AFRICAN TEXTILES INDUSTRY (Part 2)

BULETIN TEKSTIL.COM/ Jakarta

ETHIOPIA

Ethiopia, a nation renowned for its cotton production, has converted a mere 3.7% of its land area to cotton cultivation. Despite this, the country’s cotton crop productivity stands at 19.8 metric tons per hectare, which is processed at ginning facilities operating at a daily capacity of 1,031 tons.

The spinning industry in this nation has the capacity to manufacture 386.4 tons of cloth per day, while the weaving and needlework industry produces 578,576 meters of fabric daily.

Notable advantages include the availability of a sizable labor force, the continued suitability of the land for cotton fiber cultivation, and the presence of government policies that are conducive to the development of the textile industry.

Historiography indicates that the Ethiopian textile industry in Dawa City, Dire, has expanded since 1939.

Cotton plantations, the ginning industry, the spinning industry, the weaving industry, the knitting industry, the dying/finishing industry, and the garment industry are the subsectors comprising the Ethiopian textile sector.

Only 3.7% of the estimated 3 million hectares of cotton-producing agricultural land has been utilized. Within the Ginning industry, which comprises four roller ginning factories and seventeen saw ginning factories, the cotton fiber harvest is processed. The majority of the 38 textile factories in the country are under government ownership. Around Addis Ababa, 84 garment manufacturing facilities are situated.

The cotton producers’ organization, the Ginners and Exporters Association, the Ethiopian Institute of Textile and Fashion Technology in Bahir Dar, the Ethiopian Textile Industry Development Institute (ETIDI), and the Ethiopian Textile and Garment Manufacturers are among the institutions established by the government to promote the expansion of the textile industry. The Ministry of Industry is exerting significant effort in the areas of technology, marketing, and policy to expand fiber and apparel manufacturing capacity.

Although cotton is grown throughout Ethiopia, the Afar and Amhara regions account for 62% of total production. Cotton producers retain 23.57% of the total cotton production, while large cotton plantations employing contemporary mechanization systems produce the remaining 76.43%. Produced varieties of cotton fiber include Delpine 90 and Acala SG2.

The ginning industry processes cotton seeds utilizing a saw gin (22%), a 78% roller gin, and a 22% saw gin system. 1,031 tons per day is the installed capacity of the ginning industry. The ginning industry is distributed among various regions, including Far (18%), Addis Ababa (20%), Oromia (24%), and Amhara (20%), among others (19%). The principal obstacle confronting the cotton fiber industry is substandard fiber varieties; marketing is conducted through immediate negotiations rather than utilizing quality parameters, which is the prevailing approach to marketing cotton fiber globally.

The Ethiopian textile industry is divided into two distinct sectors: extensive textile factories and small-scale weaving industries dispersed across the nation. The small-scale textile sector comprises tens of thousands of modest enterprises. The spinning sector comprises four factories, collectively capable of producing 297,600 spindles and 15,728 rotors. Additionally, the large-scale textile factory comprises fifteen factories. Additionally, two factories manufacture stitching thread.

There are 500 shuttle looms and 1,100 shuttleless looms in the textile industry.

The Dyeing and Finishing sector continues to rely on antiquated machinery, operates at a limited production capacity, and contributes to environmental degradation through inadequate processing of dye and chemical waste. These issues not only compromise the quality of finished fabrics but also impede the progress of Ethiopia’s domestic downstream industry.

Availability of a substantial labor force, land suitable for production, and the presence of adequate facilities and infrastructure are additional factors that are anticipated to entice foreign investors to allocate their investments in Ethiopia’s TPT sector. Investors are expected to be allotted land by regional administrations within sixty days of the application being received. Individual enterprises may engage in negotiations with the government in order to secure incentives for textile industry investment.

Access to Ethiopia’s global TPT market is progressively expanding through bilateral agreements with Western nations, the Common Market for East and Southern Africa (COMESA), and AGOA, which promotes African growth initiatives. Ethiopia is also a participant in the European Union’s “Everything But Arms” market access program, which is designed for less developed countries.

RWANDA

Aligned with the policy of restricting textile importation, the Rwandan government supported the “made in Rwanda” initiative in 2015 with the aim of fostering the expansion of the domestic market and incentivizing citizens to purchase Rwandan-made goods. The acquisition of used apparel imports by Rwandan citizens diminishes their desire to purchase domestic textile products.

Developed nations donate their used clothing to developing countries in the name of philanthropy for less fortunate citizens. Indeed, this undertaking is deleterious to environmental sustainability; it engenders pollution and impedes the progress of the textile sector in Rwanda. In light of this, the East African community nations reached a consensus to prohibit the importation of secondhand garments.

The United States threatened to revoke duty-free export privileges for all African nations enrolled in the AGOA framework as a reaction to this policy. Rwanda, despite the fact that many East African nations withdrew from the agreement to cease importing used apparel, maintained its commitment by establishing a “made in Rwanda” initiative for its domestic textile products.

