Study Shows Industry Interest In East African Sourcing Rising

Africa’s potential as fertile ground for apparel manufacturing is starting to take seed. In a new McKinsey & Co. study, “Sourcing in a Volatile World — the East Africa opportunity,” set to be released today, 40 percent of U.S. and European chief purchasing officers indicated that sub-Saharan Africa will become more important to the apparel industry in the next five years, jumping from 24 percent when last surveyed in 2013. Asked to rank the most important future sourcing destinations, respondents identified Bangladesh, Vietnam, Myanmar and Ethiopia, the first time an African country was mentioned in this context. On average, CPOs plan to increase their current level of sourcing from sub-Saharan Africa to 2.8 percent from 0.3 percent by 2020. The study surveyed leading international apparel CPOs who together are responsible for a sourcing volume of around $70 billion. The positive outlook on sub-Saharan Africa is spurred by anticipated long-term growth in the region’s employable population that will reach levels similar to those of China by 2035, the study notes. “There is extensive potential in sub-Saharan Africa and it remains untapped,” said Achim Berg, a principal in McKinsey’s Frankfurt office and leader of the Apparel, Fashion & Luxury Group. “Nevertheless, it is essential to analyze

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