Hanging by a thread? : the post-MFA competitive dynamics of the clothing industry in Madagascar.

Abstract

With the end of the Multifibre Arrangement (MFA), many have predicted that countries in Africa will lose their comparatively inefficient clothing and textile industry as competition from China increases. Madagascar has not escaped such threat. The clothing and textile industry is important to Madagascar in terms of export revenue, employment creation and income generation. Trade agreements have played an essential role in the growth of the clothing industry as Madagascar is eligible for both AGOA (Africa Growth and Opportunity Act) and European Union ACP (Africa, Caribbean and Pacific) trade benefits. This paper aims to find out how the end of the MFA has affected the industry thus far, investigate the competitiveness of the Madagascar garment industry to respond to this new global change, assess strategies firms and government have for the future, and offer policy suggestions on how firms can be supported to encourage them to remain in Madagascar.