Home / Knowledge / News / Apparel/Garments / Rising costs in Asia makes AGOA countries attractive
Rising costs in Asia makes AGOA countries attractive
03
Nov '12
Mr Jas Bedi
Mr Jas Bedi
The textile and apparel sector from around 40 African countries, which make up for the African Growth Opportunities Act (AGOA), expects to attract investment from local as well as overseas entrepreneurs, but mainly from the Asian continent.

Confidence stems from the US extending the third-country fabric clause in garment exports from these countries to the US till Sept 2015, which entails duty-free apparel exports to the US and makes them even more attractive destinations.   

Secondly, production costs in Asian countries like China are rising, which will help divert a few production bases if not many to these African countries, in order that these apparel exporters maintain the same competitiveness. 

Three countries – Mauritius, Ethiopia and Tanzania after recording good growth rates in exports to the US, repeated the same feat half-way through 2012. Mauritius fresh from strong growth in 2011, witnessed 25 percent y-o-y growth in first six months of 2012.

Ethiopia and Tanzania, albeit from smaller bases, have seen their AGOA exports increase by 70 percent and 110 percent, respectively. However shipments from a traditional apparel producer and exporter – Kenya saw a marginal growth of only 2 percent in 2012.

“Exports from Tanzania and Ethiopia have skyrocketed primarily because they started with a low base, so doubling revenue was not astronomical and thereby sales growth looks great,” says Mr Jas Bedi, Chairman of African Cotton Textile Industries Federation (ACTIF).

“However, if the US government had not extended the third-country fabric sourcing clause, the whole textile and clothing industry in those countries would have collapsed”, informs Mr Bedi, while speaking to fibre2fashion.

Revealing the optimism behind attracting overseas investments, he explains, “Yes we are optimistic that garment production will shift to the AGOA countries to enhance product competitiveness, as costs in Asia continue to increase”.

Total apparel exports from AGOA countries jumped from US $789.49 million in 2010 to $903.21 million in 2011, while in the first eight months of 2012, they stood at $569.77 million. 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Modanisa

Apparel/Garments | On 23rd Mar 2019

European bank invests in Turkish fashion e-com platform

The European Bank for Reconstruction and Development (EBRD) recently...

UNIDO to train cotton farmers in Egypt on sustainability

Textiles | On 23rd Mar 2019

UNIDO to train cotton farmers in Egypt on sustainability

The United Nations Industrial Development Organisation (UNIDO) has...

China to boost investment in Bangladesh: envoy

Textiles | On 23rd Mar 2019

China to boost investment in Bangladesh: envoy

China would facilitate more investment by its companies and small and ...

Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Manuele Baggini,

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

N Nithyanandan,

N Nithyanandan

Incorporated in 1999, Purani Textiless Private Limited is one of the...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

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

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

Leave your Comments


March 2019

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

news category


Related Categories:

Advanced Search