Home / Knowledge / News / Textiles / High cost of production drives out textile investors from EPZs
High cost of production drives out textile investors from EPZs
18
Jul '08
Unreasonably high cost of production and the consequent impracticality of doing business in Kenya, is forcing a large number of investors and foreign companies to opt out of Export Processing Zones (EPZs) of the country.

In an exclusive interview with Fibre2fashion, Mr Thomas Puthoor, Chairman of Garment Manufacturers Association, Mobassa stated, “In the last couple of years, over 25 factories across Kenya have closed down while many others have shifted to other countries in Africa, leaving around 30,000 people jobless.”

Mr Thomas further added that the African Growth Opportunity Act (AGOA) was a gift given by the US government to Sub Saharan countries to boost their apparel industry and increase job opportunities for thousands of workers. Additionally, it also gave countries the chance to set up their own infrastructure for producing fabrics, accessories and other goods. Eventually, this should have generated more employment and revenue for the countries but unfortunately over the last 10 years instead of recording a growth, the industry was actually dying a slow death every day.

Hike in electricity and fuel prices have been eroding the profits of the companies making it impossible to sustain business operation despite labor advantage. Until the government takes an initiative to improve this situation and provides adequate support for the survival of the remaining factories, the industry is unlikely to recuperate from the damages already caused by increased prices of inputs.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: African Development Bank

Fashion | On 24th Aug 2017

AfDB supports growth of African fashion sector

Fashionomics Africa (the economics of fashion) is an initiative of...

Textiles | On 24th Aug 2017

Pakistan's textile exports increase 2.78% in July 2017

The value of textile and garment exports from Pakistan increased by...

Courtesy: Differential Brands

Apparel/Garments | On 24th Aug 2017

DFBG sees 16% net sales rise in 2017 1st half

The net sales of Differential Brands Group Inc (DFBG), a portfolio of ...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

August 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
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

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
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

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
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

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
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


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