With wages lower than Bangladesh and vertically integrated setups, most countries in Africa are benefitting from free-trade agreements with the US. Africa and especially Ethiopia continues to be an opportunity for apparel retailers. VF Corp., the group owing brands like Lee, Wrangler and Timberland, expects to start getting some of its pants sewn in Ethiopia this year. PVH Corp. has been making some of its clothes in Kenya for at least four years. Others with sourcing in sub-Saharan Africa include Wal-Mart Stores Inc., J.C. Penney Co. and Levi Strauss & Co.
Apparel worker wages in Ethiopia start at about US $21 a month. Ethiopia was identified as a top sourcing destination by apparel companies, according to McKinsey & Co., which surveyed executives responsible for procuring US $ 70 billion of goods annually. Expert feels that given the supportive Government, low wages and power supply, Ethiopia is emerging as a bright option. And, unlike other emerging economies such as Vietnam and Cambodia, many African countries can grow their own cotton, which shortens production time.
