ANALYZING AFRICA

Analyzing the potential of Pakistans value-added textiles for Africa

April 2011

Research Department

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

Highlights & Recommendations:

Large markets for garment exports in Africa are South Africa, Tunisia, Egypt & Morocco. Although Pakistan has some presence in South African market but others remain virtually untapped. Fabrics exporters should target major garments exporting countries of Africa, such as Morocco, Tunisia & Egypt. These countries, along with South Africa also present a limited opportunity for garment exports as well. Other textile categories such as bedlinen and towels have a better chance of making inroads into the African market. China remains the undisputed exporting leader in both garments and textiles in the African market. India has made some progress in tapping the African market but it is still largely ignored by Bangladesh. In order to tap the full potential of African market, manufacturers and suppliers may have to develop low quality products with more emphasis on synthetic and man-made fibers. Overall, the African market for textiles and garments presents a limited opportunity for Pakistani suppliers but it should be realized that entering African market may hold all the risks associated with an immature market. Research on appropriate products suited for the African consumers and climate is very important. In the first stage, manufacturers and suppliers wishing to enter the African market should focus first on the four large importing economies stated above. Identification of distribution channels within the smaller economies of Africa should come at a later stage.

1|Page

Export of clothing from Africa:

Major exporting economies of garments from Africa are Tunisia, Morocco and Egypt with combined exports of $7.64 billion in 2009 as per WTO. Other leading garment exporters are Mauritius, Lesotho, Madagascar, Botswana & Kenya with combined exports of over $2 billion. While the global exports of garments have grown by 9.6%, exports by leading ten clothing economies of Africa have grown by 13.5%. Major garments exporting countries of Africa present an opportunity for Pakistan to enhance its fabric exports.

Clothing exports of selected economies, 1990-2009

(Million dollars and percentage) Value 1990 108,129 ... 144 9 ... 11 607 722 ... 1,126 1,014 2000 197,570 30 710 9 161 309 948 2,401 124 2,227 2,144 2007 347,059 340 1,330 241 503 394 887 3,517 47 3,571 3,806 2008 364,914 260 787 255 457 531 845 3,420 44 3,766 3,906 2009 315,622 196 1,442 174 484 431 717 3,079 63 3,120 3,357 Share in economy's total merchandise exports 2000 2009 3.1 2.6 1.1 15.1 0.5 73.1 37.4 60.9 32.3 13.6 38.1 5.7 6.3 3.9 64.5 37.8 36.9 22.2 4.2 21.6

World Botswana Egypt Kenya Lesotho Madagascar Mauritius Morocco Swaziland Tunisia Pakistan

23.8 19.0 Source: WTO

2|Page

Imports of clothing in Africa:

The four leading garment importing countries of Africa are South Africa, Tunisia, Egypt & Morocco with combined imports of $2.28 billion in 2009. These leading importers can be targeted by Pakistans garment exporters to enhance their share in the African market.

Clothing imports of selected economies, 1990-2009

(Million dollars and percentage) Value 1990 Egypt Morocco South Africa Tunisia 9 8 108 191 2000 404 232 223 438 2007 817 321 994 644 2008 358 356 993 635 2009 408 294 1,054 532 Share in economy's total merchandise imports 2000 2.9 2.0 0.8 2009 0.9 0.9 1.7

5.1 2.8 Source: WTO

Asian countries have the largest share in exports to Africa. While China leads the way with 75% share in all Asian exports to Africa.

Clothing exports of selected regions and economies by destination, 2009

(Billion dollars and percentage)
Value 2009 World Asia Africa China Africa Other economies in Asia Africa Europe Africa South and Central America Africa 0 0.0 0.1 0.0 0.0 35 75 -25 1 1.7 1.3 0.6 0.5 3 11 -2 1 0.9 1.2 0.2 0.2 4 6 -4 3 1.6 2.9 0.3 1.0 21 -29 3 4 1.2 2.3 0.5 1.2 15 -24 1 316 Share in region's exports 2000 100 2009 100 Share in world exports 2000 100 2009 100 Annual percentage change 2000-09 5 2008 5 2009 -14

Source: WTO

3|Page

Export of textiles from Africa: As per WTO figures of 2009, the six leading African textile exporting
countries shipped goods worth $1.93 billion.

