Chinese textile enterprises seize opportunities in Africa

In mid-December 2024, Lutai Group, the global leader in dyed fabrics and shirt production, announced that it would invest US$385 million in Egypt to build its first overseas textile factory. The implementation of this full industrial chain project not only indicates that China-Egypt economic and trade cooperation has reached a new height, but also injects strong momentum into the Egyptian textile industry’s sprint to the core of the global market.

As China-Africa cooperation continues to deepen, more and more Chinese textile companies are optimistic about the prospects of the African market and begin to venture into Africa. According to statistics from China Customs, China has been the largest source of textile and clothing imports in Africa for 17 consecutive years. From 2013 to 2023, China’s textile industry has invested a total of US$763 million in African countries, accounting for 6.4% of the total investment in the global textile industry during the same period.

According to data released by information consulting company Euromonitor International, Africa currently accounts for about 16% of the global textile market share. Thanks to its rich natural resources and huge demographic dividend, Africa is showing new vitality and its consumer market shows great potential. This blue ocean attracts many Chinese textile companies to visit.

During the Morocco Promotion Conference and Fabric Matchmaking Conference held in September 2024, Chen Hao, Secretary of the Keqiao District Committee of Shaoxing City, Zhejiang Province, led a number of fabric company leaders to inspect the local area. Chen Hao believes that the textile and garment industry is Morocco’s pillar industry and the largest industrial employment industry. It is in a period of rapid development and has huge development space in the next 20 to 30 years. Keqiao is an international textile capital and a new fashion city. The cooperation between China and Morocco is bound to be a cooperation of complementary advantages, mutual benefit and win-win. Chairman Ansari Ansari, Chairman of the Moroccan Textile and Garment Industry Association, said that the textile industry is Morocco’s pillar industry and China’s advantageous industry, and Morocco welcomes Chinese companies to invest in Morocco.

In 2024, Xu Yuxiang, Chairman of Jiangsu Soho International Group Co., Ltd., visited seven local companies in Egypt during the 6th China Textile Boutique Exhibition in addition to visiting important customers in South Africa. “The local area has rich labor resources, natural environment and raw material advantages, and has expansion potential in the production of chemical fiber fabric products.”

Zhejiang Shaoxing Yican Textile Co., Ltd. also smelled new business opportunities in the African market. In 2024, “after a month of market research, we dispelled our doubts.” Zhou Bing, the company’s general manager, said, “The African textile and clothing market has broad prospects, especially the fabric market has a considerable gap, and the market potential is promising.”

Among African countries, Tunisia has become an important player in the international market with its outstanding performance in the textile industry. The country has about 1,800 textile and clothing companies, of which more than 80% focus on the export market.

Lesotho is a mountainous country completely surrounded by South Africa. Chinese investment has made Lesotho a major textile producer in Africa. Ms. Chen from China founded a textile company in Maseru, the capital of Lesotho, with 500 employees. Over the past 25 years, Chinese textile companies in Lesotho have grown from 7 to the current 52. Textile products have gradually become one of Lesotho’s export protagonists.

“Many people think that the African market is full of low-end products. In fact, it is not easy to make good and refined products. For example, due to different wearing habits, the imitation batik printed fabrics sold in Africa need to be worn on both sides, which increases the difficulty of printing.” Ren Shilin, production director of Zhejiang Baofang Printing and Dyeing, said that the company is equipped with a professional pattern development team and technical research and development group, and also maintains close cooperation with domestic universities and research institutes to continuously innovate.

“In the traditional impression of most people, African consumers pay great attention to the cost performance of products. They prefer to buy products with reasonable prices, guaranteed quality and traditional cultural style. This is actually not accurate.” Liao Hongying, a market analysis expert with many years of work experience in textile companies in Ethiopia and South Africa, told reporters that the needs of African consumers are different. “For example, South African consumers pay more attention to sustainable development and prefer to purchase clothing made of environmentally friendly fabrics.”

“As an emerging market with favorable time, place and people, the African market is worthy of further exploration of business opportunities by Chinese fabric companies.” Liao Hongying suggested that companies interested in Africa might as well make exploratory investments first. Only by taking a step-by-step approach can they move forward steadily. For fabric companies that have already set up local locations, only by focusing on product differentiation and localization and facing the needs of local consumers can a larger market be created.

In recent years, the development of China-Africa trade has shown a strong growth momentum, and Africa’s textile printing and dyeing industry has gradually revealed its potential in this process. African countries have strong demand for textiles and huge potential. Through technological investment and industrial upgrading, Chinese companies can not only seize market opportunities, but also promote the comprehensive development of the African economy.