TRALAC - Trade Law Centre

Malawi: Textile sector fails to meet global demand

Wednesday, 16 May 2007

Source: The Daily Times (Malawi)

Local textile and garments producers are failing to meet the demand on the global market especially under African Growth Opportunity Act (Agoa) due to lack of capacity.

Chairperson of Garments and Textile Manufacturers Association of Malawi Kantilal Desai said this Friday during a trade consultative meeting in Blantyre.

Agoa, a United of States America trade initiative allows least developing counties (LDCs) like Malawi to export textiles and garments duty free on the USA market.

But Desai noted that despite Agoa favourable conditions Malawi was still unable to export under the trade arrangement.

"We are supplying less than one percent from what the market requires from us,” he said.

Desai who is also Chairman of Knitwear Industries said he has orders amounting to US$6 million (K840 million), but could not implement them because of poor trade policies.

"We lack machinery, trained personnel to handle current market demand,” he said adding that there was need for the private sector to invest more in the industry.

Agoa was last year extended to 2015 with emphasis that manufacturers should now be producing their textiles using local raw materials a move aimed at enhancing capacity in Africa.



“ Latest AGOA Trade Data currently available on AGOA.info


Click here to view a sector profile of Malawi’s bilateral trade with the United States, disaggregated by total exports and imports, AGOA exports and GSP exports.


Other regularly updated trade statistics on AGOA.info include: (click each link to view)

  • AGOA-Beneficiary Countries’ AGOA and GSP Trade Aggregates

  • AGOA Trade by Industry Sector

  • Apparel Trade under AGOA’s Wearing Apparel Provisions

  • Latest Apparel Quotas under AGOA

  • Bilateral Trade Data for all AGOA-eligible countries individually.