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13 December 2017
14/11/2010
Sub-Saharan African cotton yarns and fabrics have the most potential for competitive production, says USITC

Sub-Saharan African (SSA) countries have the greatest potential to be competitive in the production of cotton yarn, fabric, and other textile and apparel inputs, but they face numerous challenges, according to the U.S. International Trade Commission (USITC) in its report Sub- Saharan African Textile and Apparel Inputs: Potential for Competitive Production.

The USITC, an independent, nonpartisan, factfinding federal agency, conducted a review to identify yarns, fabrics, and other textile and apparel inputs that can be produced competitively in beneficiary sub-Saharan African countries through new or increased investment or other measures.

The review, required by a provision included in 2008 legislation extending the Andean Trade Preference Act, was submitted today to the U.S. House of Representatives' Committee on Ways and Means, the U.S. Senate Committee on Finance, and the Comptroller General. Highlights of the report follow.

  • Cotton yarn, cotton knit fabric, denim fabric, and to a lesser extent, cotton woven shirting fabric, appear to the have the most potential for competitive production in SSA countries. Cotton is the primary fiber currently used in the production of yarn and fabric in the SSA countries, and it is grown in large quantities in the region.
  • SSA countries also have the potential to competitively produce certain niche textile items including: organic cotton yarn and knit fabric used for T-shirts; certain wool woven fabrics; hand-loomed fabric of cotton and silk; African print fabric; and yarn and knit fabric made of speciality manmade fibers, such as modal.
  • The SSA countries produce some products that appear best-suited for local or regional markets, including woven fabric for uniforms, blankets, bedsheets, and towels; acrylic yarn; cotton fabric for cotton bale wrap and cotton picking bags; and knit fabric for mosquito nets.
  • SSA production of textile and apparel inputs has declined recently in the face of increased competition from Asian producers. New or increased investment or other measures could assist the industry in maintaining or expanding current production and export levels of these inputs, as well as increase the potential for production of some new products.
  • SSA countries face numerous and substantial challenges in their production of yarn, fabric, and other textile and apparel inputs. As a whole, SSA countries have an insufficient apparel base through which to develop and sustain upstream production in yarn, fabric, and other inputs. SSA countries also face severe challenges with their infrastructure that raise the cost of existing production and also deter significant new investment in the capital-intensive textile industry.

    CONTENTS

    Page

    Abstract ................................................................................................................ i

    Abbreviations and Acronyms .................................................................................. iii

    Glossary .............................................................................................................. v

    Executive Summary ............................................................................................. xv

    Chapter 1. Introduction ........................................................................................ 1-1

    Purpose of report ................................................................................................. 1-1

    Product and country scope  ................................................................................... 1-1

    Approach   ........................................................................................................... 1-2

    Analytical framework ............................................................................................ 1-2

    Fieldwork and data sources ................................................................................... 1-6

    Organization ........................................................................................................ 1-8

    Chapter 2. Product Summary ................................................................................ 2-1

    Textile and apparel inputs that can be produced competitively .................................. 2-1

    Exports of textile and apparel inputs ....................................................................... 2-4

    Chapter 3. Factors of Competitiveness .................................................................... 3-1

    Factors affecting demand for textile and apparel inputs ............................................. 3-1

    Large retailers’ influence on the global apparel industry ............................................. 3-1

    Existence of a viable local or regional apparel industry ............................................... 3-3

    Factors affecting the supply of textile and apparel inputs  ............................................ 3-4

    Power and water ..................................................................................................... 3-4

    Finance .................................................................................................................. 3-8

    Age of existing plant and equipment ........................................................................ 3-10

    Labor .................................................................................................................... 3-11

    Raw materials ........................................................................................................ 3-12

    Factors that affect the entire supply chain ................................................................. 3-13

    Business environment ............................................................................................. 3-13

    Factors affecting movement of goods .......................................................................  3-14

    Chapter 3. Factors of Competitiveness―Continued

    Factors that affect the entire supply chain―Continued

    U.S. and EU tariffs and trade preference programs .................................................... 3-18

    Regional integration ................................................................................................ 3-20

    Chapter 4. Country Review ...................................................................................... 4-1

    Overview ...............................................................................................................  4-1

    Group 1 Countries ................................................................................................... 4-1

    Ethiopia .................................................................................................................. 4-2

    Kenya ................................................................................................................... 4-11

    Lesotho ................................................................................................................. 4-16

    Madagascar ........................................................................................................... 4-22

    Mauritius ............................................................................................................... 4-29

