China'S Textile Industry Is Developing Rapidly, And China'S Enterprises Help Africa Achieve Industrialization.

It is understood that African countries

Generally undeveloped, even Egypt, which is a pillar industry in textile industry, is faced with problems such as backward production technology, outdated equipment and skilled workers.

At present, the development of the textile industry has become the hope of Rwanda, East African community and even Africa as a whole.

More than 70% of the world's donated clothing was eventually sent to Africa.

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African choice of Chinese Entrepreneurs

In terms of raw materials, although Egypt does own some famous yarn, fabrics and accessories, it lacks more other varieties, and 70% of Egyptian yarn and 80% of its accessories must be imported.

China is the largest textile trading country in the world and a target country for closer trade relations in Africa.

However, China's textile industry also has its own problems.

As domestic labor costs continue to rise, Chinese enterprises are looking for cheaper labor force, and the target is locked in Africa.

In addition, more and more Chinese entrepreneurs choose Africa because of their raw materials.

According to the statistics released by the National Bureau of statistics, according to the statistical survey of 31 provinces (autonomous regions and municipalities) in the whole country, the output of cotton in 2016 was 5 million 343 thousand tons, a decrease of 260 thousand tons compared with 2015, and a decrease of 4.6%.

Where to find cotton? Many entrepreneurs give the answer - Africa.

Among them, Tanzania is a famous cotton producing country in East Africa. For the textile industry, it will undoubtedly reduce the cost greatly.

Determination of "made in Africa"

In spite of the rapid development of textile industry in some African countries, the processing trade is mainly processed in the past, and the added value of its export textiles and clothing is very low.

Many Chinese textile enterprises use African textile fabrics to rely heavily on imports. First, expand the export of these countries' textile fabrics.

In addition, due to the strong support of African countries for the local textile industry, a series of preferential policies to attract foreign investment have been launched. Meanwhile, the training of local textile practitioners has formed a certain scale. These favorable factors have made foreign investors more conducive to the establishment of an objective environment for local textile and garment enterprises.

For example, the Rwanda government has formulated some preferential policies to attract foreign investment, and vigorously encourages and supports foreign capital investment in the textile industry.

"The Rwandan government's policy is to attract her greatest motivation. The local government does not collect any taxes other than personal income tax, and all clothing exported from Africa to the United States is exempt from import duties within 15 years."

Ma Xiaomei, who opened C&H clothing factory in Rwanda, said.

However, at present, Africa has to face a series of problems such as incomplete infrastructure and so on. For example, pportation costs from Rwanda Kigali to Kenya port Mombasa are often higher than those pported from Mombasa to Guangzhou.

Nevertheless, under the overall plan, many Chinese enterprises with capital and technological advantages have gone to Africa to invest and build factories. Not only ordinary clothing, leather products, plastic products and shoes have begun to turn into "African Manufacturing".

Among them, the Huajian group, a famous female shoe manufacturer in China, is an outstanding representative. The company has established a women's shoe factory in Ethiopia.

The cooperation between Huajian and Ethiopia is mutually beneficial and win-win.

While Huajian acquired a lot of cheap labor and raw materials, it helped Ethiopia develop light industry and solve the problem of nearly half of the population's unemployment.

In the future, "China hopes to turn" made in China "into" made in China and Africa ".

Tian Xuejun, China's ambassador to South Africa, said at the 2016 Johannesburg summit of China Africa Forum that China is looking forward to helping Africa complete its industrialization. In 2063, the manufacturing industry could occupy more than 50% of GDP in Africa.

South Africa: the scale of textile industry is the first in Africa.

South Africa is the most economically developed country in Africa. Its economic development level is relatively high, its infrastructure is good, its resources are abundant, and gross domestic product and foreign trade account for the highest proportion in Africa.

South Africa has the most advanced industrial infrastructure for pportation, electricity and telecommunications in Africa.

The cost of doing business in South Africa is much lower than that in developed countries and some developing countries.

South Africa's preferential tariffs and value-added tax policies, open business information, small foreign exchange control, stable political environment, has a number of advantages to attract investment.

In China's economic development strategy, the government has always stressed the importance of "going out" and encouraging domestic enterprises to strengthen overseas investment. Therefore, China and South Africa have great potential in economic and trade cooperation.

At present, South Africa's textile industry is the largest in Africa.

South African consumers have diverse and small quantity of textile demand, and their demand for varieties is no different from that of developed countries, but the overall consumption level is only about 1/3 of developed countries.

South Africa's real estate clothing can only meet 60% of domestic demand, and local demand for clothing in the two quarter of winter and summer is large.

Fashion tastes tend to be European style. Whites' demand for clothing is characterized by generosity, tradition and manual ingenuity, while black people demand bright colourful clothing and low-grade products.

As China's largest trading partner in South Africa, China's textile, clothing and footwear products have been very popular in South Africa and the African continent.

Data show that by the end of 2015, China had invested about 13 billion US dollars in the south, and more than 300 Chinese enterprises in South Africa (including representative offices), including 140 large and medium-sized Chinese enterprises, involving finance, mining, household appliances, communications, automobiles, construction machinery, real estate, textile and clothing, logistics and other fields.

