Home / Knowledge / News / Textiles / Skewed policies thwart growth of African T&G sector
Skewed policies thwart growth of African T&G sector
20
Mar '09
Most of the African countries had developed core competencies within the value chain of the textile and garment industry in the past. Some countries like Ghana and Ivory Coast developed competencies in growing cotton, while others like Nigeria put efforts in growing the textile industry.

But, all these efforts put in by the respective government and international developmental agencies came to naught in the late 70's. Government apathy and skewed policies brought this once thriving industry to its knees. Even the 'African Growth and Opportunity Act' (AGOA), the free trade pact with the US has not helped the sector.

AGOA was signed in to an act in May 2000. It provides preferential access to Sub-Saharan countries in to US markets till 2015 and also has special provisions for exports of textiles. This act was enacted to help these African countries open their economies and build free markets in the region.

But, none of the countries of the AGOA pact have been able to take real advantage of the treaty with the US. This act could have brought in the much needed investments in to the textile sector with the attraction of exporting goods to US with preferential tariffs and also created jobs in the process. But it was not to be so.

South Africa too along with other member countries of the Southern African Customs Union (SACU), like Botswana, Lesotho, Swaziland and Namibia had in the past, announced two major policy changes. One had to do with the hapless customized strategy, which really never took off, while the second was an export incentive.

The export incentive or subsidy or the Duty Credit Certificate Scheme (DCCS) as it was called, provided rebates on imports of raw materials meant for manufacturing goods for exports. However, these incentives were not within the policy frame work of the World Trade Organisation (WTO) agenda.

No one bothered to reframe the incentive structure as per the WTO guidelines and a very good policy which would have helped the textile industry to prosper was allowed to gather dust, with the result that companies from South Africa and SACU country signatories are leaving the sector in droves, giving rise to unemployment.

Most of the countries like India, China and Pakistan have announced stimulus packages for their respective textile and clothing industry. But the South African textile sector is not able to pressurize the government to announce a package on similar lines, though a revival package has been declared for the automobile components sector.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Casper raises total funding of $240 million

Casper, the global sleep company launched three years ago has...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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