Clothing industries in the East African sub-region

1·,, _ _- ' - - - , - - - -

Distr.

LIMIT.c;D

:GjCN.14/INR/95

~ September 1965 Original: ~NGLISH

"

'.

L,,~TTED NATIONS

ECONOMIC AND

SOCIAL COUNCIL

• .. ^,

^LCONuMICCom5r8nce On the Harmoniz:ction of Industrial^{COMhI~SION FOR AFRICA} Development Progri'l.mmes in_ast Mrica

Lusaka, 26 October - 9 llovcmb&r 1965

DOCUMENTS

OFFICE

NO TO BE TAKEN OUT

CLOTHING INDUSTRL,S IN THE _.il.ST A~\nCAN SUB-REGION

CONTbNTS

Paragraphs

I ~.NLRAI INTRODUCTION 1 - 8

II TLCHNICAL AND ECONOMIC CHARA';T ,RISTICS 9 - 13 III MAIN ASP~CTS OF TlL CURR'oNT CLOTHING

SITUATION 14 - 21

IV ~XISTING INDUSTRIAL FACILITIES 22 - 34

v

THE POTENTIAL SITUATION IN TK;

SUB-R",GION: 1975 35 - 39

VI INLSTM..NT AND OTlL;R HiPLICA'I:'IONS OF

FACTORY S.,CTOR P::'"~SP~CTlVES

40 - 45

VII

VIII

SUB-RJ.;GIONAL APPROAGH AND ITS COUNTRY IMPLICATIONS

COUNTRY PATTJ.illlS OF D.~V;"LOPI'lliNT

46 - 48 49 - 51

, •

65-)015

/

•

G:-_,Nn-,--':~-.L INTRODUCTION

1^<I Clothing Lndust.r-o.es ⁹ s o d(.i'ir..cd a s to cl.istil:;guish them from the

p rov.i s i.on of t<liloring -~3 :';, r-ct _{~_il} tr.::':'G..0 or aer-vi cc,^J Lfford in :1,~1

• deve Lo pcd countru e s an emp l oyment di L;;..-...:nsion industries in 1:~8ner,:-~1. Thu s , in the U~'1it... d

corup lr,,,ble to the te xtt.Le St,c,tcs

_V

^{total emp.Loyment}

•

in ^IlApparel a nd r-oI .^.L-:;(;.0. pr oduct s" industries (in IJl~tnts empl oyang 20 persons or mor e

r

is c I o se to L, 2 million, SOfie 29 per cent .'"lbOVid the comp:r:1ble fie;ure for lITGxt.ilG Mill Products^lt.. In the six countries of the :C;2C

Y

^{clo'thing a ndu str-Lr.s}

_~mploy

^{606,000 persons as compar-ed to}

1,715,000 in the t8xtilo Lnduat r-Le s , In ei x c t.he r ~JUI'OpeEl,n countries - Denma.rx , Ausc ria , Unit~_'d .[(illgdom^j >.ft>litz e r Land , Lr e Lc.nd and Turk6y "~ ·chEr clothing _industr~u8 vffipluysd, in 1961, 556,000 pGrSu~8 co~p~red to

984,000 in thE;. t-,1.-tile irldil.s-~:;:"i',;,s proper. lrh6S":; dimensions in 8JTipl0J.'11lE.''lt,

broadly spell:~nb" l.'lit,ht Jf; S8c,n ..-.,& ~, rcf:i..,,"ction c'f th0 ftlct th,,,,t consurner-a ' expe ndi tu r-e CJn clothifl[Z (ill tbs wide st :-";G~SA of the tGrm) forms betwcen 9

~lnd 1e _~J8r

^{'J':Jnt of}

tot~.}. p~-'iy'~t<.,;

COli0'.lIDPtion.)) In more specific terms, the '·"E.'b'J'6t"'.tG SiZ8 of the clothing a ndustry is

2.. In the fi~,,--'st p'::".ln8, c Lot.h oft e ; 8t;I'V~~ .vs c Lothi ng . Thl;:) be st ex.n..p Le s of cloth -~hat i:3 0 ir-c.ctLy clothj"D~~' '''.1''3 the I,ildi~n dhotee and s nr ee , 'the Gh:-.:.ni,'1,Yl l":GY1--'.,e clothss the :,tiliu:9:i>~n ~3b,,fIL:- cloths~ the' ~rst Af'riC"ln Kh;.:ngas'J ct.c , ~0 t~:'0 e xt c n t t.o ulltcL tilSSf; typ.-;s qf cloth ~re

sigrtific',~~nt-, t3.ilorin~ must nlve 1888 SCOp8, "~ll'~~ b~:r ex i.er.c Lon , this must also apply to c Lo thiru, :i.r,dust:::'i5L~

11

F:ii:;,ures rel.c;.tG tu 1958, .1n~', ~r8'd8r;.v..d from :2ur'-:.:iu of Census; US D0pi:'l,rt- ment of '~omrnGrce, St~·'isLe<,l Abctr ict of

.,t,,,

United ctctes, 1960,

T.'blG 1'0, 1068, pp. 78".--725,

Y

^{These and su}bse.juerrt fi6u:,cs .i.n the F'CCCi1€;rc.ph ar8 t',kell or dvrived fr orn O"~CD, the Textile In uustr'y , _~)t-..t i.stic r.I. 0tudy, 1961-02_~ WL::.npm"IGr _T,~bl .s , The lower pz-opo r ta on of on.p l oymcrt in -,U:~op8f~n c Loth i.ng industry is

accounted for"by the L'r(-;','~tc:r ~:::'i2viJ,,1(·;,nc8 of F;'T['.-ller S}-;Ol)S .nd jndiyidJ~.l t ai.LorLng. C0il!})Cl.TSQ I,rith tho Urrited St''.tbS.

] / ~it., 'rc.ble 9 .

