Sourcing Apparel from Kenya and Ethiopia
The international apparel community is showing growing interest in sourcing from Kenya and Ethiopia. Reasons for this include duty-free access to key markets, attractive investment incentives and low wage rates compared with countries in Asia. Consequently, there is a focus on transferring technology and management knowhow from Asia to Kenya and Ethiopia by means of foreign direct investment (FDI). In Ethiopia in particular, a large number of high profile brand names have started sourcing apparel from the country. This report provides an overview of the textile and clothing industries in Kenya and Ethiopia, and highlights the challenges and opportunities that the industries face. Also, the report includes profiles of selected clothing companies in Kenya and discusses the competition they face from neighbouring countries. Furthermore, the report includes information on investments made in Ethiopia by major foreign textile and clothing companies.
SUMMARY
INTRODUCTION: KENYA AND ETHIOPIA COMPARED
Geographical profile
Development status
Textile and clothing industries as generators of employment
Access to the US and EU markets
Regional integration and cooperation
Shared characteristics
KENYA: TEXTILE AND CLOTHING INDUSTRY
Importance of the textile and clothing industry in Kenya
Export diversification
Positive test: Kenyan garment exports to Denmark
Extension of Agoa
Growing interest in sourcing from Kenya
CherryField Sesby
Li & Fung
Phillips-Van Heusen (PVH)
Major challenges facing the Kenyan clothing industry
High electricity costs
High wage levels
Rising imports of second hand clothing
Apparel exporters in Kenya’s EPZ
PROFILES OF SELECTED KENYAN CLOTHING COMPANIES
Africa apparels
Atraco Group
Global Apparels Kenya (EPZ)
New Wide Garments Kenya EPZ
United Aryan EPZ
SHIFT IN TEXTILE AND GARMENT MANUFACTURING FROM KENYA TO NEIGHBOURING COUNTRIES
Sourcing apparel from Kenya and Ethiopia
ETHIOPIA: TEXTILE AND APPAREL INDUSTRY
High profile public investments
Textile Industry Development Institute (TIDI)
Bole Lemi textile industrial zone
Factor costs
Major strengths
Weaknesses
Wave of investments
Textile machinery manufacturers visit Ethiopia
SELECTED MAJOR FOREIGN INVESTORS IN THE ETHIOPIAN TEXTILE AND CLOTHING INDUSTRY
Arvind
Ayka Textile
Bagir Group
Calzedonia
DBL
Else Addis Industrial Development
Eshet Engineering and the Ministry of Industry
H&M
Jiangsu Lianfa Textile Co
Kanoria Chemicals & Industries
Saygin Group
Kenya-based companies
Asian companies which have invested in the Bole Lemi textile zone
FURTHER INFORMATION
INTRODUCTION: KENYA AND ETHIOPIA COMPARED
Geographical profile
Development status
Textile and clothing industries as generators of employment
Access to the US and EU markets
Regional integration and cooperation
Shared characteristics
KENYA: TEXTILE AND CLOTHING INDUSTRY
Importance of the textile and clothing industry in Kenya
Export diversification
Positive test: Kenyan garment exports to Denmark
Extension of Agoa
Growing interest in sourcing from Kenya
CherryField Sesby
Li & Fung
Phillips-Van Heusen (PVH)
Major challenges facing the Kenyan clothing industry
High electricity costs
High wage levels
Rising imports of second hand clothing
Apparel exporters in Kenya’s EPZ
PROFILES OF SELECTED KENYAN CLOTHING COMPANIES
Africa apparels
Atraco Group
Global Apparels Kenya (EPZ)
New Wide Garments Kenya EPZ
United Aryan EPZ
SHIFT IN TEXTILE AND GARMENT MANUFACTURING FROM KENYA TO NEIGHBOURING COUNTRIES
Sourcing apparel from Kenya and Ethiopia
ETHIOPIA: TEXTILE AND APPAREL INDUSTRY
High profile public investments
Textile Industry Development Institute (TIDI)
Bole Lemi textile industrial zone
Factor costs
Major strengths
Weaknesses
Wave of investments
Textile machinery manufacturers visit Ethiopia
SELECTED MAJOR FOREIGN INVESTORS IN THE ETHIOPIAN TEXTILE AND CLOTHING INDUSTRY
Arvind
Ayka Textile
Bagir Group
Calzedonia
DBL
Else Addis Industrial Development
Eshet Engineering and the Ministry of Industry
H&M
Jiangsu Lianfa Textile Co
Kanoria Chemicals & Industries
Saygin Group
Kenya-based companies
Asian companies which have invested in the Bole Lemi textile zone
FURTHER INFORMATION
LIST OF TABLES
Table 1: Kenya: impact of Agoa on the EPZ clothing industry, 2009-13
Table 2: Kenya: leading export markets for apparel and accessories, 2013
Table 3: Ethiopia: no of employees in the textile and clothing industry, 2006/07-2010/11
Table 4: Ethiopia: largest textile and clothing companies, July 2014
Table 1: Kenya: impact of Agoa on the EPZ clothing industry, 2009-13
Table 2: Kenya: leading export markets for apparel and accessories, 2013
Table 3: Ethiopia: no of employees in the textile and clothing industry, 2006/07-2010/11
Table 4: Ethiopia: largest textile and clothing companies, July 2014
LIST OF MAPS
Kenya
Ethiopia
Kenya
Ethiopia
