*|MC:SUBJECT|*
VALUE CHAIN NEWS FROM THE AFRICAN CONTINENT - EVERY TUESDAY
This newsletter contains links to content located on external websites.
Over time it is likely that some of the links to this content may be broken.
You are advised to download material of interest as soon as possible.
LOGO OF THE
NEWS & RESEARCH FROM THE AFRICAN CONTINENT
(#31 / 2018 - 16 October 2018)
www.africantextilesandapparel.com
Ethiopia’s export of jeans to the US has risen by 162% in the period Jan-Aug 2018 compared with the same period in 2017. In the first 8 months of 2018 it has exported jeans worth aboutUS$12.6m
Sub-Saharan Africa's US orientated key jeans producers – Ethiopia, Kenya, Lesotho, Madagascar, Mauritius and Tanzania - exported jeans to the US worth US$288m in 2017. Thus far its exports for 2018 are 16.1% up over 2017
Kenya’s exports of jeans to the US has risen by 14% in the period Jan-Aug 2018 when compared with the same period in 2017. In the first 8 months of 2018 it has exported jeans worth aboutUS$79.4m
NEWS

KENYA – KEEPING TEXTILE-GARMENT VALUE CHAIN COSTS DOWN, 2 October 2018
Opinion piece: Pankaj Bedi - Chair of Apparel Subsector at Kenya Association of Manufacturers

“Promises made to investors must be delivered if Kenya is indeed to realise any of its economic goals. From mid this year the apparels sector in Kenya has been had hit by the cost of doing business, with major investors such as Long Yun Garments in Mombasa, shutting down and several others in different counties downsizing and reducing their operations. This has undoubtedly led to substantial job losses both directly as well as, those in the supply and value chains. The effect can also be seen in the drop in revenue through apparel exports from US$382 million in 2015 to US$354 million in 2017.

“For instance, with a view to bridge the competitiveness gap between Kenya and her neighbouring countries the Government declared that it would reduce the cost of electricity down to US$0.09 per kWh. This was intended to be done over a period of two years, from 2015 until 2017 by which time the country would be in a position to painlessly provide electricity at the same amount, for all investors. Three years later, this has not materialised. Instead what we are seeing is an increase in the cost of power which has negative implications for the overall cost of doing business in Kenya.

“Labour is another critical factor as pertains to the cost of operations in the sector. It is essential that, in an unpredictable business environment, well-intended proposals to increase wages are coupled with interventions to cushion already strained businesses. This was meant to happen with the 18% wage increase in 2017, but unfortunately has no tangible initiatives have been actualised.
READ HERE >>


ETHIOPIA – COTTON SUPPLY, 12 October 2018
The major factors hindering Ethiopia’s textile industry is a lack of inputs, and management experience. Shortage of inputs, especially of cotton, has been constraining the sector from greater productivity. The country is now focusing efforts on trying to ensure that there is a sufficient supply of locally produced cotton lint. This fiscal year the country plans to supply 60,000 tonnes of locally grown cotton to industry. READ HERE >>


LESOTHO – WOOL & MOHAIR TRADING WAR, 11 October 2018
A spiraling war between the Lesotho government and the country’s 37,000 wool and mohair farmers took an alarming new turn with the arrest of their association’s outspoken frontman. Khotsang Moshoeshoe is reportedly facing charges of sedition and incitement for stoking resistance among growers to the government’s forced closure of the country’s wool shearing sheds. READ HERE >>