E/CN.14/IlIR/95

P,cge 2

3. In thc sscond pLW8;> 1nc s omevh...^t silfril:1r to tilE:. first 2,TOUP~ are mill-producvd bLtnk8ts, sh""'lls, rnuf'f'Ler s , etc , , .md the e x t.e n^t to which t.he s e serve ^(1,8 th'jy de. .in 3,11 poo r count ri ec ) ^.':-8 c10 bhi.ng' n.s much ^Li,S parts of be dd.i ng, th ey su bst ;tu te thi,:., 'St i tching :vnd iTI,;,king up of'G:lrmbnts~

4. In the t.hi r-d pL<oc, tin r.ce d for -, clothing industry is not r-el evrnt in the 0::'..8<;.· of f'c.brt ce whi o h n0~c.. to bt.: sti tohed up only' ID:lrgina.lly (anu.

'which is done either in the f,tctory of the fabric producer or inside the ncmo }, Sll~l.;;ting arid "to-"iel::-ine; r.bri c c in. cGliGr,3,l vrouLd fall under the se groups.

the apr-e ad of habits induce l:;,rgeT numbers of huuseho16.e to use more ahe etLn; -ind t.cvc llin_{b 9} an -tdditi0n-:-~1 dc.;'u ~..hl c;P,':"'~,'lctGrizt..d -':J:;~ high elasticity of groi'lth h,'1S ij() be l-)l-',.~v~d!.:.d. f'o r ,

5. In the fourth pl1C8, ,,):c 1'0] '" of knⁱ ttinc fvc tc ru c s '.S pr-oducc r-s of t~;'1-rmE;nts (~..::..s iistingUlshed f'z-or; J::""roduct:.,rs of If3..rp-kl.:.it or circular knit

f a " b r i e s ) L i k c a i . n g L ets , v e s t s , k n i t uDder,rbc-lr,. T - s h i r t s , e t c . i s r e L evarrt , In s e ve.r-a'L WR-rmE:r c ou ntr-Lc.s of t:tH:': su1J-·r v t;.;i o L., this r-ol c is even more

import_~nt bee' .u sc si ngLeto ·:1nd VGE-ts v''..r;yingl;yr 30r"JE,: .J..3 shirts for lower income [;TOUpS.. A shifl" of con"..sun.er ^J':-lr 8 f : T0flCC in f'c.vour- of knit;iJ'e~lr

pr-oduced di r-c ct.Ly by krlittillr~--, nri Ll s might tnu s ~"l,~lV8 ~ other tnings being oqu.vl , an adver se effeet o n t he

3n

^cvr e of .s.1~..~s:~§;-J g"-vrments.

insido thc horne on tnc b2.SlS of 'thc hou se v'if c '"3 pe r-so na'L skills there is an ,:l.bridg8111ent of tht:.. e,6ncral SCOpE::. f o r comme r c i.nl-.. an« industrir~l-i.l.'~king

of g~rm0nts. In tha context of the cou"tri8s of th0 sub-region, the trencls in the iHjports of dome cti c sevo.ng mac n i.ne s Lndi c ;to s i.rru It ancouaLy

C1 low stock of curront domestic tl'iloring sl-:ill s a s ,,011 ciS'teE possi bili tiGS of au bs tarrti c.I gr owt.h in this c,tc;gory.

7. Sixthly, impcrts of clothing in most cz.se s ciuae .:1 ·subtr.cction from thE> possi bili ties of national clothing industries. 0f cou r-e.. , imports ir.

an inlu'stry ;;-rith C1. vcst ',lrray of hot(..rog~nousend-products serve o thcz- important pur-po se s :18 '.,ell. (This Irill be considered further i n , later section) •

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8. Finally, the aVailability of' ta:ilo:t'ing skj.L'La v.s a retail trade or service, and the p~ice at which these are available, either increases or decreases thescO'pe'tbr gatmeht-mai/triion an -iridustr.ial basis. Thus, in 'the developed Goilnthes, cJs'tom":madet'iilbririg is the' ha.ll-mark of the h'ighes't' 'il1 incomes,' of th" mo s t in clothes-fastidiousnes~~nd Q~signing skills;! and a ne ce s sityt Lrnpo se d by odd sizes and odd shapes' in human beings •. '. Qnthe co~tra;y, custom-made tailoring in the popuiC;;'s land mas'S~~ ^{of Asia is the} cheap~rtaJloring arid therelore a majorbar;'ier

to'

t~~

growth of clothi'ni':ihd0.stries:

J}

In

c6~btri"s ~f

the su b-rSgion

.a

^complex

~itua'tioll

prcvaild :in'this ccnnext on , vhi ch does not COnfbrm ei the':' to 'the'[{,II;'" e:;:)a,,;:;ive

'.P~

harris of the de vel oped countries

or

^to

tho

-constricti~0Jp'-J.-t~03riis

^{of tl;e'}

poo;'~r

^isian

·6~G.~trie~: '-'How~t-~r','

^before

turni"g to ths si t.uati.on in tli'" sub--region, it;

iSlJ.~~fui ti;i~y

^{out the}

mai!/technb-~co;~Obid\,s.Pects

^of

clothingp~oducti6h

on' a:n6ii-indi

v:i~0.aliZed

ba si s ,

-,

. J. :

.

'.'

Thus, in "India .the; v'1ployment ..in J:1egisteradfactories manuf'ac tuz-Lng ."wearing apparel anp-, other ~ade-up textile goods" is on;iy 6,100,

compar~ to

mOT8

th~n l,200;OOOempluyed in the various textile in- dust.ries (other them ju t,emiiLl.s). .Df;taills are derived from the Annual Surv~x-of Industri§~, 1~62.

':;:_ I r; -:.'

._---_.,..,-,.".".

,it/CN.14/INR/95 Page 4

II. TLCHNICAL AJ'lD liCONOnC CHARACT,>RISTICS

9.

The output of clothing industries is ch~racterizedby the most

prolific kind of heterogeniety of end-products. In one s~nse hetrogeniety is inberent in the raw material namely, fabrics. Th~ variation in fabrics arises from the fibre or fibres used, the diameter, twist and weight of yarns, weight of cloth, thickness of cloth, kinds of weave and, types of knitting, non-fibrous matter 18ft in cloths, finishes, fdbric widths, colours, fabric densities and surface. contours. These vari at aons of

physical charo.cteristics are compounded by "hand" or "feel" characteristics, visual features, utility and durability characteristics. In terms of the oper"tion of the cLo th.i ng industries, the immense heterogeniety of .cloths gets further multiplied when it is realized that human beings vary in size and shape. The geometry of the ~dult male form is t~us divisible into twelve or fourteen distinct brouPS, depending On the system utilized and when correlated to proportmonal differences in the body structure makes for very sllort, a.nd cha.nging runs in the clothing industries. The variability in the Tuns for women's clothing is even greater although it proceeds more from changes in fashions and somewhat less from variations in the geometry of the adult fem~le form. Age variations co.use further changes, and boys' and girls' Wea.r and Lnf ants^I we ..r t.he ref'or-e become distinct product groups.

