Export Processing Zone (EPZ) is breathing easy after the extension of African Growth and Opportunity Act (AGOA) fabric provision till 2012.
Eligible countries in Africa can now use fabrics of desired sources to manufacture apparel for export to US.
In the region, only Lesotho and Mauritius has manufacturing units of fabric but it was insufficient to meet the domestic demand.
In 1992, Kenya used to have more than 60 factories compared to 18 currently in the business. Due to this reduction in factories, more than 40,000 employees have lost jobs.
Only South Africa has taken concrete steps to acquire yarns worth US $1.2 million from Lesotho in the event the provision was not renewed.
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