Textile exports of selected economies, 1990-2009

(Million dollars and percentage) Value 1990 World Egypt Mauritius Morocco South Africa Tanzania Tunisia Pakistan 104,354 554 35 203 167 ... 112 2,663 2000 157,400 412 81 123 240 11 154 4,532 2007 241,335 726 88 326 332 56 495 7,371 2008 253,359 844 80 330 301 111 478 7,186 2009 211,054 813 66 305 226 122 395 6,510 Share in economy's total merchandise exports 2000 2.5 8.8 5.2 1.7 0.8 1.7 2.6 2009 1.7 3.5 3.4 2.2 0.4 3.9 2.7

50.2 36.8 Source: WTO

4|Page

Imports of textiles in Africa: The seven leading textile importers of Africa imported merchandise
worth $7.1 billion in 2009. Leading among them are Morocco, Tunisia & Egypt.
Textile imports of selected economies, 1990-2009
(Million dollars and percentage) Value 1990 Egypt Kenya Madagascar Mauritius Morocco South Africa Tunisia Pakistan 210.7 17.2 20.3 336.0 360.7 561.0 790.4 126.5 2000 526.0 47.2 199.8 411.1 1,364.2 569.9 1,206.9 129.6 2007 1,279.0 250.2 417.4 289.7 2,305.6 1,015.4 1,997.5 579.0 2008 1,800.4 251.5 535.8 263.9 2,363.6 1,019.1 2,087.6 588.6 2009 1,799.7 190.2 299.0 194.8 1,984.3 905.8 1,749.0 590.8 Share in economy's total merchandise imports 2000 3.8 1.5 18.2 19.6 11.8 2.1 14.1 1.2 2009 4.0 1.9 9.2 5.2 6.0 1.4 9.2 1.9 Source: WTO

Asia & Europe are the leading exporting regions to Africa for textile products. China remains the dominant textile exporting country to Africa with 75% share from Asia.

Textile exports of selected regions and economies by destination, 2009

(Billion dollars and percentage) Value 2009 World Asia Africa China Africa Other economies in Asia Africa Europe Africa North America Africa 211 8 6 2 5 0 Share in region's exports 2000 100 4.0 5.3 3.6 5.4 0.5 2009 100 7.3 9.5 4.8 6.7 0.6 Share in world exports 2000 100 1.8 0.5 1.2 2.1 0.0 2009 100 3.9 2.7 1.2 2.3 0.0 Annual percentage change 2000-09 3 13 23 3 4 0 2008 5 19 27 5 9 2009 -17 -7 -7 -8 -16

50 -38 Source: WTO

5|Page

Pakistans exports to African region:

South Africa was the leading exporting partner of Pakistan in the African region. Pakistans total exports to South Africa in FY 2009-10 was $221 million (1%) with textile exports amounting to just $128 million.

Highest exporting categories were fabrics followed by bedlinen and

towels. Exports of knitted and woven garment to South Africa were just below $18 million.
VALUE IN 000 $

Jul-Jun 2009-10

Jul-Jun 2008-09

Rank

Country

Variation

% Share in 2009-10

Exports 220,567 128,265 25,039 621 175 141 87 61 37,153 25,389 14,632 13,732 6,262 2,648 1,567 581 156 14 7 -

Exports 193,742 137,033 14,395 472 23 80 32 44,504 29,902 15,524 19,584 6,593 2,827 1,649 854 401 64 117 3 9 26,825 (8,768) 10,644 149 152 61 55 61 (7,351) (4,513) (892) (5,852) (331) (179) (82) (273) (245) (50) (110) (3) (9)

19

SOUTH AFRICA (Total Exports) Selected Textile Exports: ART SILK & SYNT. TEX. COTTON YARN Y. OTH. THAN C. YARN KINTTED OR CROCH. FAB. TULE, LACE, EMBR. ETC TEX.FABR.WOVEN(OTHER COTTON CLOTH BED WEAR TOWELS APPAREL & CLOTHING TEX.MADE UPS EXC.T.& BED. KNITWEARS READY MADE GARMENTS GLOVES (SPORTS) TENTS & OTH.CANVAS GOOD COTTON THREAD COTTON WASTE COTTON BAGS/SACKS RAW COTTON

1.14% 0.66%

Source: TDAP

6|Page

Other important exporting partners in African region:

VALUE IN 000 $

Rank

Jul-Jun 2009-10

Jul-Jun 2008-09

Country

Variation

% Share in 2009-10

Export 160,184 20,598 1,749 1,551 594 248 120 15 12 7,831 6,523 1,592 179 141 31 8 3 1

Export 119,939 33,332 1,213 1,484 335 109 111 4 2 13,411 14,080 1,677 254 310 303 12 22 5 40,245 (12,734) 536 67 259 139 9 11 10 (5,580) (7,557) (85) (75) (169) (272) (4) (19) (4)

