By Mary Porter Peschka*
What will it take to move Africa’s fashion and textile industry from potential to performance?
I explored that question at the Sankalp Africa Summit 2026 in Nairobi, a two-day event that brought together entrepreneurs, investors, and ecosystem leaders to discuss scaling enterprises across Africa and other regions to drive innovation and jobs.
For Africa, the fundamentals for fashion and textiles are compelling. According to regional market projections, Kenya’s textile and apparel industry generates roughly US $450 million in annual exports, employs tens of thousands directly (over 65,000 in AGOA firms alone), and anchors a fast-growing East African apparel market worth about US $14 billion.
Beyond Kenya, fashion and textiles employ millions across the Global South, anchor manufacturing ecosystems, and offer one of the fastest pathways to export-led growth for micro-enterprises. They are also central to climate outcomes—as a platform for greener production and circular business models.
What is holding fashion and textiles back in Africa is not demand or talent. It is the missing middle: scale capital, fit-for-purpose finance, and enabling policy frameworks that allow small- and medium-sized enterprises to grow, formalize, and integrate into global value chains.
This is where IFC’s work in the creative industries, including through our SME Fashion Program, is focused: strengthening investment readiness, supporting manufacturers to meet international standards, and crowding in private capital through de-risking and market-building approaches.
Our SME Fashion Program. has completed a pilot supporting fashion and design SMEs in West and North Africa—including Ghana, Senegal, Nigeria, and Morocco—and has shown strong commercial and development returns, with participating firms positioned for 3–5x revenue growth and significant job creation for women and young people. The program is now scaling to support 30 high-potential African SMEs, pairing hands-on advisory services with pathways to private investment.
The program is the only pillar of our support. We know that more can be done, and the opportunity is timely. As global supply chains diversify and sustainability expectations grow, countries and firms that can offer reliable production, compliant factories, and climate-smart operations will capture disproportionate gains.
A clear takeaway from the panel I spoke at Sankalp, “From Craft to Capital – The Fashion and Textile Industry as an Engine of Trade, Climate Action, and Employment,” was alignment between capital and policy.
Investors are increasingly looking beyond pilot projects toward scalable platforms. Policymakers are recognizing the role of fashion and textiles in jobs, exports, and industrial competitiveness. Entrepreneurs are ready to grow.
The next phase is execution. Turning conversations into pipelines will require:
- Financial products that reflect the realities of creative manufacturing SMEs
- Policy environments that reward formalization, sustainability, and exports
- Continued collaboration between founders, capital providers, and development partners
IFC’s SME Fashion Program is built to address these execution gaps by converting high-potential creative manufacturers into an investable pipeline. And while policy reforms remain essential, the program reinforces formalization, export readiness, and international-standard compliance at the firm level—helping ensure that when enabling incentives are in place, companies can scale quickly and sustainably.
Sectors once viewed as informal or niche—such as fashion and textiles—are increasingly central to trade competitiveness, employment generation, and industrial policy agendas across the Global South.
The path from craft to capital is not theoretical. It is investable, measurable, and already underway. The question now is how quickly we choose to accelerate it.
*Mary Porter Peschka is IFC’s Division Director for Eastern Africa based in Nairobi, Kenya
