Kenya Apparel and Textile Industry-Diagnosis, Strategy and Action Plan

Kenya Apparel and Textile Industry-Diagnosis, Strategy and Action Plan

 

Kenya’s textile and apparel sector has the potential to play a key role in anchoring the country’s deeper movement into middle income status and in serving as a source of gainful employment for its fast growing, young population. As a manufactured good, it offers opportunities for increased value capture and streamlined trade logistics, and for the building of skills and experience from the factory floor to management level. Based on these foundations, it therefore serves as a potential gateway to other manufactured goods, offering opportunities for Kenya to capture an increasing share of global trade and to advance economic diversification.

Such thinking - in terms of the opportunities that textile-apparel presents in and of itself as an economic sector and as a potential spring board to further advancement into manufacturing - played a substantial role in underpinning the African Growth and Opportunity Act (AGOA). AGOA gives most Sub-Saharan Africa (SSA) firms duty free, quota free access to the United States, offering a substantial competitive advantage over other textile-apparel exporting countries. Therefore, the trade agreement has played a pivotal role in the growth of the continent’s textile-apparel sectors.

However, almost 15 years after the launch of AGOA and shortly after its renewal, Sub-Saharan Africa’s trade with the US remains dominated by natural resources. While some manufactured goods feature in the top ten exports from AGOA countries, these are almost wholly from South Africa. Knit and nonknit apparel exports rank 27th and 33rd, respectively, in the value of AGOA countries’ exports, with AGOA countries amounting to under 1 percent of total
global apparel trade.

pdf Kenya Apparel and Textile Industry-Diagnosis, Strategy and Action Plan (PDF, 4.8MB)

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