--------------------------------------------------------

ETHIOPIAN UPDATE - ADAMA INDUSTRIAL PARK OPENING

Last week I reported on the opening (officiated by the Ethiopian Prime Minister) of the Adama Industrial Park; I also gave an overview of the Antex factory that was the first to open there. Well, apparently, the industrial park has indeed been opened, and the Antex Group has installed its machinery. Unfortunately no production is taking place - apparently the industrial site has no electricity ... nor any potable water!
CLICK HERE TO FORWARD THIS NEWSLETTER TO A COLLEAGUE
TO SUBSCRIBE TO THIS NEWSLETTER "CLICK" HERE
SOUTH AFRICA – HIGH CUBE CONTAINER REPRIEVE, 12 October 2918
High cube containers will continue to be transported on South African roads at a height of 4.6m for the next year following a last-minute decision by Minister of Transport. According to regulation 224 (b) of the National Road Traffic Regulation Act containers, when transported on the back of a trailer, may not exceed a height of 4.3m. This is not a problem for standard containers that are 2.6m high. High cubes, however, have an overall height of 2.9m so that when transported on the back of a trailer they exceed the 4.3m height limitation by 30cm at 4.6m. In 2011 government issued a moratorium giving blanket exemption for the transportation of these containers at 4.6m. But, with this set to be lifted on 1 January 2019 next year, industry has been lobbying the DoT to revoke the moratorium and amend the height legislation from 4.3m to 4.6m. This means that industry can continue to move high cubes at a height of 4.6m until January 1, 2020. READ HERE >>


ETHIOPIA – LOGISTICS, 13 October 2018
Pursuant to the recent decision of the Ethiopian government to privatise its assets in the logistics sector DP World, the UAE’s port and terminal operating company, has expressed its interests in developing logistical trade facilities at Dire Dawa and the surrounding areas in Ethiopia that all serve the so-called Berbera Trade Corridor. READ HERE >>


ETHIOPIA – MINISTRIES TO MERGE, 10 October 2018
The Ethiopian Council of Ministers has approved a plan to downsize the number of cabinet ministries in Ethiopia from 28 to 20. It has sent a draft law to the House of People’s Representatives on the restructuring of the executive organs. A few of ministries are to merge - including between the Ministry of Trade and the Ministry of Industry. READ HERE >>


NIGERIA – GM COTTON, 12 October 2018
An international organisation, the Open Forum on Agricultural Biotechnology in Africa (OFAB), has advised Nigerian farmers to take advantage of the newly approved Genetically Modified (GM) cotton varieties to boost the country’s cotton production. Nigeria’s OFAB country coordinator, Dr. Rose Gidado, said that the cultivation of the GM cotton varieties would significantly improve cotton production when compared to the use of the conventional varieties. READ HERE >>


WTO / ITC – COTTON PORTAL
The “Cotton Portal”, developed jointly by the World Trade Organisation (WTO) and the International Trade Centre (ITC), was launched in Argentina in December 2017. New Portal features have now been added that will allow users to find more practical information for better trade. These new features include an "export potential" map, and the contact details for buyers in export markets. Historical data on cotton supply, use by country and key statistics provided by the International Cotton Advisory Committee (ICAC), including harvested areas, production, consumption, trade and stocks, have also been added to the portal. READ HERE >>


GHANA – TURKISH COMPANY TO INVEST, 12 October 2018
Following a series of sideline meetings at the Turkey-Africa Economic & Business Forum between a Ghanaian delegation and Turkish investors it has been revealed that some Turkish textile-garment manufacturing firms will establish facilities in Ghana. Garment and textiles is one of the strategic sectors selected by the Ghanaian trade and industry ministry under its industrial transformation plan. READ HERE >>


EAST AFRICA – SOCIAL COMPLIANCE, 11 October 2018
The United State’s Agency for International Development’s (USAID) East Africa Trade & Investment Hub (EAITH - SEE>>) will assist regional firms to become more competitive through improved social compliance. EATIH will do this by assisting firms to obtain Worldwide Responsible Accredited Production (WRAP – SEE >>) certification. The Hub’s trade promotion and AGOA team conducted three sensitisation seminars in the first half of October for East African apparel firms from Kenya, Ethiopia and Madagascar. The workshops provided participants with the benefits, procedures and cost for obtaining WRAP certification. From November 2018 to March 2019, the Hub will provide direct support in the audit and WRAP certification process. READ HERE >>

