Yes, Bangladesh, Vietnam and India are still key growth areas for garment manufacturing, but clothing retailers are talking more and more about manufacturing in Africa – Ethiopia and Kenya to be precise.
Sub-Saharan Africa not only has low labour costs, it’s expecting more growth in its working-age population than anticipated anywhere else in the world, according to McKinsey and Company and United Nations projections. By 2035, there’ll be as many working-age people in East Africa as in China today — more than 900 million people, according to a McKinsey report on East Africa.
Ethiopian labour costs are less than $60 US a month, electricity prices are low, and the country has potential as a cotton producer. Kenya’s seen a lot of investment from Asia and the Middle East, but many costs are higher than in Ethiopia, the McKinsey report said.
Sourcing Journal has also published a multi-story report of Africa.
Filed under: Business, Small Business Tagged: Africa, Bangladesh, business, China, East Africa, East Asia, Ethiopia, garment, India, Jenny Lee, Kenya, labour, manufacturing, McKinsey, Population, retail, retailers, Sourcing Journal, Sub-Saharan Africa, United Nations, Vietnam