    Nigeria .................................................................................................................. 4-37

    South Africa ........................................................................................................... 4-44

    Swaziland .............................................................................................................  4-57

    Tanzania ................................................................................................................ 4-62

    Zambia .................................................................................................................. 4-70

    Group 2: Selected other SSA exporters of textile inputs or apparel ............................. 4-80

    Botswana .............................................................................................................. 4-80

    Ghana .................................................................................................................  4-84

    Malawi ................................................................................................................. 4-88

    Mozambique   ....................................................................................................... 4-92

    Namibia  .............................................................................................................. 4-95

    Uganda ............................................................................................................... 4-98

    Group 3: Major West African cotton-producing countries ........................................ 4-103

    Benin ................................................................................................................ 4-106

    Burkina Faso ..................................................................................................... 4-109

    Cameroon ........................................................................................................ 4-112

    Mali ................................................................................................................. 4-115

    Senegal ............................................................................................................ 4-118

    Group 4: Countries that are unlikely candidates for competitive production of textile

    and apparel inputs ............................................................................................. 4-122

    Group 4 country production of textile and apparel inputs........................................ 4-122

    Group 4 country apparel production..................................................................... 4-123

    Group 4 country infrastructure ........................................................................... 4-123

    Group 4 economic indicators .............................................................................. 4-123


    Bibliography...................................................................................................... Bibl-1

    Appendices

    A. Section 3 of Public Law 110-436....................................................................... A-1

    B. Federal Register notice ................................................................................... B-1

    C. Spinning, weaving, and knitting machinery data ................................................ C-1

    D. List of hearing participants ............................................................................... D-1

    E. Summary of views of interested parties ............................................................. E-1

    F. Additional trade data......................................................................................... F-1

    G. Additional cotton data...................................................................................... G-1

    H. Summary of selected regional free trade agreements and organizations .............. H-1

    I. Basic economic indicators definitions and sources .............................................   I-1

    Boxes

    4.1 Ethiopia’s hand-loomed textiles industry.......................................................... 4-5

    4.2 Company profiles: Bedi Investments Limited and Fine Spinners Limited ........... 4-13

    4.3 Mauritius’s strategies for success.................................................................. 4-34

    4.4 Cotton production in Nigeria ........................................................................ 4-42

    4.5 Improving competitiveness through clusters and fast fashion .......................... 4-55

    4.6 Cotton production in Tanzania......................................................................  4-68

    4.7 Cotton production in Zambia .......................................................................  4-73

    4.8 Zambia’s premier cotton yarn spinner and AGOA exporter collapses in
    December 2008................................................................................................. 4-75

    4.9 Cotton production in Franc Zone Africa ........................................................ 4-104

    Tables

    ES.1 Summary of selected SSA textile and apparel input producers.......................  xxii

    1.1 Exports of textile and apparel inputs and apparel by SSA country, 2007 .........   1-5

    2.1 SSA exports of textile and apparel inputs, by product group, 2003–07 ............. 2-4

    3.1 Electricity supply and production constraints: Select SSA countries................... 3-6

    3.2 Water supply and constraints: Select SSA countries ....................................... 3-7

    3.3 Selected business environment indicators, 2009 ........................................... 3-15

    3.4 Selected infrastructure indicators ................................................................ 3-17

    3.5 Eligibility for AGOA apparel and textile preferences....................................... 3-19

    4.1 Ethiopia: Basic economic indicators ..........................................................     4-3

    4.2 Ethiopia: Exports of textile and apparel inputs, by destination, 2003–07 ........... 4-5

    4.3 Ethiopia: Exports and imports of textile and apparel inputs, by product group,
    2003–07 ......................................................................................................... 4-6

    4.4 Ethiopia: Exports and imports of apparel, 2003–07 .......................................  4-7

    4.5 Kenya: Basic economic indicators ..............................................................  4-12

    4.6 Kenya: Exports of textile and apparel inputs, by destination, 2003–07 ...........  4-14

    4.7 Kenya: Exports and imports of textile and apparel inputs, by product group,
    2003–07 ......................................................................................................... 4-14

    4.8 Kenya: Exports and imports of apparel, 2003–07 .......................................... 4-14

    4.9 Lesotho: Basic economic indicators ............................................................   4-17

    4.10 Lesotho: Exports and imports of textile and apparel inputs, by product group,
    2003–07........................................................................................................... 4-19

