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Clothing Industry Mozambique

The Clothing Industry in Mozambique 2020

Stephen Timm | Mozambique | 03 April 2020

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Report Coverage

This report focuses on the Clothing Sector in Mozambique and includes country information and research into major players, the state of the industry and the factors that influence it. There are profiles of nine companies including South African companies operating in Mozambique such as Mr Price, Woolworths and Pepkor, major local manufacturers such as Moztex and Mozambique Holdings, and retailer Grupo Intermoda.

Introduction

Mozambique presents mixed opportunities for those looking to enter the clothing sector. While the outlook for clothing retailers over the next decade or more looks promising, given expected economic growth on the back of new gas finds, things are less certain for clothing manufacturers struggling to compete against a flood of imports of new and second-hand clothing as well as challenges such as expensive electricity and a challenging labour environment.

Strengths

• Promising outlook in the retail sector given the recent discovery of huge gas finds.

Weaknesses

• Expensive electricity.
• Labour costs have risen lately.
• Management and technical skills shortages.
• Shortage of suppliers of fabrics.
• Weak infrastructure.

Opportunities

• Agoa can help drive exports to the US.

Threats

• High amount of second clothing and illegal clothing imports.

Outlook

The outlook for clothing retailers over the next 10 to 15 years looks promising, according to Pepkor Africa’s Mozambican head Antonie Botes. “This is mainly due to the gas projects in the north of the country that have the potential to change the economic landscape in Mozambique significantly,” he said. However, on the manufacturing side the outlook, is not as promising, largely because of the country’s skills shortage. In addition, exporting clothing to the surrounding SADC region is challenging as SADC protocol on trade has tough trade rules of origin when it comes to apparel, according to The African Cotton, Textiles and Apparel Monitor blog.

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The Clothing Industry in Mozambique
The Clothing Industry in Mozambique 2020

Full Report

R 1 900.00(ZAR) estimated $104.60 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.22 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 4
4. SIZE OF THE INDUSTRY 4
5. STATE OF THE INDUSTRY 7
5.1. Local 7
5.1.2 Regulations 9
5.2. Continental 9
5.3. International 13
6. INFLUENCING FACTORS 14
6.1. Government support 14
6.2. Economic environment 15
6.3. Technology, Research and Development (R&D) and Innovation 16
6.4. Labour 16
6.5. Illegal clothing imports 17
6.6. Marketing 17
7. COMPETITION 18
7.1. Barriers to Entry 18
8. SWOT ANALYSIS 18
9. OUTLOOK 19
10. INDUSTRY ASSOCIATIONS 19
11. REFERENCES 19
11.1. Publications 19
11.2. Websites 20
APPENDIX 1 21
Summary of Notable Players 21
COMPANY PROFILES 23
EDCON LTD 23
GRUPO INTERMODA LTDA 27
JUDY'S PRIDE FASHIONS (PTY) LTD 29
MOZAMBIQUE HOLDINGS LTDA 32
MOZTEX S.A. 35
MR PRICE GROUP LTD 37
NOVA TEXMOQUE LTDA 42
PEPKOR HOLDINGS LTD 44
WOOLWORTHS (PTY) LTD 49