10. The net result of these f'a br-Lc vari,ltions, form variations, fashion variations) and, of course, product variations (such as shirts, slacks, trous~rs, blouses, jackets, etc.), is to make most establishments in apparel production rather small, a tendency reinforced by the ch.cr-acte r of machinery utilized. .vven in the United St,ltes, us many as 23,000 establishments emplcy less than 20 persons as compared to 13,000 establishments which ~mploy m,re than 20 persons. Of these 13,000

establishments, about 11,000 employ between 20 to 100efuployees, and only

. , . .

3 employ over 2,500 employees. The tendency for clothi?~ industries to be sm'111 or moderate is in fact universal, and the 'following; table

relating to the mc.n ' s shirts industry in the UK 'brings

~~t

"that 'even when enterprises become large, they tend to expand more by building separate e a tab'La sbments than by a~ding to the size of single e s t.ab.l a shmerrt s ,

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TABLE 1

Structure of Men's Shirts Industry in ,the UK - 1958

Average,No. No. of No. of Average ,No. of No. of opera- Net Output

,

_employed

_!I

_Enter- Est:iblish- .dstablishments tives

11

^{per per}

'.

^{by Bnter- pz'ises}

^EI

^ments

^sJ

per Bnterprise :':;stablishment tmployee !./

prise _{\ '}

in

Bach Range in Each Range

25-49 105 108 1.03 32 £. 439

50-99

⁸⁸

96 1.09 59

⁴²⁸

100-199 62 85 1.37 92 491

200-299 4'8 44 1.57 145 430

300-399 8 12 1.50 205 5°3

400-499 13 30 2.30 174 437

500-749 8. 20 2·50 227 546

750-2,499 8 28 3·50 291 492

Total 320 423 1.52 103 470

Source: Based on UK Board of Trade, the'Report on Census of Production for 1958,l'art 98.

Employees include operatives and others.

bnterprise represents one or more establishr.,ents, depending upon common ownership and/or management.

See preceding note.

Operatives only.

11. The above table further shows that increases in sizes of enterprise are only very modestly and discontinuously correlated with increases in net output per employee in the clothing industries; that 200-)00 '...ockez-e form the' upper limit, as it were, to the size of most larger

~stablishmenta; and that managements seek exp~nsion by adding est4blish- , ments in the upper r-angea , or ,,1 ternatively, managements do not see

economies of overheads as a v6ry.relevant factor in the oper~tion of their plants beyond certain sizes. As a matter of fact, it is pot uncommon to come across ruanagewents who altogether look askanoe upon shift-working in this brouP of industries.

:$!CN.14!JNR!95

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12. Clothing industries Qre primarily involved in varying sequenoes of thr"e opera~~ns - outting, sewing and pressing. Sewing, in one form or

____f!..f?:()the:r: ..~r.~.?-_.^__?_:?:._,_general purpose mo ch.Lnc e or epe ca.c.L

ll;acliiii-os',

^n_frlvolves between 55- to 65 per ccrrt of th~"^totfli st~ff on the factory side." "VarT6us

"<regrees of aevelopmEmt have t.akun p.l ace in" sewing maohines, ranging from

"_._--

_"_""_":tl!~""ne".3.r=univer"sal elec tric motor att.aohment s to the most speoial izeii kinds of machi ne s , but in its essen~"1 the one-man - one-machiri"e""eq"u-a"fion of "tailoring is more or loss _unchan~ed although it obtains at substantially higher levels of labour and machine produotivity. In the other operations, namely, cutting an(l pressing, similar pro",ress has been made, but it is still true to say that thore are no indivisibilities in the technioal sense to be found therein which would not be [latched by full utilization in a factory employing, say 100 workers, and possibly less.

13. There are, nonetheless, major differences between industrialized gar~;;t:.na.icing"and""m"ero "'tailorTilg. In the "first place ; "tailo'I'ing""is--""

labour-in1:ensive"oPBration"characterized "b:lcJ_ow ),a,bour l'roductivi ty.

"'-- --. .- ._.--.,. --^--"

__

^..•,---.

Conversely, industrializedgarruont-making 'is a capital-intensive process

.

^,

in oomparison. In the seoond place, the industrial pr-oces s is more economio~l of the raw material input, inasmuch as the amount of cloth required per garment is lower than in tailoring." For example, in the case of shirt-making this s~ving is likely to vary between 17 and 25 per cent. Thirdly, as ~ consequence, industrialized garment-making cco~omises·

On the totdl requirement of t~xtile output (and therefore, capaoity) without reduoing demand as stdted in terms of the number of garments re- quired. Fourthly, in all developed,oountries and several (but not' all) developing oountrie~ the cost of individual tailoring is high~r than the fil'al consumer pri c.. resulting from .industr Lad a e c d gar-mcnt-enak.i.ng ,

:lfifthly, as a c;eneral rule, eLc.uerrts of' d0signing and special" ef'f'ects (on collars and cuffs of shirts, for exaQple) favour the faotory rath0r than the general run of individual tailors. This element is 1"8s

pervasive in the case of women's olothing, however. Finally, garment buying vastly enhanoes the oonvenienoe of the oonsumer, who is now

c~llcd upon tv make an instantaneous purchase of a final consumer's good rather than effect the purchaso of an inttcrm\3diate product - oloth - and to undertako all subsequent steps ~nd expenditure of tim~ to oonvert the intermediate into th~ fin~l produot.

