The African textile industry, valued at over $31 billion, is a dynamic sector deeply entwined with the continent's history, culture, and economy. Its growth trajectory, driven by demand from local and international markets, is underscored by country-specific contributions that highlight both challenges and opportunities.
Historical Foundations: The Legacy of African Textiles
Africa's textile heritage is centuries old and characterised by handcrafted fabrics like Ghana's Kente cloth, Nigeria's Aso Oke, and Mali's Mudcloth. These traditional textiles express identity, culture, and wealth. For example, Ghana's Kente cloth was historically reserved for royalty and spiritual leaders.
Cotton became a key export commodity during the colonial era. By the 1960s, Uganda alone produced over 400,000 tonnes of cotton annually, contributing more than 40% to its export earnings. However, most of this cotton was exported raw, limiting local value addition.
Africa’s Textile Market: Key Statistics
The African textile and apparel market is growing at a compound annual growth rate (CAGR) of 5%. Contributing approximately 1.2% to the continent's GDP, the industry generates employment for over 20 million people, including 8 million in cotton farming alone. Here are some key statistics:
- Cotton Production: Africa produces 1.8 million tonnes of cotton annually, accounting for 6% of global output.
- Employment: The sector employs 15% of Africa’s manufacturing workforce, with a high concentration in countries like Ethiopia, Kenya, and Lesotho.
- Exports: Textile and garment exports are valued at $9.4 billion annually, and they target markets such as the EU, the US, and China.
- Imports: Africa imports $16 billion worth of textiles and garments annually, with $3.5 billion spent on secondhand clothing.
Country-Specific Contributions
West Africa
- Nigeria: Once a textile hub with over 175 factories, Nigeria now has fewer than 20 active factories due to power outages and cheap imports. The government has introduced a $300 million textile revival fund, aiming to boost domestic production and create 100,000 jobs.
- Ghana: Ghana’s garment industry, valued at $400 million, meets 70% of local demand. It produces vibrant traditional fabrics and is exploring eco-friendly dyes to meet global sustainability standards.
- Burkina Faso: As Africa’s largest organic cotton producer, Burkina Faso grows over 800,000 tonnes of cotton annually. However, 90% of this is exported raw, primarily to Asia.
East Africa
- Ethiopia: With over $4 billion in foreign direct investment (FDI) between 2010 and 2020, Ethiopia is a rising star in textile manufacturing. The Hawassa Industrial Park alone employs 25,000 people and generated $165 million in exports in 2022. The country aims to increase textile exports to $1 billion by 2025.
- Kenya: In 2021, Kenya’s exports under the African Growth and Opportunity Act (AGOA) reached $440 million, accounting for 10% of Africa’s total garment exports to the US. Its export-oriented industry supports over 50,000 jobs in textile and apparel manufacturing.
- Tanzania: With abundant cotton production (345,000 tonnes annually), Tanzania is investing in textile processing facilities to retain value locally. The Mwatex factory, for instance, employs 6,000 workers and produces garments for domestic and export markets.
Southern Africa
- South Africa: Valued at $1.6 billion, South Africa’s textile industry is diversifying into technical textiles, such as automotive and medical fabrics. The country’s Integrated Textile Strategy aims to increase its contribution to GDP by 30% by 2030.
- Lesotho: Lesotho exported $850 million worth of apparel in 2021, with 80% of it going to the US under AGOA. The industry employs 40,000 workers, making it the nation’s largest employer.
- Zimbabwe: Despite economic challenges, Zimbabwe produces 100,000 tonnes of cotton annually, supporting 300,000 farmers. The government has set aside $20 million to revive its textile mills.
Challenges in the Textile Industry
- Secondhand Clothing Imports: Over 80% of the clothing sold in East Africa is secondhand, undercutting local manufacturers. Rwanda, for instance, banned secondhand imports in 2018, but this led to tensions with the US.
- Low-Value Addition: Although 1.8 million tonnes of cotton are produced, less than 15% is processed locally, resulting in significant revenue losses.
- Infrastructural Deficits: Nigeria’s textile manufacturers lose $2 billion annually due to erratic power supply, while poor transport networks increase production costs across the continent.
- Limited Access to Finance: High lending rates, exceeding 20% in some countries, discourage investment in modernising facilities.
Opportunities and Growth Drivers
Africa’s rain-fed organic cotton aligns with the global demand for sustainable products. Uganda is the leading producer of organic cotton, exporting over 10,000 tonnes annually.
Circular fashion initiatives, such as upcycling secondhand clothing in Ghana, are creating new revenue streams.
Ethiopia’s government has developed 13 industrial parks, aiming to increase employment to 200,000 by 2025 and boost exports to $1 billion annually.
Kenya’s Export Processing Zones (EPZs) employ 54,000 workers, contributing $1.1 billion to GDP.
The African Continental Free Trade Area (AfCFTA), which covers a market of 1.4 billion people, is expected to increase intra-African textile trade by 30% by 2030.
Regional value chains, such as cotton from Mali processed in Ghana, are being developed to reduce dependency on external markets.
- Technology and Digitalisation:
Automation in garment factories has increased productivity by 40% in Ethiopia.
E-commerce platforms like Ananse Africa enable artisans to export directly, boosting their incomes by 50%.
Future Projections
By 2030, Africa’s textile industry is projected to achieve the following milestones:
- Market Value: Increase to $80 billion, driven by urbanisation and a growing middle class.
- Cotton Processing: Domestic processing is expected to rise from 15% to 30%, adding $10 billion annually to the economy.
- Export Growth: Textile and garment exports could increase by 50%, reaching $15 billion annually.
- Job Creation: An additional 5 million jobs could emerge from value chain investments and industrialisation.
Conclusion
Africa’s textile industry is a vital driver of economic transformation. With its rich resources, growing population, and strategic initiatives like AfCFTA, the continent is well-positioned to capitalise on its potential. However, achieving sustainable growth will require addressing challenges such as infrastructure deficits, secondhand imports, and low-value additions. By fostering regional integration, sustainability, and technological adoption, Africa can weave a brighter future for its textile sector and its people.