Rules of origin (ROO) could have an impact on investment in Africa. In the highly contested textile and apparel sector the African Continental Free Trade Area (AfCFTA) negotiations on the rules have not been concluded. The choice of what type of ROO to adopt will have far-reaching implications. African countries cannot rely on ROO alone, and need a range of supply-side policies and strategic alliances to ensure they are not stuck at the lower end of the value chain.
This policy brief introduces the textile and apparel value chain, as well as the ROO being discussed within the AfCFTA. It then looks at the capabilities and capacities in the textile and apparel regional value chain, and investigates the impact of foreign direct investment in some of the African countries and the issues to consider in the textiles and apparel sector. Recommendations are made based on complementary areas for consideration in attracting investment in the continent. Finally, a conclusion is made on the potential impact of the ROO on investment on the textiles and apparel sector in the AfCFTA.