Africa is looking increasingly attractive to US clothing manufacturers. Though Bangladesh and China remain top sourcing destinations for clothing production, China is facing wage pressures and rising production costs and Bangladeshi garment factories are facing safety issues.

American clothing giant Phillips-Van Heusen Corporation, which owns the Tommy Hilfiger and Calvin Klein brands, sources five to six per cent of its global production from Africa. Over the next five years it hopes to make that 25 per cent. However, buyers need to evaluate the region as a true strategic option rather than just a testing ground.

East Africa in particular is a clothing production destination, thanks in part to strong public-private partnerships. Labor is abundant and well educated in Ethiopia, the second most populous African country. Ethiopia has cost advantages: low wages, relatively cheap work permit visas for foreigners, and low electricity prices boosted by investment in renewable energy.

H&M started sourcing from Ethiopian garment producers in 2013. Since labor is cheap in Africa compared to ever increasing wages in Asia, more companies will be looking to move operations to Africa. Ethiopia and Kenya benefit from duty free access to the US market under the African Growth and Opportunity Act. Both could compete globally in apparel manufacturing.