23

KENYA Selected Textile Exports: ART SILK & SYNT. TEX. TOWELS READY MADE GARMENTS TEX.MADE UPS EXC.T.& BED. COTTON YARN GLOVES (SPORTS) TEX.FABR.WOVEN(OTHER COTTON CLOTH BED WEAR TENTS & OTH.CANVAS GOOD KNITWEARS WASTE MATERIAL OF TEX. Y. OTH. THAN C. YARN COTTON WASTE APPAREL & CLOTHING COTTON BAGS/SACKS

0.83% 0.11%

Source: TDAP
VALUE IN 000 $

Rank

Jul-Jun 2009-10

Jul-Jun 2008-09 Export

Country
Export

Variation

% Share in 2009-10

33

EGYPT (U.A.R.) Selected Textile Exports: ART SILK & SYNT. TEX. KINTTED OR CROCH. FAB. TEX.FABR.WOVEN(OTHER WASTE MATERIAL OF TEX. TOWELS READY MADE GARMENTS COTTON WASTE APPAREL & CLOTHING TEX.MADE UPS EXC.T.& BED. Y. OTH. THAN C. YARN COTTON BAGS/SACKS COTTON CLOTH COTTON YARN KNITWEARS GLOVES (SPORTS) TULE, LACE, EMBR. ETC TEXTILE FOR MACHINERY BED WEAR

100,155 60,984 5,969 1,820 858 836 822 322 139 138 88 66 17 43,094 6,566 119 101 29 -

101,685 69,103 4,016 858 73 377 599 177 39 91 30 4 43,720 17,505 173 151 41 6 1,243

(1,530) (8,119) 1,953 962 785 459 223 145 100 47 58 66 13 (626) (10,939) (54) (50) (12) (6) (1,243)

0.52% 0.32%

Source: TDAP

7|Page

VALUE IN 000 $

Rank

Jul-Jun 2009-10

Jul-Jun 2008-09 Export

Country
Export

Variation

% Share in 2009-10

35

BENIN Selected Textile Exports: ART SILK & SYNT. TEX. TOWELS WASTE MATERIAL OF TEX. COTTON CLOTH READY MADE GARMENTS KNITWEARS BED WEAR KINTTED OR CROCH. FAB. TEX.MADE UPS EXC.T.& BED. Y. OTH. THAN C. YARN APPAREL & CLOTHING

91,306 44,213 27,806 302 63 7,565 3,031 2,918 2,360 148 19 1 -

58,327 36,562 10,272 4 12,722 3,782 4,736 3,932 189 189 708 28

32,979 7,651 17,534 298 63 (5,157) (751) (1,818) (1,572) (41) (170) (707) (28)

0.47% 0.23%

Source: TDAP
VALUE IN 000 $

Rank

Jul-Jun 2009-10

Jul-Jun 2008-09 Export

Country
Export

Variation

% Share in 2009-10

36

SUDAN Selected Textile Exports: ART SILK & SYNT. TEX. TEX.FABR.WOVEN(OTHER KNITWEARS COTTON YARN COTTON THREAD TEX.MADE UPS EXC.T.& BED. TOWELS COTTON CLOTH TENTS & OTH.CANVAS GOOD BED WEAR READY MADE GARMENTS Y. OTH. THAN C. YARN KINTTED OR CROCH. FAB. TULE, LACE, EMBR. ETC

87,551 6,874 3,557 415 196 62 56 41 13 1,123 753 381 199 78 -

60,595 7,276 716 153 11 35 2 7 2,800 2,379 555 233 357 1 27

26,956 (402) 2,841 415 43 51 21 39 6 (1,677) (1,626) (174) (34) (279) (1) (27)

0.45% 0.04%

Source: TDAP

8|Page

Pakistan, India & Bangladesh: a comparison

Woven Garments: HS Code Description Importer South Africa Exporter Pakistan India Bangladesh Pakistan India Bangladesh Pakistan India Bangladesh Pakistan India Pakistan India Bangladesh Pakistan India Pakistan India Quantity 24,000 188,640 469,266 7,332 2,300 200 4,248 30,040 3,605 4,992 20,780 2,352 2,470,000 26,146 2,436 21,770 24 65,380 Value 81,806 650,000 4,619,182 50,705 30,000 5,377 19,406 70,000 39,501 36,133 160,000 2,574 546,690 340,527 10,612 190,000 70 590,000 AUP 3.41 3.45 9.84 6.92 13.04 26.89 4.57 2.33 10.96 7.24 7.70 1.09 4.52 13.02 4.36 8.73 2.91 9.02

