African apparel industry's future hangs on a US thread - SABC News

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The future of Kenya's garment trade - a success story of AGOA - lies in the hands of the US Congress

Kenyan workers prepare clothes for export at the United Aryan Export Processing Zone factory, operating under the U.S. AGOA.Norah Nasimiyu knows the future of Kenya’s garment trade, which has employed her for 13 years and helped her put six children through school and university, lies in the hands of the US Congress.

Apparel has been the standout success story of AGOA, which launched in 2000 to help develop African economies and foster democracy. “We’ve been struck by how open the opportunity is now for us,” South African Trade Minister Ebrahim Patel said last week. Capturing even a fraction of that business could prove transformative for Africa. But companies need clarity, he said, adding: “If it is not renewed until two years from now, these current investment decisions are going to bypass Africa”.The USFIA survey found that 45% of respondents had already reduced sourcing from AGOA countries over renewal uncertainty, while another 45% plan to cut sourcing from the continent if there is no reauthorisation by June 2024.

But the House of Representatives, paralysed for weeks by factional fighting over its speakership, faces a daunting list of must-pass legislation.

 

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