$5 billion plan to boost manufacturing in Africa

Category: General

Country: Switzerland

Africa Textile Renaissance Plan aims to boost exports of cotton yarns and increase self reliance.

By Innovation in Textiles
Africa
06th November 2024

Swiss leader in staple fibre yarn spinning technology Rieter is involved in a bold new plan to establish 500,000 metric tons of cotton transformation capacity in Africa in the next 3-5 years, with the creation of up to half a million new jobs.

It is partnering with Arise IIP, the pan-African developer and operator of industrial parks, and the African Export-Import Bank (Afreximbank), on the Africa Textile Renaissance Plan which aims to establish a new era of textile manufacturing in Africa.

Supported by $5 billion in financing, the plan’s objectives include reducing Africa’s annual textile imports and boosting its exports to the USA under the African Growth and Opportunity Act (AGOA), as well as localising machine repair expertise in Africa.

Countries benefiting from the programme will be selected based on criteria such as power and gas availability, and textile parks with standard infrastructure or equity contribution. Training centres will be established in selected countries to develop and improve skill levels.

The partnership aims to secure the financing of textile projects via standardised loan documentation and security packages, an  expedited two-month application process and standardised business plan templates.

To foster long-term growth, Rieter has committed to gradually establishing a manufacturing presence in Africa subject to commercial viability, including the setup of a repair and maintenance facility in an Arise industrial park in Benin, the establishment of spare parts warehousing and the phased introduction of machine assembly operations.

“The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development, said Gagan Gupta, CEO and founder of Arise IIP. “I’m convinced that this initiative will not only boost local manufacturing and create thousands of jobs but also position Africa as a global leader in sustainable textile production.”

We are thrilled to support this important initiative with our commitment, expertise and consulting knowledge,” added Rieter CEO Thomas Oetterli. “We are convinced that the Africa Textile Renaissance Plan marks an important starting point for the future development of the textile industry in Africa.”

For more info on Reiter India Pvt Ltd please click here and for Arise IIP India Pvt Ltd. click here

Courtesy: innovationintextiles.com