TEXTILES.ORG
ARISE Integrated Industrial Platforms (IIP), Afreximbank and Rieter announced they have partnered to revitalize Africa’s textile sector under the Africa Textile Renaissance Plan. ARISE IIP is an African industrial developer with operations in Togo, Gabin and Benin; Afreximbank is an African import-export bank headquartered in Cairo, Egypt; and Rieter is a global supplier of systems for manufacturing yarn from staple fibers based in Witherthur, Switzerland.
The Africa Textile Renaissance Plan is aimed at revitalizing the continent’s textile sector and will leverage ARISE’s extensive network of industrial parks to support a new era of textile manufacturing in Africa.
In order to facilitate the implementation of the Africa Textile Renaissance Plan, Afreximbank, Arise IIP and Rieter signed a framework agreement on Oct. 14, 2024. The framework agreement outlines the collaboration to establish 500,000 metric tons (551,156 US tons) of African cotton transformation capacity over the next three to five years, supported by $5 billion in financing. The Africa Textile Renaissance Plan aims to achieve the following key objectives:
- Establish 500,000 metric tons of African cotton transformation capacity over the next three to five years, with potential expansion of an additional 500,000 metric tons
- Localize machine repair expertise in Africa
- Create up to 500,000 jobs
- Reduce Africa’s annual textile imports
- Boost exports to the US under the African Growth and Opportunity Act, focusing on full value addition within the continent and to export to the rest of the world
- Develop a strong financing structure to support capacity building
Countries benefiting from the program will be selected based on criteria such as power and gas availability, and textile parks with standard infrastructure or equity contribution. Training centers will be established in selected countries to develop and improve skill levels.
The partnership aims to secure financing of textile projects, streamlining the process through standardized loan documentation and security packages, an expedited two-month application process and standardized business plan templates.
To foster long-term growth, Rieter has committed to gradually establishing a manufacturing presence in Africa subject to commercial viability, including the setup of a repair and maintenance facility in ARISE’s industrial park in Benin, establishment of spare parts warehousing and a phased introduction of machine assembly operations.
“The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development. I’m convinced that this initiative will not only boost local manufacturing and create thousands of jobs but also position Africa as a global leader in sustainable textile production,” says Gagan Gupta, CEO and founder of ARISE IIP.
“By transforming Africa’s cotton into high-value textile products, we are not only driving industrialization but also reducing dependence on imports while building a competitive export base. This partnership complements our ongoing efforts, such as the transformative change we are spearheading in Africa’s Cotton-4 plus countries, alongside other partners. It underscores Afreximbank’s unwavering commitment to industrialization and export development,” says Benedict Oramah, president and chairman of Afreximbank’s Board of Directors.
“We are thrilled to support this important initiative with our commitment, expertise and consulting knowledge. We are convinced that the Africa Textile Renaissance Plan marks an important starting point for the future development of the textile industry in Africa,” says Thomas Oetterli, Rieter CEO.