Home / Knowledge / News / Apparel/Garments / Rising costs in Asia makes AGOA countries attractive
Rising costs in Asia makes AGOA countries attractive
03
Nov '12
Mr Jas Bedi
Mr Jas Bedi
The textile and apparel sector from around 40 African countries, which make up for the African Growth Opportunities Act (AGOA), expects to attract investment from local as well as overseas entrepreneurs, but mainly from the Asian continent.

Confidence stems from the US extending the third-country fabric clause in garment exports from these countries to the US till Sept 2015, which entails duty-free apparel exports to the US and makes them even more attractive destinations.   

Secondly, production costs in Asian countries like China are rising, which will help divert a few production bases if not many to these African countries, in order that these apparel exporters maintain the same competitiveness. 

Three countries – Mauritius, Ethiopia and Tanzania after recording good growth rates in exports to the US, repeated the same feat half-way through 2012. Mauritius fresh from strong growth in 2011, witnessed 25 percent y-o-y growth in first six months of 2012.

Ethiopia and Tanzania, albeit from smaller bases, have seen their AGOA exports increase by 70 percent and 110 percent, respectively. However shipments from a traditional apparel producer and exporter – Kenya saw a marginal growth of only 2 percent in 2012.

“Exports from Tanzania and Ethiopia have skyrocketed primarily because they started with a low base, so doubling revenue was not astronomical and thereby sales growth looks great,” says Mr Jas Bedi, Chairman of African Cotton Textile Industries Federation (ACTIF).

“However, if the US government had not extended the third-country fabric sourcing clause, the whole textile and clothing industry in those countries would have collapsed”, informs Mr Bedi, while speaking to fibre2fashion.

Revealing the optimism behind attracting overseas investments, he explains, “Yes we are optimistic that garment production will shift to the AGOA countries to enhance product competitiveness, as costs in Asia continue to increase”.

Total apparel exports from AGOA countries jumped from US $789.49 million in 2010 to $903.21 million in 2011, while in the first eight months of 2012, they stood at $569.77 million. 

Fibre2fashion News Desk - India


Must ReadView All

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Clash over monetary payment by UK at Brexit talks

Textiles | On 18th Oct 2017

Clash over monetary payment by UK at Brexit talks

The European Union (EU) and the United Kingdom (UK) are clashing over ...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search