Chinese firm to set up garment factory in Senegal

15 Jul '15

2 min read

A China-based company has signed a memorandum of understanding (MoU) with the Agency for the Promotion of Investments and Major Works (APIX) to set up a garment manufacturing factory in Senegal, located on Africa’s west coast, local media has reported.

The MoU signed earlier this month by representatives of APIX and C&H Garment Company envisages an investment of $25 million, according to an Agence Ecofin report.

The clothing factory will come up in Diamniadio industrial park, about 30 km from capital Dakar, and will initially employ 1,000 people when it goes operational by June 2016. Later on, the factory will be expanded to increase employee strength to 5,000, the report said.

All production at the factory, being set up under Emerging Senegal Plan (PSE), will be meant for exports.

The project aims to benefit from local availability of labour, export opportunities available on the integrated market of the West African Economic and Monetary Union, and the strategic proximity of Senegal with importing countries, specifically the US and the EU.

C&H Garment is owned by two entrepreneurs –Candy Ma and Helen Hai. Candy Ma is a highly experienced industrial garment manufacturer with 17 years experience of working and managing factories in Africa. From 2009 to 2013 she was MD and owner of Future Garments based in Nairobi. Future Garments employed 5,000 workers and exported garments under AGOA to companies such as Walmart and Target.

Helen Hai has successfully set up and managed the fast growth of Hua Jian, a Chinese shoe producer. In the two years between 2010 and 2012, the factory trained and employed 2,000 workers and exports to the US and Europe rose to $12 million per year making Hua Jian the largest shoe exporter in Ethiopia.

C&H is already in the process of setting up a garment production unit in Rwanda. The company plans to invest in a series of projects in Senegal.

For Senegal, the new garment manufacturing unit would result in transfer of technologies which would be beneficial for the growth of textile industry in the country. (RKS)

Fibre2Fashion News Desk - India