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farmer to fashion issue no.3 • april - september 2017 a publication of african cotton & textile industries federation (actif) tripartite tripartite trade trade luxlux fibres fibres country country profile profile mauritius lesotho shaping social compliance

contents 6 6 18 18 26 26 32 32 issue no.3 • april - september 2017 a publication of african cotton & textile industries federation (actif) 4 - a note from the executive director 6 - country proile: mauritius mauritius positions itself as a strategic partner for trade 10 - country proile: lesotho africa’s inspired apparel sourcing hotspot 15 - the tripartite free trade area - realism one year on 18 - the luxury of fibre 23 - wrap - over the horizon a look at the trends shaping social compliance 26 - project-upscale - no longer a project 29 - nigerian government allocates n51bn to garment industry 30 - origin africa 2016 highlights 32 - actif farmer to fashion tripartite tripartite trade trade luxlux fibres fibres contributors: senator josua setipa francis mangeni clay hickson arthur malan-murison mr. arvind radhakrishna fibre to fashion executive director: belinda edmonds editor: arthur malan-murison design & layout: hello deer graphic & web design country country profile profile mauritius lesotho shaping social compliance photography: osborne macharia styling: kevo abbra art direction: yash debb model: juliet kiruhi designer: katunglulu mwendwa advertising sales: tel no: +254-20-3748211 phone: +254 722 776 719 / +254 733 776 719 tel: +254 725 038884 fax: +254-20-2020531 email: info@origin-africa.org online: www.originafrica.org www.actifafrica.com actif head office: trv ofice plaza, muthithi rd, westlands p.o. box 1249-00606, sarit centre, nairobi, kenya april - september 2017 | 3

sahtas. . tekstil tic. ve sanayi a.ş.

legal framework. the oficial language in mauritius is english; the most frequently used international language which deinitely improves the ease of communication for buyers. furthermore, mauritians are also at ease with french language. have invested in for patternmaking,” stated mr. bucktowonsing. “further to other investments like automated handling systems, some companies are also adopting lean manufacturing practices to better serve their clientele.” the world bank ranked mauritius irst in africa for 2016 in terms of ease of doing business there, and it was also ranked irst in africa in the world economic forum global competitiveness report for 2015. technological drive for quality products moving vertically mauritius has a 40-year history of making textile and apparel and was once one of the largest producers of knitwear. over those years, the country has evolved from its initial cut, make, trim capabilities to a vertically integrated manufacturing where value-added, sophisticated product such as technical garments. state-of-the art infrastructure and forward-thinking manufacturing companies have contributed in making mauritius an attractive option for innovation as the country upgrades its apparel production offering. the textile and apparel industry in mauritius consists of facilities for spinning, knitting, weaving and inishing for dyed and printed fabrics, denim fabrics and for knit-to-shape items. “operators in mauritius have invested in new technology to decrease production cycle times, costs and many companies are vertically integrated. many mauritian apparel and textile manufacturers are lexible with order quantities and add value via their contribution to the design of the products, meeting cross culture fashionable trends,” according to enterprise mauritius division manager geerish bucktowonsing. “today, certain companies can deliver samples in shorter time due to automated cad [computer aided design] systems they investment in advanced production technologies, like computer aided design and manufacturing, printing services and automated dyeing systems, have positioned mauritian manufacturers to supply a wide range of quality garments in a shorter time-frame. “operators in mauritius have invested in new technology to decrease production cycle times, costs and many companies are vertically integrated.” april - september 2017 | 7 april - september 2017 | 7

proudly presents we are delighted that mauritius will host our 8th origin africa trade event between 25th & 29th september 2017 in response to the growing demand and to optimise the value and experience of our attendees, the event will comprise a 2 day conference and 3 day trade fair – africa’s 1st convention for the cotton, textile and apparel sectors: conference: 25th and 26th september 2017 enhancing productivity – the path to sustainable competitiveness venue: intercontinental hotel, balaclova, mauritius. the competitive markets of the cotton, textile and apparel industries demand that producers continually improve productivity, increase output and embrace technologies, methodologies and proven best practises. this 2 day conference will deliver access and exposure to the fast developing developments from seed technologies to supply chain management. it will encourage dialogue that points to practical, implementable solutions applicable to the african continent and designed to ensure environmentally and socially responsible growth and increased proitability for all sectors. trade fair: 27th – 29th september 2017 core to couture venue: swami vivekananda international convention (svicc), pailles, mauritius. the trade fair showcases the volume and diversity of highly desirable african product to a wide range of regional and international buyers. international exhibitors present a wide range of technologies, services and products useful to african producers in their quest for expanded product range and improved services and skills. for further information contact nancy bwore event coordinator tel: +254 722 714802 email: nancy@originafrica.org website: www.originafrica.org

