Textiles & Apparel

The Mauritius pavilion was the first thing visitors saw as they entered the exhibition hall at Source Africa 2013. Upon hearing of the planned Source Africa event last year, Enterprise Mauritius (EM) immediately booked this prime spot and set out to gather 40 Mauritian producers to showcase their skill and capacity to leading South African retailers such as Foschini, Woolworths, Ackerman, Pep, Mr Price, and Polo.

"Our strategy is to project Mauritius as a preferred sourcing destination for trade and business for the South African business community," explains Geerish Bucktowonsing, textile and apparel sector manager at EM, the national export promotion agency.

Kevin Burke, president and CEO of the American Apparel & Footwear Association (AAFA), which partnered with the Trade Hub for Source Africa 2013, recently remarked on the strong participation of African apparel and footwear companies at the MAGIC trade show in Las Vegas in February. This followed AAFA's 2012 Annual Executive Summit, where the former COO and senior vice president of Wal-Mart Global Procurement and CEO of the Hong Kong Research Institute of Textile and Apparel, Edwin Keh, pronounced that for the next ten years it seems certain that apparel sourcing solutions lie further and further afield in places like Africa.

With 1,401 participants, 170 exhibitors and 36 buyers from local and international retailers, Source Africa 2013 was a resounding success.

Three American Apparel and Footwear Association (AAFA) business seminars and two African Cotton & Textile Industries Federation (ACTIF) power breakfasts were well-attended and highly rated by over 92% of respondents, with 87% stating that they would be able to use the knowledge and information in their business dealings.

Better Work Lesotho, an initiative of the International Labour Organization (ILO) and the International Finance Corporation (IFC), is working with garment and footwear factories in the country to improve their compliance with labor standards and promote their competitiveness in the apparel sector, in Lesotho and globally. Better Work Lesotho is funded by the United States Department of Labor, and is part of the ILO's Decent Work Country Program, which works to reduce poverty by sustaining decent work opportunities in Lesotho. Since its launch in December 2010, 24 factories—representing 58% of the country's garment and footwear establishments and about 70% of the sector's workforce—have joined Better Work Lesotho.

According to experts in the industry, trade shows are the #1 way to gain new business, making the Source Africa event in Cape Town, South Africa from April 9-12 a tremendous opportunity for suppliers in the region. However, experts also know that success at trade shows requires more than just showing up. To prepare exhibitors for Source Africa, the USAID Southern Africa Trade Hub conducted a Supplier Training Program in Lesotho, Mozambique and Botswana.

The Trade Hub explained the purpose of AGOA—to give African countries market access—and the wide range of sectors targeted towards that goal: 6,400 products from textiles to agriculture to luggage to automotive parts. To date AGOA has created 300,000 jobs, primarily in the textiles and apparel sector.
The Trade Hub joined Economic Officer Domingo Villaronga from the US Embassy, Botswana to participate in an interview with the Radio Botswana program Foreign Window on the topic of AGOA and regional trade in Southern Africa.

Interviewer Bontle Moreetsi was interested in the history and structuring of AGOA and whether it has benefitted the African countries it was designed to assist.

What makes Source Africa a destination event attracting thousands of participants from around the globe? The beauty of Cape Town's beaches is far from the only draw. Source Africa is designed to showcase the best in textiles and apparel that Africa has to offer, giving the world a first-hand look at the quality, workmanship and creativity available in the region.

Source Africa will match regional and international buyers with African apparel suppliers to establish new business partnerships and solidify existing sourcing relationships. With the support of the USAID Southern Africa Trade Hub (Trade Hub), the American Apparel & Footwear Association (AAFA) and the African Cotton & Textile Industries Federation (ACTIF), Source Africa is the most important textiles, apparel and footwear event on the continent.

This article will give a statistical glimpse of Sub-Saharan Africa's performance under the African Growth & Opportunity Act (AGOA), with special focus on textiles/garments. A total of 41 Sub-Saharan Africa countries (including South Sudan) are AGOA-eligible. AGOA accords duty-free-quota-free (DFQF) treatment for eligible apparel articles made in qualifying sub-Saharan African countries through 2015.

The Export Digest covers export-related matters including Trade Hub export-related activities, export marketing, trade finance, export logistics, international trade law, export administration, export sales contracts and export success stories under the African Growth and Opportunity Act (AGOA). We answer readers' questions about practical export-related matters and highlight important trade-related developments such as new trade agreements or regulatory changes. International trade experts, exporters and importers feature as guest contributors to the column to share their experiences.