German Machinery Association (VDMA), which has showed a great deal of interest in Europe, has visited to Africa with the support of German Federal Ministry of Economy and Energy. The senior officials of 15 companies among the world's leading textile machinery manufacturers visited to Ethiopia which is a country standing out in the fields of textile and apparel industry with its striking policies.
American Apparel & Footwear Association (AAFA) and Italian Textile Machinery Manufacturers Association (ACIMIT) had made a similar visit to Africa last year. It is expected that the production in the textile sector may be conducted in African countries instead of China in the following 10 years, because the labour costs are lower in such countries as Thailand, Taiwan and Myanmar. European producers wishing to take part in the developing African market conduct various studies in order to strengthen their position. Among these studies, Dutch firms stand out. Dutch Vlisco and CmiA provide trainings in the fields of machinery, cotton cultivation, preservation and processing of biodiversity.
VDMA Tends towards to Emerging Markets
Ethiopia reaching at $ 120 million as export value of textile and garment industry targets to reach at $ 500 million in 2016. Saying that Ethiopian textile manufacturers need to invest in modern technology in order to achieve these targets, Regina Brückner, the new chairman of VDMA, said that Ethiopian firms can reach their targets only in this way. "In recent years, some investors from such countries as Turkey, China and India have established textile and garment factories in Ethiopia by benefiting from relatively low costs in terms of energy, wages and area. These incentives will provide more investment in the future. However, the firms are aware of current barriers such as lack of the necessary foreign exchange in order to finance the import of intermediate textile products including supply chain from cotton to final product, general infrastructure and logistics, textile machinery and yarn; the evaluation requirements for more textile professionals; and regular power outage.” said Brückner and added that Emerging markets such as Ethiopia offer important opportunities for German textile machinery manufacturers and that they will set a course for marketing during the new period.