62034200

TROUSERS BIB & BRACE OVERALLS BREECHES & SHORTS OF COTTON FOR MEN'S & BOYS' (PCS)

Egypt

Morocco

Kenya

South Africa SKIRTS AND DIVIDED SKIRTS OF COTTON (PCS)

62045200

Egypt

Kenya

62113200

OTHR GARMENTS OF COTTON FOR MEN'S OR BOYS' (PCS)

South Africa

Pakistan India Pakistan India

26,616 35,070 21,288 6,620

138,941 170,000 70,367 50,000

5.22 4.85 3.31 7.55

Egypt

62160010

GLOVES OF TEXTILE FABRICS (INDIA: GLOVES,MITTERS & MITTS OF COTTON) (PCS)

South Africa

Pakistan India Pakistan India

161,568 307,400 50,628 35,120

61,235 140,000 11,695 10,000

0.38 0.46 0.23 0.28 9|Page

Kenya

Knit Garments: HS Code

61034200

Description
TROUSERS,ETC .MEN/BOYS COT/KNIT (PCS) SHIRTS MEN/BOYS COTT KNIT/CRO (PCS)

Importer South Africa

Exporter Pakistan India Bangladesh

Quantity
9,432 27,450 12,356

Value 25,801
60,000 126,122

AUP 2.74 2.19

10.21

61051000

South Africa

Pakistan Bangladesh

79,560

192,255 300,209

2.42 5.45

55,121

61091000

TSHIRT,SINGLET S,WAISTCOT K/CR (PCS)

South Africa

Pakistan Bangladesh Pakistan Bangladesh Pakistan India Pakistan India

325,824
55,121 360

444,162

300,209
2,749 8,352 101,562 6,760,000 4,729 80,000

1.36 5.45 7.64 4.16 1.83 5.57 3.13 4.67 1.79 6.70

Egypt

2,008
55,428 1,214,620 1,512

61099090

O-TSHIRTS,OTH TXT MATE KN/CR (PCS)

South Africa

Kenya

17,130 684 4,480

61171010

SHAWLS, KNITTED OR CROCHETED (PCS)

South Africa

Pakistan India

1,223 30,000

Note:
All the comparative figures for Pakistan and Bangladesh are for July-June 200910, while Indias figures are based on April-March 2009-10. Unit of quantity (pieces, square meters, kilograms, etc) for Bangladesh may differ as EPB Bangladesh does not indicate these units in their statistics.

10 | P a g e

Home Textiles: HS Code Description Importer South Africa Exporter Pakistan India Pakistan India Pakistan India Pakistan Kenya India Quantity 660,828 310,030 468,034 12,070 7,891 4,320 145,383 11,120 Value 4,946,825 1,080,000 3,530,904 30,000 35,551 20,000 832,900 40,000 AUP 7.49 3.48 7.54 2.49 4.51 4.63 5.73 3.60

63021010

BED SHEETS, KNITTED / CROCHETED (KGS)

Kenya

Morocco

63021090

OTH BED LINEN,KNITTE D/CROCH (KGS) TOWELS OF COTTON MILLMADE (KGS)

63026010

South Africa

Pakistan India Pakistan India Pakistan India

4,256,843 339,000

13,965,642 360,000

3.28 1.06 4.39 4.24 2.63 6.03

Kenya
63026090 OTH TABLE LINEN (KGS)

3,120 30,670 95,313 146,010

13,710 130,000

South Africa

250,858
880,000

Cotton Fabrics: HS Code Description

OTH W-FAB COT PRNTD W 200G/SQM (SQM)

Importer South Africa

Exporter Pakistan India Pakistan India Pakistan India Pakistan India

Quantity 592,686 38,130 138,593 4,610 159,707 17,590 72,799 67,150

Value 622,683 40,000 149,599 10,000 192,943 50,000 85,999 90,000

AUP 1.05 1.05 1.08 2.17 1.21 2.84 1.18 1.34

52121500

Egypt

52122300

OTH COT WOV FAB DYED>200G/S QM (SQM)

South Africa

Egypt

Source: TDAP/Federal Bureau of Statistics, Ministry of Commerce; India & EPB; Bangladesh

11 | P a g e

Pakistan Readymade Garments Manufacturers & Exporters Association Shaheen View Building, 18-A, Block-VI, PECHS, Shahra-e-Faisal, Karachi -75400 Pakistan Tel # 0092-21- 34549073, 34547912 Fax # 0092-21- 34539669 Email: prgmea@cyber.net.pk; research@prgmea.org Website: www.prgmea.org

12 | P a g e