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7

III. NAn! ASPIllTS OF TR, (;:nii...J,TT CLOmnTG SITUATION

14. On thw uasis of ~dmitt~dly deficient data, it is estimated that clothing currently accounts for about

59

to

65

per cent of the total market for textiles in the countries of the sub-region. The balance of

the, textile market is accounted for by categories of cloth

11

whioh are either utilized as such or need only marginal stitching (e.g. plain

sheets) which is supplied directly by the fabric producer . . ~his propor- tion varies somewhat in the countries of the sub-region and is propably some that higher in Rhodesia, JYialawi, Zambia, Mauritius, Reunion and

Madagascar. It is likely to be somewhat lower in Kenya, Uganda, Tanzania,

.

Burundi and Rwanda. Dress habits in ~thiopia favour the use of cloth as

clothing (in Shamas) and the proportion might be even lower than the countries just mentioned. However, it is believed that the differenc"sin range are of a small order, a difference entirely in degree and not of kina.

15. Supplies of clothing are derive~ 'taking the sub-region as a whole, from three main sources, in the following order of importance:

(a) tailoring as a retail trade or service, (b) import~and (c) national , clothing indu~tries. The packing order of course varies from country to

country, although in no country, except possibly Zambia, tailoring services appear to have yielded the first place. In several countries clothing industries have hardly made a beg.inni.ng - :ethiopia, Somalia and Rwanda being among relevant examples'· and imports are the almost exclusive source of ready-made clothing. In several other countries, such as Madagascar and Kenya, a fair-sized clothing industry exists and imports are

relatively less important. These distinctions are elaborated later, but it should be stressed that this assessment is based on quantitative notions - even in countries lik~ Rhodesia - and ignores the fact that imports are

often, yard for yard, made out of more expansive materials as compared to nationalindL!s trie s ,

11

^Table..3 supplies a br-eak-down in terms of nine categories. 'Industrial fabrics - such as tyre cord fabric, hoses,belting, etc. - are not included in the analysis.

• :C/CN.14/INR/95

Page 8 ,

16. Over the last fifteen years, the role of ready-made

~'~t·:'", .

and otherwise, has increased manifold and at a rate well

~lothing, imported above the expansion in the over-all rate for texti~em,arkets. This is reflected, among other things, in imports ..of c Lothi ng on. the one hand and in the impre.ssive growth of clothing industri~s in several countries of th~ sub-~egion on the other.

17. There is' also general evidence'to the effect that considerable up- grading in the quality (and price} of ready-made clothing has come about, accompanied by the greater use of rayon and other synthetic fibres.

18. Garm~nts made out of warp-knit and circular-knit fabrics seem to hav~

made some headwly.

19. The import of r8ady-made clothing is much larger in the cus~ of men's and boys' clothing than in the case of women's clothing •

. 20. Imports of s,"cond-hand olothing constitute an important' part'of"'imports of clothing in several countries of the sub-region. The varying significance might be conveyed,with theh~lp of a few examples. Thus, in Lthiopia in

1963 second-hand clothing imports were valued at, only US$ 42,000, and this might be roug~ly.placed between 350-500 tons • . On the other hand, in '~ada­

gascar, second-hand clpthing imports averaged 4,590 tons in 1959 and 1960, and o~y the dual application of a heavy import.duty and a quota has succeeded .in bringing imports down to.1,000 tons. For the sub-region as a whole,

second-hand clothing imports might be placed arpund 10 per cent of the total value of imports and between 15 to 20 per cent in terms of the cloth content by yardage of imported clothing. In approxima~e terms, this would imply a c.i.f. value of around US';

5

million and between .10. to 12 million yards per year. In the mai-n , the categories im;orted comprise of jackots, suits and overcoats, made of wool and other fibres mixed with wool.

21. In the main, national clothing indust'ries generCllly begin at the cheaper, mass-end of the market and over a period of time extend operations _t~' more sophisticuted ranges in demand. In terms of products, bush shirts, shirts and shorts are the usual first items, followed graducllly by t'rouser-e--and women's clothing. Jackets and suits (usually made out of worsted and similar materials) eire the most diffieul t line of. entry and imports are either the more important source (as in Rhodesia) or the exclusive source (as in most other countries of thG sub-region).

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22. Three mci n kinds of p:.r'oduceTs can 06 di sti.ngui snc d in the sub-region~

In the first group "r" indClstriCLI o s t.a tdi shmcnt s , usuc:liy' classif'iGd as' such in the ccuntry co noe.rne d 81th..» for the purposes of stati sticu.I

cover-age and/or for tl:J.0 pu r po s e s of f'e.ct.or-y Ibgislct ti on , The second -[,rcup comprises ~ll other producers of ready-made clvthing which may range from wayside ta.i.Lo r s wit.h v&ry Iit tl e equipment to tailoring s st.rblLshment s of modest sizes, say up to 20 workers. In most cases in this group, the mak i.ng of a g,~1.rll1Gnt is almost wholly the vo rk of '-~n individual oporat.-....'r rather than the result of e l aoor-a te division of labour in a aequ ent Lt.I work fl01'1. The t.hi r-d group con.pri ses kni ttint;', factories "ifhosa tailoring depo..rtments '::Db":::tge in S;lrm8nt-Eaking ,"8 distinguished from tte me.rginal sti tohing normally no e de d for [East of their output of Lni.twel1r. Avai La.bl e information COVGrs the first 6rouP in most coulltri~s with roasonable

adequacy.

23. lihodesia na s t he J.u,I'gC~3t c Lo thi n.; i.tlJ.ustr;y ^j n the sub-rbgion. 'I'he industry de.vc Lopc d 0:; tho ba.sis of the i ormer J'ec1t3l'c::::,l Irnrket":a~d ^{couti nue s} to 0:3..- ter to the bulk of tnc ol o thi ng r8QuirE:rI:<-:nts of both Nf.~.l,:~wi ario.

