Southeast Asia Is Not The Only Option For Big Industrial Migration, But Now It Is "Nuggets" To Africa.

The fourth China Textile boutique exhibition is being held in South Africa. More than 150 Chinese textile companies are coming to South Africa to participate in the exhibition, hoping to open the African market on the platform of South Africa. At present, Africa has become a new hot area for China's textile industry to cooperate with other countries.

In recent years, Chinese textile enterprises have responded positively to the "going global" strategy and constantly accelerated the global layout. African emerging markets have become the key areas for overseas layout of Chinese textile enterprises. From 2015 to 2018, the non net investment of China's textile industry was US $253 million. In 2018, China's total exports of textiles and clothing to Africa amounted to US $18 billion 550 million, and China's cooperation in the non textile industry continued to expand. Xu Yingxin, vice chairman of the China Federation of textile industry and executive vice president of the textile industry branch of China Council for the promotion of trade, said that under the current political and economic environment at home and abroad, Africa has a better opportunity to invest in Africa. Because of its advantages in resources, labor, policies and consumption potential, Africa is attractive to many textile enterprises. "From the policy guidance level of the local government, it is very supportive of the development of the textile and garment industry. The textile and garment industry is an important livelihood industry. It not only solves the problem of dressing people, but also solves the problem of labor force employment, and opens up the international market, creating foreign exchange. Industrial development can also promote economic development, which is more in line with the needs of African countries. Ethiopia, Egypt, Kenya and other countries also think so. Africa has an advantage in terms of labor, land, energy and other costs. In addition, the signing of the African FTA, some trade preferences in Africa and Europe and the United States are also factors that attract Chinese enterprises.

The successful convening of the Beijing summit of China Africa Cooperation Forum in 2018 pointed out the direction for the future development of Sino African relations, and laid a good foundation for Chinese enterprises to develop non cooperation in many aspects, such as political, economic cooperation, promoting cultural exchanges and ensuring peace and security. From the industry point of view, complementary advantages are also important factors to promote Sino African textile industry cooperation. Xu Ying Xin said, "40 years after reform and opening up, China's textile and garment industry has matured and established a complete industrial chain. This is our advantage. Therefore, we have full experience, and we can completely build a seamless and comprehensive connection with Africa from investment and factory building.

At present, the cotton textile industry, chemical fiber industry and downstream garment processing industry in the upstream of China's textile industry chain are involved in non cooperation. North Africa, East Africa and southern African countries are key investment destinations for China's textile industry. Jiangsu Sunshine Group has invested and built factories in Ethiopia, and will build a complete industrial chain including the process of wool dyeing, spinning, weaving, fabric finishing and suit production. Gu Yajun, Minister of foreign trade of the company, said: "we set up our own industrial park in Ethiopia, with an initial investment of US $100 million, and we can produce 3 million woolen worsted fabrics and 1 million suit suits. At present, the clothing part has started trial production in early May. We have recruited more than 700 workers in the field to engage in production. In order to train fabric and clothing workers, there are more than 100 Ethiopian employees training in China. I think they will make great contributions to the development of Ethiopia's textile and garment industry in the future.

Lin Yihuang, the chairman of Shaoxing Hong Hong Company, is the first to open up the African market. He said he was optimistic about the African market and considered establishing cooperation in Kenya. "After all, the textile market will still depend on the population. The demand of the one million people is different from that of the two million people. Africa is a young continent with a low average age. It is a continent with rapid population growth. Now, there is less war and medical care has been improved. There is also a spanportation, airport, road and railway. So Africa is also growing. "

China's textile industry has now formed the largest and most complete industrial system in the world, which is an important part of the smooth operation of the world's textile industry. The manufacturing capacity and level of China's textile industry chain are among the highest in the world. Cooperation with Africa can provide kinetic energy for both sides' economic development, and will also contribute to the development of the global textile industry.

In the absence of a factory, the textile boss has smashed up 200 million dollars! There are many business opportunities.

"The market here is like China thirty or forty years ago, and there are more business opportunities." In Africa, "80 after" textile boss said so.

Now, more and more textile people are going to Africa. Under the "belt and road", at present, besides Southeast Asia, African countries such as Nigeria, Egypt, Ethiopia and Kenya become the new investment areas for Chinese textile enterprises to "go out".

African factories hit $200 million

In recent years, a large number of domestic textile and garment giants have gone to Africa to investigate, research, invest and build factories. This Zhejiang textile enterprise is also one of them.

Antai group from Zhejiang, China, has planned to invest in Ethiopia since the second half of 2018. The plan is divided into three phases with a total investment of US $200 million.

In Adama (Adama) city, located 80 kilometers southeast of Ethiopia's Addis Ababa, Antai Essex branch set up a complete production capacity supporting production base from fabric production to garment processing, becoming the first foreign enterprise to realize foreign exchange earning in Addisababa Industrial Park.

At present, the area of Antai Essex branch is 140 thousand square meters, of which the factory covers an area of over 80 thousand square meters and employs 15000 people.

Africa is the second largest continent in the world. Its GDP ranks fourth among the six continents in the world. It is rich in cotton and oil resources and has great potential for economic development.

Africa has cheap manufacturing costs, low labor costs and a young population structure. It is expected that Africa will have young people between 200 million and 15 and 24 by 2025.

The foreign trade environment is excellent, and there is preferential market access policy for European and American exports.

In terms of export incentives, various incentive policies such as export tax rebate, foreign exchange convertibility, tax preferences and financing convenience are implemented.

In addition, the middle class in Africa is growing faster, and consumption in Africa is expected to reach US $1 trillion and 400 billion by 2020.

Although some countries are rich in raw materials such as cotton, the African industrial base is weak, and the development and matching of the textile industry chain is not perfect. Most African countries have to import large quantities of textile accessories to produce and process finished products such as garments, resulting in a long delivery cycle and unable to meet the demand for quick orders.

At the same time, the skilled labor force in Africa is short, and the wage growth of workers is relatively fast. The political and social environment is relatively unstable.

Which products in Africa are in short supply?

The population of Africa is as high as 1 billion 200 million, and the consumption market is huge, but the supplies are poor. In addition to all kinds of daily necessities, hairdressing, hair care products and packaging materials, the demand for fabrics, accessories and clothing in the African market is very strong.

Although cotton is widely planted in Africa, the imperfect industrial chain is bruising. Whether it is cloth, fabric or finished garments, it is mainly imported.

In South Africa, for example, clothing is the largest importing category in South Africa, accounting for 69%. Home textiles and industrial textiles accounted for 7% and textile raw materials accounted for 17%.

At present, many people in the industry have expressed great interest in the African market. They hope to seek greater development and investment opportunities in deep processing and textile industry chain products.