Africa is becoming strong for apparel sourcing as US clothing manufacturers getting attraction to Africa. Though Bangladesh and China remain top sourcing destinations for clothing production, China is facing wage pressures and rising production costs and Bangladeshi garment factories are facing safety issues.
American clothing giant Phillips-Van Heusen Corporation, which owns the Tommy Hilfiger and Calvin Klein brands, sources five to six per cent of its global production from Africa. Over the next five years, it hopes to make that 25 per cent. However, buyers need to evaluate the region as a true strategic option rather than just a testing ground. H&M started sourcing from Ethiopian garment producers in 2013. Since labour is cheap in Africa compared to ever-increasing wages in Asia, more companies will be looking to move operations to Africa. Ethiopia and Kenya benefit from duty-free access to the US market under the African Growth and Opportunity Act. Both could compete globally in apparel manufacturing.
In recent years, Africa has emerged as a promising destination for apparel sourcing. The continent offers a range of advantages that are attractive to international brands and retailers, including a growing pool of skilled labour, favourable government policies, and a relatively low cost of living. These factors have contributed to the rapid growth of the African apparel industry, which is now seen as a viable alternative to traditional sourcing destinations such as Asia and Latin America.
One of the key drivers of Africa’s rise as a sourcing destination is its growing pool of skilled labour. Many African countries have made significant investments in education and training programs, which has led to a growing number of skilled workers in the apparel industry. This includes workers with expertise in areas such as design, pattern-making, cutting, and sewing, as well as those with experience in more specialized areas such as embroidery and dyeing.
Another important factor is the supportive government policies that are in place in many African countries. These policies are designed to encourage investment in the apparel industry and to support the growth of local businesses. In some countries, the government provides financial incentives for companies to set up operations, as well as support for training programs and infrastructure development.
In addition to the supportive government policies, the cost of living in many African countries is relatively low, which helps to keep the cost of labor down. This makes it possible for brands and retailers to source apparel from Africa while still maintaining competitive prices. This, in turn, has made it easier for African apparel companies to compete in the global market and has helped to drive the growth of the industry.
Despite these advantages, there are also some challenges to sourcing apparel from Africa. For example, there are still some infrastructure issues in some areas, such as a lack of reliable electricity and access to water. However, these challenges are being addressed, and many African countries are working to improve their infrastructure and support the growth of the apparel industry.
Africa is rapidly emerging as a strong destination for apparel sourcing, offering a range of advantages including a growing pool of skilled labor, favourable government policies, and a relatively low cost of living. While there are still some challenges to be addressed, the potential for growth and development in the African apparel industry is significant and is likely to be a key driver of economic development on the continent in the years to come.
