Bloomberg Businessweek published on 2 March 2018 an article titled "China Is Turning Ethiopia into a Giant Fast-Fashion Factory" by Bill Donahue.
The article describes the challenges of developing an apparel industry in Ethiopia and warns that it may be necessary to move more cautiously in the years ahead.
Showing posts with label apparel. Show all posts
Showing posts with label apparel. Show all posts
Monday, March 5, 2018
Monday, February 13, 2017
China, India, and Pakistan Benefit from Kenya's Access to US AGOA
Kenya's Standard Digital posted on 5 February 2017 an article titled "Why China and India Benefit More from AGOA than Kenya" by Dominic Omondi.
Kenya is one of 39 countries in Sub-Saharan Africa that benefits from the U.S. African Growth and Opportunity Act (AGOA), which permits duty-free imports into the United States from these countries. The article notes that countries like China, India, and Pakistan are producing apparel, Kenya's most important export to the United States, in Kenya's duty-free export processing zones and then sending these items to the United States duty free under AGOA. This tends to defeat the purpose of AGOA, which is to encourage imports produced by African companies in eligible countries.
Kenya is one of 39 countries in Sub-Saharan Africa that benefits from the U.S. African Growth and Opportunity Act (AGOA), which permits duty-free imports into the United States from these countries. The article notes that countries like China, India, and Pakistan are producing apparel, Kenya's most important export to the United States, in Kenya's duty-free export processing zones and then sending these items to the United States duty free under AGOA. This tends to defeat the purpose of AGOA, which is to encourage imports produced by African companies in eligible countries.
Friday, August 7, 2015
Ethiopia and Kenya Attract Apparel Buyers
McKinsey and Company published in August 2015 a study titled "East Africa: The Next Hub for Apparel Sourcing" by Achim Berg, Saskia Hedrich, and Bill Russo.
The report points out that within Sub-Sahara Africa, East African countries--especially Ethiopia and Kenya, and to a lesser extent Uganda and Tanzania--are attracting apparel buyers such as H & M, Primark, and Tesco. Over the next 3 years, Ethiopia is predicted to be the 7th top sourcing destination globally after Bangladesh, Vietnam, India, Myanmar, Turkey, and China. The U.S. African Growth and Opportunity Act is contributing to this interest in the African countries as sources for garments.
The report points out that within Sub-Sahara Africa, East African countries--especially Ethiopia and Kenya, and to a lesser extent Uganda and Tanzania--are attracting apparel buyers such as H & M, Primark, and Tesco. Over the next 3 years, Ethiopia is predicted to be the 7th top sourcing destination globally after Bangladesh, Vietnam, India, Myanmar, Turkey, and China. The U.S. African Growth and Opportunity Act is contributing to this interest in the African countries as sources for garments.
Monday, October 15, 2012
African Textile Exports, China and AGOA
The Eurasia Review ran a brief but fascinating analysis on 15 October 2012 of the impact on African textile exports under the U.S. Africa Growth and Opportunity Act (AGOA). The authors--Lorenzo Rotunno, Pierre-Louis Vezina and Zheng Wang--describe how U.S. trade policy designed to encourage duty free imports from Africa inadvertently turned Africa into a temporary trade corridor for China.
AGOA provided an opportunity for exporters from China and Taiwan to transship their textile products via industrial plants in Africa, thus avoiding U.S. quotas by benefiting from AGOA preferences. The subsequent end of quotas on Chinese exports rendered the transshipment unnecessary, leading to the departure of many of the textile factories in Africa and the fall of textile imports from Africa under AGOA.
Click here to read the analysis.
AGOA provided an opportunity for exporters from China and Taiwan to transship their textile products via industrial plants in Africa, thus avoiding U.S. quotas by benefiting from AGOA preferences. The subsequent end of quotas on Chinese exports rendered the transshipment unnecessary, leading to the departure of many of the textile factories in Africa and the fall of textile imports from Africa under AGOA.
Click here to read the analysis.
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