Garment manufacturers still look at East Africa despite the fact that the potential is hindered by infrastructure and cumbersome Customs processes. Exports from Ethiopia, Kenya, Uganda, and Tanzania are expected to grow as they attract more investment.

According to McKinsey & Company, East Africa will remain a niche market for garment manufacturers over the next decade. However, its success depends on the existence of free trade agreements with the US and the European Union (EU). East Africa will comprise of only a small slice of the global sourcing market, but the industry’s impact will still be important for the region. This is when the annual exports over the next decade are slated to be $700 million. Ethiopia, Kenya, Tanzania, and Uganda comprise of 0.07 per cent of global exports, earning $337 million.

With investment rising, East Africa may be a new alternative for selected large players in basic categories. This would lead to annual exports to grow to $1 billion in five years and $1.7 billion annually in the next 10 years. East Africa may move beyond cut, make, and trim (CMT) facilities. This process however, may take several years before significant numbers of vertically integrated, domestic players appear in the region. Funds to upgrade facilities and skilled workers to become a major force in the apparel sector over the 10 years will be extended to the industry.

One of the drivers for this is duty-free access to the US provided by Africa Growth and Opportunity Act (Agoa). However, the region’s garment manufacturers are looking at the EU to diversify markets. McKinsey also informs that global buyers’ preferences indicate real interest in Kenya and Ethiopia.