Textile & clothing industry explores new destinations
18 Oct '06
2 min read
After the end of Multi-fibre Arrangement (MFA) which provided preferential access to US and European Union clothing markets, Mauritius is looking out to other markets like South Africa where quota on Chinese products will be in place by 2007.
Lapse of MFA forced big factories and many smaller units to close their units leaving thousands unemployed with mostly women among them. Mauritius is now looking to countries like Kenya, Tanzania, Uganda, Mozambique, Ethiopia, Zambia and Madagascar to increase export manufacturing.
A Government body, Enterprise Mauritius considers South Africa as a significant market for T-shirts, shirts, pullovers and trousers and is trying to come up as the best alternative to China.
The country is not limiting itself to African markets alone with a Preferential Trade Agreement with India providing it the quota of 1 million garments in Indian market. It is also in talks with US and Pakistan for the same.
In the midst of MFA issue, Mauritian clothing and textile industry is trying to put up a brave face with opening of new factories and investment of US$60 million.
Exports value in 2005 was $942 million against $1.03 billion in 2004. During the first six month of 2006, exports stood at $500 million and if the trend carries on the export figures should end up higher than previous year's.
Government has taken many steps to resurrect the industry which include restructuring of factories,market and product development. A Fashion and Design Institute is being set up as well to move industry towards fashion arena.
Right now, a total of 250 factories are operational employing 55,000 local workers and 13,000 foreigners. Clothing and textile industry has suffered due to various reasons like trade liberalization and tough global competition from low cost manufacturers like China, India, Indonesia, and Bangladesh.
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