https://www.sgtgroup.

net/textile-quality-management-blog/textile-and-apparel-growth-opportunity-in-
east-africa-and-madagascar

https://textile-future.com/archives/35228

http://www.investsa.gov.za/wp-content/uploads/2020/02/FACT-SHEET_TEXTILES_2020.pdf

https://www.fibre2fashion.com/industry-article/6610/botswana-apparel-industry#:~:text=Textile%20and
%20apparel%20sector%20is,of%20Botswana%20youth%2C%20especially%20women.

https://www.textiletoday.com.bd/south-african-unveiling-agenda-textiles-apparel-industry-retrieval/

https://zuidafrika.nl/trade-investment/ks-textiles/#:~:text=Textiles%20are%20South%20Africa's
%20third,to%20the%20total%20manufacturing%20output.

East Africa

Opportunities have been expanded to East African countries that show high growth potential in the
textiles industry in recent years. The African Growth and Opportunity Act (AGOA) was passed in 2000,
with additional provisions added in 2007, establishing more favourable rules of origin, making the East
African textile industry more appealing to investors. 

East Africa is transforming into a burgeoning regional free trade zone for goods, labour, and services. 

Despite challenges, each country in the region is seeing increased growth in the sector, despite factors
such as political stability, education levels, infrastructure, and other issues: 

South Africa:

Textiles employ the third-largest number of people in the manufacturing sector and are the eleventh-
largest exporter of manufactured goods in South Africa. This industry has been hit hard in recent years,
with illicit imports, the strength of the rand, and a flood of mass-market apparel made in Asia all putting
pressure on it. However, since it is a labor-intensive industry, the government has designated it as a high-
priority sector and implemented policies to help it develop. 

Porter-Mauritius

Factor endowments- Mauritius sits in a “golden triangle” connecting Asia, Africa and Australia. It
constitutes a multicultural multilingual population. Infrastructure in Mauritius is well-developed. Roads
are maintained in very good condition, with 1,834 kilometers (1,139 miles) out of a total of 1,910
kilometers (1,186 miles) of roads being paved. There are currently 5 airports. The country has a
modernized telecommunications infrastructure. The industry to embrace advanced Industry 4.0
technology. Boasting a skilled, intelligent and adaptable labour force, investment-friendly policies and a
safe social environment, the island sets itself apart in the league of medium-income countries seeking to
attract FDI (Foreign direct investments).
Related and supporting industries –

The chemical industries support to make the color look brighter and also to remove impurities and dust
followed by bleaching.

The Mauritius export association regroup export companies in Mauritius and facilitate with connections
for them.

Agricultural industries- cotton and indigo are cultivated in large numbers in the country which facilitated
the manufacturing.

Apparel industry – it helps in designing, making and selling of fashionable clothes to the fashion industry.

Textile industry - Packaging textiles comprise all types of textile packing material for industrial,
agricultural, and other goods. Textiles are usually preferred as packing materials, where scratch free and
safe handling of materials is expected.

Dyeing industry -Dying is employed in textile industries to provide color .

The textile  Mauritius consists of facilities for spinning, knitting, and weaving.

New technologies used in the manufacturing of tectiles is provided by the Technological industry.

IT industries provides services for business process outsourcing

Some 600 ICT companies presently operate in Mauritius

Demand conditions

There is a growing fashion trend that is increasing worldwide and Mauritius is also greatly influenced by
this.

Mauritius consists of facilities for spinning, knitting, and weaving and finishing for dyed and printed
fabrics, denim fabrics and for knit-to-shape items.

Mauritius is ranked 13 among 190 economies in the ease of doing business, according to the latest
World Bank annual ratings.

Due to the growing economy there is a pattern of increased spending.

Gloablization-gives an opportunity to access large markets.

Firm strategy, structure and rivalry

Mauritius is eligible for trade benefits under the African Growth and Opportunity Act (AGOA), which
provides duty and quota free access to the U.S. market

Mauritius is a Free Trade Agreement member of the Common Market for Southern and Eastern Africa
(COMESA) and the Southern African Development Community (SADC)

Mauritius offers prospective investors a low-tax jurisdiction and a number of other fiscal incentives,

including the following: (i) flat corporate and income tax rate of 15 percent; (ii) 100 percent foreign
ownership permitted; (iii) no minimum foreign capital required; (iv) no tax on dividends or capital gains.

Double taxation agreement enables offsetting tax paid in one of 2 countries against the tax [ayable in the
other, preventing double taxation.

Trade continues to be important for Mauritius' economy as imports and exports together account for
115% of GDP. 

The country is trying to head towards industrial licensing and liberalization.

Increased international competition is posing to be a major threat here.

Kenya

The geography of Kenya is diverse. Eastern Africa on the Indian Ocean coast between

the Jubaland province of Somalia and Tanzania. 536 km (333 mi) along the Indian Ocean.

