The private sector through the Investment Support Programme Ltd is looking forward to valuable information for the Textile Industry on how best to improve integration of regional supply chains.
Since the beginning of the year, there has been considerable interest in exports to the African continent. Mauritian companies are exporting more to Africa than ever before. In 2020, Africa accounted for 28% of our total exports and South Africa was our largest trading partner on the continent.
Although Mauritian companies have been exporting to Africa under the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) free trade agreements for over a decade now, they must now comply with new rules to take full-advantage under the newly operational African Continental Free Trade Agreement (AfCTA).
Under the new rules of origin, it is not enough to add a minimum value to products. The new rules clearly state that the raw materials must be sourced from the continent too. The rationale behind this rule is to improve regional integration by making it mandatory for countries in the region to buy raw materials as well as finished products from each other. According to the World Economic Forum, this should increase regional income by $ 450 billion and lift 30 million people out of poverty by 2035.
However, this trade agreement poses a problem for Mauritian manufacturers in the textile industry especially. Most of the raw materials that Mauritius needs to sustain its textile industry come from India and China.
To benefit from the elimination of 90% of tariffs under AfCTA, the Mauritius Export Association has solicited the Government to better integrate regional supply chains.
Through the Investment Support Programme Ltd (ISPL), a Public-Private Partnership mechanism, both Government and the Private Sector will play an active role in accelerating the regional integration process. The ISPL will be financing consultancy services to advise on how best to procure local exporters in the Textile and Apparel Industry with raw materials from the continent as well as opportunities in both exports and imports for business operators in the local Textile and Apparel Industry.
