Africa is fast emerging as a sourcing alternative for some of the world’s top brands. For a long time, these brands were sourcing from Asian countries such as Bangladesh, Sri Lanka and India. But minimum wages have clouded the picture. The minimum wage in Bangladesh is at least three times that of Ethiopia’s garment sector, which actually has no minimum wage for workers.

Most countries in Africa that produce their own cotton are benefiting from the recently renewed free-trade agreement with the US, under the Africa Growth and Opportunity Act. The continent has suddenly become a magnet for world’s major clothing companies.

AGOA’s positive impact on sub-Saharan Africa’s clothing industry has led to textile plants being opened across the region. Light manufacturing traditionally moves around in the global economy and, as far as the textile industry is concerned, there is a distinct possibility of that kind of a move from Asia mainly because of rising labor costs.

For now, Ethiopia seems to be a favorite sourcing destination for clothing companies. It’s a country with a rich fashion sense and a century-old textile industry. Cotton cultivation by most African countries shortens the production period, which is why US retail chains such as Walmart are increasingly stocking clothing made in Africa.