2J~.imbia. ~l-;.(; il1dustrj~ 2.2.80 ~_'urthor c.::.tG,rs to 0t:1E;r export outlets'] and in 1963 these exports "er8 p.l ac ed at £, l,300,000. TLc number of f'ac t.o r-i.e s involved is currently e st una t.e d "t '125, Lr.c Lu o i.ve of smaller establish- ments and cut , make end trim 0lJE.Tb.tors. Ar.nu a'l. au tput is pla--c-ed-'--arou-nd 'US$ 32 m'illion;' cloth uSlge is estil,,:',ted to be ar-ound US$ 27-30 million; the

country is nowt:ntirel~l s·:::lf-suffici0nt in most classes' of rrL~^{.. ss-end} goods and. is rapidly i~1crG:],siLg ^{i ts} sh2.rE.~ ^{cf tn«} f.l:J.,rke~ ⁱⁿ 8,11 vClrieties. I t is possiblo that the- figures for ·1964 will shall that the industry Jns become e: net e xpo rt sr- as a r.osul t of th~ dissolution of the Federation.

24., The industry is, ruo s^tLy bu ae.d on Lmpo r^te d cloth arid has bu i.L t up a rapid repertoire of skill s in iLnufvcture and de;si",ning '. A strong .eleITlE.nt of sp~cializ~tiunis present in scv8r~1 kinds of produqts, partic~l~r~y

shirt--mJ.lcing ana suits .md trouser-making. Tho Lr.dustr-y ne e dc d pr ote c td on in its c ar-Li e r ~tL-tgGS and the Govvrnrnc.nt lL1S 0xtendeu r-e bate I'aca Lit te s in

•

",/CN.1'l/INi'(/95 Page 10

ordGr to encour~g8 wid5ning of the r,.1rlge of cloths utilized SO ~lS to r epl acc impurts of c l o t.hd.n.j.

25. Total employment is in thfc neighbourhood of 7,000 and the value addc d per employee r.Ln.os^t, compares 'i·ith f:cctories in the United Kingdom.

26. It is convenient to COver h~re th6 industries in ~~mbia and Malawi, for r",,,ons of statistical convenience ar i.si ng out of the older political

27. In ~ambia, "bout 20 factorie$ produce a wide rc.nge of chLap~r clothing products, and the annual output is p l ac c d around .. 1 million. A signifi-·

cunt part of the, industry is di r-e c t.ed toward s the need for uniforms, s tc , , around the copperbblt. Cloth usage is plac~d betwGon

5

to

6

million

squar-e yards on the basis of industry information. -!JII1I-loyment exce e d s 1,000. Tl:o bulk of the clothing needs of the country ar-e however, .net by imports from Rhode si a , 'rile industry is rnking a somewhat slow moveu.er.t into the production of more expensive Cl,:"trn~Gnts.

28. Malawi has a sm:,ll cLothi ng industry - half a dozen factories employing 300 to 400 'Horle_rso Cloth usa,> lS GstL."tGc. be twae n 1-2 million squar-e y-ards and is dirGcteel to'.-iJ.rds tho n,::,ss-tnd of ^thc n.r.rket , Tho bulk. of the coun^try^IS pz-e aerrt c Lothi.n., requireffivYlts ::.1re dlJri ve d frofIl rthodesia ..

29. Unlike E_.L1Wi, ~··;trnbio.. and .8.hodesiQ,~ the Gl~",king of r8."-ody-mau6 garm&nts in K::dagasCi-JT is not mostly confined to f(ul,ctoriGs. T:::dloring est:lblish-

merrt s of the simplest k.ind are be l i.evad to be producing considerable qua.rrti tief;

'of ch ea per- clothing - for men, women and c hi.Ld.r-er; and nn gnt be employing anywhe r e up to 2,000 woz-kc r e , "':jstinn,tss of cloth usage in this soctor ar o , of cour sc , pure guess'.·lork, but a figure c,round 5 million squar-e yaz-d s might not be Fnrealistic, The factory sc ct.o r consists of some six plants, which oonos.nt.r-a.t e mostly on u.en 'S clotiling ,:rlP- othe r products

which, although a part of the iJk'ss-cnd of the rnarket , are of. tho .distinctly wore e xpe ns a ve kind when. compar-ed to tho t;"liloring e s t.t.b.l Lshme nts., The largest plant in the f'actor-y s e.cto r emp.Loys -.bout 300 persons, arid, tot3.1 emp.l cyme nt in the f ac tor-y ae c t.o r. is pLaccd "rOund 500-600. Cloth usa;;0 ddt a for factories is Cev'lilable only on 2. vory i'ro,gmcnt~ry basis and is placed between 2 to 3 million yards.

---;

• E/CN.14/INR/~5

rage 11

30.. IL KeE~l:'1., t.h, r.ui..bcr- of clothing f::.otoriLs is ,~l'ound fifte&n~ mostly Lo c ata d in ~\T"liI'obi ^'.';,nl 1.£omp~l,s~..,~ ." (I;lGic~clltd,lly ^{s :} this conc8ntrB:.t~'?:P:near

..

-

^-- - " " -..- ..-"." ._.-- ^~- _._-. -

the larl:j'(;st tcvi.s is 1, cb a.r-actcr-LatLc common to 'J,11 countries of the sy.~:: ...__.

f2,ctor,i,es is ~-Jl:.lc8d .::~.~ -5 '-lr.illion squar-e y az-d s , rlppro:x:Ll1a"t€."ly., A'large .t.i\;i.to;r:i.ns-~st,.blishLdlts~..s"ctor I'i th mor-c than lGO··unit-sccls<7",xists,···- and :1 very ,rouc~:L c;U8SS vrouLu 00 t~lat its au tput is b..-;t1ri6Cn 3 to 4 millio:q ~

square 'j.rr-ds ,

31. The c Lothi ng .inau strLc s of T~:?nr>D,nyik2, c.nC:... Ug:.lnciD., "1re VC.f'Y _sm2~11 (in fact, both countri c s imyJort conGidor~~ble quarrti ties from Kenya) and

consist primGrily of t~~ilorin5 cst':.tlishif;8nts. T:J.'3 t.ot v.L cloth ^{US'.1e;8 ]_3} unlik6ly to exc8Eid 2 million square y:;.rds in Gither C3.,S8c

32, Burundi has one 1~rg~-sc~18 clothing f2ctory ~nd sGvsr~l t~iloring

e s tabltsnmsr.ts , I\,:::-t.urititAS nLS tvo modest clothing f c.c t.o r Le e , and some

are, for pr-act Lc.i'l pur po s..u⁹ ~fithout any s i.gr.Lfi c ant c l otm ng Lndu s^tr i.e s ,

33- The follo"ing tGble providss ~ syno}tic visw of th0 inform2tion,

clothing -industri-:..3 in t'nc countries of the sub-region.

