From independence in 1968, Mauritius has evolved from an agriculturally based low-income economy to a diversified industrial, financial and tourism based middle- income economy. This evolvement is partly because Mauritius is one of the most successful evolving democracies in the world. The economy has shown a degree of entrepreneurial advancement due to the islands noticeable institutional advantages. Its economy is one of the least corrupt in the world. For these reasons you might want to invest in Mauritius textile sector. Let us look at a few facts about the sector that might help you in reaching a decision on how to invest in Mauritius’ textile sector.
In order to ward off competition from Asian countries according to an Africa report story, Mauritian clothing and textile manufacturers have invested in the latest technology. They have also restructured their operations, cut their costs down, set up operations in other countries of the world and initiated vertical growth. This has brought them immense benefits. As proof of this, the number of people working in the country’s export processing zone dropped from 67,000 to nearly 42,000 between the years 2003 and 2012. This is an indication of the presence of technology.
The Mauritian textile sector is growing and the growth is glaringly visible. 90% of Mauritian textile and garment output is contributed by only 10 companies at present. This is made possible by technology. According to the Mauritius export corporation, the sector recorded an 11.8% year on year growth in 2011 and there was a prediction of a 10% growth for the sector the following year by the ministry of industry. The companies in the sector are all upgrading their facilities and reducing lead times in order to increase productivity.
This might be one of the greatest challenges facing the textile sector in Mauritius. The sector is faced by the challenge of not having the availability of locally produced cotton for its textile sector. The other challenge is the lack of the availability of skilled manpower to take charge of the modern technology that has been acquired by the sector. It is to overcome these challenges that some of the companies in the sector chose to set up factories in foreign countries. This is so as to reduce the cost of cotton and labour.
If you are thinking of ever investing in the textile sector in Mauritius, it might interest you to hear that, the US has extended its Africa Growth Opportunities Act (AGOA) provision for the island to the year 2015. And this is sure to boost the country’s exports to the North American Countries.
So, how do you invest in Mauritius’ textile sector? With all the facts we have laid down, by just doing it. It is evident that the sector is working. If you invest in the sector using your intuition and wisdom, you might be laying the foundation for you future prosperity. This is one of the essences of human existence. You will succeed.