textile, apparel & footwear manufacturing in lesotho lesotho’s textile, apparel & footwear value chain today lesotho’s formal sector textile, apparel and footwear industry currently comprises 65 primary manufacturing firms that directly employ around 46 500 people. there are in lesotho, like in many other sub-saharan african economies, many smaller irms (employing <5 people) undertaking tailoring / bespoke garment, and footwear manufacturing. lesotho’s formal sector garment and footwear manufacturing industry established itself in the early 1980s. the initial wave of investment came from south african based irms who wanted to avoid anti-apartheid sanctions – lesotho was used by these irms as a springboard to export apparel into europe and the us. in the irst half of the 1990s a wave of taiwanese origin investments followed. much of this investment took place as a consequence of the garment quotas imposed on many countries as a consequence of the multi- ibre arrangement (mfa). with the introduction by the us of the african growth & opportunity act (agoa) in 2000 a second wave of taiwanese investment occurred. the agoa opportunity also saw the development of a us$140m spin-weave denim fabric mill. the next phase of value chain investment began in 2006 when a new wave of south african origin investors established apparel manufacturing operations in lesotho – these investors wanted a low cost, logistically eficient, place in order to supply the south african fashion and workwear retail market place. the entire value chain is located in two geographic areas. the largest cluster of irms (about three-quarters of value chain employment) is located in lesotho’s capital of maseru. about 80km north of maseru is the town of maputsoe (and its associated industrial estate of nyenye). the fact that all lesotho irms are clustered in two areas provides an invisible advantage to the extent that irms often co-operate as a cluster – sharing equipment and expertise; it also makes the management of cmt orders easier. the areas where lesotho’s value chain investments are located are no more than 10km from the lesotho–south african border (maseru is near the south african rural town of ladybrand; and maputsoe is opposite the town of ficksburg). most of the manufacturing irms are owned by foreigners. in many cases the foreign owners do not live in lesotho, or nearby in south africa’s free state province. they reside in places like taiwan, and the south african cities of durban and cape town. on a day-to-day basis most factory production is co-ordinated by foreign managers. lesotho minister of trade & industry – senator joshua setipa april - september 2017 | 11

