Interviews
Textile sector benefits from US recession
22 Nov '10
1 min read
The Kenyan textile industry is eyeing massive development opportunity in the US as consumers there are facing severe financial crisis, and are thus shifting to low cost zero duty imports from Africa rather than from other Asian countries, which don't enjoy any duty concession iin their exports to US.
In accordance with the African Growth and Opportunity Act (AGOA) agreement, the effects of the global economic slump have rendered African textile imports, more cost competitive to US consumers.
The Kenyan textile industry is now witnessing the demand for textiles from India, China, and Sri Lanka moving to African countries which enjoy duty free access, and more so now, when the global cotton prices are touching life time highs.
All the production units are operating at their optimum levels, and added that, this rise in demand may help the industry to overcome the decline in textile exports over the last few years.
There has been a continuous fall in Africa's textile sales turnover under AGOA agreement to US, from Sh21.7 billion in 2003 to Sh14 billion in 2009.
In accordance with the African Growth and Opportunity Act (AGOA) agreement, the effects of the global economic slump have rendered African textile imports, more cost competitive to US consumers.
The Kenyan textile industry is now witnessing the demand for textiles from India, China, and Sri Lanka moving to African countries which enjoy duty free access, and more so now, when the global cotton prices are touching life time highs.
All the production units are operating at their optimum levels, and added that, this rise in demand may help the industry to overcome the decline in textile exports over the last few years.
There has been a continuous fall in Africa's textile sales turnover under AGOA agreement to US, from Sh21.7 billion in 2003 to Sh14 billion in 2009.
Fibre2fashion News Desk - India
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