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USAID grant signed to create 2,000 new jobs for youth in the apparel industry
Signed a new grant with Generation Program Kenya Limited, a local subsidiary of the McKinsey Social Initiative. Working hand-in-hand with Kenya’s Ministry of Industry, Trade and Cooperatives, the Kenya Association of Manufacturers and apparel companies, the program will set up and equip seven training centers throughout Kenya, provide over 100,000 hours in skills development and train 2,000 Kenyan youth, preparing them for full-time sewing machine operator jobs in the industry. The grant is a part of the Hub’s larger “East Africa Cotton, Textile and Apparel Workforce Development Initiative,” a collaboration between the Hub and the American Apparel and Footwear Association that will ensure U.S. brands and retailers’ goods are manufactured in accordance with best business practices and operations in East Africa, producing a win-win for trading partners.
Kenyan woman-owned home-décor company enters mainstream U.S. market
Supported a Kenyan home decor producer to ship her largest-to-date U.S. order. Valued at $200,000, the deal is as a result of the Hub-organized Cost Plus World Market Trade Mission. (see success story at the end of this report) The profit from this order will go to the nearly 400 artisans who contributed to each hand-carved piece and will help finance her next big export to the U.S., which shouldn’t be far off given her now proven capacity for high-volume supply.
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The Hub supports increased investments in the upcoming Kenya Leather Park
On June 30, the Hub’s leather advisor completed his contract, during which he facilitated $9 million in total investment commitments for the upcoming Kenya Leather Park and a trade deal between Bata Shoes Kenya, Kenya Defense Forces and the Kenya Prisons Services to supply a total of $1.9 million in new sales of officer’s boots and shoes. Also in the leather sector, the Hub supported an India-based ‘trainer of trainers’ session that provided new eco-friendly technologies for best practices in leather finishing and production for five Kenyan tanneries and leather companies.
The Hub facilitates $36M new private sector investments
The Hub has facilitated $30,633,968 new private sector investments in the ag and non ag sector in Kenya. The Hub offers transaction support services. Eligible investors include private equity funds, commercial banks, impact funds, and development finance institutions. The Hub’s transaction team acts as a neutral intermediary to provide: opportunity validation market intelligence, fundraising support, due diligence, deal structuring, financial analysis and modelling.
The Hub has helped financially close $51m of investments over the life of the project, $33.9 million in the agricultural and food chain sector and $17.4 million in the non-ag sector. There are $165 million of deals under review in the Hub’s investment pipeline. Over
Product development excellence training for SMEs
Facilitated training on product development excellence for selected SMEs in the sector, in collaboration with Kenya Leather Development Council (KLDC). The training covered a wide range of topics in product development, including: product development planning, product development process, managing cross-functional teams and how to generate superior value products.
Helped leather enterprises develop innovative products that can compete globally, with a focus on company owners and senior management – those who can implement the concepts on which they were trained.
Trade and export facilitation through “Buy Kenya Build Kenya” strategy
Facilitated Kenya’s leading player in the formal footwear sector and the largest buyer of raw leather, Bata Kenya, to access opportunities for supplying Kenya Defense Forces with military boots and shoes.
Linked Bata Kenya to SMEs who have since started sourcing specialized finished leather for manufacture of leather goods, resulting in approximately $1.9 million in new sales.
Introduced MAS Tannery, a company established in 2004 that specializes in tanning (wet blue), to new markets in Turkey, India and Egypt. This allowed the company to increase exports to new clients by approximately $500,000 per month.
Investor mobilization for the Kenya Leather Park
Supported Kenya’s Ministry of Agriculture to purchase 50,000 MT of maize from Ethiopia for the Kenyan Strategic Grain Reserve, bringing the total maize trade facilitated by the Hub between Ethiopia and the East African region to $100 million in the current season.
Related Blogs and Resources
Published on July 24, 2017
Tanzania and Kenya have held successful talks that will see the lifting of restrictions on imports from either country.
The Minister of Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, announced the decision in Nairobi yesterday following discussions between President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta.
As a result, Kenya will lift the ban on wheat flour and gas imports from Tanzania, which, in turn, will remove restrictions on milk and cigarettes from Kenya. Read more. Source | The Citizen
Published on July 24, 2017
The Treasury has extended duty waiver on imported yellow and white maize in a move aimed at increasing supply of the staple.
