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Africa’s apparel exports to the US on the rise

African countries posted solid growth in apparel exports to the US during the first five months of 2018. Kenya remained the largest exporter from the continent followed by Lesotho, Madagascar, Mauritius, Morocco, Ethiopia and Tanzania.

Kenya’s apparel exports to the US grew 11.57 per cent year on year. Lesotho’s apparel exports to the US noted a decent growth of 9.27 per cent. Madagascar too showed impressive growth of 28.16 per cent on a year on year basis. Mauritius and Morocco were also up by 5.64 per cent and 9.96 per cent in their respective exports. Ethiopia’s exports to the US grew 106.55 per cent.

One major reason for booming garment exports from African nations to the US is investments by giant Bangladeshi garment groups to avail of duty privileges under AGOA. African countries enjoy duty-free and quota-free access for certain goods, including garments, to the US.

As China transitions towards higher value-addition in manufacturing and services, the African textile industry has a chance to take a share. Fashion products from Africa benefit from a tariff free access to the UK market as part of the EU trade policy, which makes them significantly cheaper than products imported from Asia.

 
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