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East Africa still a niche market for garment makers

Published on August 31, 2015

Though East Africa’s garment manufacturing potential is hindered by poor infrastructure and cumbersome Customs processes, exports are expected to grow as Kenya, Ethiopia, Tanzania and Uganda attract more investment.

According to consulting firm McKinsey, East Africa will remain a niche market for garment makers over the next decade but its success will depend on the existence of free trade agreements with the US and the European Union.

Duty-free access to the United States provided by Africa Growth and Opportunity Act (Agoa) is one of the drivers, but the region’s garment manufacturers are looking at the European Union to diversify markets.

Global buyers’ preferences indicate real interest in Kenya and Ethiopia, according to consulting firm McKinsey & Company.

McKinsey’s Nairobi office director Bill Russo said Kenya and Ethiopia are encouraging the development of domestic textile and garment industries based on recent legislation in the two countries. Read more. Source | The East African