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July 20 | east africa investment | 541 views | 0 Comments

Following to the positively proved textile industries’ promissory gains in the past five years, East African countries have been increasing their relentless efforts to expand this industrial venture.

East Africa managed to attract major retail brands such as Wal-Mart’s Asda, Primark, Tesco, Hennes and Mauritz (H&M), Phillips Van Heusen and Tchibo, which are sourcing apparels from Ethiopia and Kenya.

According to ‘Textile Outlook International,’ in addition to the aforementioned brands, other businesses like Marks and Spencer, VF and Zara are also on the edge of launching their apparel activities following to their nearly processed prerequisites for opening their respective offices in Ethiopia.

To create a conductive business atmosphere for East Africa and other countries, Kenya hosted the ‘Original Africa’ apparel show in 2014.

In this hortative textile-industries centered extravaganza which was held from 10 to 12 November in Hotel Intercontinental Nairobi, more than 400 participants from 11 countries participated in the event, encompassing 15 regional and international buyers, with representations from across the cotton, textile and apparel value chain.

And in this year, Ethiopia has also been awarded with the opportunity for arranging and organizing the 2015 ‘Origin Africa’ and ‘Africa Sourcing and Fashion Week’ in its Capital City, Addis Ababa, from 21 to 23 October of 2015.

In a region where textile industries are getting fierce competition, Eritrea, a nation which had great merits over Ethiopia in dying and sewing, and, similarly, proved excellence in managing maintained demand-supply equilibrium over Uganda before two decades, has not long been in the track of competing against East African countries in this arena.

Uganda, however, has started taking various emancipating efforts for declaring a competitive textile industry in which Kenya and Ethiopia have already taken the leading force.

Therefore, Uganda’s Textile Industry also got a new revitalizing life through the Commissioning of the Fine Spinners Uganda Limited in Bugolobi, Kampala.

In addition to the efforts for resurrecting the textile industry, Governmental agencies also expect to benefit much more from these ventures.

In fact, the giant economy in East Africa, Kenya, has been well assisted from African Growth Opportunity (AGOA) with US$ 300m earns yearly while Uganda is exposed into detrimental policy which has left the country with getting a less than $5 m assistance per year.

Unlike all East African countries, Eritrea is the only unfavorably stormed country for not getting such assistance from AGOA for almost a decade.

Economic Benefits

Ethiopia and Kenya at regional level, Eritrea and Uganda for their own home demand, have been showing such promissory accomplishments.

In Kenya, for instance, as many as 46 apparel manufacturing industrial projects were approved by Kenya Industrial Estates in 2013. Hence, such goodly proved leap in the quality and other textile accoutrements have been positive for providing the country with easily prophesizable economic benefits in the coming years.

Similarly, Ethiopia has got a cut above movement in this sector. Between 2010 and 2011, the employment figures in the apparel industry in Ethiopia doubled to 11,716 while textile and apparel export earnings rose from US $12.6m to US $111m.

In addition to this, for armoring the textile industry, the country has given a license for Kanoria Africa Textile Industry PLC. Of course, this firm which was established by Indians is there in Bishoftu, Eastern Addis Ababa, thereby to have its industrial premises across an area of 155,000 sq m.

Underpinned by the environment which supported a number of investors to look the country promissory prospects, Ethiopia expects to witness a leaping augmentation in this sector.

At another business perimeter, Eritrea and Uganda have been confined in satiating their homely offered demands.

In 1995, highly supported by the cotton cultivation inside the country, Eritrea—even though the factories which have now been improved were then ravaged exhaustively—had vital role in East Africa for exploiting such textiles opportunities. Unfortunately, hindering policies have, among others, been such dragging factors.

Even with its confined and dire business policies, Eritrea textile industries are fully equipped with the vital requirements for getting their right standard if such business policies tuned in functional way. Baroco and Dolce Vita are prominent in this field.

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