Comment
Its important work to ensure all firms in a country have improved labour relations; and compliance with labour laws. In my view one of the best ways that the USAID funded Trade Hubs could do this would be for them to look at ways to reduce enterprise costs related to obtaining WRAP accreditation. A more sustainable way, rather than funding firms, would be for the two remaining Trade Hubs (in Southern Africa, and in East Africa) to ensure that there are more WRAP accredited trainers and evaluators within Africa – especially in the countries where there is a significant apparel industry. This should bring down the cost to companies of getting WRAP accreditation. The various Trade Hubs could do this by co-financing other social compliance auditors to be able to become registered WRAP trainers and auditors. This would be much more sustainable than simply assisting companies with direct finance so they can meet the WRAP standard.


EGYPT – NEW VALUE CHAIN STRATEGY TO BE DEVELOPED, 12 October 2018
Egypt's public business sector minister Hisham Tawfik said that the ministry is working on implementing a new comprehensive plan to develop the textile industry within three years. READ HERE >>


EGYPT – UNSOLD COTTON CROP? 10 October 2018
Egyptian cotton faces the threat of going unsold despite recent crop production - estimated at 2 million metric quintals – seeing their highest quality in years. Traders had been optimistic and expecting a rise in exports of up to 45% in the 2018/19 year. With this in mind, Egyptians planted 336,000 feddans (equivalent to 1.038 acres (0.42 ha)) of long-staple cotton this year, up from 220,000 feddans in 2017, the ministry announced in July. However, agricultural companies have refused to make a deal with the Egyptian government and farmers due to the surge in interest rates and costs. READ HERE >>


ETHIOPIA – ORGANIC COTTON PROJECT, October 2018
In recent years Ethiopia has attracted much attention from retailers as another potential textile hub to make clothes. However, while many factories have orders for clothes made with sustainable cotton, as yet, Ethiopian farmers are unable to meet this demand. Last year, 200 of the 2,800 farmers TRAID has supported over the past four years were certified organic, the first ever in Ethiopia. The other 2,600 are also well on their way to becoming officially organic. This new project will scale up this successful programme to train a further 2,700 farmers to practice safe farming methods with the ultimate aim of becoming certified organic too. Increasing numbers of retailers and brands are pledging to use more sustainable cotton to make clothes and textiles. We hope that 5,500 trained farmers will go some way to producing enough organic cotton to feed Ethiopia’s growing textiles industry. READ HERE >>


ETHIOPIA – AN ASSESSMENT OF TEXTILE & APPAREL INDUSTRIALISATION, 3 August 2018
Ethiopia enjoys duty-free exports to the USA and Europe, and as the global division of labor is redrawn, the East African nation with a population exceeding 100 million is a new land of opportunity for the Taiwanese textile and apparel industry. But setting up in the country has not been without its challenges for some Taiwanese investors. READ HERE >>


SOUTH AFRICA – ENERGY & WATER EFFICIENCY – 19 July 2018
In July 2018 the World Bank issued an expression of interest notice related to improving energy, water and chemicals use efficiency in South Africa’s textile sector. The specific requirements were:

“A local (South Africa) consulting firm is being sought who will undertake the following work: i) Establish baselines and collect key performance indicators data on the water, energy and chemicals use and waste water generated. ii) Design and propose a resource efficiency improvement program (energy, water and chemicals); iii) Prepare a financial plan for the resource efficiency program. The financial plan must explore different investment and business model options and describe which fits the best a selected client; iv) Assess the financial feasibility of implementing power generation projects such as solar photovoltaic, natural gas generators and combined heat and power system.
READ HERE >>

Comment
Its unclear as to who actually commissioned this work – was it a South African government department (Trade & Industry Ministry; Economic Development Ministry; or the Environment (Ministry)? Or is this part of a global initiative of the World Bank?
PREVIOUS EDITIONS OF THE
"AFRICAN COTTON, TEXTILES & APPAREL MONITOR"
ARE ARCHIVED ON THE WEBSITE