34. It is not po s sib.le to convert thIS import dat~, on the basis of :--t~~il­

able nat~~~"~ s.tatistics of e x t.e r-n-t I trJ,de, int0eJ.uantitativeest~!Jl"te.§

('in terms of either numbers of g-.rn,ents or cloth usage or cloth content or Tr18igbt) ctJmp':l-r,'.Lble as b8tw6e~ one country and. ano t.he z-, None'the.-los.a, an aggregative view can betaken of the role of clothing industries in the sub-r6gion as 3. wno l o , The. total mar-k et for clothing, under the t;iofO categories c o ve r ed in the present chi.p t.e.r , ac cou n t.s for between 55 ^to q2

million square yards. Tho contribution of knitting fucto r i.e s , in t.heir r-oI e of IT!.ker s of 6arl"cllt~ r,thcor tL"n merely being knitt.er s , is dif'fi.cu.I t to assess Hi til any deGree of _pn,ci~ion, but is unlikely to exceed 8 to 10 million ya:co.s_ All in all, the output of c Lotn i.ng Lndu s t.r-i e s in

secn to be _~ubj...ct to

c,

c8iling, sta tc d in terms qf cloth usage,

1964 ,is.

of 70,

million aquar-e yaz-ds , Lrnjo rt s in corresponding articles of ready-made clothing are placed around 90 to 100 mill ion squar-e yards, ac;ain s t," ted in terms of cloth usccge.

E/I,)N.14/INR/9~

Peege 12

Country .sstin;:l. tcs of Sloth Us;::..,:;e in the Liapo rts

y

:;';mployment in Produc^ti cn of R~3.dy-m,.de cl5'thing 1961-1963 the ""ctory In tho Factory In ~dloring ( average) Sector

-

^{data or}

( in Million Lstimate Sector J.,Rie.bl i shmen ts

US $) Rhode sio.

i/

27 to 30 M. yds. + M. yds )

17.08 7,000

~ ⁽

Malawi to 2 ) 300 to,400

a/

5 6 (

Zambia. - to + ) ^1,00C

IVL:d,J.,gascar 2 to 3 5 4.49 500 to 600

Ke ny a

.lY

₅ ~¹ to 4 3.75 900

Ub'll1da .!Jh' ₊ 2 3.17

'I'a n 6'2 ny i k a

:Y

+ ² 3.00

~'t.nzi,bar nil m,gligible 0.35

-

Burundi + 300

[i.\\IQ~·id·-1 }T.A.- _{N. A.}

1rau.r-Ltius 0·5 0.5 1. 60 80

Reunion N. ~-l.. 1\; •-'::.. 2.69

... thiopia + 1 5·48

Sou.aLia + 0·5 1. 35

Il"otql for

sub-region

E!

41. 5 to 47·5 1f to 15 45·00 10,50 0

•

Sources: Censuses of Industria.l Production; e st i.n.a t.e s b:ls~d on trade and industry iLf2rmation; Lntc r-nat i.ona.I ·rrc:edc Statistics, United Nati.on s ,

+ "..Jstim.'lte und.er this ^{h o a d}i ^{n g} included tn the main i tern in the ^{c as e} of the country concerned.

~ Import data excludes trade _~mong the countries.

E!

^Ibid.

!21

Sub-rq;ionc.l total of i'Hports includes a ii,argin for Burundi and R\nnd:~l, two countries for which InterDo.tional Tr"dc ~t"tistics do not present data.

y

Imports are for SITe group 84, "hich includes sE-veral items other than clothing as definGd ill the jJresent study. The bulk of tho group, possibly Over 80' per cent fcr the su b-r-sgaon as 'cc who l.e , does r~late, h.·wever, to . clothing as define'd;

E/CN.14/I NR

! 95

Page

13

V. THE POT<.NTIAL SITUATION IN Tllli JUB-R8GION. 1975

35.

Any assessment of the clothing situation in the sub-region is necessarily a compound of partial data, deductions based on general reasoning and guesses. The next Table sets out schematically the various categorios in which the conversion of cloth into clothing and other articles of use might be divided. ;::ach category is sought to be roughly evaluated in terms of current proportional significance and, on the basis of general trends, a rough presentation is sought of th&

proportional role in 1975 of the various cat0gories. bstimates for

197~ are made against the general background of textile market develop- ments as evolved in another study (E/CN.14/INR/86) made by the

secretariat.

36., The logic and proportions of magnitude implied in the follOWing ,

table mi gh't be re-stated as follows, in th," context of clothing industries.

The; demand for factory-made clothing in 1975 is seen as a function of the 'enlargement of over-all 'textile d.emand , ths scopevof'f'er-ed by the' latter beipg added to by the following factors, and in that very approximate order of ~bsoluto magnitudes.

(1) ~he relative (but!not absplute) decline in the r~le of tailoring as a retail trade and/or service;

(2)

.

the relative and absoluto curtailment of imports' as a source

,

,

pf clothing;

(3) the increase in the role of knitting factories ~s ma~ers of garments (in one part, this i tsc',lf being a function of re- duced imports) ;

I

!II) '+.h~ ..-"18t,;vc, (but: 'Oossibly not absolute) decline in the

<d

>1

oj

SQ)

<d Q)

0 I

...

'"

...

'"

"'

^{m 11l !;}

m "' ~ ^{!; Q)}

BjeN .14/INR/95

Page

14

^{TABLE 3}

Category-wise Conversion of Cloth into Clothing and other Artioles of Use, Estimates for

1964

&

1915

, Approx. Share of Category

1964 1915

l'r, or-ti on Pro ortion

12

to

14

to

10

Tailoring establish-

10

t" 12%

ments; clothing favtories;

knitting factories

"

"

Remarks

"

See subseQuent text.

Reasons s1mllar to those applicable in the oase of

c

tic makinc; up.

Low initial stook of sewini skills now in a pr?cess of rapid expansion, and which will be facilitated furthe:

by higher GDP-per" caput an, its positive impaot on the acquisiti')n ?f sewing mach:

of the domestic t e.

