Rieter, ARISE IIP, and Afreximbank sign framework agreement for Africa Textile Renaissance Plan

In order to facilitate the implementation of the Africa Textile Renaissance Plan, Afreximbank, Arise IIP and Rieter AG signed a framework agreement on October 14, 2024. The framework agreement outlines the collaboration to establish 500 000 metric tons of African cotton transformation capacity over the next three to five years, supported by USD 5 billion in financing. The Africa Textile Renaissance Plan aims to achieve the following key objectives:

+ establish 500 000 metric tons of African cotton transformation capacity over the next three to five years, with potential expansion of an additional 500 000 metric tons,

+ localize machine repair expertise in Africa,

+ create up to 500 000 jobs,

+ reduce Africa’s annual textile imports,

+ boost exports to the US under the African Growth and Opportunity Act (AGOA), focusing on full value addition within the continent and to export to the rest of the world and

+ develop a strong financing structure to support capacity building.

Countries benefiting from the program will be selected based on criteria such as power and gas availability, and textile parks with standard infrastructure or equity contribution. Training centers will be established in selected countries to develop and improve skill levels.

The partnership aims to secure financing of textile projects, streamlining the process through:

+ standardized loan documentation and security packages,

+ expedited two-month application process and

+ standardized business plan templates.

To foster long-term growth, Rieter has committed to gradually establishing a manufacturing presence in Africa subject to commercial viability, including the:

+ setup of a repair and maintenance facility in ARISE’s industrial park in Benin,

+ establishment of spare parts warehousing and

+ phased introduction of machine assembly operations.

Gagan Gupta, CEO and Founder of ARISE IIP expressed his enthusiasm for the project: “The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development. I’m convinced that this initiative will not only boost local manufacturing and create thousands of jobs but also position Africa as a global leader in sustainable textile production.”

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated that the Africa Textile Renaissance Plan is a “game-changer” for African trade. He remarked: “By transforming Africa’s cotton into high-value textile products, we are not only driving industrialization but also reducing dependence on imports while building a competitive export base. This partnership complements our ongoing efforts, such as the transformative change we are spearheading in Africa’s Cotton-4 plus (C4+) countries, alongside other partners. It underscores Afreximbank’s unwavering commitment to industrialization and export development.”

Thomas Oetterli, CEO Rieter Group, said: “We are thrilled to support this important initiative with our commitment, expertise and consulting knowledge. We are convinced that the Africa Textile Renaissance Plan marks an important starting point for the future development of the textile industry in Africa.”