How Africa's garments sector can benefit from the supply chain disruptions during Covid-19
Covid-19 has disrupted various supply chains with global travel and movement of goods halted in some places. This has affected industries such as Ndemezo the garments but could this be an opportunity for Africa's garments sector? CNBC Africa spoke to Dennis, Deputy Managing Director of C&D Group Pink Mango for more.
Mon, 11 May 2020 10:43:57 GMT
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AI Generated Summary
- Impact of Covid-19 on supply chains and operations of C&D Pink Mango
- Strategic pivot towards manufacturing PPE equipment in response to the crisis
- Opportunities for Africa's garments sector with local production and AfCFTA
The global outbreak of Covid-19 has sent shockwaves through industries worldwide, disrupting supply chains and causing immense challenges for companies across the globe. The garments sector, in particular, has faced significant setbacks due to the restrictions on international travel and movement of goods. However, could this crisis actually be an opportunity for Africa's garments sector to thrive? Dennis Dameso, the deputy managing director of C&D Group Pink Mango, shed light on the impact of the pandemic on their operations and the strategic shifts they have made amidst the crisis. C&D Pink Mango, a conglomerate with factories in China, Bangladesh, and offices in Europe, experienced initial disruptions when the coronavirus outbreak hit China, affecting their supply chain profoundly. With raw materials, accessories, and machinery primarily sourced from China, the restrictions and lockdowns in various countries, including Europe and America, posed significant challenges for the company. The communication breakdown and travel restrictions further exacerbated the situation, leading to a cascade effect on their operations as the virus spread globally. In Rwanda, where the company also operates, the lockdown measures forced them to halt production, impacting their workforce and orders. Despite the challenges, C&D Pink Mango managed to navigate through the crisis by ensuring the well-being of their employees during the lockdown period. The company provided food items to its workers to support them through the difficult phase, demonstrating a commitment to their team's welfare. As the lockdown restrictions eased, a vast majority of their workforce returned, showcasing the resilience and dedication of their employees. The strategic pivot made by the company in response to the crisis was evident as they ventured into manufacturing Personal Protective Equipment (PPE) to address the pressing needs arising from the pandemic. By repurposing one of their factories in Bangladesh to produce masks and coverings for medical professionals, and securing contracts to supply PPE in Rwanda, C&D Pink Mango exemplified adaptability and forward-thinking in a challenging environment. The decision to manufacture surgical masks and other protective gear not only catered to the local market but also positioned them as a crucial supplier in the region where such resources were scarce. The shift towards local manufacturing of essential goods like PPE highlighted the importance of self-reliance and diversification of supply chains, reducing dependency on single sources like China. Looking ahead, Dameso emphasized the company's plans to establish weaving factories in Rwanda to secure a more resilient and sustainable supply chain in the long run. By accelerating these strategic initiatives, C&D Pink Mango aims to mitigate future risks and enhance their production capabilities locally. The conversation steered towards the broader implications of such industry transformations on the African continent, particularly in light of the African Continental Free Trade Agreement (AfCFTA). The potential synergy between the rising trend of local manufacturing and the impending implementation of AfCFTA signifies a significant opportunity for Africa's garments sector. With promising orders from various African countries for PPE equipment and uniforms, C&D Pink Mango stands poised to leverage the benefits of the trade agreement to expand their market reach and contribute to the continent's economic growth. As the company aligns its operations with the evolving landscape of global trade and manufacturing, the emphasis on local production and resilience underscores a strategic vision for sustained success in the post-pandemic era.