Ethiopia
Reason for recommendation: International brands, European and American importers and retailers all regard Ethiopia as an extremely attractive place to purchase clothing. With the influx of foreign businessmen in recent years, the textile and clothing industry is the country’s fastest-expanding industry, and its government is also the most active in the development of the textile and clothing industry. Among the 48 countries in Africa, Ethiopia has a relatively stable political situation and low political risks. In addition, its labor costs are also the lowest among the recommended countries, with worker wages of US$45/month and manager wages of US$145/month. Moreover, the emphasis here is on basic education, and the labor quality is relatively high. Ethiopia’s water resources and electricity are relatively cheap. It is reported that the electricity fee is only 3 to 4 cents/kWh.
Political risk★★★★
Economic risk★★★
Business environment★★★★★★
Kenya
Reason for recommendation: The East African Community is composed of 5 countries, Kenya is one of them. The organization signed a free trade agreement with the European Union and jointly built an East African trade and investment center with the United States, resulting in rapid development for the five East African countries. The Kenyan government very much hopes to expand the export of clothing and apparel products to the United States in order to become a middle-income country in 2030. The government of this country has given relatively favorable conditions to foreign businessmen. Currently, Kenya has more than 50 export processing zones. In these processing zones, investors in the garment manufacturing industry are dominated by investors from different countries, mainly concentrated in China, India, Malaysia, Pakistan and Sri Lanka.
Political risk★★★★★★
Economic risk★★★★★
Business environment★★★★★
Rwanda
Reason for recommendation: One of the East African Community and one of the countries with the fastest economic growth in Africa, with an average annual GDP growth of more than 8%, an efficient government system and good macroeconomic indexes. The country’s government is fully promoting urban construction, and infrastructure reforms focus on building efficient transportation and transportation network systems to transform Rwanda into a regional logistics hub. Although Rwanda’s textile and apparel industry is relatively small, it has still attracted some investors from overseas. For example, China’s C&H Garment Company plans to open a garment factory in the country’s capital in 2016. In addition, there are already fabric and yarn manufacturing companies here, and the industrial chain is more complete than other countries.
Political risk★★
Economic risk★★★★★
Business environment★★★★★★
Uganda
Reason for recommendation: Uganda is one of the East African Community, its economy has maintained a high growth rate, and it is one of the countries with the fastest economic growth in Africa. The Ugandan government has good relations with neighboring Konya and Tanzania, and actively governs and promotes regional cooperation and regional economic integration. Relaxed regulatory policies make cross-border transportation convenient and smooth, and good transportation facilities are conducive to the formation of supply chains. Uganda’s textile and apparel industry is not developing as rapidly as other regions. However, the country is one of the countries that the United States provides the most aid to sub-Saharan African countries and is also one of the most competitive countries in exporting to the United States.
Political risk★★
Economic risk★★★★★
Business environment★★★★★★
★The more ★, the more stable and smaller the risk. Political risk is assessed based on political stability, social security, government intervention, and international relations; economic risk is assessed based on macroeconomics, financial system, fiscal status, balance of payments, Sovereign debt and bilateral economic and trade assessment; business environment is assessed based on tax system, investment convenience, infrastructure and administrative efficiency. Data comes from “Country Risk Analysis Report 2014”.)
