Africa’s Textile Manufacturing Industry faces challenges with ray of hope for revival

Africa’s textile manufacturing industry is burdened with significant challenges such as the cost of production which remains significantly higher than in other textile-producing regions due to poor infrastructure, high energy costs, and inefficient supply chains in Africa.

This challenge of high cost of production makes it difficult for Africa’s textile manufacturers to compete, leading to factory closures and job losses across the continent.

Countries like China, India, and Bangladesh produce textiles at a much lower cost due to economies of scale, advanced technology, and government subsidies, according to PAMA bulletin April Edition.

Other challenges cited include access to affordable financing, which is also a barrier to the growth of textile manufacturing in Africa, as many local textile firms struggle to secure loans due to high interest rates, stringent lending conditions, and a lack of government support.

Import dependency is another major concern for the sector, according to PAMA as over 80% of textiles sold in Africa are imported primarily from China and India, while even cotton-producing nations such as Mali and Burkina Faso export 90% of their raw cotton and then import finished fabrics.

As observed by the International Trade Centre (2022), this trade imbalance not only weakens domestic value addition but also limits opportunities for local industries to evolve.

“The continent is also flooded with second hand clothing, known locally as Mitumba or Okrika. In East Africa, these donated used garments account for 56% of apparel imports, effectively undercutting local producers by saturating the market with low-cost alternatives (Brookings, 2022).”

“Furthermore, outdated technology poses a significant barrier with less than 15% of Africa’s textile factories being equipped with modern machinery compared to approximately 70% in countries like Bangladesh. This technological gap has led to lower productivity and higher per-unit production costs, further stifling the industry’s competitive edge (UNIDO, 2020).”

PAMA emphasized that lack of a clear national policy on the textiles and apparel sector, policy inconsistencies, and poor enforcement of local content laws are stifling the growth of the sector.

However, it is believed that there is a ray of hope as the future of Africa’s textile industry looks promising due to several synergistic trends, supported by proactive government policies aimed at revitalizing the sector, while the African Continental Free Trade Area (AfCFTA) is set to revolutionize regional commerce.

According to UNECA (2023), intra-African textile trade could see an annual boost of up to $2.5 billion by 2030, as the agreement streamlines trade regulations and opens new markets.

Governments across the continent are also aligning their industrial policies with AfCFTA goals, ensuring that local textile producers gain a competitive edge in regional and global markets.

Recognizing the global shift towards sustainable and ethical fashion, African governments are investing in environmentally friendly textile production, as Uganda and Tanzania, for example, have introduced policies to expand organic cotton farming, contributing to a 20% increase in production in 2022 (Textile Exchange, 2023).

In Ethiopia, the government has incentivized green manufacturing through tax breaks and infrastructure development in industrial parks like Hawassa.

 In West Africa, Nigeria’s government is driving industrial revival under its Cotton, Textile, and Garment (CTG) Policy.

Ghana, too, is investing in local production, with new initiatives to support textile cooperatives and reduce dependence on second hand clothing imports.

Meanwhile, South Africa has launched its Retail-Clothing, Textile, Footwear, and Leather (R-CTFL) Master Plan, aimed at strengthening local supply chains, enforcing anti-dumping measures, and increasing textile exports.

 The government is also offering financial incentives for small and medium sized textile enterprises to adopt modern technologies, ensuring competitiveness in the global market.

Africa’s young and dynamic workforce is another asset, with a median age of just 19.7 years (UN DESA, 2023),many governments are investing in technical and vocational training to equip the youth with textile manufacturing skills.

Rwanda, for instance, has introduced specialized training programs in garment production, preparing thousands of young people for employment in the sector.

Additionally, technological innovation is reshaping Africa’s textile industry. Startups like Kenya’s Kikuu and South Africa’s Zydii are digitizing supply chains and offering virtual tailoring solutions, with government-backed incubator programs providing financial support for such innovations (GSMA, 2023).

Africa’s Textile Industry should be supported for Economic Growth and Job Creation as the textile industry currently employs over 1.2 million Africans and with targeted interventions, it has the potential to create up to 5 million jobs by 2030 (ILO, 2023).

Expansion of the sector can help address unemployment and promote inclusive growth as this has made women’s Empowerment and Gender Equity to thrive in countries like Ethiopia and Lesotho, as women make up 70% of the textile workforce (World Bank, 2022).

Strengthening the textile industry can boost gender equity and enhance their economic empowerment act as catalyst for Industrialization; Strong backward linkages to agriculture (e.g., cotton production);  Forward linkages to retail, creating a ripple effect for economic expansion; Increased investments in the textile sector can enhance Africa’s overall industrial ecosystem; Cultural Heritage & Tourism.

Strengthening the textile industry can also revive traditional fabric production (e.g., Bògòlanfini in Mali, Aso Oke in Nigeria) preserves African heritage; Promoting local textiles boosts tourism by showcasing African artistry and craftsmanship as well as strengthening cultural identity contributing to economic diversification.

There is a stringent call to action for governments and stakeholders to Implement targeted policy reforms and an infrastructural investment plan in the sector, promoting local production and consumption of African textiles.

 Further assessment on the state of Africa’s textiles industry governments and stakeholders is needed to support the sector to drive job creation, empower women, boost industrial growth, and preserve Africa’s cultural legacy.