WWW.AFRICANTEXTILESANDAPPAREL.COM
TO SUBSCRIBE TO THIS NEWSLETTER "CLICK" HERE
CLICK HERE TO FORWARD THIS NEWSLETTER TO A COLLEAGUE
TABLE OF THE WEEK

SUB-SAHARAN AFRICAN JEANS EXPORTS
TO THE UNITED STATES
USING THE AFRICAN GROWTH & OPPORTUNITY ACT
2017; JAN TO AUG 2017 COMPARED WITH JAN TO AUG 2018

There are a range of Harmonised System customs tariff codes that more precisely define denim jeans. For simplicity's sake the following broad codes have been used to extract data on denim jeans:
  • HS6204.42: Men's or boys’ bib and brace overalls, breeches and shorts (of cotton)
  • HS6204.62: Women's or girls' trousers, bib and brace overalls, breeches and shorts (of cotton)
TABLE SSA JEANS EXPORTS TO THE US.  [This image can be seen if you enable
FEATURE
PVH WINS TRUMP ADMINISTRATION AWARD

Some weeks ago this blog reported the US Secretary of State’s Award for Corporate Excellence (ACE) for Sustainable Operations had been given to PVH (
SEE >>) for their business operations in Ethiopia. The pre-award handover press conference and the award ceremony itself are covered here; then a comment.
----------------------------------------------

PRE-AWARD CEREMONY PRESS CONFERENCE – 4 October 2018
Prior to the award ceremony the US State Department held a press briefing which involved Assistant Secretary of State for Economic & Business Affairs, MS Manisha Singh, and the Deputy Assistant Secretary, Bureau of African Affairs, Ambassador Matthew T. Harrington. Journalists from around Africa were able to call in an ask questions.

The full State Department press briefing transcript can be accessed on this
LINK >>.

some extracts:

QUESTION: My name is Fekadu from "The Reporter", an Ethiopian newspaper. I just want to bring your attention to the point that PVH is one of the award-winning companies for corporate excellence, but the question is, there are issues when it comes to a company such as PVH in terms of trade union establishment within the industrial park that is already in place in Hawassa, which is the thing that needs to be one of the [UNCLEAR] to say you know, between the employees and the employers, which they are not allowing them to have a trade union?

The other is, there is the agreement between the employees and the companies with regards to having a modest payment, at least, to say, there is no minimum wage, not in Ethiopia but the company’s, most of the companies paying for their employees, it can be referred to as exploited wage. So with this highlight, how do you see and how do you find companies to award such as PVH that, I mean - they have been, you know, for quite a while in the media, as well as, you know, trade unions, have been fighting for that.

MS. SINGH: Thank you for that question. We certainly encourage all companies to come to mutually agreeable resolutions with their employees. You know, we support good employment practices, good governance, and we would like to see all of our winners of the ACE corporate awards to take the time to review any of the problems that they’re having, and again, hopefully come to successful resolutions.

For PVH, our award that we are giving to them is for Sustainable Operations. We looked at their operations in terms of their provisions of renewable energy and the friendly environmental practices that they implemented, and we thought that they should be recognized for that. But the issues that you raised, again, we would just say that we hope that companies are able to come to good resolutions with their employees and workers.

MR. HARRINGTON: I think ultimately there's an expectation among American consumers that the companies they buy products from behave ethically overseas. That is an expectation that has grown and is significant now, and I think is an important guidepost for companies as they establish operations overseas.

----------------------------------------------
QUESTION: Simon Ateba from Today News Africa in Washington, D.C. We know that China has taken over Africa. They are building an international airport in Angola, signing deals all over the place, bringing in their laborers rather than employing local Africans, in addition to flooding the continent with substandard materials, while not doing anything about human rights. What is the USA doing to counter China in Africa in terms of investment?

