AGOA: INFORMATION ON TEXTILE AND APPAREL

UNCLAS NIAMEY 000866 SIPDIS SENSITIVE SIPDIS DEPT: FOR AF/W, BACHMAN; AF/EPS, THASTINGS E.O. 12958: N/A TAGS: KTEX EINV ETRD NG SUBJECT: AGOA: INFORMATION ON TEXTILE AND APPAREL PRODUCTION CAPABILITIES AND THIRD-COUNTRY FABRIC PROVISIONS REF: SECSTATE 131825 ¶1. (U) The following responds to reftel's request for information on Niger's textile and apparel manufacturing capabilities. Niger counts three mid-sized and one larger export oriented textile production firms: Enitex, Ste Alphadi, Herbert Toure, and Ram's Elle et Lui. Details on each follow, and are geared to the format in reftel's paragraph 3. Given the modest size of these enterprises, and the fact that their primary export markets are West African and / or European, host government officials and local businesses would likely be indifferent to an extension of the AGOA third-country fabric provisions. ¶2. (U) Enitex is the former public textile production company. It was privatized in the early 1990's - one of the first state owned firms to be sold off. It is currently owned by Chinese interests. Enitex manufactures in Niamey and has 655 employees. It exports unfinished textile goods (bolts of cloth) to Europe and throughout West Africa. Enitex operates 6350 spindles, 18 spinning machines, 1 beating machine, 476 power looms, 2 washers, and 2 printing machines. The firms' input material is cotton from Niger, Burkina Faso, and Benin. ¶3. (SBU) In an August 16 conversation with the Ambassador, the Chinese Ambassador noted that the company's owners deem Enitex unprofitable, and are interested in phasing it out over time. The Chinese Ambassador noted that Enitex produces textiles at a price of 4,000 CFA per meter (approximately $8.00),whereas, even counting transport costs, Chinese textiles can be produced for the regional market at 2,000 CFA a meter (approximately $4.00). Reportedly, Enitex has already experienced some layoffs this year. ¶4. (U) Ste Alphadi is owned by a Nigerien entrepreneur and is based in Niamey. The company employs 45 full time workers and 35 part time staff on 50 sewing machines. Input material and source: cotton from regional African countries; linen from Europe; hand-woven textile products from Mali, Senegal, Ghana, Nigeria, and Niger; Lycra and muslin from Europe; silk from India and China; jeans from the USA modified for resale. Finished products include: shirts, women and men's clothing, women's dresses, traditional West African Boubous and specialty products. Target markets for finished products include regional countries, Europe, and the United States. Ste Alphadi's products are priced in the low to mid-range of the market. The company maintains a website at: alphadi@internet.ne. ¶5. (U) Harbert Toure company is owned by a Nigerien entrepreneur and is headquartered in Niamey. The firm employs 25 laborers on 31 sewing machines and uses textiles from Mali, Senegal, and Europe as input materials. It produces mid-range outfits for men and women, and exports primarily to Ghana, Mali, Senegal, Cote d'Ivoire, and South Africa. ¶6. (U) Ram's Elle et Lui is likewise a Niamey based, privately held company producing mid-range outfits for men and women. The firm employs 20 full time and 15 part time workers on 25 sewing machines. Input materials are limited to textiles from neighboring countries, and their exports are sent primarily to African boutiques in the U.S. and to Mali and Senegal. ALLEN