Home / Knowledge / News / Textiles / KAM: Government should incentivise textiles sector

KAM: Government should incentivise textiles sector

18
Jul '09
As the 8th AGOA Forum approaches, the Kenya association of Manufacturers (KAM) is asking the government to incentivise the country's apparels and textiles sector in order to prevent job losses and capital flight.

KAM's Textiles and Apparels Sector Chairman, Jaswinder Bedi said the Sector which has great potential in Kenya's economy has been on the decline over the years as a result of the high cost of doing business in Kenya.

Kenya's textile sector has been declining over the years from a high of 40 firms in 2003 to only 20 recorded at the end of April this year (2009). Bedi attributed the sector's decline to uncompetitiveness of the sector that had been occassioned by high production costs including cost of electricity. “There is need for the government to improve the business environment by subsidising costs such as electricity.”

Bedi who was speaking during a media briefing on the upcoming 8th AGOA Forum scheduled to take place on 4th-6th August 2009, said the textile sector can contribute greatly to the Government's ambition to create 500,000 jobs annually.

“The textile sector is capable of creating thousands of jobs annually thus making a major contribution to job creation in Kenya,” Bedi said.

Speaking during the briefing KAM Chief Executive, Ms Betty Maina said the AGOA Forum presents a major opportunity for the country because various stakeholders will be able to showcase and even sell their products and services both during the Forum and the exhibition that will run concurrently with the meeting.

AGOA provides duty-free and quota-free treatment for eligible apparel articles made in qualifying sub-Saharan African countries through 2015. Qualifying articles include: apparel made of U.S. yarns and fabrics; apparel made of sub-Saharan African (regional) yarns and fabrics until 2015, subject to a cap; apparel made in a designated lesser-developed country of third-country yarns and fabrics until 2012, subject to a cap; apparel made of yarns and fabrics not produced in commercial quantities in the United States; textile or textile articles originating entirely in one or more lesser-developed beneficiary sub-Saharan African countries; certain cashmere and merino wool sweaters; and eligible hand-loomed, handmade, folklore articles, and ethnic printed fabrics.

Bedi expressed regret that over the years, sub-Saharan countries had not taken advantage of AGOA and currently account for the less than one per cent of the total trade volume.

He noted that the country's sales to the U.S had been declining since a high of US$ 272m in 2003 to an estimated US$180m in 2009 based on the figures for the first four months of 2009 when the country had sales of US$60 million. Bedi noted that this decline was because producers had decreased operations following the end of the multi fibre agreement in 2005 and reduction of buyers targeting kenya as a source.

Ms Maina encouraged Kenyanbusinesses to take advantage of other products that are eligible under AGOA including tea, coffee and horticultural products instead of focusing only on textiles and apparels.

Kenya association of Manufacturers


Must ReadView All

Pic: Shutterstock

E-commerce | On 18th Aug 2019

E-commerce sales grow faster in rural China in H1

Rural China saw faster growth in e-commerce sales compared to urban...

Pic: Steve Madden

Apparel/Garments | On 18th Aug 2019

Steve Madden acquires Italian footwear brand Greats

Steve Madden, a designer and marketer of fashion footwear and...

Pic: Shutterstock

Retail | On 18th Aug 2019

For every US retailer closing stores, 5 are opening: IHL

More than five retail chains are opening stores for every retailer...

Interviews View All

Victor Chao, Esmetex

Victor Chao
Esmetex

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

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Xavier Martinez,

Xavier Martinez

CADT Software & Drafting was founded in Spain in 1987 by Josep...

Joachim Maier,

Joachim Maier

Switzerland-based Uster Technologies AG is the leading high technology...

Zafer Demirel,

Zafer Demirel

Turkey's Canlar Mechatronics is a leading designer and manufacturer of...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

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


August 2019

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

news category


Related Categories:

Advanced Search