MS. SINGH: This is something that is very much on the radar of the U.S. government right now. As I mentioned, we are looking to engage more fully in Africa, and our theory on engagement is that it should be led by our private sector.

As you know, we, the USA do business very differently than China. We want our private sector - our companies - to go into Africa and create jobs there - and I would point out that our ACE award winners this year - both PVH and Alaffia - have employed local Africans in the communities in which they operate. … They go into the communities in which they're operating and provide economic benefits, sustainable environments. That’s not something you’re going to see from China. I think your observations are absolutely spot on. The Chinese will come in and not necessarily take advantage of the local labour force. You know, environmental standards, human rights, are really not relevant for them.

The U.S. government wants to ensure that our companies are going to operate responsibly in foreign markets. We have a civil society that takes a look at how U.S. companies are operating overseas. So there are many factors which contribute to responsible operations for U.S. companies, … at this point, U.S. consumers want to buy products - whether it’s coffee or retail goods - that are sourced responsibly. People will ask us, "Are these goods fair trade?" "Are they made with human rights considerations in mind?" And so for companies, it really is good business right now to behave and operate responsibly. You will not find that with China, and so we are providing - we think - a better alternative to Chinese state-directed investment.

Comment
On China. The profound irony is that without the China its very unlikely that the Ethiopian industrial revolution would be taking place. A significant amount of the capital used to build the massive Ethiopian industrial parks and associated industrial infrastructure – including a new rail link that connects Ethiopia to Djibouti - was only made possible by Chinese capital.

Its possible that some of the Ethiopian garment manufacturers that are making PVH branded clothing are of Chinese origin; as are the fabrics and garment trims that are used to make that clothing. I am sure that PVH knows how important the Chinese are to their supply chain; and that most Chinese producers in their supply chain do not all operate as officials if the US State Department has characterised them as doing.

----------------------------------------------
AWARD CEREMONY - 5 October 2018
The US State Department Team was led by Under Secretary for Political Affairs, David Hale and Assistant Secretary of State for Economic and Business Affairs, Manisha Singh

The full transcript of the State Department award ceremony can be accessed on this
LINK >>.

MS. SINGH: First, we have the Award for Corporate Excellent in Sustainable Operations. Our winner in this category is PVH Corporation, which operates in Ethiopia. An industry leader and one of the largest apparel companies in the world, PVH works to maintain and promote sustainable business practices. Accepting the award is Emanuel Chirico, CEO of PVH.

With that, I want to go into a bit more detail about these companies, because you’re going to be absolutely amazed when you hear what they do. First, about PVH Corporation. PVH has envisioned a state-of-the-art, vertically integrated and sustainable industrial park for the production of garments. To achieve this aspiration, PVH brought like-minded partners together to create an industrial park in Hawassa, Ethiopia, where fabric mills and apparel factories powered by renewable energy sit beside a treatment plant that reduces the park’s environmental impact. Good practices.

Employing more than 15,000 workers of which 88% are women, this park is a model of bilateral government and business cooperation between the United States and Ethiopia. The ultimate goal of PVH’s model industrial park is to provide a better future not only for the workers and their families, but also to inspire responsible industrialization across Ethiopia for the betterment of the entire population, and to produce a new market for U.S. products benefiting workers here at home. It’s a win-win for us all.

… The winners today in Sustainable Operations and Women’s Economic Empowerment are a sign of our times. At this point in consumer purchases, we’ve found that American consumers, worldwide consumers, want to purchase products that are sourced responsibly, that are made by companies who care about the environments in which they operate. So responsible business is not just a smart thing to do, but it also contributes to a company’s bottom line.

U.S. companies practice high ethical standards, they pay fair wages and provide healthy and safe working conditions. For these reasons and more, local communities abroad want to work with American companies. We hope to continue these partnerships. We consider successes in Sub-Saharan Africa to be our successes. We’d like to think that success can be shared for all of us.

