Introduction

A Sector with Promise Amidst Complexity

The African textiles and apparel (T&A) sector has long been viewed as a potential driver of industrialisation, job creation, and regional economic transformation. Yet, despite this potential, Africa’s T&A industry remains underdeveloped and highly fragmented. The launch of the African Continental Free Trade Area (AfCFTA) provides an unprecedented opportunity to address these structural weaknesses by creating a continental regional value chain (RVC) that connects producers, investors, and consumers across Africa.

However, progress toward this goal has been slow. Differing national interests, stalled negotiations on Rules of Origin (RoOs), and entrenched structural and infrastructural challenges continue to hinder the continent’s ambitions to build a competitive, integrated T&A sector.

This report explores what it will take to create a successful African T&A value chain under the AfCFTA and highlights the key implementation challenges that must be addressed.

1. Current State of Africa’s Textiles & Apparel Industry

Fragmented and Concentrated Value Chain

Africa’s T&A sector is heavily concentrated at two ends of the value chain:

• Raw fibre production, especially cotton
• Apparel manufacturing and garment assembly

Middle segments, such as fabric and yarn production, are notably weak, with most inputs for apparel production imported, primarily from Asia.

Reliance on Cotton & External Markets

The sector is heavily skewed towards cotton products, both in exports and production. However, African producers export most of their apparel to European and North American markets, with limited intra-African trade.

High Importation of Second-Hand Clothing

Africa is among the largest importers of second-hand clothing, which satisfies local demand but undermines local production by flooding markets with cheap imports.

Minimal Intra-African Trade

Despite AfCFTA ambitions, intra-African T&A trade remains minimal. Structural barriers, underdeveloped infrastructure, inconsistent public procurement, and high energy costs compound this challenge.

2. Why Industrialisation Hinges on Textiles, Not Just Apparel

The Case for Textiles Investment

Historically, textile production—not garment assembly—has driven industrialisation due to its higher potential for technological upgrading and linkages with other sectors like chemicals and machinery.

Many African countries have focused on attracting apparel production under trade preferences such as AGOA (African Growth and Opportunity Act), but without backward integration into textiles.

Limits of Current Trade Liberalisation

Even if all intra-African textile exports were redirected within Africa, they would only satisfy a fraction of the demand:

• 20% of yarn demand
• 9% of fabric demand

Thus, imports will remain necessary for some time, especially for synthetic fibres.

3. Towards a Continental Regional Value Chain: Key Pathways

Vertical Integration

Vertical integration should not be seen as just firm-level operations but as industrial clustering. Africa needs interconnected textile hubs supported by coordinated policies and investments.

Technology and Design Capabilities

African firms need to partner with foreign firms to access technology, design capabilities, and tacit knowledge. However, many foreign buyers remain focused on low-cost, low-value-added production, limiting opportunities for high-value upgrading.

Addressing Second-Hand Clothing Imports

The dominance of second-hand imports must be phased out or regulated. Proposals include restricting imports to items suitable for recycling or reuse and incentivising domestic production through local content policies.

Sustainability Considerations

With global shifts toward sustainability, Africa has an opportunity to invest in eco-friendly textiles, such as recycled fabrics and organic cotton, to attract buyers seeking “green” supply chains.

4. Role of AfCFTA Protocols Beyond Tariffs & Rules of Origin

While RoOs negotiations have drawn much attention, other AfCFTA protocols could play pivotal roles in supporting the T&A value chain:

• Trade in Services Protocol: Enhances logistics, design, finance, and e-commerce services.
• Investment Protocol: Facilitates both foreign and domestic investment in T&A.
• Intellectual Property Protocol: Supports branding, design, and innovation.
• Competition Policy Protocol: Prevents monopolistic practices and encourages SME growth.
• Customs Cooperation Protocol: Reduces delays and simplifies trade procedures.
• Digital Trade Protocol: Facilitates cross-border e-commerce, critical for African brands targeting regional markets.

5. Rules of Origin: The Sticking Point

Political Economy of RoOs Negotiations

RoOs negotiations have been challenging due to:

• Differing capabilities among countries
• Diverging views on liberal vs. restrictive rules
• Challenges in tracking inputs, especially for mixed-fibre textiles

Key Deadlocks

Agreements have been reached for some fibre-level goods (e.g., silk, wool). However, knitted apparel (HS61) and synthetic fibres remain contentious, particularly concerning the allowed proportion of non-African inputs.

Beyond RoOs: Real Constraints

Even with RoOs agreed, the actual trade impact may remain limited due to:

• High compliance costs
• Limited production capacities
• Weak infrastructure and logistics

Thus, RoOs must be accompanied by strong investment policies and infrastructure development.

6. Regional Champions and Market Niches

Regional Dynamics Matter

Different African regions have varying strengths:

• Southern Africa: Home textiles and upholstery, strong retail presence
• East Africa: Cotton production and growing apparel exports
• West Africa: Large cotton exporter, but limited apparel capacity
• North Africa: More integrated textile production, proximity to Europe

Potential Regional Value Chains

Rather than a single continental RVC, it may be more feasible to establish multiple regional RVCs that connect. These should:

• Build on regional specialisations
• Prioritise intra-African trade
• Target African consumers and diaspora markets

7. Industrial Policy and Governance

Industrial Policy Is Crucial

Government intervention is critical to:

• Develop vertical integration
• Attract textile investments
• Support capability building through incentives
• Promote sustainable practices

Need for Data and Coordination

Creating a continental information hub can help coordinate:

• Investment opportunities
• Supply chain linkages
• Market trends and opportunities

Pioneer Firms and African Brands

There is a strong need to develop African pioneer firms that can lead regional branding and retail efforts, positioning Africa-made products both regionally and globally.

8. Looking Ahead: Recommendations for Action

Immediate Priorities

• Finalise RoOs with flexibility for input-scarce segments
• Enhance customs capabilities for effective RoO implementation
• Reduce Non-Tariff Barriers (NTBs) and trade bottlenecks

Medium-Term Strategies

• Incentivise textile investments (including man-made fibres)
• Develop regional clusters with tailored industrial policies
• Promote sustainability and circularity in T&A production

Long-Term Vision (By 2045)

• Achieve 80% African-made clothing for the African market
• Build globally competitive firms across the value chain
• Create vertically integrated, eco-friendly production hubs

Conclusion:

A Turning Point for Africa’s Textile Future

The AfCFTA represents Africa’s best chance to build a globally competitive, regenerative, and integrated textiles and apparel industry. However, success will depend on far more than tariff reductions or trade liberalisation alone.

African leaders, businesses, and development partners must adopt a holistic, pragmatic approach—one that balances RoO negotiations with deep investments in infrastructure, technology, design, and industrial policy.

By doing so, Africa can unlock the full potential of its textiles and apparel sector—not only as a means of trade expansion but also as a powerful catalyst for industrialisation, job creation, and sustainable development.

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