This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Madagascar ranks first amongst Sub-Saharan African countries in textile exports to the EU and third to the United States. Though initially hard-hit by the pandemic, the textile sector had almost recovered to pre-COVID-19 levels by the end of 2020. It remained the largest formal employer in Madagascar; the sector provides nearly 400,000 jobs, half of which were in the Export Processing Zones (EPZ) around Antananarivo and Antsirabe. Despite the chaos caused by supply disruptions, production delays, and demand drop-offs in the second and third quarters of 2020, the industry’s resilience once again showed in its ability to retain the confidence of foreign buyers and to shift to a more online retail presence. The industry has a ready supply of low-cost skilled labor and production facilities to create hundreds of thousands of new jobs. Once COVID-19 concerns have receded worldwide, Asian producers are likely to resume negotiations to move some of their production to Madagascar to avoid product-origin limits and to take advantage of Madagascar’s low-cost, skilled labor.
Leading sub-sectors
Yarns
(Figures in thousands of USD)
|
YARNS |
2018 |
2019 |
2020 |
2021 (Jan – June) |
|
Total local production |
N/A |
N/A |
N/A |
N/A |
|
Total exports |
26.9 |
49.6 |
22.6 |
11.1 |
|
Total imports |
21,392.1 |
16,276.2 |
12,135.4 |
6,392.0 |
|
Imports from the US |
0 |
0 |
0 |
0 |
|
Total market size |
N/A |
N/A |
N/A |
N/A |
(Total market size = (total local production + imports) – exports)
Data sources: Madagascar Customs
Yarns included have HTS four-digit code 5208, 5209, 5210, 5211, and 5212
Fabrics
(Figures in thousands of USD)
|
FABRICS |
2018 |
2019 |
2020 |
2021 (Jan – June) |
|
Total local production |
N/A |
N/A |
N/A |
N/A |
|
Total exports |
985.8 |
820.4 |
807.6 |
586.7 |
|
Total imports |
89,782.5 |
87,829.5 |
81,850.2 |
46,661.6 |
|
Imports from the US |
0 |
0 |
0 |
0 |
|
Total market size |
N/A |
N/A |
N/A |
N/A |
(Total market size = (total local production + imports) – exports)
Data sources: Madagascar Customs
Fabrics included have four-digit HTS code 5204, 5205, 5206, and 5207
Textile machinery
Supply Chain Management and capacity building in the textile industry
Opportunities
- U.S. Market through AGOA
- European Union markets
- Regional markets Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Commission (IOC)
- Investment in new production facilities or acquisition of existing textile companies
Resources
The website of the Group of EPZ companies and partners (GEFP): http://www.gefp.mg/