Tough 2009 for Mauritius
18/12/2008
Textile firms in Mauritius that supply some of the world's most important apparel retail groups are bracing themselves for a tough 2009.
Already faced with the end of preferential trade deals with Europe, the country's clothing companies have been hit this year by surging oil prices and an appreciating rupee, and now the global slowdown looks set to hit orders and profits.
"This is certainly the toughest I have seen it during the 20 years I have been in the trade," Harold Mayer, chief executive of Ciel Textiles, told Reuters on December 18.
According to the Central Statistics Office, textiles contribute 6.5% of gross domestic product in Mauritius, account for 11% of employment, and, in the first nine months of 2008, accounted for more than 40% of exports from the country, worth $550 million.
Ciel Textiles produces T-shirts and shirts for stores such as Zara, Marks & Spencer and Next.
"Most of our retailers are in Europe, some are in the US, and their sales have dropped by 10% on average. To compensate for this fall in sales, they are fighting for better prices," said Mr Mayer, adding that he expected the middle market to be worst hit.
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