The “Made in Rwanda” policy serves as a comprehensive strategic plan with the objective of enhancing competitiveness by expanding the domestic market’s absorption capacity and advancing the value chain of the textile industry in Rwanda. This policy delineates five pillars that are intended to contribute to the triumph of this campaign:

1. Examine distinct approaches tailored to the textile industry.
2. Production cost reduction initiatives for TPT products
3. Superiority in production excellence
4. Facilitation of intersectoral connections
5. Changing the minds of others

Small and medium-sized enterprises (SMEs) may encounter challenges in advancing if they are not provided with sufficient information regarding the resources procured via the made in Rawanda policy.

Additionally, the influence of Chinese investors entering Rwanda’s TPT sector must be considered. Concerns exist that low-cost TPT product production activities will not contribute to an improvement in the welfare of local laborers. The relocation of Chinese textile industries to Rwanda under the guise of knowledge and technology transfer must be thoroughly examined to prevent any potential misunderstandings.

Textiles, apparel, and leather are designated as priority sectors by the Ministry of Industry and Trade of Rwanda due to their substantial potential for industrialization expansion, employment generation, and foreign exchange inflows via exports.

Used apparel procured from Western nations is denoted as CHAGUA, wherein containers carrying bales of used apparel are delivered to regional retailers. The United States asserted that the cessation of Chagua imports constituted an attempt to obstruct free trade in exchange for the cessation of duty-free provisions on Rwandan textile exports.

East Africa’s fashion and textile industry has historically been dependent on pre-owned textiles imported from the Global North. Rwanda stands as the sole member state in the East African Community to have enacted an import prohibition as a strategic measure to expand its domestic market and foster consumer demand for Rwandan-made goods.

Utilizing a social-ecological framework, the government conducted SWOT analysis research to determine the positive and negative effects of Made in Rwanda policies on Rwandan citizens. The quality and dependability of local textiles continue to be inadequate for all segments of society, according to preliminary findings.

Numerous individuals are concerned about Chinese investors who are encouraged to invest in Rwanda due to the following reasons: low wages are paid to workers, training and skill development for workers is not adequately implemented, and technology transfer is not effectively executed. Furthermore, the industrial sector in question bears resemblance to the textile industry in pattern and nature. Existing domestic products are anticipated to pose a threat to the survival of domestic manufacturers. Additionally, there exists a perception on the international market that the involvement of Chinese companies will tarnish Rwanda with the label of low-quality rapid fashion TPT.

The public views import restrictions on second-hand clothing with skepticism due to their familiarity with inexpensive, branded second-hand apparel of high quality. In addition, this policy of import restrictions has engendered apprehension among retailers specializing in second-hand apparel, whose livelihoods have been contingent upon this industry.

Rwanda is confronted with a significant ecological challenge due to its landlocked geographical location, which complicates the management of industrial refuse. Rwanda appears to be facing numerous challenges that impede their objective of expanding the value chain of the textile industry and establishing the country as a developing nation on the international stage, where industrialization fosters economic growth, domestic market expansion, and poverty alleviation are all desirable outcomes.

SOUTH AFRICA

The textile industry is a significant contributor to the South African economy, accounting for approximately 14% of the nation’s employment opportunities. In South Africa, TPT ranks eleventh among the main exporters of industrial products.

The textile sector in this nation is a composite of conventional people’s industry and expansive modern industry. The government invested heavily in the development and modernization of the textile industry.

The textile industry in South Africa is regarded as promising by the government despite the considerable effort required to develop it. Beginning with the planning of the industry to be developed, product design, and production operations, the initial phase is to identify market segments. The quality of the basic materials to be utilized and market demand are two crucial factors that must be taken into account.

Thoroughly devised marketing strategies are imperative, while business planning encompasses gradual expansion of production capacity, deliberation on capital expenditures for machinery and equipment acquisition, and consideration of qualified labor availability.

Competitive pressures from foreign TPT manufacturers capable of greater output volumes and reduced manufacturing expenses constitute one of the most significant obstacles for the domestic TPT sector. In addition to capital access issues, branded TPT products from renowned foreign fashion manufacturers will present competition for SME producers.

In addition to adhering to government-established laws and regulations, South African manufacturers must ensure compliance with the numerous permits required from the time the product leaves the production facility until it enters the market. One such permit is the Certificate of Origin, which manufacturers are obligated to obtain when exporting their goods internationally.

In addition to production technology, South Africa must prioritize the development of other supporting technologies for its textile industry, including back office software solutions, inventory management systems, bookkeeping software, and online marketing tool facilities. With adequate business planning, the textile industry in this country is anticipated to expand substantially. This sector is anticipated to account for approximately 14% of manufacturing employment and could shortly employ around 80,000 individuals.

Views: 4