Textiles
SECTOR

Africa offers abundant cotton, competitive labor costs, emerging industrial ecosystems, and preferential trade access to the U.S., EU, and African markets. These factors collectively position the continent as a strategic, export-ready textile hub. 

Garment manufacturing, sustainable fabrics (organic cotton, recycled textiles), home textiles, and performance/athleisure wear are emerging as the most profitable and globally demanded segments.

Exporting finished garments or home textiles generates 3–5x higher revenue than raw cotton exports due to branding, quality differentiation, and market demand. Integrated operations further enhance margins by minimizing logistics and handling costs.

Cotton farming, spinning, weaving, dyeing, garment manufacturing, and recycling of textile waste for industrial or eco-friendly products all present attractive opportunities.

Brands are responding to rising labor and energy costs in Asia, geopolitical uncertainty, and growing consumer demand for sustainable, ethically produced textiles. This is prompting a search for diversified, resilient, and eco-conscious supply chains.

African manufacturers are adopting integrated value chains, sustainable fabrics like organic cotton, renewable energy use, and compliance-ready facilities. These efforts enable them to meet international quality and ESG standards while shortening lead times to key markets.

Africa is scaling from raw-material supply to integrated garment manufacturing. Countries like Benin, Togo, Kenya, Ethiopia, and Egypt are expanding industrial zones that serve both local and export markets. 

Finished garment exports are projected at €5.8B by 2026, with the broader textile market growing at ~4% CAGR through 2030.

While Asia remains dominant, Africa offers shorter lead times, lower labor costs, duty-free market access, and the potential for vertically integrated operations that Asia’s mature hubs often lack.

Integrated value chains, proximity to US/EU markets, trade agreements (AGOA, EPA, AfCFTA), and rapidly scaling industrial parks give Africa a unique combination of cost, access, and operational readiness.

Plug-and-play infrastructure, single-window facilitation, utility integration, and proximity to ports reduce setup time, operational complexity, and costs. 

Industrial parks incorporate renewable energy, wastewater treatment, and resource efficiency programs, helping textile businesses meet global ESG standards while optimizing operational efficiency.