Opportunities Of Africa In Terms Of Global Textile Industry

Key Takeaways

• Global textile consumption is on a long-term growth trajectory, rising from 14 to 16 kilos per capita, creating significant opportunities across the industry.
• Africa is economically integrating through the African Continental Free Trade Area, attracting foreign direct investment, with Ethiopia receiving the largest share in textile and garment.
• Ethiopia's political and economic reforms since 2018 have made it a preferred FDI destination, with 3.7 billion USD in 2017-18, heavily concentrated in textile and garment.
• Ethiopia prioritizes textile and garment manufacturing as its top sector in national industrial strategy, driving policy and investment focus.
• Successful investment in Africa requires economic sense, sustainability, available skilled resources, and government stability, as emphasized by industry investors.
• Indian institutions like Exim Bank fund cross-border textile projects, having supported over 600 joint ventures in 78 countries, including African nations.
• Textile machinery companies are expanding in Africa, with long-term positive experiences in Ethiopia, viewing the continent as a promising opportunity for growth.