According to the US “Wall Street Journal”, Africa, with its huge advantage of cheap labor, is attracting more and more manufacturing industries to move to Africa, among which the garment industry regards Africa as a new “treasure land.”
Asia has always dominated the field of clothing production. However, in the past few years, rising production costs in China and several fatal factory accidents around the world have forced garment companies to look for alternative manufacturers in Myanmar, Colombia, Ethiopia and other places.
The report pointed out that Ethiopia’s garment industry does not set a minimum wage. In contrast, the minimum wage for Bangladeshi garment workers is US$67 per month. The Ethiopian government said that last year, the starting salary of Ethiopian garment workers was about US$21 per month. In addition, the free trade agreement signed between Africa and the United States has saved costs for retailers and has also benefited many African countries. African countries can grow their own cotton, which shortens the clothing production period and makes African countries more competitive.
According to data from McKinsey & Co., Ethiopia has recently become a major supplier for apparel companies. VF expects to begin sewing some of the pants in Ethiopia. PVHC Corp., the parent company of Calvin Klein and Tommy Hilfiger, has produced some clothing in Kenya for at least four years. Other companies sourcing apparel from sub-Saharan Africa include Wal-Mart Stores Inc., J.C. Penney Co. and Levi Strauss & Co.
Despite this, so far, Africa’s garment manufacturing industry is still in its infancy, and it will take a long time to seize the top spot in China’s manufacturing industry. According to valid data from the World Trade Organization (WTO), China’s apparel exports in 2013 were US$177 billion, nearly eight times the exports of Bangladesh, which ranked third. It took Bangladesh eight years to grow into the manufacturing power it is now.
The report pointed out that many African countries lack roads to complete the transportation of clothing. Ethiopia is landlocked and has no ports. Additionally the workers were not trained in sewing. All of sub-Saharan Africa’s apparel exports account for less than 1% of the global total. But low labor and electricity costs will still provide Ethiopia with an advantage in attracting companies to the country. Africa has the advantage of low labor force and the garment industry is regarded as a new treasure land
Africa’s labor force is cheap and the garment industry is a new treasure.
According to the US “Wall Street Journal”, Africa, with its huge advantage of cheap labor, is attracting more and more manufacturing industries to move to Africa, among which the garment industry re…
This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.yjtextile.com/archives/11200