Women’s economic empowerment is a key priority for the Trump administration. Women make up more than half of the world’s population but only 40% of the global labour force. Closing the global gender gap in labour markets could increase worldwide GDP by as much as US$28 trillion by 2025.

MR CHIRICO CEO of PVH: … I am honoured to … accept the Sustainable Operations Award on behalf of PVH, in recognition of our best-in-class apparel industrial park that we’ve built in Hawassa, Ethiopia. It’s a proud moment for PVH, our partners, and our almost 40,000 associates around the world. As one of the largest apparel companies in the world, we are in a unique position to make positive impacts in the places where we live and in the places where we operate our business. And one of those places is Ethiopia, where we set out almost five years ago to create a sustainable, integrated apparel manufacturing facility with the highest standards in environmental and social sustainability.

We had a vision: to create a state-of-the-art supply chain facility, and we brought like minded partners together to create a model designed to spur economic growth without polluting or depleting Ethiopia’s natural resources. Today, thanks to the hard work of our team, our associates around the world, and our incredible partners, we are seeing this vision come to life in Hawassa Industrial Park.

We are focused on protecting the local environment using sustainable energy and ensuring sufficient supplies of clean water. We are creating a safe and inclusive workplace for all of the associates in Hawassa, men and women, creating opportunities for the residents in all the surrounding areas and providing economic growth. And we have been committed to embedding best-in-class manufacturing and supply chain practices and operations throughout Ethiopia.

The Hawassa Industrial Park is expected to result in 60,000 jobs over the next three years and features state-of-the-art machinery focused on environmentally advanced practices. The park’s zero liquid discharge treatment facility recycles over 95% of the waste water produced. This helps preserve Lake Hawassa, which serves as the community’s water supply and is the center of the local ecosystem.

I’m very proud of the operations we’ve established, but we certainly didn’t get there on our own. None of it would have been possible without the commitment and collaboration of our partners and their unwavering support throughout this journey. Our supply partners, the NGOs that worked with us, government representatives both here in the US and in Ethiopia that has enabled the 10-year extension of the AGOA agreement, has really been a benefit for us and has allowed us to make multi-million dollar investments in Ethiopia, as well as the support of our US embassy in Ethiopia, which has really helped us work through the issues that come up on the ground there.

And I also want to thank our PVH associates around the world, our PVH associates in our supply tent, and in particular, our chief supply chain officer Bill McRaith, whose vision was captured by this project. He was the leader within PVH. He was the one who sold the project at the board of directors level, presented it with such a passion, that clearly it came through and we knew we had to be in Ethiopia and make a commitment to it. He played an intricate role, and it wouldn’t have happened without his dedication and his vision.

Comment
I wonder if the US State Department gave consideration to the full basket of environmental issues that may affect the Hawassa Industrial Park (HIP)?

HIP’s zero liquid discharge (ZLD) waste water treatment plant can treat up to 11,000m3 of liquid wastes per day. The facility was built and is operated by Arvind Envisol (
SEE >>). Its doubtful though that the facility is currently functioning anywhere near full capacity utilisation as there are few textile plants in the industrial park - the main HIP textile manufacturer being the “JP Ethiopian Textile” facility (owned by the Wuxi Jinmao group - SEE >>).

There must be solid residues left over after the (ZLD) water treatment process. So what happens to these wastes? Theoretically textile dye wastes should be pre-treated to an environmentally acceptable level before they are then transported, by a licensed waste disposal contractor (in a suitable vehicle), to a properly designed and managed, geologically stable, landfill that can accommodate such wastes. Unless this is done it is possible that there may be contamination of ground water, soil and the surrounding biological environment. As a textile dyer would know some residual textile dye wastes contain amounts of "heavy metals" which would be extremely harmful to the environment.

