to make Kwara a hub for garment production, which can then benefit from the African Growth and Opportunity Act...

26 August 2022

EAC States challenged on trade agreements

The East African Community (EAC) partner states have been challenged to increase their volume of transactions under regional and international trade agreements. The region’s private sector trade block, East Africa Business Council, said it is imperative for the region to take advantage of opportunities such as the African Continental Free Trade Area (AfCFTA), African Growth and Opportunity Act (AGOA), Economic partnership agreement, to...

23 August 2022

AAFA: Africa ‘logical’ choice for brands fleeing China

The American Apparel and Footwear Association (AAFA) urged the office of the United States Trade Representative (USTR) to renew the African Growth and Opportunity Act (AGOA), as U.S. brands and retailers look to diversify sourcing. While the trade agreement’s expiration is still three years away, the Washington, D.C.-based trade group believes that establishing long-term, forward-looking policy will help brands commit to new sourcing...

29 June 2022

Kenyan textile company eyes export market through new Zanzibar facility

A Kenyan company is setting up a $51.3 million (about Sh115 billion) factory in Zanzibar as it targets to get a pie of the world’s $920 billion textile market. The global textile industry was estimated at around $920 billion in 2018, and it was projected to reach approximately $1,230 billion by 2024, available global data show. With its $51.3 million factory at Chunguni area in Zanzibar, Basra Textiles Limited is specifically targeting...

12 January 2022

You are here: Home/News/Article/East African textile sector tipped on maximising technology