Kenya wants to make a mark in global textile segment. The government is trying to lure textile manufacturers with a new subsidy, this year slashing the cost of power. It’s believed the sector can create 3,00,000 jobs if given the push it needs to grab a larger slice of the global clothing market.
Global buyers are weighing Africa up against Bangladesh. The death of over 1,000 workers in a 2013 factory collapse in Bangladesh, are forcing them to re-evaluate their sourcing. Safety issues in a factory can damage a brand’s image. Africa on the other hand appears to offer a series of advantages – it has water, cotton, labor and green energy. Unlike Bangladesh, African countries also have duty-free access to the US apparel market under the African Growth and Opportunity Act. (AGOA)
Ethiopia has set up functioning business parks for factories. Kenyans are expert clothes makers. The largest apparel factory in Kenya, Ashton Apparel, is growing and turns over a $100 million a year. The business produces denim for H&M, Walmart and others. However, Kenya’s apparel industry is still small, with an estimated 30,000 workers. The industry comprises only six per cent of the small manufacturing sector.
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