Origin Africa Shows Growth inOrigin Africa Shows Growth inMadagascarMadagascarNow on its seventh year, the event, which takes place in aNow on its seventh year, the event, which takes place in adifferent African country every year, aims to position Africa as adifferent African country every year, aims to position Africa as aviable sourcing alternative to China, Vietnam and India.viable sourcing alternative to China, Vietnam and India.
BUSINESS NEWS / GOVERNMENT TRADE / BUSINESS NEWS / GOVERNMENT TRADE
By Bambina Wise on November 28, 2016
Origin Africa, a longstanding trade platform for the textile,
apparel and footwear industry in Africa, held its annual event
earlier this month in Antananarivo, Madagascar, that followed
its theme, “Changing Perceptions, Building Synergies, Doing
Business.”
Now on its seventh year, the event, which takes place in a
different African country every year, aims to position Africa as a
viable sourcing alternative to China, Vietnam and India.
Robin Zoe in her booth at Origin Africa.aldo
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A regular visitor to Origin Africa, Matthijs Crietee, secretary-
general of the International Apparel Federation, said, “If one
would have asked people in 1975 if they thought within 30 years
China would be the dominant exporter of apparel, people would
have been skeptical, yet it happened. It may not happen as
quickly as it did in China and in Vietnam, but I am convinced
the apparel industry will grow significantly in Africa.”
He emphasized that “we are talking about an alternative,
though, certainly not about a replacement. In that sense, saying
that Africa will be the next China is not right. There will not be a
next China, but the share of the African apparel industry of total
apparel exports will grow.”
Belinda Edmonds, event organizer for Origin Africa, who is also
executive director of the African Cotton and Textile Industries
Federation, said, “Buyers from USA, Canada, Europe and South
Africa met export-ready and capable exhibitors from across
Africa. Connections made have already resulted in costing,
sampling and other pre-order formalities getting under way.”
Edmonds noted that feedback from exhibitors was on how many
regional linkages were made in ancillary products such as trims,
labels and packaging, and in services such as quality auditing,
testing and consulting, that are essential in the production
pipeline but until now imported from Asia. A frequently
repeated comment was “we didn’t realize how much is available
on our doorstep — in our country or in our neighboring
countries,” she said.
These linkages will increase inter-regional trade, reduce costs
and lead time and could potentially lead to inter-regional
investment, Edmonds added.
Suraindra Balloo, head of global production at the Canadian
apparel company L’Amour Inc., specializing in socks, hosiery,
intimates and performance wear, as well as at Terramar Sports,
dedicated to outdoor clothing and accessories, attended Origin
Africa for the first time this year.
“We are a Canadian company, but we operate in the USA and
U.K. markets, also,” Balloo said. “In fact, we have more business
in these two markets than in Canada.”
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The company is producing in China, Cambodia, India,
Bangladesh and Mexico, but production in Mexico was recently
reduced. Balloo cited several problems related to quality and
production. Africa seemed an enticing option.
“We want to source high-value synthetic products from Africa
for the U.S. market so that we can benefit from duty-free access
under the African Growth and Opportunity Act,” he said.
At Origin Africa, he was able to see “brands that we have
produced being made in Madagascar factories. For example, we
hold the license for New Balance and I met a factory that is
approved by NB. The quality seems good from what I have
seen.”
Mercedes Gonzalez, director of Global Purchasing Cos.,
headquartered in New York, was a repeat visitor to Origin Africa
and served as a judge in the Origin Africa-sponsored design
competition Project Upscale. African products, she noted, are
well-received in the U.S. market.
“It has a high perception of value, much more than Asian
countries, but that needs to be protected and built on,” said
Gonzalez, adding that despite buying regularly from Africa,
challenges remain.
For Balloo, supply chain can be a challenge because “many of
the fabrics and trims come mainly from China or Central Asia.
Lead time and logistics can be challenges, too.”
As yet, he has not placed any orders on behalf of L’Amour Inc.
“We have to analyze the profile of the factories — from places
such as Madagascar, Ghana and Kenya — that we have
earmarked first,” Balloo added. “Then, we will start with making
samples to assess the capabilities of the factories. We have to go
through the whole process of development before any order can
be placed. In addition, to the capacities and capabilities of the
factories, we have to analyze the political, social, financial and
banking conditions, as well as logistics and the labor law of the
countries where we want to source.”
An important highlight was the Project Upscale design
competition. Crietee was a judge alongside Gonzalez and South
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African designer Craig Jacobs.
“Project Upscale highlighted very well the amazing
entrepreneurial spirit, design prowess, tradition and quality
that is present in Africa,” Crietee said.
Gonzalez said the entries were assessed on four main criteria:
market share and sellability of the collection, quality and
craftsmanship, costing and markup, and willingness and ability
to scale.
The handcrafted bags and accessories produced by Robin Zoe
from Madagascar was declared the winner of Project Upscale,
followed by Kenyan women’s wear designer Katungulu
Mwendwa and Nigerian footwear label KEEX.
Jacobs added, “Countries such as Kenya, Madagascar, Mauritius
and increasingly Ethiopia are proving that sub-Saharan Africa
has the infrastructure and capability to produce export quality
apparel to the global marketplace. However, for the continent to
leapfrog from providing raw materials and manufacturing to
true beneficiation of the African clothing and textile industry,
there is a need to magnify our design assets. Thanks to ACTIF,
Project Upscale marks not only an acknowledgement of the
potential of design in spurring growth, but also creates a
nurturing environment to produce exportable high quality
products.”
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