IFC has spearheaded an initiative to promote south-south cooperation, peer learning and joint ventures in the textile, apparel and footwear sectors through an Africa-Asia roadshow.
With developing countries contributing the largest share in this rapidly growing segment, which is projected to reach $4.4 trillion by 2030 from $2.2 trillion in 2018, the roadshow aimed to facilitate meaningful cross-regional engagement, encourage low-carbon development, share know-how and technology and uplift communities, reads an IFC press note.
Under the initiative, a delegation of 25 chief executive officers (CEOs) and founders from major African and central Asian textile, apparel and footwear companies, accompanied by representatives from prominent global brands, visited Bangladesh from June 18 to 19.
Over 28 local garment manufacturers hosted them during their visit. Bangladesh is a leading garment production hub in the world which, before the Covid-19 pandemic, directly employed more than 4 million people, contributed about 8% to the country's gross domestic product (GDP) and accounted for more than 80% of its export earnings.
The global manufacturing landscape is undergoing a significant realignment in the aftermath of the Covid-19 pandemic.
As this shift takes shape, developing countries are poised to benefit the most. Recognizing this potential, IFC aims to assist countries and industries in becoming more diversified and competitive to leverage emerging opportunities.
The roadshow provided a unique platform for African and Central Asian entrepreneurs to foster partnerships. By connecting CEOs and founders from different regions, the event encouraged the exchange of ideas and best practices, driving innovation and growth within the industry.
This initiative has garnered strong support from industry leaders. One of the participating CEOs, M Rene Silue, managing director of Compagnie Ivoirienne pour le Développement des Textiles (CIDT) in Cote d'Ivoire said: “This roadshow is a great opportunity for us at CIDT to connect with our peers in South Asia, exchange insights and explore possibilities for collaboration. We believe that by working together, we can create mutually beneficial relationships that will propel our businesses forward.”
“We are thrilled to see a part of this roadshow as it helped us learn about the best practices of brands and factories in the ready-made garments industry. We hope to work together and foster our partnership in the future through effective collaborations,” said Kamola Nabieva, main specialist of UzTextileProm Association in Uzbekistan.
IFC supports firms in improving sustainability and labour conditions to help increase their productivity, create more jobs and boost economic growth.
The organization achieves this through initiatives focused on resource efficiency partnerships, such as Better Work, which is a collaboration between IFC and the International Labor Organization (ILO).
Additionally, IFC's gender programs and financial innovations, such as Global Trade Supplier Finance, play a significant role in driving positive changes within the industry.
“South Asia is one of the best examples of where more and better jobs have created a profound change in people's lives. Collaboration with Bangladesh is an opportunity for African businesses to capture more of these jobs, leveraging one of the fastest-growing workforces in the world, coupled with world-class infrastructure. There is also an opportunity for transferring skills, connecting expertise, and improving market access – for which IFC has been supporting the manufacturing sector in Africa,” IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone and Togo, based in Accra, Ghana Kyle Kelhofer said.
“Over the years, IFC has invested more than $7 billion in all sectors of the economy in Bangladesh. The world-class manufacturing sector is the backbone of this amazing country. Bangladesh has a strong internal market, as well as an incredible ready-made garment (RMG) export market, which is already approaching $50 billion a year,” IFC Country Manager for Bangladesh, Bhutan and Nepal Martin Holtmann said.
“In the RMG space, IFC and our partners have worked with more than 400 factories, helping improve resource efficiency, labour standards, decarbonization and more, with the garments sector being at the forefront of the green economy in Bangladesh. Moving forward, the real growth and development potential is in Asia and Africa,” he added.
“To make the most of this potential, we need stronger cooperation between emerging markets. Direct exchanges between leading entrepreneurs from Asia and Africa will help build collaboration and create stronger supply chains. IFC will support this cooperation as a partner and an investor,” he further said.
In Bangladesh, IFC has been working for over a decade to enhance competitiveness and address environmental and social challenges in the garment sector.
Its Partnership for Cleaner Textile (PaCT) program is dedicated to building a green and resilient supply chain.
Through PaCT, IFC helped over 400 factories achieve significant results, including reducing freshwater consumption by 29.5 million m3/year, saving 3.4 million MWh/year in energy, reducing wastewater discharge by 24.8 million m3/year and avoiding 649,972 tons of CO2 emissions.
PaCT also supports the competitiveness of the textile and apparel sector through interventions such as promoting product and market diversification.