Does a certified and properly managed landfill exist in the Hawassa area? Does such a landfill exist anywhere in Ethiopia? So the question is – what happens to the ZLD solid waste residues generated by HIP? Are they taken outside of the Industrial Park and deposited in an environmentally secure and managed landfill? Are they being stored on site (in HIP) until a secure facility is developed? Are they being exported out of Ethiopia where they can be safely disposed of?

Many Ethiopian stakeholders like to champion the environmental credentials of their new industrial parks – the phrase “Eco Industrial Parks” is bandied about a lot by the Ethiopian government, staff in government parastatals, industrialists, garment buyers, and even international development agencies. I believe its good that that they are thinking this way. I have seen too many polluting garment factories in many developing countries.

I do not doubt the industrialists operating at HIP, and elsewhere in Ethiopia, are commited to environmental issues. However, in my view, its time for some of this "greenwashing" to stop. For otherwise an entire country, and the manufacturers operating within it, risk digging for themselves a hole similar to what H&M did with its November 2013 promise that by 2018 all workers in its vendors would be paid a “living wage”. H&M appears to be still nuancing and researching its way out of this conundrum.

----------------------------------------------------

And for Arvind Envisol … business is good! ... it appears to have big plans for Ethiopia. It has already requested expression of interests for construction work for large scale effluent treatment plants in the industrial parks of Dire Dawa, Adama and Kilinto.

The World Bank is financially supporting some of this expansion and seems to be content that waste water treatment plants are being put in place. For the Kilinto Park (which is going to target the pharamaceutical sector) and the Bole Lemi II industrial parks additional World Bank funding (>US$50m) is going into the waste water treatment plants.
READ HERE >> Its unclear if the Bank have recognised that waste water treatment plants are left with sludge wastes that have to be disposed of safely.
RESEARCH

"Cotton: World Markets & Trade". US Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS). Washington, D.C., United States. October 2018.

Synopsis: The report includes data on US and global cotton trade, production, and consumption; as well as analysis of events affecting world cotton trade. West Africa (WA - includes: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal, Togo) exports for 2018/19 are projected to surpass last year’s record, driven by record production. Mali and Burkina Faso are the largest producers and are forecast to have record crops amid expanding area. West Africa accounts for more than three-fourths of Africa’s cotton exports. Nearly all of WA cotton is exported, as mills are sparse within the region, signifying the pivotal role that foreign demand plays for WA producers and merchants. South and Southeast Asia are the predominant destinations, due to robust growth in consumption for both regions. Bangladesh, the world’s largest importer, has recently opted for greater supplies from WA over Central Asia (CA) origin. Not only is CA 2018/19 production forecast lower but Uzbekistan, the largest exporter in the region, is using more cotton domestically to support a growing textile industry. Record exports in the midst of record global use in 2018/19 will underscore the importance of cotton as a vital cash crop for farmers and a prominent source of foreign currency for WA countries. The full report can be READ HERE >>.


Financing Large Firms in the Garment Sector in Kenya”. Workshop Report prepared by: Supporting Economic Transformation (SET) / Overseas Development Institute (ODI). Nairobi, Kenya. 17 July 2018.

