“span id=”lblArticleBodyText”>”Buyers are turning away,” said Navdeep Sodhi, a partner with Swiss consulting firm Gherzi. .
“Factories across southern and eastern Africa are operating at 50-60% capacity compared with the first half of 2008, he added. .
“In Botswana, “most textile companies have already reduced their
workforce and two have closed down,” said Krishna Chinniah, managing
director of B&M Garments. .
“Those still seeing strong demand are generating little income. .
“Profits at Protex Kenya, owned by Taiwanese group New Wide, have
been eroded by lower prices, said Samuel Chang, chief company
secretary. .
“Retailers are sourcing in fewer locations and focusing on producers with the lowest costs, according to Sodhi. .
“While Chinese exporters have benefited from the removal of the last US “a href=”http://www.just-style.com/factsheet.aspx?id=551” onclick=”onClick=setLyr(this,’factSheetHolder’);showLayer(‘factSheetHolder’);getFactsheetData(‘551’);firstTracker._trackPageview(‘/factsheet/quotas’);return false;”>quotas”/a> at
the beginning of this year, increasing their share of US imports at
Africa’s expense, African exporters are seeing rebate schemes reversed.
.
“An import rebate incentive for South Africa Customs Union textile
exporters expires tomorrow and the new version of the agreement is “not
very advantageous,” said Chinniah. .
“Africa’s textile industries are at a significant disadvantage with
poor infrastructure, high electricity and water charges, and a lack of
locally produced raw materials. .
“Some exporters had countered those weaknesses by exploiting certain
niche categories under AGOA. But Chinniah said this edge has been
eliminated by “the current storm of business conditions”. .
“Half of the continent’s textile factories could close their doors in
coming months, believes Sodhi. “Unless governments do something to
help, there’ll be no industry left..”/span>
Date:4/1/2009
Source:Just-Style