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Cheap imports pushes textile sector on the verge of collapse
18
Mar '08
Textile traders in Nairobi are struggling hard to deal with cheap imports from China and other countries.

Industrial sources are of the opinion that keeping textile business operational in the country will be nothing less than running for an intentional loss.

Moreover, growing international competetion in textile trade has compelled small textile traders and manufacturers to opt for a closure.

Cheap imports have completely flooded the local markets making it impossible for domestic entrepreneurs to have a lucrative business.

The situation has become so critical that many of these exhausted traders have turned to other countries for sustainable margins.

Expert survey showed that for a long time textile quotas on Chinese products had protected the African market and industries from cheap imports. However, these were removed three years ago.

Exports from China and India increased rapidly thereafter, and largely because these two countries have the advantage of cheap labor, modern machinery and strong infrastructure.

However, Kenya is not the only country struggling with Cheaper Chinese textiles, more than 70 percent of the markets of US and EU have goods manufactured in China.


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