African Export-Import Bank (Afreximbank) and Rieter, the top provider of yarn manufacturing equipment worldwide, have collaborated with ARISE IIP, the pan-African developer and operator of top-notch industrial parks. spinning mill staple fibers. The groundbreaking collaboration will serve as the driving force behind the “Africa Textile Renaissance Plan,” a revolutionary project designed to reviving the textile industry across the continent. This ambitious project will promote a new era of textile manufacturing in Africa by utilizing ARISE’s vast network of industrial parks.
On October 14, 2024, Rieter AG, Arise IIP, and Afreximbank signed a framework agreement to help implement the Africa Textile Renaissance Plan. With funding of USD 5 billion, the framework agreement describes the partnership to develop 500 000 metric tons of African cotton transformation capacity over the following three to five years. The following are the main goals of the Africa Textile Renaissance Plan:
• create a capacity to transform 500 000 metric tons of African cotton over the course of the following three to five years, with the possibility of adding another 500 000 metric tons.
• locate competence in machine maintenance in Africa,
• generate up to half a million jobs,
• lower the yearly imports of textiles into Africa,
- Under the African Growth and Opportunity Act (AGOA), increase exports to the United States while concentrating on complete value addition on the continent and exporting to the rest of the the world and Create a solid funding plan to aid with capacity building.
The selection of program-beneficiary nations will be based on factors including the availability of gas and electricity, as well as textile parks with standard infrastructure or equity contribution. To raise skill levels, training facilities will be built in a few chosen nations.
The collaboration seeks to finance textile initiatives, expediting the procedure by:
Standardized business plan templates, a streamlined two-month application procedure, and standardized loan documentation and security packages.
Subject to commercial viability, Rieter has pledged to progressively create a manufacturing presence in Africa in order to promote long-term growth. This includes the following: • setting up a repair and maintenance facility in ARISE’s industrial park in Benin,
• setting up a warehouse for spare components and
• introducing machine assembly processes gradually.
“The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development,” said Gagan Gupta, CEO and Founder of ARISE IIP, expressing his excitement for the initiative. I have no doubt that this project will establish Africa as a global leader in sustainable textile production in addition to fostering local industry and generating thousands of employment.
The Africa Textile Renaissance Plan is a “game-changer” for African trade, according to Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. He said: “We are not just promoting industrialization but also decreasing reliance on imports while developing a competitive export base by turning Africa’s cotton into high-value textile products. This partnership complements our ongoing efforts, such as the transformative change we are spearheading in Africa’s Cotton-4 plus (C4+) countries, alongside other partners. It emphasizes Afreximbank’s steadfast dedication to export growth and industrialization.
“We are excited to support this important initiative with our commitment, expertise, and consulting knowledge,” stated Thomas Oetterli, CEO of Rieter Group. We firmly believe that the Africa Textile Renaissance Plan serves as a crucial foundation for the continent’s textile industry’s future growth.
