RSS Feed (xml)
pointed his finger at the absence of strong trade negotiations on the
government's part, a setback to raising Bangladesh's capability to
tap the $1.2 billion South African apparel market. "How only two
officials can handle normal activities of the Dhaka mission in
Johannesburg?" questioned Fazlul Hoque, the president of Bangladesh
Knitwear Manufacturers and Exporters Association (BKMEA). He demanded
that the government immediately move to deploy a commercial counsel
in Bangladesh mission in the South African capital city so that he
or she can work on harnessing business potentials there. Hoque was
sharing his South Africa and Botswana trip experiences as leader of a
business delegation with some journalists at the BKMEA office.
Bangladesh apparels account for only 4.3 percent of the South African
$1.2 billion annual imports, while it is 70 percent from China, 5.5
percent from Mauritius and 4.7 percent from India, BKMEA chief
said. The value of Bangladesh garments that were exported to South
Africa in fiscal year 2008-09 is $43 million. While lobbying for
further trade negotiations, Hoque is upbeat on the 71 percent growth
in readymade garment exports to that country last fiscal. T-shirts,
sweaters, cotton trousers, basic shirts and jeans are the
most-favoured items in South Africa, he said, pointing to an ample
scope for textile fabric exports. The knit sector leader named some
major buying agents such as Woolworth South Africa and Edgars and
Truworth. "The present export trends show prospects for around $500
million apparel exports in the next two years," Fazlul Hoque said.
South African buyers are now coming to Bangladesh in increased number
to place more orders, he added. Pointing to a 24 percent growth in
apparel imports by South Africa on year-on-year basis, he expected
at least 14 South African buyers to attend the 5 th Knitexpo in
Dhaka, due on November 2-4. In this regard, Hoque identified the 51
percent tariff--40 percent duty and 14 percent value added tax
(VAT)as a major problem in apparel exports to South Africa. However,
the director general of South Africa Textile Department, the BKMEA
boss says, has assured them of a tariff cut on Bangladesh
government's strong lobbying. The South African key official also
asked Bangladeshi businessmen during their stay in that country to
prepare a list of apparel products, which the African manufacturers
do not produce locally. Bangladesh has also openings for migration of
unskilled, semi-skilled and professional human resources to both
South Africa and Botswana, as these countries are carrying out big
economic activities, the BKMEA president said.
