Study: Interest in Manufacturing in East Africa on the Rise

According to a new study, “Sourcing in a Volatile World – the East Africa opportunity,” set to be released today by McKinsey & Co. (New York), sub-Saharan Africa will become a more vital source for apparel manufacturing than it has been in previous years.

The study surveyed top international apparel chief procurement officers – collectively responsible for sourcing roughly $70 billion – who indicated their plan to increase their current level of sourcing from sub-Saharan Africa to 2.8 percent from 0.3 percent by 2020, reports Women’s Wear Daily.

The anticipated long-term results of these projections create an outlook for sub-Saharan Africa that will reach levels similar to those of China by 2035, noted in the study. Currently, the region has only a 0.56 percent share of the global volume of clothing exports, totaling $2.6 billion.

“The region has good opportunities to develop positively, and establish fair social and environmental protection standards,” said Achim Berg, a principal in McKinsey’s Frankfurt office and leader of the Apparel, Fashion & Luxury Group. “In order for all parties to achieve sustainable economic success, companies must work extensively with both governments and suppliers on social and compliance issues.”

Despite the potential shown by East Africa, China continues to dominate the manufacturing market, responsible for about 39 percent of global apparel exports, according to WWD, at a value of $177 billion.