Absence of growth in share inherent in the product; a higher GDP per caput will reduce the role served as clothing as distinct from bedding.

Impact of higher GDP per caput and spread of habits among a larger segment of .

opulation.

Changing dress habits favour stitched garments.

See subsequent text.

Growth in accordance with ^c plus increasing consumer pI

4 50

6

2 to 9 to 10%

4 to

4

to

1

t€J

27 to 32

10 to 12%

27 tv 32%

3

8%

4 to

6 to 8%

2 to

6

to

35 to 4C⁰

10 to 120 Agency Primarily in-

volved in Conversion"

Fabric Producer

Housewife or other mesbers of the household

Fabrio Producer

Importers

Fabric Producer

Tailors, and tailor- ing establishments (at- tached to or independent of dealers in cl?th 3. Cloth with marginal stitch-

needs (e.g., sheeting, towelling) 2. Blankets, shawls, etc.

Cate ories

1. Cloth which is clothing e.g., sarees, dhotees, shama cloths, khans-as etc. •

4.

Domestic making up

(inclusive of home knitting)

5.

Tailoring as a retail trade or service

6. Cloth content of imported clothin

7.

Misc. uses making rf ties, SJar- mporters and nai~onaI

ves, tent-making, furniture_making,USers bo,kbinding, shoe-laces, etc.)

8. Knitting factories as kni tters-cwn- Knitting factories producers of garments

9.

National Clothing Industries

,E/CIN.14j INRj95 Page 15,:·'

_:,thatthe trcends in th<;qlothing sitl,lat:ioll:m",~1;,makefor an expans Ion in

• J'[,.j;he,ro,l."of ,c1ot,\1ing indus tries wij;hinthel .sq,,-regio,n .a,t a r at~~§l'f~\iral

,,·times ..higD,e:t' t,9an t1>'1 ;ove,:r-all textile market.•. ' Tl).e T~ble .f.ollow~ng0

.,9riI)gs 0\1t the order of ma,gni j;udes in"o):y"q. in terms of thede""l,opment q:(.:cJ.~j;hing industries.rn subsaquent chapters of the pr-eserrt ,stu(iy .. ,theE!eare further elabora,\:ed in7several. directions, in so far as the

facto.ry,· sElcto,r is ccncezncd , .1.

TABLE

4

Perspectives for Clothing Industries: 1'975

, ' .

'.

'.' ^.-..:

1964: .,'

1975'

'.'-

- r.,,:3(39"463 .·.;,2251,,,289

+129·,to 189%

). . . ,. ~

.• (·1,4~3 L.',Ci·"

,15

².e

+-. ,+ 52 per cent

,.;: c.

936 ,. .

1QO

160 100·

TotaJ:Market1'or

Cloth (inm, sq, .yds. ). .

.Change A..

Chwge

B.,

Total Market for Ready~Made_{~- ' - , , .}

Clot~ing ,(in,l)\,;'l<J.. yds.) Index. ^",T:' i-.

.: Sha;r,El~ -:l,-!\ •t~e. Ma:j\'ket, .

.. for R."a'o/-;madeqothinB';(ill:Il]~s<J..yds,).,..

- Impor:t~ ; , , 90.,.100 (.100)

- Production within the sub-region 70 (100)

,- ,;

28:-:-57(29-60 ) 361-406 (516-580) of which,

i) Factory Sector

ii) Tailoring Establishments iii) Knitting FactoriEls

45 15

8 to 10

232 to 261 77 to 87 41 to 46 (51 to 58) Sources: ECA., Document E/CN.14/INR/86, for the over-all textile trends.

Other data worked out on the basis of Table 3 and other discus- sion in the present stuq.y.

.. 'E/CN.c'1¢/nnl!95

Page 16

38.. "In' sum , i i 'is·'al'gtied"tli1it,thei<lv er .l8.11' inc i'€ a s e in ·the derilandfor textiles of the ofdei'-cif"52'peI"cerit betW'een 1964 arid '1975 w111"support,

on the basis.'Qf'established trends'hi. the -clothing sittla tion and

a.'

'large meaeu'rc of'import substitution, 'Ii growth 'of416 to' 480 percent in the output ofclothingindtis tries wfthiniihe' slib-region. Alterrtaiiively,;

the usage of c16th by clothing :icndustries" intliecount:L'ies aftha sUb- region will have to grow from 70 million·~~ua:re yards to between 361 to 406 million s~uare yards. Furth~rj this multi-fold development will need to take :Il~,a_~e~i_~~ill.:te, ne.l<:te!~Y~.'}~:,ar!..c~mp~:e.~to fif teen to __ . __ . ,_,~w::::',~Lyears...s,p':~~,~ll._i1_r:.iv.iIl~_at ..~he.,~~::::t_ 7~1Jl,~1~_i~n~.a:r:~~:,,_r.ll several , ._... _..c::()u_l1.trie:~ o~ ._~~e..~u'p..region~~~~mpact of expal1~ion_,:w.:~l~.be felton a

very small base of current output or on a non-ex~stent base.

39.

'it

should also 'be clear that, in two'senses; the'growth 'of textile irta~stries will be affected if the clothing industries fail to grow. In ....J.!! ..';,-th~'£ir.s_t._ilense.,_the._.clo^th_.con.t.en.t..of-impor.t eli ,.clo.thing ca.riu.o.t .be-produce d

locally unless facilities exist to convert i tinio tilei'finai-product - ';'clothing - demanded by the consumer. In the'6econd'~ens~,"

tel

the extent . "Oto -which clothing industries - which are investments involving low

",<! ~j

^r'):ic

~

^pi

Ul.,-in~t.y-

^...

~

^..-do.,no-t...g>;'o:W:..i.n...:the...required....degre.ar..:the....acauomi.es of the sub-region will be called upon to support- proportiohaiely lallger textile industries and

in~ul'cor:r'espoMinga'dditiona:l';',tinrt~cessary

^in-

"-,testment in linesinvol'ving much higher capital intensi'tji,,'I

'.'~Tr.

; -,)'.;

. Lf^{i .} _{.•. :i}

.

