China Quietly Usurps African Textile Market

Africa Is Going Through A Double Whammy, As China Has Penetrated Deeply Into The

African Textile Market, Seriously Dislocating The Domestic Textile Companies In Africa. While Africa Was Hoping To Cash In On The Concessions Being Extended By Both The US And The EU To Promote Its Exports To Both The Countries, It Is Now Facing A Dilemma Because Of Deluge Of Chinese Textiles. What China Seems To Be Losing In The US Market, Appears To Be Made Up In The African Market. In Ghana, The Textile Industry Continues To Face Challenges, Amid Growing Competition From Cheap Imports From China. According To A Local Source, Apart From Akosombo Textile Limited (ATL), Which Is Operating Fully, Household Names Such As Ghana Textile Print (GTP) And Printex Have All Shut Down Their Spinning And Weaving Departments Due To Cheap Imports From China. These Sections Employed A Chunk Of The Labour In The Industry. However, The Companies Could No Longer Afford To Accommodate These Numbers And Pay Several Times The Amount Of Cheap Imports From China. Textiles That Come From China Do Not Only Carry The Designs Of Ghanaian Cloths, But Are Imitated To Let Them Appear As If They Were Produced In Ghana. Although The Chinese Textiles Are Not Durable, Compared To Made-Inghana Ones, They Sell Far Below Ghanaian Textiles. Consequently, Most Retailers Of Local Textile Companies Such As ATL, Printex, And Ghana Textiles Prints (GTP) Are Said To Have Abandoned The Local Cloth And Are Now Selling Wax Prints From China, Which Is Far Cheaper. Due To The Hardships, The Companies Have All Resorted To The Import Of Gray Baft And Semi-Finished Cloth For Printing In The Country. Some Members Of The Textile, Garments And Leather Employees Union (TEGLEU) Recently Revealed That The Problems With Ghana's Textile Industry Still Existed And Were Getting Worse Each Day. They Argued That There Was The Need For Government To Find Out Why The Sector Is Collapsing And Why Ghana Cannot Compete With China In Order To Find Lasting Solutions Rather Than Taking A Defeatist Approach. Though Stakeholders In The Country Have Made Frantic Efforts To Revitalize The Textile And Garment Industry, This Seems To Have Hit The Rocks Since The Economy Is Recording A Rapid Surge In The Sale Of Fake Logos And Designs Of Chinese Textile Firms In The Market. Industry Watchers Are Worried That If The Flood Gates Are Opened For The Chinese Textiles To Saturate The Ghanaian Market, Then The Industry Will Totally Collapse. They Contended That Current Situation Had Made It Difficult For Local Producers Of Textile To Sustain Production Levels And To Operate Profitably. They Believe That The Dwindling Fortunes Can Be Addressed If The Government Strengthens Agencies Such As The Customs Excise And Preventive Service (CEPS) To Intensify Border Patrols. They Further Suggested That Port Operations Should Be Tightened To Ensure That Cheap Imports Do Not Slip In. But How Well And Soon Will The Authorities Respond To The Calls That Remain An Issue Of Concern To Industry Players Whose Hope Of Continued Survival In The Business Depend On It. The Director General Of Nigeria Textile Manufacturing Association (NTMA), Jolaoso Olarewaju, Said Between 1996 And 2006, The Number Of Employees On The Association's Employment Data Had Reduced From 250,000 To Less Than 30,000. He Said Within The Period Under Review, The Numbers Of Closed Textile Companies Namely Kaduna Textile Mill, UNT PLC, Supertex, Enpee, and Afprint; Among Others Also Fell To One Fourth, While Cumulative Production Dropped From 1.5 Billion To Less Than 400 Million Metres Of Fabrics Per Year. He Attributed Most Of The Problems Affecting Operators In The Sector To Smuggling, Faking And Counterfeiting Of Locally Made Fabrics By The Chinese. Low Cost Imports From China Have Largely Devastated The Nigerian Textile And Other Consumer Industries At Kano And Kaduna. South Africa Is Another Country That Provides A Good Example. Reports Say Chinese Exports Of Textiles To South Africa Grew From 40 Percent Of Clothing Imports To 80 Percent By The End Of 2004.

China Quietly Usurps African Textile Market

By: F2F Author

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