Ethical Apparel Africa. Introduction to EAA

Transcription

1 Ethical Apparel Africa Intrductin t EAA September 2018

2 EAA is wrking t unlck the ptential f West Africa as a garment prducing regin Ethical Apparel Africa (EAA) is catalyzing a sustainable grwth path fr apparel factries in West Africa Prviding African-wned apparel factries with intensive capacity building t imprve technical perfrmance Partnering with cmmitted brands t drive cnsistent vlume rders t the regin Requiring steady imprvement t cmpliance and beynd-cmpliance ethical initiatives 2

3 Why we manufacture in West Africa Favrable trade agreements Duty-free entry int the US under AGOA = 15-32% advantage vs Asian manufacturers Duty-free entry int the EU Fast shipping times 15 days t Eurpe Ptential fr days t the US (currently 30 days with transshipment rutes) Strng wrkfrce availability and lw cst f living Yung demgraphic (ver 50% under age 25), lw rates f existing frmal emplyment¹ Plitically and ecnmically stable ¹Surce: Index Mundi, specific t Ghana but representative f the regin 3

4 Ethical Apparel Africa mdel EAA is a surcing business with a Thery f Change that drives everything we d: FACTORY SELECTION GREAT PRODUCT OPERATIONAL EXCELLENCE EMPOWERED WORKFORCE INCREASED EXPORTS PROFIT REINVESTED Select African-wned factry partners with aligned values and a visin fr scale Supprt them t achieve peratinal excellence thrugh capacity building by EAA s n-the-grund team f technical and cmpliance experts Bring rders frm US / EU brand partners and supprt n rder executin Ensure prfit frm these rders is reinvested int wrkfrce empwerment Measure the resulting benefits in prductivity (decreased absenteeism/turnver) Cntinuusly imprve peratinal excellence and scale rders / jb grwth 4

5 Key players in West African CMT manufacturing sectr Ghana 1 large exprting factry: DTRT American/Ghanaian JV, prductin fr ne US client (Sanmar) Apprx emplyees 2 medium sized exprting factries: Alfie Designs, KAD Manufacturing Apprx. 100 emplyees each, ambitius visins fr grwth ~A dzen ther SME factries prducing primarily fr the lcal market Current EAA partners Benin 1 medium sized exprting factry: Africa New Cnfectin Côte d Ivire N exprting factries t ur knwledge ~10 medium sized factries prducing fr lcal/reginal market EAAs gal is t create 5000 jbs by 2027 in partnership with up t ~10-15 exprting factries acrss West Africa 5

6 Results t date Develped capacity f 3 partner factries: 2 in Ghana, 1 in Benin Achieved first successful exprts t the US including first-ever frm Benin Shipped 50K units in 2017 / Targeting 150K units in 2018 Shipped / cnfirmed exprt rders wrth $1M+ in FOB value Created 180 jbs acrss 3 factries US Ambassadr t Benin marking first-ever exprt f apparel frm Benin t the USA under AGOA Adj Asare, CEO f Alfie Designs (Ghana) Linda Ampah, CEO f KAD Manufacturing (Ghana) 6

7 Results t date Exprted t 10 internatinal brands and built enduring partnerships ACCESSORIES SHIRTS, CLERGY WEAR & UNIFORMS WOMENS FASHION TARGET CLEINTS: WORKWEAR 7

8 Results t date Have built partner factries capacity: Technical, e.g. Quality Assurance, Prductin Management, Ind. Engineering Accunt Management, e.g. Csting, client cmmunicatin, critical path Cmpliance, e.g. Fire preparedness, health & safety standards, HR prcedures Have supprted partner factries t identify investment ptins and expand Have established strng partnerships with industry stakehlders cmmitted t supprting the develpment f West Africa as a wrld class ethical manufacturing hub 8

9 Implementing technical capacity-building prject with GIZ and thers Creating scially respnsible jbs & develping mdel factries in West Africa s emerging apparel sectr PROJECT GOALS WORK PACKAGES KEY PARTNERS Grw West African garment exprts thrugh existing factries Create sustainable jbs in apparel Imprve the quality f thse jbs thrugh wrker engagement, training and supprt Technical Capacity Building Cmpliance & Impact supprt Market Access Awareness Ttal Budget: $2.2M ver 3 years FOUNDATION 9

10 Engaged in a deep feasibility study fr develping lcal cttn transfrmatin in West Africa SURVEY AND ANALYSIS OF EXISTING INFRASTRUCTURE FOR SPINNING, WEAVING/KNITTING, DYEING/FINISHING ANALYSIS OF SECTOR STRENTHS, WEAKNESSES AND OPPORTUNTIES DETAILED POTENTIAL INVESTMENT SCENARIOS AGAINST SPECIFIC REGIONS/FACILITIES AND MARKETS 10

11 Engaging varius stakehlders t develp integrated cttn supply chain in West Africa REFURBISH AN EXISTING FACILITY BUILD A NEW FACILITY FROM SCRATCH COST ~$2-10M* $15-60M+* PURPOSE PROCESS CONSID- ERATIONS T supply grwing base f exprt-led CMT facilities in West Africa Wrk with existing spinning and weaving factry t identify areas f investment required t prvide exprt-grade wven r knit fabric, including: Fine-tuning carding/cmbing Fine-tuning spinning Repair/replacement f lms Requires crdinatin with: Gvernment/ministry supprt CMT t ensure aligned demand Cttn gin/trader fr cnsistent supply Technical implementatin partner May require sme level f new investment t be cmmercially viable (e.g., dying/finishing, knitting plant) T develp a mdern end-t-end cttn supply chain at scale Align key stakehlders against priritized markets and gegraphies Raise investment frm public and/r private institutins t develp new infrastructure fr exprt-grade wven and knit fabrics Requires clse cllabratin with: Gvernment/ministry engagement and supprt Investment partner Technical implementatin partner Internatinal brand partner t ensure adequate demand Cttn gin/trader fr scale supply Netwrk f advisrs *Expect incremental ~15% cnsultant/technical partner prject management fee fr implementatin, ~$2M up-frnt depsit fr staged cttn lint purchasing, and add l ~$1M fr dying/finishing peratin; Refurbishment assumes n majr verhaul in equipment; Range in new build cst dependent n mix f new vs used equipment; May als cnsider new gin cnstructin r integratin thrugh t cttn cultivatin 11

12 Engagement f varius stakehlders key t successful implementatin Internatinal Develpment Agency t allcate funds and resurces twards prject design, stakehlder engagement and implementatin Technical Implementatin Partner t manage integrated peratin as expansin f existing business, and/r t validate feasibility, ensure ptimal equipment selectin and cntribute peratinal knw-hw Cttn Supplier t ensure cnsistent supply f quality cttn at scale KEY STAKEHOLDERS Demand Partner (internatinal brand r lcal end-markets)* t ensure cnsistent demand at scale Investment Partner t supply and versee funds Gvernment r Ministry Engagement and Supprt t back the investment and create an enabling envirnment (e.g. tax deferments, infrastructure, custms) *Fr targeted refurbishment it becmes mre imprtant t crdinate with grwing base f exprt-led CMT facilities in West Africa, alng with ther ptential end-markets t ensure alignment with demand 12