As global fashion brands continue to diversify sourcing beyond Asia, Africa is rapidly positioning itself as the next frontier for ready-made garment (RMG) manufacturing. Competitive labour costs, preferential trade agreements, abundant cotton resources, and increasing foreign investment are transforming several African countries into attractive apparel sourcing destinations.
While no African nation currently rivals Bangladesh, Vietnam, or China in export scale, countries such as Ethiopia, Egypt, Kenya, Madagascar, Morocco, Lesotho, and Tanzania are steadily strengthening their positions within global apparel supply chains.
Ethiopia: Africa’s most ambitious garment manufacturing hub
Among Sub-Saharan African countries, Ethiopia has emerged as one of the continent’s most ambitious apparel manufacturing destinations.
Over the past decade, the Ethiopian government has invested heavily in industrial parks dedicated to textile and garment production, including Hawassa Industrial Park, Bole Lemi Industrial Park, Kombolcha Industrial Park, Mekelle Industrial Park, and Adama Industrial Park. These facilities were developed to attract global brands through modern infrastructure, competitive labour costs, tax incentives, and export-oriented production.
Key figures include:
More than US$4 billion invested in the textile and apparel sector over the past decade.
Over 80 export-oriented textile and garment factories established.
International manufacturers from China, India, Turkey, Sri Lanka, and South Korea have invested in Ethiopian production facilities.
Ethiopia exports apparel primarily to the European Union, the United States, and the Middle East.
Global brands including PVH (Calvin Klein and Tommy Hilfiger), H&M, Decathlon, and several European retailers have sourced garments from Ethiopian factories due to the country’s low labour costs and government-backed industrialisation strategy. However, political instability, foreign exchange shortages, and logistics constraints have slowed growth in recent years.
Egypt: Africa’s fastest-growing apparel exporter
While Ethiopia has attracted considerable attention, Egypt is currently Africa’s strongest integrated textile and apparel manufacturing nation.
The country benefits from:
World-renowned long-staple cotton.
Vertically integrated spinning, weaving, dyeing, finishing, and garment manufacturing.
Strategic proximity to European markets.
Free trade agreements with the EU, Arab countries, and several African markets.
The sector continues to post impressive export growth. During the first four months of 2025, Egypt’s ready-made garment exports increased 22% year-on-year, reaching US$1.028 billion, compared with US$840 million during the same period in 2024. The United States remained the largest export destination, followed by Europe.
Madagascar: Quietly becoming a global apparel supplier
Madagascar has become one of Sub-Saharan Africa’s strongest apparel exporters, particularly to Europe and the United States.
The country enjoys preferential market access under both the African Growth and Opportunity Act (AGOA) and the European Union’s Everything But Arms (EBA) initiative.
According to the U.S. Commercial Service:
The textile sector supports more than 400,000 direct and indirect jobs.
Apparel manufacturing remains Madagascar’s largest industrial employer.
Export Processing Zones continue to attract international investment.
Madagascar ranks among the leading Sub-Saharan apparel exporters to both the U.S. and EU markets.
Kenya: Leveraging AGOA for export growth
Kenya has established a strong export-oriented apparel industry centred around Export Processing Zones (EPZs).
Key strengths include:
Apparel exports to the United States reached approximately US$510 million in 2023.
Strong production of denim, uniforms, knitwear, and workwear.
Extensive utilisation of AGOA preferences.
Growing efforts to diversify exports into Europe and regional African markets.
Morocco: Europe’s near-shoring partner
Morocco has become one of Europe’s preferred apparel sourcing destinations due to its geographic proximity, short lead times, and efficient logistics.
Its competitive advantages include:
Textile and clothing exports valued at approximately US$3.2 billion.
Fast-fashion manufacturing for European brands.
Modern factories capable of quick response production.
Extensive free trade agreements with European markets.
Lesotho: A small country with a large garment industry
Despite its small population, Lesotho has built an export-driven garment sector focused on the U.S. market.
The industry:
Employs around 40,000 workers, primarily women.
Accounts for nearly 90% of manufacturing exports.
Depends heavily on AGOA preferences, making it vulnerable to changes in U.S. trade policy.
Why global brands are looking to Africa
Several structural factors are making Africa increasingly attractive for apparel sourcing:
Competitive labour costs.
Large and youthful workforce.
Expanding industrial parks.
Duty-free access to the U.S. through AGOA.
Preferential access to the EU market.
Implementation of the African Continental Free Trade Area (AfCFTA), creating a single market of over 1.4 billion people.
Increasing investment in spinning, weaving, dyeing, and garment manufacturing to build integrated value chains.
Challenges remain
Despite significant progress, African manufacturers continue to face several obstacles:
High logistics and transport costs.
Limited local textile ecosystems in many countries.
Dependence on imported fabrics and accessories.
Inadequate port and transport infrastructure.
Political instability in some regions.
Energy shortages and unreliable power supply.
Skills gaps in advanced manufacturing technologies.
Implications for Bangladesh
Africa’s growth should not be viewed solely as competition but also as an opportunity. Bangladesh remains the world’s second-largest apparel exporter, supported by an extensive manufacturing base, experienced workforce, and well-developed supply chain.
However, African countries are increasingly attracting investment through favourable trade agreements, lower labour costs, and proximity to European markets. To maintain its global competitiveness, Bangladesh should continue investing in sustainable manufacturing, man-made fibre production, automation, circular textiles, product diversification, and technical textiles.
The future of global apparel sourcing is likely to become more geographically diversified. Rather than replacing Asian manufacturing giants, Africa is expected to complement existing supply chains, offering brands greater resilience and flexibility. Countries that combine supportive government policies, infrastructure investment, sustainability, and skilled labour development will be best positioned to capture the next wave of global apparel manufacturing.
