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The Clothing Industry in Angola

The Clothing Industry in Angola 2020

Stephen Timm | Angola | 15 October 2020

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Report Coverage

This report focuses on the clothing industry in Angola, and includes information on the country and its economy, developments including the reprivatisation of Angola’s textile mills and information on the second hand clothing market and competition from other countries. This report does not include profiles of companies in the sector, but does list the key players as identified by a government study.

Introduction

Angola’s clothing and textiles sector is small and faces a number of challenges. Key among these is a lack of demand given the country’s current recession, which has been made worse by the onset of the coronavirus pandemic after the declaration of a state of emergency in March 2020. \r\n\r\nDespite the challenges, there is significant opportunity to expand the sector on the back of the state’s current re-nationalisation of three large clothing and textiles factories and recent attempts to create a domestic cotton industry. At present the country relies heavily on imported raw material for its textile sector. \r\n\r\nThe retail sector is dominated by a large informal market for second-hand clothing that serves about 80% of Angolans, with the annual national minimum requirement of second-hand clothes at about 24,000 tons. A small number of formal outlets and boutique stores cater mainly to the middle and upper class.

Strengths

• Growing market.
• Young, fast growing and rapidly urbanising population.

Weaknesses

• Corruption and a lack of transparency in public procurement.
• High cost of doing business.
• Lack of management and technical skills shortages.
• Limited access to credit.
• Shortage of locally produced textiles
• Weak infrastructure.

Opportunities

•  The government’s support for local cotton production.
• Online opportunities via e-commerce.
• The government’s programme to diversify the economy.

Threats

• A high amount of second-hand clothing.
• High political risk.
• Weak economic outlook due to coronavirus and reliance on oil.

Outlook

The current outlook in Angola’s clothing sector is poor, with demand expected to continue to be suppressed by low oil prices and the coronavirus pandemic. The government’s re-privatisation of three textile companies and its aim to expand local cotton production are, however, positive signs. \r\n\r\nAs Boavida Group’s Lukasz Jaroszek notes, while Angola’s clothing and textile sector is small and faced with many challenges, the market itself still presents a good opportunity, as the country has one of the fastest growing populations in the world.

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The Clothing Industry in Angola
The Clothing Industry in Angola 2020

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Industry Landscape

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Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Geographic Position 3
4. SIZE OF THE INDUSTRY 5
5. STATE OF THE INDUSTRY 8
5.1. Local 8
5.1.1. Regulations 11
5.1.2. Enterprise Development and Social Economic Development 11
5.2. Continental 12
5.3. International 13
6. INFLUENCING FACTORS 14
6.1. Government support 14
6.2. Economic environment 14
6.3. Technology, Research and Development (R&D) and Innovation 15
6.4. Labour 15
6.5. Second-hand clothing 16
6.6. Marketing 16
7. COMPETITION 17
7.1. Barriers to Entry 17
8. SWOT ANALYSIS 17
9. OUTLOOK 18
10. INDUSTRY ASSOCIATIONS 18
11. REFERENCES 19
11.1. Publications 19
11.2. Websites 19
APPENDIX 1 21
List Of 31 Clothing Companies Identified by Prodesi Study 21