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Hemraj Ramnial, Chairman of the MEXA : Textile and Apparel industry… challenges and opportunities

18 avril 2014, 17:47

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Hemraj Ramnial, Chairman of the MEXA : Textile and Apparel industry… challenges and opportunities

The textile and apparel sector will remain an important pillar of the export manufacturing sector. However, we believe that this key sector of our economy will need to pursue aggressively its evolution into a high-tech industry with the application of new technologies, continuous upgrading of the technical skills of the workforce and enhancement of the management competencies to drive productivity at all levels. The main actors of the textile and apparel sector are already working on the long term vision by revisiting their business models which will form an integral part of the strategies for the development of this sector. There have been always numerous challenges for the export sector which evolves in the highly competitive business landscape which can only be sustained by seeking robust productivity gains and by moving up to a higher level of value creation. The world is full of opportunities to make other people’s lives better in some way and our business leaders will need to create the ‘most value’ to satisfy the customers’ needs and expectations.

 

There has been a steady evolution in our apparel industry which has gradually moved up the value chain, from supplying low end products in 1990’s to the high end products during the present decade. The strategic shift from Volume-Driven to Value-Driven demonstrates the visionary leadership which is still sustaining the apparel industry in spite of the turbulences prevailing in our traditional markets.

 

Mauritius has witnessed over four decades of the textile and apparel sector which has not only created thousands of jobs but undoubtedly helped to provide employment to our women population which has contributed towards their emancipation. The standard of living of our lower income groups has gradually improved and on a very positive note, all these families working in the export sector were thus able to pull out from poverty and invest in the education of their children. It is worth to reflect what would have been the consequences on the social front if the high unemployment rate prevailing in the 1980’s remained unchecked. We must therefore recognize the vital contribution of the apparel industry for achieving the economic prosperity of Mauritius and it would be a mistake if the various stakeholders adopt a pessimistic approach against the backdrop of growing adversity and will allow the manufacturing sector to disappear over time.

 

How do we move to the next level of transformation? We believe that we still need to achieve better alignment between the government institutions and the private manufacturing sector. We may have 80% consensus on what need to be accomplished but we end up spending much time debating on the final 20% which bears significant importance to the growth strategy.

 

New types of jobs are being created in the apparel industry which is in line with our aspiration to become within the next decade, a high income country with sustainable growth which is inclusive to reach the population at large. If people are one part of the equation, technology is the other. Leveraging technology is all-essential if we are to drive higher productivity. We have entered the social media sphere and we must leverage the synergy between the new technologies and social forces to transform the workplace and deliver superior customer service. Technology allows immediate tracking of the products sold, more detailed analysis of customer buyer patterns, immediate customer feedback (automated customer surveys and tracking) and forums for customer dialogues (social media and blogs).

 

Our industry leaders need to build the competitive advantage and to set ourselves apart as a “world class’ apparel industry. We need to persevere and build on past successes and push for future ones. It will be a painstaking journey which will require leadership and commitment from all of us who have faith in the future of our manufacturing industry. It also requires a mindset change, one that demands that every process and detail be seen through the customer’s lens. We need the will, discipline and focus to reshape our industry which will demonstrate an obsession for quality and a commitment to excellence.

 

Africa’s economy is growing faster. 1/3 of the 54 African countries are seeing an annual GDP growth of more than 6%. Africa represents 2 trillion economy with a huge market opportunity. It is gradually embarking on the road to democracy and is increasingly stable and it will have the world’s largest workforce. Mobile is exploding and intra-Africa trade is in its infancy and 20% of government spending is on education.

 

Are we therefore ready to leverage on the tremendous opportunities and play a leadership role not only for exports of goods and services, but more importantly for the export of our human capital to strengthen the middle management of the emerging African companies?

 

The textile and apparel industry over the past four decades has provided extensive skill training for thousands of our countrymen and with a much greater focus, will serve as a platform for providing the management expertise to the African companies having difficulties to get the team into place to take off to achieve stability and pursue capacity growth.

 

There will be immense opportunities which will unfold for our unemployed diploma holders and graduates to join the middle management team but the fundamental question remains whether we are ready to give our export manufacturing sector a different role to play for providing leadership for emerging Africa.