With manufacturing costs continuously increasing in China and across Asia, many nations are exploring new apparel sourcing destination. Many companies are diverting their sourcing needs to newer countries and African continent is emerging as the answer to their quest. Speaking during the AAFA webinar, Marie D'Avignon, Manager of Government Relations for the American Apparel & Footwear Association (AAFA) said that there are three main reasons why Africa is becoming a great option for sourcing.

Firms, want to create jobs in countries that need them, and ensure their factories are in countries where workers are well-treated. AGOA (the African Growth and Opportunity Act originally passed in 2000 and set to expire in September 2015, aimed to provide economic opportunities to countries showing a commitment to good governance and democratic principles. Africa’s growing population is also said to proving as a major pull factor for investors. 

In addition to the opportunities, however, there are also challenges like communication barriers, poor infrastructure, slow border processes and many countries within Africa not having a fast-paced business culture. The AAFA says there is a lot of input from local government to address the issues, expand their markets and attract investment.

AAFA is seeking interest in Africa from the US, with a lot of investment currently coming from Asia. Among the 54 countries, countries that appear to be benefiting from investor interest most, at the present time, include Swaziland, Kenya, Ghana, South Africa and Ethiopia.

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