The extension, contained in a special issue of the gazette notice signed by Treasury Cabinet secretary Henry Rotich, will see millers enjoy the duty waiver on white maize for three more months. Yellow maize window will be open for one year. The waiver on white maize was supposed to end on July 31 but it has now been extended to September 30.
The exemption on yellow maize was supposed to expire on August 31 but this has been pushed to June 30, 2018. Read more. Source | Business Daily
Published on July 24, 2017
About 2,000 youth are set to get jobs in the apparel industry following the signing of a deal to be spearheaded by the US Agency for International Development (USAID) East Africa Trade and Investment Hub (the Hub).
The programme signed with Generation Program Kenya Limited — a local subsidiary of the McKinsey Social Initiative — will equip young people with skills needed in the apparel industry. The pilot programme, to be implemented in collaboration with the Ministry of Industrialisation, will see seven training centres set up and equipped across the country.
The pilot plan, that will also involve the Kenya Association of Manufacturers, will include screening of 4000 youth for training and job placement in the apparel industry. Read more. Source | Business Daily
Published on July 14, 2017
Companies may be on the fence about whether to commit to sourcing apparel in Africa, but the U.S. seems certain enough about the continent’s potential to keep investing in the sector there—and namely in Kenya.
Last week, the U.S. Agency for International Development (USAID) East Africa Trade and Investment Hub (the Hub) signed a grant with Kenya that will create 2,000 full-time jobs and provide more than 100,000 hours in skills development for young workers in the apparel industry.
While Africa ramps up as a region for more robust apparel sourcing, the biggest hindrance for those that haven’t taken their business there has been both a lack of sophisticated logistics and a lack of skills in the apparel sector. Read More. Source | Sourcing Journal
Published on July 14, 2017
The U.S. Agency for International Development (USAID) East Africa Trade and Investment Hub (the Hub) has signed a grant with Generation Program Kenya Limited, a local subsidiary of the McKinsey Social Initiative, to create 2,000 full-time jobs and provide over 100,000 hours in skills development for young people in the apparel industry.
Working hand-in-hand with Kenya’s Ministry of Industry, Trade and Cooperatives, the Kenya Association of Manufacturers and apparel companies, the pilot program will set up and equip seven training centers throughout Kenya and screen 4,000 youth for participation.
The pilot activities include recruitment, training and job placement in the apparel industry. Read more. Source | Capital FM
Published on July 10, 2017
United States of America has signed a grant that will help train 2,000 Kenyan youth in manufacturing of clothing. The programme sponsored by America’s international development assistance agency USAid will establish seven training centres around the country whose graduates will then be placed in garment-making firms.
An estimated 4,000 candidates will be evaluated for consideration into the programme.
“Not only does this private sector approach directly link trained at-risk youth to jobs, the leadership from Kenya’s Ministry of Industry, Trade and Cooperatives makes the model sustainable,” said USAid Kenya and East Africa Acting Mission Director Tina Dooley-Jones. Read more. Source | The Standard
Published on June 28, 2017
Kenya is shifting to virtual weigh-bridges in a bid to boost speed and transparency in the clearance of cargo on its roads.
The Kenya National Highways Authority (KeNHA) plans to set up 10 virtual weighbridges on key transport corridors amid ballooning costs of road maintenance and delays in the screening of vehicles.
The electronic devices will be located at Archers Post on the Isiolo-Moyale road, Sagana Bridge on the Thika-Nyeri road, Yatta on the Thika-Garissa road, Kamulu on the Nairobi-Kangundo road and Eldama Ravine on the Eldama Ravine-Eldoret road. Read more. Source | Business Daily
Published on June 27, 2017
The government has identified Voi as the next location for a publicly owned export processing zone (EPZ).
Export Processing Zone Authority has issued a public notice seeking a parcel of land for EPZ enterprises keen on establishing bases closer to the Mombasa port.
“The required land should be in parcels covering at least 200 acres and located no more than 20 kilometres from Voi town on the Mombasa-Nairobi highway or Voi-Mwatate Road and no more than 10 kilometres from a market centre or populated area,” it said. Read more. Source | Business Daily