^{,.' _.1So.}

,-._{:(1.~. ~}I . ' . . •_..~: • -.^~,__..^~.. 0.-.-

.,-/ ...~

E/CN.14/INB/95 Page 17

VI. INVESTMENT AND OTlL"R IMPLICATIONS OF

_:'-- .: ....

:J_':.~f~_ORI .§£~±~}:U';R"I.'J;i;C([,I\T:E;S--

40. On the basis of current experience with recent plants and projects and on the broad assumption that the averag"_.!)UlllJleI...oL.dallyshifts --worked-wili not

eX~;~d-'~~;'-~-n~-~half',~ixed

capital requirements for

,

the clothing industries ';'re placed at US$ .161;\,000.for. ana_milLion yaNs' 'ofci,)ih us;,:ge.

-Th';-;"t~~is

^.

~n';h~~a~~~

^{might be} expected iO'''!ary . be.tweenUS$ 140,000 in·-the case of shirts, T-shirts, etc , , to anywhere

up to US$ 280,000 in the caseof suits'made from worsteds andoihe£.

·'eixpensiv6materials. The figures, in individual cases, will o.lso of

In a country",sense, the·-f igures mechanization ' attempted ap.d the degree of

a<i0.pted~_ course vary according to the

.eZWent.ofdivision of laVoar

.----_._..•-...

_---_.----_

^..

_-

^...

will tend to be lower in warmer countries of simpler clothing and higher in ·thec1itse of colder countries with more elaborate clothin~. Likewise, in countri8s where clothi~ purchases are of ~he more expensive kind, _.__

:t)x~~. ill.Yi'--"j;menLre.quir~e~:t~'-wiH

be-higher than incouiltries where-the

bulk of the output is

of

a cheaper Kind,__.. __

---

^--_...~_.._----~._---_.._-_._~---_.

A1• . In su liH'regional terms, _the.~2I:i_PElr"lP.e.Q:tiVe will call for additional

--output-~-~tim';:-t~d-;;:tb;t~~~-~-1'87

^{to 216} million square yards, and imply 1\ o -:- i

the following statem"nt of invest~~~t needs andemplnymentpotential.

42. In other words, the factory sector of theclothd,1'g industries offers three._m.E-,;i.Q.r ecoOQmi.c.advantages-4-nternaHy trrthe countries' of the

sub-rEig.:i:olll'

---~_._~'-'-"'".._---,',-..--

.. ---.-- --(i)---;;

major avenue of industrial employment;

(11) a t a compaz-a'ti,'<rely low irl'fe..s_trllent._.:rE:>ql1:j,.rem~.ntper .operaUv-er' . and

(iii) an absoluteⁱecono!DY in the size of the textile industry reqUired for meeting the clothing needs of the community.

E/CN.14/lNa/95

Page 18 '

TABLE 5

"fT

Two Estimates of Capital Ruguiremonts of the _Addition~i Output of Clothing Industries in

1975

(Factory Sector)

F;> Total Capital Requirements (D.+.G.)' "52.75 m. US$

,

A. Projected output in Factory SectOr in

1975

B. Less current'output in Factory Sector

C. Balance output which w~ll have to be match"d by New Capacity

by

1975

D. Investment in Fixed Capi~al

for (C.) above .,';

Z. ,., Working' capi tal (owned' portion) ,(A.) 2 months' ~ur~oyer

G. Annual output

~-.j.: .

H., Ratio of Initial Fixed Capital 'to annualou tput

I. No. of employees r~quired for addi:t1onal output

J. No. of Operatives in

(E.)

K. Initial Fixed Capital per Operative (D.+I.)

Estimate at tho Lower Limit

232 1l1,; s'l.yds.

45

m."q.ycis.

; r '.' ;

187 ril'.sq.yds .. ,:

31.41 m, US$' 21-34 rn , US$

m, US$

47.,qo9

39,000

US$ 800

Estilliate' at theUppe:r

Limit '

261 m~s<f~yd§.

45 "".sq~y4s.

~'"

~- " 216 iii.sq'.yd".

"

36.29 ^m, US$

24.66 II}.", 1.iS$

"

60.95 m.

^1·''-US$

148 m. 1.iS$

to 4

54,,0(j0 45,000

'-j,

43. The foreign exchange r-equ^a.rorcerrt in t h.. establishment of clothing Lndustr Le s is p'Lacod at about 60 per cent, and a'tentative bz-e akdovn of components 1::; provided in the next Table. ,,'

---,.-

$/c~.14IINa/95 Page 19

TABLE f"

Components of Factory Sector Investment boc 1975 Category of

-,Fixed Capital Lxpenditure

PropOrtion of

"Bach Category in Total Fixed Capital Expendi~

.tuz-e

1;stiniate at the, Lower Limit 187 m.yds. of Additional Output milliOn US$

Lstimate at the W;ppe;rLimit 216 m.yds. of Additional

Ou.t.put

milliOn

usa

, Land and;&ildings 40

P~an'j;" jO,

Fixtur"s and Vehicles jO;,

12.5~;" ~"

9.42 9.42

,.. I<14..•~2,,;:U:

10.89 ;~

10.89 Total Fixed Capital

Fo;ei~'Exchange

.Jxpenditure at

?O

per ccrrt

160 j1.41 j6.29

2

^1.77

44. In so ftr

'if)

tTF,rl:,v21opm,:nt of clot}'in:gJindustri'~,i~r:1irect1y

import-substitutive'"" which all of it is not - it implies varying

rates of saving in foreign exchange depbnding on the extent of indigenous cloth used and the foreign exchange expenditure involved in its manu- '-'f'actiii'e. In any import-substitutive case, savings in foreign exchange

are considerable all aloril5" the spectrum, from the case where all materials

"are imported to' the case Wherein only indigenously produced (andCileeding the smallest amount of imported inputs, in turn) fabrics are used':' A.

fair e'st'imateof the'period needed to recover the initial outlayj after allowing for all incidental COsts in foreign exchange, would be _l~iis than one year, possibly as low as four to six months.

45.

Another way of looking at the foreign exchange portion of ,the fixed

c~pital expenditure would be to compare it -

USa

19 million to

Usa

²²

, 'million"" with the current annual _outl~ in foreign exchange on imported clothing viz., US$ 45 million per year over 1961 to'196j.

, ^"