It is estimated that Kenya has 140,000 small-scale cotton farmers

The country also suffers from skills shortages in both production labour as well as effective management
which impact textile quality control and reduce available quality management solutions.  Electricity
costs are higher and infrastructure constraints impacts logistics.  The country also has complex
regulations governing the industry and a contentious situation with trade unions within the textile
sector.

Relating and supporting industries

R&D facilities –government is focussing on r&D facilties to come up with more relevant production
procedures

Ginning- The total annual lint production, however, currently stands at about 20,000 bales, which is
significantly below the country’s processing capacity and demand. The implication is that Kenyan
ginneries could still handle production even if cotton output was to be increased by 600 percent.

Firm strategy

the Government or state has significant control through full or majority ownership, commonly referred

to, as State Corporations. In Kenya, there are 187 Government Owned Entities (GOEs), 34 of which are
Commercial State Corporations.
It has improved from import substitution to progressive liberalization through emergence of export
processing zones, reduction of tariffs levels, eliminated price controls and licensing requirements leading
to modest growth in trade Republic of Kenya

Africa

Pest

Economic: South Africa has among the highest GDPs per capita in Africa and the
largest economy in the southern Africa region with a total real GDP of $455.2
billion. Since the transition to democracy in 1994, it has experienced general
macroeconomic stability and moderate, sustained growth. As a contributing factor
to its increasing current account deficit, South Africa is losing global market share
in some of its leading clusters.

Cultural- This segment consists of the demographics, life-styles, and social

values. Factors that may also be considered are: Literacy and education levels
Business, economic and technical education available Religious, racial and
national characteristics Degree of urbanization and urban-shift.

Legal - The government has pursued the Accelerated and Shared Growth
Initiative for South Africa. macroeconomic policy framework that aims to
raise the annual growth rate to 6 percent and reduce poverty and
unemployment. In terms of addressing the structural unemployment
problem, underinvestment in the tradable sector has led to low long-term
growth in exports and serious declines in employment.
Political -In the foreseeable future, however, the private sector can expect
political consistency with the widespread popularity of the ANC, which is
not threatened by formidable rivals. The ruling ANC is in a long-running
alliance with the Congress of South African Trade Unions (COSATU) and
the South African Communist Party (SACP). Despite these alliances with
leftists, the ANC has pursued liberal macroeconomic policy since 1994. In
relations with its neighbours, South Africa is positioned as a regional leader

Demand conditions
commercialisation of new technologies should give the textile pipeline an added advantage in the global
arena

Firm strategy

A great deal of government activity and support focuses on improving industry competitiveness.

These include the Clothing and Textiles Competitiveness Programme (CTCP) and the establishment of a
number of regional and product specific clusters.

Major cluster includes the Cape Clothing and Textile Cluster (CCTC),

A large part of EU-South Africa trade is now subject to preferential rates. Since the signing of
the agreement in 2000, trade between the EU and South Africa has improved substantially. Trade in
goods between the two partners has increased by more than 120%. Foreign direct investment has also
grown five-fold.

AGOA - It is an agreement between SADC (Southern African development community).Member States to

reduce customs duties and other barriers to trade on imported products amongst SADC Member States.
The Protocol envisioned the establishment of a Free Trade Area in the region

Botswana

PEST

Political- The government has pursued the Accelerated and Shared Growth
Initiative for South Africa (ASGISA) since 2005. The robust domestic
demand that has been driving recent growth has been met by imports. To the
extent that domestic demand does remain high, it will continue to be met by
imports and a persistent current account deficit. The current condition of its
transportation and energy infrastructure limits its ability to expand exports.
In terms of addressing the structural unemployment problem,
underinvestment in the tradable sector has led to low long-term growth in
exports and serious declines in employment.
Economic- During the early 80's Botswana was a small supplier of textile
and clothing items. The export figures were also meager compared with the
rest of the world. In 2001, it was considered as a less developed country
 under the AGOA (Africa Growth & Opportunities Act) giving it special
preferences for sourcing of raw materials, duty and quota free exports into
the US market. During 2000-08, textile and apparel exports contributed
significantly to the country's revenues. After 2008, textile exports declined
sharply by 21.8%

 Cultural - The GoB has set up a Special Economic Zone (SEZ) authority to
implement the 2015 SEZ law. In addition, the GoB has committed to a 30%
offtake for any business set up in the area.

Legal- The National Trade Policy (NTP) is the essential framework for
linking world markets and the national economy. “An open trade and
investment regime encourages integration into the global trading
environment and the import of diverse and modern technologies that are
important for productivity improvements.” In this light, this review takes
stock of the current situation and identifies orientations that the country
could explore in its future trade policy

Firm strategy: Botswana's Financial Assistance Policy (FAP) was launched some years ago in order to:
encourage diversification of the economy.

 AGOA is particularly important for Botswana because it provides an opportunity to export to the United

States and take your business to the next level.