DATA SOURCE: COMTRADEPLUS.UN
Overview
Market Watch dashboard above features multiple interactive tabs designed to equip you with a holistic view of the industry:
- Import Powerhouses: Explore yearly import data (2012-2022) from major markets like the European Union, USA, and leading Asian nations. Identify the top suppliers fueling East Africa’s textile and apparel demand.
- Market Share Analysis: Delve into East Africa’s market share within these key markets. Understand your competitive landscape and potential for growth.
- East African Exports: Analyze yearly export figures for various textile categories like Apparel, Home Textiles, and more. Discover East Africa’s strengths and emerging export opportunities.
How to navigate the dashboard
- Utilize tabs to switch between data sets effortlessly.
- Hover over data points on charts and graphs for detailed information.
- Downloadable reports allow you to share insights with your team.
Market Filters
- Toggle focus between major markets by clicking on them at the top left legend.
- Compare multiple country data by adding or removing from top right filter.
The Categories Being Watched
Trade Deficit of Textile and Apparel
👕
Apparel
🧵
Fabric
🧶
Fibre
🛏
Home Textiles
🧶
Yarn
The Opportunity in East Africa
Outsourcing Your Apparel Manufacturing in East Africa
The textile and apparel industry in East Africa is experiencing unprecedented growth, driven by surging demand both locally and internationally. As populations grow and disposable incomes rise, the appetite for quality clothing and textiles within the region is expanding rapidly. Local consumers are increasingly seeking fashionable, affordable, and high-quality apparel, presenting a significant opportunity for businesses and investors. On the international front, East African textiles and apparel are gaining popularity due to their quality, affordability, and unique designs. Global brands and retailers are turning to East Africa as a reliable source for their textile and apparel needs, driven by the region’s commitment to quality and sustainable practices. This growing international demand is opening up vast opportunities for exporters and investors looking to tap into lucrative markets across the globe.
East Africa’s strategic geographical location provides a competitive edge for businesses and investors in the textile and apparel industry. Situated at the crossroads of major global trade routes, East Africa offers unparalleled access to key markets in Europe, the Middle East, and the United States. This advantageous positioning reduces shipping times and costs, making it an ideal hub for manufacturing and exporting textiles and apparel.
- Proximity to Europe: With direct shipping routes to Europe, East African manufacturers can quickly and efficiently supply textiles and apparel to European markets, meeting the growing demand for diverse and high-quality products.
- Gateway to the Middle East: East Africa’s close proximity to the Middle East positions it as a vital supplier for the region’s burgeoning textile and apparel market, driven by rising consumer demand and a growing fashion industry.
- Access to the US Market: Through preferential trade agreements like the African Growth and Opportunity Act (AGOA), East African textiles and apparel enjoy duty-free access to the US market, providing a significant competitive advantage for exporters.
The textile and apparel industry in East Africa benefits from a variety of regional trade agreements designed to promote growth, enhance market access, and attract investment. One of the most significant agreements is the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across the continent. This agreement eliminates tariffs on 90% of goods, facilitates free access to commodities, services, and investments, and fosters economic integration among African nations. For the textile and apparel sector, AfCFTA means reduced costs and increased efficiency in trade across African borders, opening up new opportunities for businesses and investors.
East African countries enjoy preferential access to some of the world’s largest markets through key trade agreements, offering substantial advantages for the textile and apparel industry:
- African Growth and Opportunity Act (AGOA): Under AGOA, East African textiles and apparel have duty-free access to the US market. This agreement not only reduces export costs but also enhances competitiveness, allowing East African products to thrive in the lucrative American market.
- Everything But Arms (EBA): The EBA initiative by the European Union grants Least Developed Countries (LDCs) in East Africa duty-free and quota-free access to the EU market for all products except arms and ammunition. This preferential access boosts the export potential of East African textiles and apparel to Europe, facilitating growth and investment.
East African governments are committed to fostering a thriving textile and apparel industry by offering a range of tax breaks, subsidies, and financial incentives designed to attract and support investment:
- Tax Breaks: Many East African countries provide tax holidays or reduced corporate tax rates for businesses investing in the textile and apparel sector. These tax incentives significantly lower the cost of doing business and enhance profitability for investors.
- Subsidies: Governments offer subsidies on raw materials, machinery, and infrastructure development to support the growth of the textile and apparel industry. These subsidies help reduce production costs and improve the overall competitiveness of East African manufacturers.
- Financial Incentives: Various financial incentives, including grants, low-interest loans, and credit facilities, are available to investors in the textile and apparel sector. These incentives aim to ease the financial burden of establishing and expanding operations, encouraging more investment in the industry.