Nathan-MSI Group - Foodnet

INTRODUCTION
Two textile consultants visited Uganda from May 28 through June 6, 2001, under the aegis of
USAID/Uganda’s Private Sector Trade Policy Capacity Building Project with Nathan Associates
and the Private Sector Foundation. 1 The team was comprised of Lynn Salinger, a textile
economist who has evaluated the competitiveness of textile and clothing industries in Mali,
Morocco, South Africa, and Vietnam, and Alan Greenwood, a textile industry engineer and
marketing expert who has led marketing strategies for textile mills in South Africa.
The team’s work followed an initial cross-commodity survey of Uganda’s AGOA prospects
conducted by Ms. Shawna Turner in October/November 2000. The team also coordinated with
other USAID-supported activities improving competitiveness (COMPETE project) and
addressing financial sector constraints (SPEED project) in key agricultural and agro-industrial
sectors.
During their ten days in country, the authors interviewed a diverse sample of Ugandan textile and
apparel firms that might benefit from AGOA. Ugandan export prospects were considered both in
terms of direct supply to the U.S. and in terms of regional supply to the sub-Saharan African
market for yarns and fabrics. Investment requirements on behalf of continuous processing plants
(spinning, weaving/knitting) in Uganda were also evaluated.
Salinger and Greenwood were greatly assisted by the Private Sector Trade Policy Capacity
Building project’s Ugandan director, Mr. Nimrod Waniala, and Mr. Valentine Ogwang of the
Ugandan Investment Authority. The authors wish to thank everyone who allowed them into their
companies and shared detailed operational data with them. In addition, the authors thank the
Ugandan Ministry of Tourism, Trade, and Industry, whose senior minister, the Hon. Prof.
Edward B. Rugumayo, hosted them at a wrap-up seminar on June 6 in Kampala. This report
summarizes the team’s findings, which were presented and discussed with Ugandan stakeholders
at that seminar.
TEXTILE AND CLOTHING EXPORTS UNDER AGOA: OPPORTUNITIES AND
LIMITATIONS
The African Growth and Opportunity Act offers sub-Saharan African exporters of apparel to the
U.S. an average 17.5% duty advantage, relative to non-African suppliers. In addition, the Act
offers duty-free access to the U.S. market for hand-loomed, handcrafted, and folkloric articles, as
well as an additional 1,835 non-textile products not previously included under the Generalized
System of Preferences. This report, however, will focus on the apparel benefit only, and its
potential impact for Ugandan textile and clothing firms.
1 About the authors: Lynn Salinger is a Senior Economist with Associates for International Resources and
Development (AIRD), Cambridge, Massachusetts (lsalinger@aird.com). Alan Greenwood is a textile engineer and
marketing specialist and a consultant to AIRD (wood@mweb.co.za). AIRD is a member of the Nathan-MSI Group
under the SEGIR/General Business, Trade, and Investment IQC with USAID.
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