ARISE IIP, Afreximbank, and Rieter Invest $5 Billion to Launch Africa Textile Renaissance Plan

Dubai, November 5, 2024 – In a move set to reshape Africa’s textile industry, ARISE IIP, African Export-Import Bank (Afreximbank), and global textile machinery leader Rieter have launched the “Africa Textile Renaissance Plan,” a major initiative aimed at revitalizing the continent’s textile production capabilities. This ambitious plan seeks to address long-standing gaps in African textile manufacturing, establishing a framework for the continent to become a global player in sustainable textile production.

The plan, formalized through a framework agreement signed on October 14, 2024, outlines a path to establish 500,000 metric tons of African cotton transformation capacity over the next three to five years, with a potential expansion goal of an additional 500,000 metric tons. The initiative will be backed by $5 billion in financing to support this effort, which is expected to generate up to 500,000 jobs across the continent. Key targets include reducing Africa’s reliance on textile imports and positioning African exports to the U.S. under the African Growth and Opportunity Act (AGOA) as well as other global markets.

“The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development,” remarked Gagan Gupta, CEO and Founder of ARISE IIP. “I’m convinced that this initiative will not only boost local manufacturing and create thousands of jobs but also position Africa as a global leader in sustainable textile production.”

Afreximbank, ARISE IIP, and Rieter have designed the partnership to expedite financing processes for textile projects through standardized loan documentation, security packages, and a simplified two-month application process. This streamlined approach is expected to lower entry barriers for projects and facilitate a smooth rollout of financing to selected countries, which will be chosen based on criteria like energy infrastructure and the availability of textile parks.

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasized the plan’s transformative potential for African trade, stating, “By transforming Africa’s cotton into high-value textile products, we are not only driving industrialization but also reducing dependence on imports while building a competitive export base.” He highlighted that the plan aligns with Afreximbank’s broader vision of industrialization and export development, particularly in Africa’s Cotton-4 plus (C4+) countries, which have traditionally been significant cotton producers.

In addition to scaling cotton processing capacity, the partnership includes a commitment to localize machine repair expertise and establish a robust support infrastructure. Rieter, as part of its role, will progressively establish a manufacturing presence in Africa, beginning with a repair and maintenance facility in ARISE’s industrial park in Benin. This facility will include spare parts warehousing and gradually introduce machine assembly operations, contingent on commercial viability.

Countries selected to benefit from this initiative will also see the creation of training centers to develop local skill sets and support capacity building, a necessary foundation for fostering long-term growth in the textile industry. Rieter Group CEO Thomas Oetterli stated, “We are thrilled to support this important initiative with our commitment, expertise, and consulting knowledge. We are convinced that the Africa Textile Renaissance Plan marks an important starting point for the future development of the textile industry in Africa.”

The Africa Textile Renaissance Plan is set to provide a substantial boost to Africa’s industrial base, leveraging the continent’s cotton resources and advancing Africa’s standing in global textile supply chains. With an emphasis on reducing reliance on imports and fostering a competitive export infrastructure, this partnership is positioned to drive sustainable industrial growth in African nations while creating job opportunities and supporting economic diversification.