Africa has become a strategic hub for China as a supplier of cheap raw materials. But the continent’s textile manufacturers and retailers continue to grapple with the colossal incursion of comparatively-cheap Chinese textiles and apparel. This competition has forced local firms to downsize or close. Textile industries have declined in output, lost market share, profits and over 75,000 jobs as a result of cheaper Chinese textiles on the local market.

As Africa embraces these cheap textile imports, jobs and revenues are exported along with social and economic ramifications. The country has recorded relatively-low levels of technological advancement and investment in capital. Consequently, the clothing and textile industry registers low productivity, slow turnaround time, and a weak value chain. In contrast, Chinese textile manufacturers have critically exploited their provisional assets such as cheap labor, technological upgrade, capital and skills training.

As severe poverty infests greater part of Africa, the low per capita purchasing power dictates that the demand for China’s low-price export goods will continue to scale-up. Chinese retailers have added a brutal fight to the already-severe situation by establishing local retail chains for their home manufacturers since Africa is one of the finest destinations for China’s finished products.