Home breadcru News breadcru Results/Reports breadcru African countries witness high job loss

African countries witness high job loss

21 Aug '06
1 min read

With the end of global quota regime, African textile producers are in big trouble and struggling to survive in global market.

In 1974, Multi Fiber Agreement (MFA) was set up, which had empowered African textile industry to flourish.

MFA was designed to protect developing countries in world's developed markets such as the US, Canada, and the European Union (EU).

MFA had provided protection to African textile industry against Asian textile giants like China, India, Taiwan and Hong Kong.

During the MFA, leading textile companies from Asia had set up their production facilities in African countries to take advantage of duty free market access to the US.

But in 2005, all textile quotas were abolished and African countries have to face direct competition from China and India.

According to International Textile, Garment and Leather Workers' Federation (ITGLWF), more than 250,000 jobs have been lost.

Countries such as Lesotho, South Africa, Swaziland, Nigeria, Ghana, Mauritius, Zambia, Madagascar, Tanzania, Malawi, Namibia and Kenya have witnessed most job loss adversely affecting millions of lives.

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!