Rieter, ARISE IIP And Afreximbank Sign Landmark Agreement For Africa’s Textile Renaissance
ARISE IIP, a leading developer of industrial parks in Africa, has joined forces with the African Export-Import Bank (Afreximbank) and Rieter, a global leader in spinning systems for yarn manufacturing. Together, they aim to drive the “Africa Textile Renaissance Plan” – a transformative initiative to revitalize Africa’s textile industry and create sustainable growth. This collaboration will utilize ARISE’s extensive industrial park network, alongside Rieter’s technological expertise and Afreximbank’s financial support, to shape a new era in African textile manufacturing.
On October 14, 2024, the three entities signed a framework agreement that will drive the Africa Textile Renaissance Plan, establishing 500,000 metric tons of cotton transformation capacity over the next three to five years. With a funding commitment of USD 5 billion, the project targets multiple goals, including:
- Establishing 500,000 metric tons of cotton processing capacity, with potential expansion to an additional 500,000 metric tons;
- Developing local machine repair expertise across Africa
- Creating up to 500,000 jobs
- Reducing Africa’s textile imports and expanding exports, especially to the U.S. under the African Growth and Opportunity Act (AGOA)
- Building a robust financing structure for capacity development
Countries will be selected based on criteria such as energy availability, infrastructure readiness, and investment contributions. Training centers will also be established to develop local expertise and strengthen the talent pool.
The partnership will support textile projects through standardized loan documentation, security packages, a fast-tracked two-month application process, and standardized business plan templates, enhancing accessibility to financing.
To sustain growth, Rieter will evaluate establishing a manufacturing presence in Africa, beginning with:
- A repair and maintenance facility in ARISE’s industrial park in Benin
- Warehousing for spare parts
- Phased introduction of machine assembly operations
Gagan Gupta, CEO of ARISE IIP, shared his enthusiasm: “The Africa Textile Renaissance Plan is a milestone for African industry. This initiative will drive local manufacturing, generate jobs, and position Africa as a global leader in sustainable textiles.”
Prof. Benedict Oramah, President of Afreximbank, described the plan as a “game-changer” for African trade: “By adding value to Africa’s cotton, we are reducing import dependence, building export capacity, and accelerating industrialization across the continent.”
Thomas Oetterli, CEO of Rieter Group, expressed Rieter’s commitment: “We are honored to contribute our expertise to this initiative. The Africa Textile Renaissance Plan is a crucial step for the future of Africa’s textile industry.”