wool & mohair processing – opportunity lesotho climate and topography make it an ideal place to raise sheep and mohair goats. all of the animal ibers are exported from lesotho in unprocessed form – not even washed. in 2015 it was calculated that lesotho exported us$26.6 million worth of wool/mohair: us$18.2 to south africa; us$6.9m to china; and us$1.5 to india. there thus exists the signiicant opportunity to develop a wool/mohair trading operation in lesotho supported by a wool washery. most of the inputs used to make lesotho textiles, apparel and footwear products are imported into lesotho. cotton lint is imported from a number of southern african states; synthetic yarns from the east. fabrics and apparel trims mostly originate from south africa and the east (mainly china and vietnam). the few products that are made locally include: denim fabrics, packaging (corrugated boxes), and coat hangers (although licensing arrangements only allows coat hangers to be used in exports for garments destined for the us); and, some irms have their own in-house garment label printing. garment trims and value add services – opportunity most of the garment trims used to make lesotho made garments are imported into lesotho. there exists the possibility of establishing numerous businesses that would support the existing garment industry. for trim manufacturing (e.g. printed lables, zips, fasteners, buttons for jeans, etc); for packaging supplies (e.g. poly bags, coat hangers for the southern african marketplace, sizers, paper price bar-codes, etc); and, for garment value add (e.g. commission sublimation printers, specialist wet/dry jeans inishing plants, garment dye facilities, etc). lesotho is looking for suppliers that would be accredited to supply recognised apparel brands and retailers. lesotho would encourage the formation of joint ventures, partnerships and franchise arrangements with local businesses own by basotho businessmen. manufacturing inputs that are used for sales of products outside of sacu can be imported under rebate of customs duties (i.e. zero tariffs). goods imported into lesotho for further processing into inished goods which are then sold in the southern african customs unions generally attract the following customs tariffs; although a limited range of manufacturing inputs can be imported into lesotho free of customs duties which, after value add manufacturing, can then be sold into sacu free of customs duties. see table 7. the fact that the apparel customs tariffs for the south africa (part of sacu) are very high – and the fact that lesotho has duty free access to the south african economy creates the potential for lesotho based manufactures to supply south africa’s very large apparel retailers. the fact that lesotho is geographically situated in the very centre of south africa gives its manufacturers easy access to the country’s main commercial centers – johannesburg/pretoria, durban and cape town. duty rebates on speciic fabrics designated “short supply”, - primarily certain woven shirting and home textiles fabrics, allow manufactures to import such fabrics free of any customs duty. logistics while lesotho is landlocked it is able to access the road, rail and port logistics of south africa. most of lesotho exports are logistics fortunate enough to be imported through the port of durban (570km away from maseru). durban is africa’s busiest port; and has more sailings to the united states, europe and china than any other port in sub-saharan africa. wages & working conditions unlike many other low cost producers located elsewhere in the world lesotho is not a third world sweatshop, nor is it an environmental wasteland. lesotho is conscious that one of the advantages it enjoys is that international clothing brands and major retailers do not want to be associated with a country where irms do not respect worker and trade union rights, or which damage the environment. lesotho’s labour laws enshrine all aspects of the international labour organisations core conventions (no child / forced labour, non- discrimination, freedom of association). the laws are rigorously enforced – if they were not lesotho would not have pedigree garment retailers/brands of accrediting apparel manufacturing units in lesotho april - september 2017 | 13

the tripartite free trade area – realism one year on by francis mangeni t ogether with parts of south east asia, africa is considered the last frontline of the ight to conquer poverty in the world. the global community has mobilized for this effort a supportive public opinion and resources including in the framework of the millennium development goals of 2000 to 2015 and now the sustainable development goals of 2016 to 2030. there is a good foundation to build on going forward. following two decades of high economic growth rates of about 5%, the economic potential of africa remains promising. according to the september 2016 publication of mckinsey global institute, entitled lions on the move 2.0, african companies grow faster and are more proitable than their peers worldwide, and 400 of them have annual revenues exceeding $1billion. consumers and businesses already spend about $4 trillion annually, and household consumption is projected to grow from current levels to about $2.1 trillion by 2025. while there are some serious inancing gaps, for instance over $90 billion is needed annually for infrastructure development, domestic resource mobilization as well as stopping illicit inancial outlows estimated at $50 billion annually, have been identiied as credible promising sources of revenue to inance african development. other fundamental initiatives in africa have been to create enabling environments for trade, investment, industrialization and overall social economic structural transformation, to improve political and economic governance, to build infrastructure covering surface and air transportation as well as energy and information and communication technologies, and to undertake policy reforms at the national and regional levels. at the regional level, economic integration has been the overarching development strategy, pursued at the continental and at the regional levels. covering 26 out of the 54 african countries, with a combined gdp of $1.3 trillion, the tripartite free trade area launched on 10 june 2015 marks a turning point in the political and economic history of africa. for africa’s strategists, the job of creating a continental free trade area is half done. this is why africa irresistibly launched negotiations for the continental free trade area on 15 june 2015 a mere ive days later. the negotiation of the tripartite free trade area overlapped with thinking about the continental free trade area, in such a direct manner through the intergovernmental processes that the two initiatives can be considered as a continuation. the tripartite provided quite some learning for the continental process. april - september 2017 | 15

