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Togo’s PIA creating value for the textile industry

Nov 01, 2021
Togo’s PIA creating value for the textile industry

In June 2021, Faure Gnassingbé, the Togolese President, inaugurated the country’s first industrial platform, Plateforme Industrielle d’Adétikopé or Adétikopé Industrial Platform (PIA), offering attractive investment opportunities for global textile majors. PIA is a vertically integrated industrial zone, focussed at creating thriving value chains for the textile industry: from raw material sourcing, to resource transformation (manufacturing), to exporting final products. PIA is a public-private partnership between the Republic of Togo and Arise Integrated Industrial Platforms (IIP). Arise IIP will develop, finance, build, and manage this industrial platform.

 

According to its promoters, the PIA aims to create high added value chains (especially in the textile sector), supply raw materials, manufacture on-site, and export finished products. The site includes an industrial zone, a park that can accommodate 12,500 containers, a storage platform for cotton and other agricultural commodities, a truck terminal, and an area of 200,000 sq m dedicated to other logistics activities.

 

The PIA Textile Park provides ready plug & play infrastructure facilities for setting up integrated textile units like spinning, weaving, processing & garmenting, matching with the international social, environmental & sustainability standards. PIA has developed state-of-the-art infrastructure for its unit holders i.e. effluent treatment plant (on demand basis) with Zero Liquid Discharge (ZLD) for recycling the effluent of the units, cement concrete road and paved roads, drainage & water supply pipelines, street lighting, etc. for the whole park with security.

 

Easy availability of skilled labour is another advantage offered by Togo to the investors. The country has dedicated vocational training centre to train 7000 textile mill workers and 25,000 garmenting workers. It also claims to have favourable labour policies.

 

Togo is one of the top ten producers and exporters of cotton in Africa. It is in fact privileged to have direct access to the major cotton producers in West Africa. Togo’s National Development Plan of 2018-2022 prioritises the textile and garment sector to drive industrialisation and restore Togo’s rich heritage. These factors deeply support the growth of Togo’s textile industry and the scope to set up manufacturing units in specialised industrial zones like PIA.


 

PIA textile park is poised to achieve its objective to transform local cotton into high value finished garments. While premium cotton is available in the park at globally competitive prices, cotton sourced for the park will be from Cotton made in Africa (CmiA) verified cotton farms. It enjoys preferential duty-free market access to US (under AGOA) and EU (under EBA), opening huge market potential for the investors. Togo is the centre for regional trade and provides access to regional market of over 400 million consumers in ECOWAS nations.

 

The textile park has followed all international standards i.e., pollution control, hazardous waste management, environment, society, safety etc. It also offers advantages such as easy traceability of cotton, use of CMiA certified cotton, usage of 100% renewable solar energy, and availability of natural gas to ensure low carbon footprints.

 

PIA textile park offers subsidies on taxes along with nonfiscal benefits. It offers exemption from all customs duties and taxes while importing machinery equipment, raw materials, office supplies, and while exporting goods manufactured within the free zone as well. Some of the other benefits extended to the potential investors include 24x7 solar power supply, credit availability to meet capital expenditure (up to 50%) and working capital (up to 80%) need and many other fiscal incentives.

 

A combination of all the measures mentioned above will enable the PIA Textile Park to work collaboratively and transparently to create, at the least, a climate neutral value chain that provides fair jobs to thousands of people.