Opportunities For Textile Industry To Invest In Africa

Date:Dec 02, 2019

The comparative advantages of textile investment in Africa are as follows:

First of all, Africa has a large number of young workers (average age is about 20 years old), and will maintain an abundant labor supply level for a long time in the future, and the labor price is very competitive.

Secondly, some African countries have energy advantages such as oil and raw materials advantages such as cotton supply.

Third, most African countries enjoy preferential trade policies of the United States and Europe, such as the African Growth and Opportunity Act (AGOA), which allows nearly 40 countries in sub Saharan Africa to export textile and clothing products to the United States without quota and duty-free. The preferential terms related to the "EBA" agreement between the EU and Africa also allow African countries to export textile and garment products to EU member states without quota and tariff exemption.

Fourth, African countries have introduced a number of preferential incentive policies in recent years, such as export incentive measures, loose foreign exchange control, investment tax-free policies, export tax rebate treatment, etc., to create a favorable business environment for foreign investment.

Fifthly, Africa's current per capita fiber consumption (2.6kg) is far below the global average (12kg), which has a lot of room for growth. With the rapid growth of Africa's middle class and the advantage of the population structure dominated by young people, Africa's huge potential of its own consumption market cannot be underestimated.