It’s interesting how two African land-locked countries are emerging as the continent’s leading destination for Asian apparel makers looking to offshore, or “delocalize” their China manufacturing operations. Both Ethiopia and Rwanda are emerging as the leaders in this sector despite the fact that transportation logistics in each country presents significant challenges for textile producers.
The industry publication Just Style reported today that a Hong Kong-based apparel maker, C&D Products Group, chose to build a second factory in Rwanda rather than Ethiopia or elsewhere in Africa largely due to the favorable regulatory environment there.
“We explored Tanzania, Ghana, Ivory Coast, Kenya and obviously Ethiopia, which is also landlocked like Rwanda but has attracted a lot of investors thanks to the policies and vision put in place by the government to develop a garment-led industry.,” said C&D Maryse Mbonyumutwa Gallagher, Co-Owner, C&D Products/Pink Mango Rwanda. “This led us to include Rwanda in the potential locations for delocalization of our China production,” she added.
- The Brookings Institute: Migration of Chinese manufacturing jobs to Africa: Myth or reality? by Tilman Altenburg, Head, Transformation of Economic and Social Systems Programme – German Development Institute
- McKinsey & Company: East Africa: The next hub for apparel sourcing? by Achim Berg, Saskia Hedrich, and Bill Russo
- Bloomberg: China Is Turning Ethiopia Into a Giant Fast-Fashion Factory by Bill Donahue
