African Export-Import Bank (Afreximbank) and Rieter, the top provider of yarn production equipment worldwide, have collaborated with ARISE IIP, the pan-African developer and operator of top-notch industrial parks. spinning mill staple fibres. The “Africa Textile Renaissance Plan,” a revolutionary project aimed at reviving the continent’s textile industry, will be led by the historic alliance. This ambitious initiative will foster a new era of textile production in Africa by utilising 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 tonnes of African cotton transformation capacity over the following three to five years. The following are the main goals of the Africa Textile Renaissance Plan:
• 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 (AGOA), focusing on full value addition within the continent and to export to the rest of the world and
• 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,
• 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
• phased introduction of machine assembly operations.
“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 worldwide 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 commerce, according to Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. He said: “We are not just promoting industrialisation but also decreasing reliance on imports while developing a competitive export base by turning Africa’s cotton into high-value textile goods. This collaboration enhances our current initiatives, including the revolutionary shift we are leading with our partners in Africa’s Cotton-4 plus (C4+) nations. It emphasises Afreximbank’s steadfast dedication to export growth and industrialisation.
“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.