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Tuesday, 30 July 2019 12:11

Africa emerges as sourcing hub for the US

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US importers are looking for sourcing alternatives in Africa. Ethiopia’s apparel shipments to the US in May rose by 119 per cent year to year. Kenya’s apparel shipments rose 44.8 per cent. Madagascar’s shipments rose 20.4 per cent and Lesotho’s were up 19.8 per cent.

The next decade could see the continent become a substantial player in global sourcing. The Africa Growth and Opportunity Act (AGOA) offers preferential trade treatment to a host of sub-Saharan Africa countries, from Ethiopia to South Africa. Ethiopia is seeing the fastest rate of growth in apparel imported into the US among AGOA countries. Egypt has shown consistent strength as a supplier to US brands.

Morocco’s apparel sector employs 1,75,000 people–the largest in Morocco–with 1,200 textile and apparel companies with a capacity of 1.3 billion pieces of apparel annually. Morocco is the third most attractive investment destination in Africa. It has an established industry, the ability to service fast fashion firms and the free trade agreements it has with the US and the EU. Morocco has registered a five per cent year over year increase in exports to the US and EU. The Moroccan market is highly integrated with the European fashion industry because of its proximity. Egypt is known for its textile industry, particularly cotton, as well as tailored clothing and denim manufacturing. Jordan, on the other hand, produces no textiles and has a forte in cut-and-sew synthetic knitwear.