work subsequently. uninished work include critical areas such as tariff offers and rules of origin. annexes still have to be cleaned up by the lawyers (these are on rules of origin, trade remedies, and dispute settlement). the tripartite initiative is nevertheless important in at least ive important ways. it fast-tracks and inspires african continental integration to build a harmonized or at least coordinated regional regulatory policy environment, which in turn can contribute to the public goods of peace and goodwill among governments and the people. notwithstanding brexit, the european union has demonstrated that economic integration can turn sworn enemies into allies and economic partners for over a generation so far, the longest period of continuous peace in modern european history. fortunately, integration in africa has not been designed to create the sort of humongous bureaucracy in brussels and remains fully an intergovernmental process driven by the countries. the tripartite initiative will catalyze the social economic structural transformation of africa through its developmental approach to economic integration, in this way addressing some of the critical developmental challenges of job creation for the youth bulge and urbanization. the tripartite will provide market opportunities that support technological leapfrogging and innovation. a cursory look around africa will show how it has transformed beyond recognition even just over the last two decades through telecommunication, banking, education, health and energy technologies. one can mention as some key examples the mobile telephone revolution in the remotest areas and a vibrant banking sector in rural areas facilitated by mobile money transfers starting with kenya and spreading to much of africa and indeed recently to afghanistan. this aspect is fundamental as going back to the stone age, it is technological improvement and innovation that has marked busts and epochs of social economic transformation. lastly, the tripartite will provide key lessons for economic integration in africa and inspire new generations of integrationists, provided the institutional memory is not lost and relevant capabilities are continuously built in government, the private sector and the academia. it will soon be two years after the launch of the tripartite free trade area. the agreement hasn’t entered force, as none of the 18 countries that signed it has ratiied it; 14 ratiications are required for the agreement to enter force. the political will and initiative to do the act of ratiication at the national level seems needs to be forthcoming. negotiations on rules of origin are still on-going, with 59 out of the 97 chapters now completed. trade in products for which there are no rules of origin will not beneit from the tripartite fta advantages of not being charged customs duties. while tariff negotiations have been undertaken and there is some indication of the broad outlines of the liberalization, only two countries have turned their offers in tariffs in a manner that would enable customs authorities to know which customs duties to charge on imports from other tripartite countries. this can be an easy exercise that customs authorities can run as a computer program, but it requires legislation to give it the force of law. and inally, a number of three important ministers are scheduled to meet mid this year 2017. in the build- up to this meeting, it is possible address these sticking issues. this requires political, technical and private sector leadership. the question for governments is: to integrate or to perish, that is the question. and the question for the private sector is: do you believe in and see the beneits of the tripartite free trade area? if so, see if your government can act accordingly. francis mangeni has been director of trade and customs of the common market for eastern and southern africa (www.comesa.int) for seven years now. his work involves assisting policy formulation for and following up on implementation of regional economic integration programs. he has taught on postgraduate and under graduate courses in uganda at the law development centre, makerere university, and uganda martyrs university nkozi; and at the london school of economics and political science. he has worked and consulted extensively on the multilateral trade system and african economic integration. his work has assisted africa’s trade negotiators at the world trade organization and in a number of african regional integration arrangements. his work has assisted also trade and investment policy formulation and implementation at the national level. he was advisor to the minister of commerce and industry of the government of malawi; senior economist at the permanent delegation of the african union to the united nations and other international organization based in geneva; and regional trade policy advisor at the commission of the african union. he has been consultant for various international and regional organizations, such as the united nations economic commission for africa, the united nations conference on trade and development, the international labor organization, the commonwealth secretariat, the south centre, the east african community, and the southern african development community. dr mangeni hold a doctorate from the london school of economics and political science in international economic law. based on a forthcoming book by francis mangeni and calestous juma, trading power - economic integration in africa, cambridge university press, 2018.  april - september 2017 | 17

