Quanzhou Textile Enterprises Need To Invest In Africa To Suit Local Conditions

"This year,

The trend of volume increase and price fall will not change.

The habit of importing or using imported cotton will not change normally. "

According to industry statistics, the average import price of imports in the first quarter fell back in the second half of last year, and then dropped to $2340 / ton, down 21% from the same period last year, according to the statistics of Fujian textile and garment export base.

along with

Output has increased in recent two years, and many enterprises are targeting Africa and importing raw materials.

Advantage of tariff trade

According to the data, the total output of cotton in French and African countries is expected to reach 619 thousand tons next year.

Yao Qiaoe, director of foreign trade of Quanzhou Caroline apparel limited, said that Africa's cotton production is mainly concentrated in West Africa. "The company's products have entered the West African market. Considering the local cotton production and labor costs, we will consider building factories locally."

Purchasing cotton is only the first step for enterprises to enter the African market. Another reason for promoting the purchase of African raw materials and even local factories is that African textiles and garments can enter the US and EU markets without tax or quota. Africa's exports to the EU account for 4% of its textile and clothing exports, and there is great room and potential for development.

In addition, there are many communities in Africa that enjoy the preferential policies of tariffs and other import and export taxes among member countries. Enterprises can easily enter other related regional markets if they can enter a market.

It is understood that 24 African countries with trade with Quanzhou have increased 63.1% in the first quarter to Africa, and footwear, clothing, domestic ceramics and electromechanical products are the main export products.

Investment projects must be adapted to local conditions.

The industry believes that every country in Africa has different textile industry development and local demand, so the investment direction should be chosen according to local conditions.

For example, Mali, Ethiopia and other countries are rich in cotton, but lack of deep processing capacity. If we establish a comprehensive spinning, weaving and dyeing and printing plant there, we can see that the benefits are considerable. Some African countries prefer to buy clothes. If we set up clothing stores there, we should get good returns.

There are also risks in investing in African countries. Because of the particularities of these markets, risks are sometimes unpredictable.

"In order to avoid mistakes in investment decisions, the production enterprises can take the initiative to gradually advance the way of setting up factories after trade."

An entrepreneur with nearly 10 years of investment experience in Africa and France said that setting up a trading company can not only help enterprises better understand the local investment environment, but also lay a certain market foundation for the local production.