    4.11 Lesotho: Exports of textile and apparel inputs, by destination, 2003–07.......... 4-19

    4.12 Lesotho: Exports and imports of apparel, 2003–07....................................... 4-20

    4.13 Madagascar: Basic economic indicators......................................................  4-23

    4.14 Madagascar: Exports of textile and apparel inputs, by destination, 2003–07 .. 4-25

    4.15 Madagascar: Exports and imports of textile and apparel inputs, by product
    group, 2003–07............................................................................................... 4-25

    4.16 Madagascar: Exports and imports of apparel, 2003–07 ..............................   4-26

    4.17 Mauritius: Basic economic indicators .........................................................  4-30

    4.18 Mauritius: Exports of textile and apparel inputs, by destination, 2003–07 ......  4-33

    4.19 Mauritius: Exports and imports of textile and apparel inputs, by product group,
    2003–07.......................................................................................................... 4-33

    4.20 Mauritius: Exports and imports of apparel, 2003–07 .................................... 4-34

    4.21 Nigeria: Basic economic indicators............................................................. 4-38

    4.22 Nigeria: Major textile exporting firms, 2007................................................. 4-39

    4.23 Nigeria: Exports of textile and apparel inputs, by destination, 2003–07........... 4-41

    4.24 Nigeria: Exports and imports of textile and apparel inputs, by product group,
    2003–07........................................................................................................... 4-41

    4.25 Nigeria: Exports and imports of apparel, 2003–07......................................... 4-41

    4.26 South Africa: Basic economic indicators .....................................................  4-45

    4.27 South Africa: Exports of textile and apparel inputs, by destination, 2003–07 ... 4-47

    4.28 South Africa: Exports and imports of textile and apparel inputs, by product
    group, 2003–07................................................................................................ 4-48

    4.29 South Africa: Exports and imports of apparel, 2003–07 ................................ 4-49

    4.30 Swaziland: Basic economic indicators ......................................................... 4-58

    4.31 Swaziland: Exports of textile and apparel inputs, by destination, 2003–07 ...... 4-59

    4.32 Swaziland: Exports and imports of textile and apparel inputs, by product
    group, 2003–07................................................................................................ 4-59

    4.33 Swaziland: Exports and imports of apparel, 2003–07 .................................... 4-60

    4.34 Tanzania: Basic economic indicators ..........................................................  4-63

    4.35 Tanzania: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ................................................................................................ 4-65

    4.36 Tanzania: Exports of textile and apparel inputs, by destination, 2003–07........ 4-66

    4.37 Tanzania: Exports and imports of apparel, 2003–07 ..................................... 4-67

    4.38 Zambia: Basic economic indicators............................................................. 4-71

    4.39 Zambia: Exports and imports of textile and apparel inputs, by product
    group, 2003–07............................................................................................... 4-76

    4.40 Zambia: Exports of textile and apparel inputs, by destination, 2003–07 .......  4-76

    4.41 Zambia: Exports and imports of apparel, 2003–07 ....................................  4-78

    4.42 Botswana: Basic economic indicators ......................................................   4-81

    4.43 Botswana: Exports of textile and apparel inputs, by destination, 2003–07....  4-82

    4.44 Botswana: Exports and imports of textile and apparel inputs, by product
    group, 2003–07............................................................................................  4-82

    4.45 Botswana: Exports and imports of apparel, 2003–07.................................  4-82

    4.46 Ghana: Basic economic indicators ..........................................................  4-85

    4.47 Ghana: Exports of textile and apparel inputs, by destination, 2003–07 ....... 4-88

    4.48 Ghana: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ............................................................................................ 4-88

    4.49 Ghana: Exports and imports of apparel, 2003–07 ..................................... 4-88

    4.50 Malawi: Basic economic indicators........................................................... 4-89

    4.51 Malawi: Exports of textile and apparel inputs, by destination, 2003–07 ......  4-91

    4.52 Malawi: Exports and imports of textile and apparel inputs, by product
    group, 2003–07............................................................................................. 4-91

    4.53 Malawi: Exports and imports of apparel, 2003–07 ..................................... 4-91

    4.54 Mozambique: Basic economic indicators................................................... 4-93

    4.55 Mozambique: Exports of textile and apparel inputs, by destination,
    2003–07....................................................................................................... 4-94

    4.56 Mozambique: Exports and imports of textile and apparel inputs, by product
    group 2003–07............................................................................................   4-94

    4.57 Mozambique: Exports and imports of apparel, 2003–07...........................    4-94

    4.58 Namibia: Basic economic indicators .......................................................   4-96

    4.59 Namibia: Exports of textile and apparel inputs, by destination, 2003–07....... 4-98

    4.60 Namibia: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ............................................................................................ 4-98