silk s ilk is a natural protein ibre containing about 70-75% of actual ibre ibroin secreted from two salivary glands in the head of the silkworm larva, and about 25-30% sericin, a gum which cements the two ilaments together. silk of the inest quality is obtained from the unwound ilament of the silkworm cocoon. to obtain lower grades of silk, broken or waste ilaments and damaged cocoons are retained, treated to remove the sericin, and combed. this is then processed into yarn, marketed as spun silk, which is inferior in character to the reeled product and much cheaper. low grade silk is made from damaged cocoons that were spoiled by emerging moths used for breeding stock. filaments from the coarse outer portion of the cocoon, which is removed by brushing before reeling, and the inner portion of the cocoon, which remains after reeling the raw silk, are mixed with silk from damaged cocoons to make low grade silk. silk has a high natural lustre and sheen of a white or cream color. it has a reputation as a luxurious and sensuous fabric, retains its shape, drapes well, caresses the igure, and shimmers with a luster all its own. silk is naturally hypoallergenic, yet is still breathable; it absorbs moisture and reduces humidity, which makes it cool in the summer and warm in the winter. while silk is one of the strongest ibre at 2.6 to 4.8 grams per denier, it can be weakened by perspiration, deodorants and sunlight. silk is absorbent so it dyes easily, but some dye colors tend to bleed and fade in water and during stain removal procedures. sunlight will fade silk items and turn white silk garments yellow. angora t ypically when we talk about angora, we refer to angora rabbit hair, while the ibres from the angora goat are more commonly known as mohair. there are 4 different angora rabbit breeds, namely, english, french, satin and giant. angora wool harvested from these rabbits are lightweight, silky, ine, and very soft. it is 7 times warmer than wool, and is ideal for baby clothes, winter underwear, sweaters and mittens. as only a small amount of wool can be harvested from these adorable creatures, angora is often combined with other ibres to minimize the high cost of this luxurious ibre. april - september 2017 | 19

cashmere c ashmere, also known as the ibre of kings, is produced from the ine, soft undercoat of hair of the kashmir goat. sixty percent of the world’s supply of cashmere is produced in china, mongolia and tibet, and the remainder from turkey, afghanistan, iraq, iran, cashmere, australia and new zealand. cashmere yarn is extremely soft, lightweight, yet very warm. it is very luxurious and possesses excellent drape. as each kashmir goat is capable of producing an average of only 4-6 ounces of under-down per year, cashmere is hence very expensive. april - september 2017 | 21

over the horizon: a look at the trends shaping social compliance and what it means for africa. by: clay hickson, wrap vice president of strategy and business development & russell jowell, wrap communications manager april - september 2017 | 23

social compliance industry, and the association of professional social compliance auditors (apsca), which launched last year as an effort to “enhance the professionalism and credibility of the individuals and organizations performing independent social compliance audits.” collaboration within social compliance has already proven that it can advance us further than any group could do alone and this trend will only continue in the years to come. the other area that will see unprecedented growth and change within social compliance is in technology. objective information and data are the heartbeat of the social compliance world. just as collaborating on audit data frameworks and auditor accountability processes will help move our industry forward, so to will developments that help those very auditors collect their necessary data in more eficient ways. some technology experts say that traditional desktop, and laptop, computers may be all but extinct by 2020 thanks to the rapid development of tablets and other mobile devices. this has opened up the very exciting possibility of not only completely paperless audits, but also real-time audits where an on-site inspector can provide data, even in the form of live video, right from the factory loor. the other beneit provided by paperless audits is the ability to collect, and later analyze, quantities of audit data that would not otherwise have been possible. one of the most popular pages on wrap’s website is an interactive world map that provides real-time data about currently certiied factories, including their location, certiication level, and expiration date. several similar factory mapping projects are also in the works around the world. we at wrap are also embarking on a major overhaul of our own internal database system that will allow us to analyze inspection data to better identify trends, and perhaps more importantly, better prepare for whatever the future of our ield may throw our way. the social compliance industry is one that has no doubt come of age. in the approximately 20 years of its existence, it has both clearly deined itself and carved out an essential role in the greater supply chain realm. now, as the industry moves into the next phase of its life, it will do so in a world that demands it keep pace with the rapid rate of societal change that has become the new norm of our time. headquartered in arlington, virginia, usa, with regional ofices in hong kong, sar, and dhaka, bangladesh, full-time staff in india and southeast asia (thailand and vietnam), and for latin america, wrap is an independent, objective, non-proit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing around the world through certiication and education. to learn more about wrap, please visit www.wrapcompliance.org.  april - september 2017 | 25

