East Africa a possible hub for apparel sourcing

17 Aug '15

6 min read

However, due to the lack of a local upstream industry, manufacturers must import fabrics -which means considerably longer lead times. Fabrics from overseas can take up to 40 days to make their way through customs and to a garment factory. Manufacturers and buyers alike said that another challenge of doing business in Kenya is comparatively high labor costs, with monthly wages for garment workers in the $120 to $150 range. Energy costs are also high, and because the power supply is erratic, factories often have to rely on generators. In Africa, power from generators works out to be four times as expensive as power from the grid.

Like Ethiopia, Kenya will need to address compliance and risk issues if it is to attract more international buyers. According to the Chief Purchasing Officers (CPOs) surveyed, corruption, high crime rates, and poor social compliance are among the core challenges they face in Kenya.

The report concluded that if East Africa is to experience sustainable growth in garment manufacturing, collaboration among all stakeholders is a must. Governments, for instance, might consider whether to invest in infrastructure, support local entrepreneurs, diversify free-trade agreements, and build market-oriented educational institutions. Suppliers will need to embrace performance improvements and management training, upgrade their facilities and offerings, and enter into long-term partnerships with buyers. All parties will need to make every effort to ensure social and environmental compliance. Buyers, for their part, would do well to support the capability-building efforts of East African suppliers and begin to evaluate the region as a true strategic option rather than just a testing ground. (SH)

Fibre2Fashion News Desk – India

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