    4.61 Namibia: Exports and imports of apparel, 2003–07.................................... 4-98

    4.62 Uganda: Basic economic indicators .......................................................... 4-99

    4.63 Uganda: Exports of textile and apparel inputs, by destination, 2003–07 ..... 4-101

    4.64 Uganda: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ........................................................................................... 4-101

    4.65 Uganda: Exports and imports of apparel, 2003–07 .................................. 4-101

    4.66 Benin: Basic economic indicators .......................................................... 4-107

    4.67 Benin: Exports of textile and apparel inputs, by destination, 2003–07 .....   4-108

    4.68 Benin: Exports and imports of textile and apparel inputs, by product
    group, 2003-07........................................................................................... 4-108

    4.69 Benin: Exports and imports of apparel, 2003–07 ...................................  4-108

    4.70 Burkina Faso: Basic economic indicators ............................................... 4-109

    4.71 Burkina Faso: Exports of textile and apparel inputs, by destination,
    2003–07 .................................................................................................... 4-110

    4.72 Burkina Faso: Exports and imports of textile and apparel inputs, by product
    group 2003–07 ........................................................................................... 4-111

    4.73 Burkina Faso: Exports and imports of apparel, 2003–07 .......................... 4-111

    4.74 Cameroon: Basic economic indicators ..................................................  4-112

    4.75 Cameroon: Exports of textile and apparel inputs, by destination,
    2003–07 ................................................................................................... 4-113

    4.76 Cameroon: Exports and imports of textile and apparel inputs, by product
    group 2003–07........................................................................................... 4-114

    4.77 Cameroon: Exports and imports of apparel, 2003–07 ............................. 4-114

    4.78 Mali: Basic economic indicators ............................................................ 4-116

    4.79 Mali: Exports of textile and apparel inputs, by destination, 2003–07 ......... 4-116

    4.80 Mali: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ......................................................................................... 4-117

    4.81 Mali: Exports and imports of apparel, 2003–07 ...................................... 4-117

    4.82 Senegal: Basic economic indicators ..................................................... 4-119

    4.83 Senegal: Exports of textile and apparel inputs, by destination, 2003–07... 4-119

    4.84 Senegal: Exports and imports of textile and apparel inputs, by product
    group, 2003–07 ........................................................................................ 4-120

    4.85 Senegal: Exports and imports of apparel, 2003–07 ............................... 4-120

    4.86 Per capita electricity production, Internet users, paved roads, and
    rail lines, Group 4 countries, SSA countries, China, and India........................ 4-123

    4.87 Per capita GDP and FDI inflows, Group 4 countries, SSA countries,
    and the United States ............................................................................... 4-124

    C.1 Spinning machinery: Installed capacity and cumulative shipments .........  C-3

    C.2 Installed capacity and cumulative shipments of weaving machinery........  C-4

    C.3 Cumulative shipments of large circular knitting machines, 1998–2007 ....  C-5

    F.1 Exports of textile and apparel inputs, by SSA country, selected other
    countries, and world, 2003–07...................................................................  F-3

    F.2 SSA-country exports of textile and apparel inputs, by product group,
    by destination, 2003–07 ..........................................................................   F-5

    F.3 SSA-country exports of textile and apparel inputs, by product
    group, 2003–07......................................................................................... F-6

    F.4 Exports of apparel, by SSA country, selected other countries,
    and world, 2003–07 .................................................................................. F-8

    G.1 Cotton production in SSA-countries, MY 2000–07 .................................. G-3

    H.1 Summary of selected regional free trade agreements and organizations.. H-3

    I.1 Definitions and sources for basic economic indicators ............................. I-3

    Figures

    1.1 Map of SSA beneficiary countries ........................................................ 1-3

    1.2 Competitive framework for textile and apparel inputs production ........... 1-7

    2.1 SSA exports of textile and apparel inputs, by product group, 2007.......... 2-5

    3.1 Manufacturing firms’ share of investment accounted for by bank
    financing and lending interest rates in selected SSA countries...................... 3-9

    3.2 Value added per worker in medium-sized manufacturing firms............... 3-12

    3.3 Index of political troubles for certain SSA countries, 1996–2007 ............ 3-16

Sub-Saharan African Textile and Apparel Inputs: Potential for Competitive Production (Investigation No. 332-502, USITC publication 4078, May 2009) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4078.pdf.

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