Synopsis: A group of Kenyan stakeholders (manufacturing firms, financers, Government representatives) discussed the challenges garment manufacturing sector financing. Growing Kenya’s manufacturing industry is one of the areas of focus in President Kenyatta’s ‘Big Four’ agenda, and is a key sector for the country’s industrialisation objectives, with growing demand in-country and across other regions. However, in recent years the sector’s contribution to GDP has declined rather than grown. Challenges cited by many local manufacturers include competition from imports of both new and second-hand clothing and a lack of relevant skills in labour-market entrants. However, the biggest challenge facing firms is access to finance. Currently, approximately 90% of profit generated by local manufacturing goes to international banks, with minimal involvement by Kenyan banks. Several factors behind this trend were explored by panelists and participants, including Kenyan banks’ aversion to the degree of risk inherent in manufacturing, a lack of understanding within the banking sector of the way textile and garment firms operate, and the wider business ecosystem being unconducive to local investments (including labour laws, regulation, taxation). CDC, the UK Government’s development finance institution, posited that administrative issues such as poor cash flow management were endemic to the manufacturing industry and were cause for concern among potential investors. Connections were forged between potential investors and firms, with potential for a series of meetings convened by the Ministry of Industry to develop these relationships further. The full workshop report can be READ HERE >>
UPCOMING EVENTS
  • Textile Exchange Sustainability Conference - Annual Conference - 22-24 October 2018. Milan, Italy. For more Information: www.textileexchange.org
  • EGYTEX 2018 - Trade Show - 28-30 October 2018. Cairo, Egypt. For more information: www.egytexfairs.com
  • Cotton House Africa - Pan African Cotton Conference - 1-3 November 2018. Kampala, Uganda. For more information: Cotton House Africa
  • Destination Africa - Trade Show - 17-19 November 2018. Cairo, Egypt. For more information: www.destination-africa.org
  • ATF Expo - Trade Show - 20-23 November 2018. Cape Town, South Africa. For more information: www.atfexpo.co.za
  • 77th Plenary Meeting - International Cotton Advisory Committee (ICAC) - Annual Conference - 2-7 December 2018. Abidjan, Ivory Coast. For more information: www.icac.org and SEE HERE >>
  • Sourcing at Magic - Trade Show - 4-7 February 2019. Las Vegas, United States. For more information: www.ubmfashion.com
  • Morocco Fashion & Textile - Trade Show - 28-31 March 2019. Casablanca, Morocco, For more information: www.moroccostyle.net
  • Source Africa - Trade Show - 12-14 June 2019. Cape Town, South Africa. For more information: www.sourceafrica.co.za
CLASSIFIEDS
JOBS
TENDERS & PROCUREMENT
MANUFACTURING EQUIPMENT WANTED / FOR SALE
Looking for staff? Want to engage a consultant? Have equipment to sell? Do you need 2nd hand machinery? Have a tender? For a limited period the "African Cotton, Textiles & Apparel Monitor" will publish (free of charge) select classified advertisements from firms / development organisations active in the Africa's crop to shop value chain. Adverts limited to 50 words / 300 characters (and may include a mini logo).
--------------------------------------------------------------------------
TRANSLATORS - SOCIAL & LABOUR COMPLIANCE AUDITING
I get repeated requests from environmental and labour compliance auditing bodies for in-country staff who can assist them with translations when they are undertaking in country audits. If you know of any individuals/organisations who could undertake these kinds of services kindly let me know their details. Country, language competencies, names, contact details please. editor@africantextilesandapparel.com
CLICK TO SHARE YOUR NEWS
about Mark Bennett - Editor

"The African Cotton, Textiles & Apparel Monitor"
I have almost 30 years' experience working in Africa's cotton, textiles and apparel value chain. Initially I was, for 15 years, a sector trade unionist in South Africa; then, from 2004 onwards, I worked as a development consultant for various Southern / Eastern African governments, and domestic private sectors. In my development activities I have been engaged by private sector foundations, and by DFID and USAID funded contractors. I find it rewarding creating development interventions that help cotton, textiles and apparel stakeholders to better processes, improve productivity, increase sales and add investment. See my full CV at Devex or LinkedIn.
------------------------------------------------------
Copyright © *|CURRENT_YEAR|* *|LIST:COMPANY|*, All rights reserved.
*|IFNOT:ARCHIVE_PAGE|* *|LIST:DESCRIPTION|*
The views expressed in this newsletter do not necessarily reflect the views of the editor.

My mailing address is:
*|HTML:LIST_ADDRESS_HTML|* *|END:IF|*

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list

If you would like to subscribe to the newsletter you can also do so by visit the website www.africantextilesandapparel.com

*|IF:REWARDS|* *|HTML:REWARDS|* *|END:IF|*
©2017 ACTAM