Egypt: Africa's gateway to Europe and America

If China's textile enterprises pfer technology to Africa, they can not only enjoy hardware concessions such as energy, but also enjoy preferential policies such as software.

Some of the more developed areas of the textile industry are a good choice. Egypt is one of them.

Egypt is located in the Nile Delta with fertile land, abundant sunshine and abundant natural resources.

The annual output of Egyptian long staple cotton and super long staple cotton accounts for 35% of the world's total.

If we invest in factories, the price of natural gas and industrial electricity in Egypt is relatively low, resulting in a relative reduction in production costs and a more competitive product.

Data show that Egypt's electricity tariff of 0.3 yuan per unit, 3.5 yuan per cubic meter of natural gas, 93 gasoline liters of only 2.3 yuan.

In addition, human resources are also very low, with an average monthly salary equivalent to RMB 600 yuan and skilled workers in the industry.

Egypt is situated at the juncture of three Asian and African countries. Its location is very broad. The population of Egypt is about 82 million 500 thousand. The total population around the Middle East and North Africa can reach nearly 600 million.

At the same time, Egypt is not only a gateway to Europe and the Americas, but also a gateway for Africa to face the world, as well as shipping, air pportation and land pport networks linked to Europe, Asia and Africa. It is convenient for pportation and sales, and is the hub for the import and export of textiles.

In terms of software, Egypt is right.

The demand is large and has a certain spending power.

It is understood that the average consumption of Egyptian men's clothing is 550 dollars a year, while that of women is more than 900 dollars.

In contrast, its domestic production capacity is very limited, and there are less than 1000 local factories.

It is worth mentioning that in order to promote the development of foreign trade, Egypt has adopted a series of measures, such as further liberalization of trade, reduction of tariffs, reduction of operating costs, enhancement of pparency in foreign trade management, incentives to improve port services, customs procedures, quality control and product standards.

In addition, Egypt also substantially reduced import tariffs, such as low import taxes on asset equipment, especially clothing machinery, textile machinery, components, chemicals and dyeing products.

Egypt has reduced the production costs of domestic enterprises and supported the development of national industries.

All these provide a good market environment for Chinese enterprises to enter Egypt and the Middle East market.

As an important industrial sector in Egypt, the textile and garment industry accounts for 30% of the total industrial output and 25% of the total export volume of the country.

At the same time, under the free trade agreement signed with the European Union, Egypt's export of textiles and clothing to the EU countries will be exempt from customs duties, which will undoubtedly speed up more "Egyptian manufacturing" into the European Union.

In 1970s, when Nigeria's oil economy was booming, cotton was an important export crop for Nigeria. At that time, there were 176 textile enterprises in the whole country, and Kaduna, Kano and khakna had a large number of cotton spinning industry.

In 1980, the output value of Nigeria's textile industry was 8 billion 900 million dollars, which accounted for about 25% of GDP. The chairman of the Asaba chamber of Commerce pointed out that the textile industry had played a leading role in the Nigerian economy from 60 to 80s of last century. At that time, factories in Kano and Kaduna used to employ millions of workers, so the textile industry contributed a lot to the national GDP.

But as the focus of the government shifted to oil, the development of the textile industry and agriculture was neglected, which led to serious problems in the development of the industry.

Data show that in 2012, the output value of Nigeria's textile industry dropped to only 300 million dollars.

According to Nim statistics, in the first quarter of 2016, the contribution rate of textile, clothing and footwear industry to Nigeria GDP was only 2.1%.

The 2006/2007 annual report of the International Cotton Advisory Committee shows that there are only 51 cotton ginning companies in Nigeria, but only 17 of them are fully put into operation, the utilization rate of capacity is only 33%, and cotton farmers only have 250 thousand people.

According to the committee's data, in 2016, Nigeria's cotton output was 51000 tons and its planting area was 253 thousand hectares, with an average yield of 202 kg / ha.

The head of the Nigeria Textile Manufacturers Association said that every year, Nigeria imported about 4 billion US dollars of textiles and raw materials from India, China, the United States and Turkey, and at the same time there was a large number of smuggled imports.

The lack of high-quality seeds has become a key factor restricting the development of Nigeria's cotton industry.

Middlemen in the process of selling cotton mixed with water, sand and even stones, also damaged the reputation of Nigeria cotton. Some European countries even banned Nigeria's cotton imports.

To ease the situation in Nigeria's textile industry, the Nigerian government has approved the establishment of a new special fund for cotton, textile and clothing manufacturing to provide low interest loan support to enterprises. It is reported that in 2010, the Nigerian government set up a 100 billion Nai cotton textile and garment industry development fund, and some enterprises were benefited.

On the basis of past experience, the fund has introduced new support and management mechanisms, including further lowering loan interest rates, extending the loan period and supporting new supporting policies.

One of the supporting policies and measures is that the cotton spinning and garment products purchased by the Nigerian army, various military institutions and government agencies must be made locally.

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