project-upscale winner 2016 - robin zoe s pecializing in ine, hand-smocked children’s clothing and beachwear accessories, robin zoe madagascar was founded in 1995. we are proud of the creativity and originality of our malagasy artcraft and our abilities to achieve client’s wishes. all of our products are made by our experienced team of hard working craftsmen. we take great pride not only in the outstanding quality of our products but also in the environment in which they are made. every product that bears our name was made ethically and in a socially responsible way. we have experimented with the european market where the our outstanding quality of our products were rewarded by the trophy of quality in spain. now we are looking for opportunities with the american market, - our new goal” from it’s inception in a small facility, robin zoe has gone on to become a modern company without losing the charm of tradition and handmade manufacturing. our signature line of detailed hand-smocked garments with original motifs often alludes to the appropriate seasons or of nature and wildlife. they capture the joy of childhood at its best. “anaka beachwear accessories” is a lifestyle collection providing diverse and fashion forward resort beachwear looks to women of all ages. the anaka collection is meticulously and intricately hand craft by our team of skilled artisans and provides a unique range of colorful bags. we work with 3 villages who provide us with the raw material. they’re encouraged with the work we give them however, we would like to help them become more independent by providing them with education, craft skills, and so forth. today the global phenomenon of return to nature and authentic materials makes madagascar amongst all countries, one with high potential outreach. april - september 2017 | 27

nigerian government allocates n51bn to garment industry content courtesy of: fibre to fashion t he government of nigeria has allocated n51 billion ($162.034 million) in this year’s budget for development of the country’s garment and textile industry. the budget allocation is part of the nigerian government’s efforts to promote the garment and textile sector to create jobs, diversify its economy, and to increase the use of ‘made in nigeria’ clothing. “the ministry has allotted over n51bn in the 2017 budget just to promote our garment industry, because we know it is an area where we have to get it right. and so, out of the six special economic zones, three will be for textiles,” minister of state for industry, trade and investment, aisha abubakar said at the opening session of a workshop organised by the bank of industry (boi) for garment operators in abuja. the minister said that the government understands the importance of the garment sector in creating jobs and reducing poverty. she added that the government was working hard to support the industry through massive investment in infrastructure, which would help bring down the price of cotton, according to nigerian media reports. waheed olagunju, acting managing director of boi, said the bank has set up a n1 billion ($3.177 million) fund for the textile sector. loans are given out from this fund at nine per cent interest rate ad payable between three to ive years, with a moratorium period of six to 12 months.  april - september 2017 | 29

we look forward to welcoming you to origin africa mauritius 2017. africa’s irst convention for the cotton, textile, apparel and fashion sectors. conference: 25 and 26 september - intercontinental hotel. trade fair: 27-29 september - svicc april - september 2017 | 31 april - september 2017 | 31

origin africa trade event origin africa is actif’s platform to promote african cotton, textile and apparel value chains through ongoing initiatives dedicated to: • improving trade in and with africa, and • to raise awareness of africa as a place to do business, and, as an increasingly important sourcing destination for international textile and apparel products. we collaborate with african producers, designers, small businesses and national organizations to provide information about and increased visibility for our members and the african cotton, textile and apparel sectors. international partners, buyers and a wide range of experts support this initiative by providing up to date information on speciic topics. now in its 8th year, the origin africa trade event, is widely recognized as africa’s premier trade event for the cotton, textiles and apparel industries of africa. our 2015 event, held in addis ababa, ethiopia, and our 2016 event in antanarivo, madagascar, each brought together exhibitors from over 25 countries and a strong contingent of international buyers and sourcing experts from major international retailers, brands and wholesalers. the trade fair showcases the products, services and skills of a wide variety of exhibitors while informative and topical seminars stimulate discussion. side events generate networking acclaimed networking and relationship building opportunities. the origin africa platform compliments actif’s efforts in promoting regional value chains, building business linkages and increasing trade and investment across the region. 2017 venue: in line with our pan african vision and mandate the event is usually hosted in a different african country each year and will in 2017, be held mauritius. in response to public demand, origin africa 2017 graduates to full convention status. news, views, analysis and opinions are presented in our quarterly magazine while our annual trade event brings together stakeholders from across africa and the world. conference magazine enhancing productivity the path to sustainable competitiveness. date: 25th and 26th september 2017 origin africa magazine is produced bi-annually, distribution is exclusively digital. trade fair distribution date: 27th to 29th september 2017 core to couture. origin africa magazine is digitally distributed to over 4,000 strategic contacts many of whom are apex associations in the cotton, textile and apparel sectors across africa and globally for onward distribution to their individual companies. in addition, the magazine is promoted on our active social media platform including twitter and facebook. regular press releases will be released up until, during and after the event. for press invitation, accreditation or any further information please contact press@originafrica.org. april - september 2017 | 33