Setting up a small clothing production factory

Hi Ele,

This is a great idea. There is a small but robust textile industry in Santiago and concentrated in Praia (Achada Grande Trás). The fact that you intend to export your products will differentiate your business from all the others which target the local market (but primarily for uniformes).

I've answered your questions below:

Keen to know if there already exists many similar garment manufacturing establishments already operating in Praia, CV?

Yes, there is an existing robust textile sector operating in Praia.

Is there a readily available skilled labour market in this field?

Yes, there is readily available skilled labor in the textile sector in Praia. Sewing is a very much appreciated skill.

What is the typical monthly salary for a trained seamstress?

It's ranges from $150-250 based on experience and skill.

What is the monthly rental expectations for a studio space to operate my business within (roughly 800 sq ft)?

It will be around $500-800 per month depending on the location.

Would I need to import the sewing machinery/ studio equipment needed or are there local suppliers available?

There are few local suppliers, especially the suppliers of Chinese products. You'll probably want to import yourself.

What/ if any permits and licenses would I need to apply for to start?

No special permits are needed! You just need your commercial license from the Câmara Municipal which is what every business with a storefront needs.

Would my type of business be eligible to operate within the free trade zone?

Yes. And the rents in there are quite competitive.

Hope this helps. If you need help on the ground, please contact me in private.

Cheers,

Angelo

Angelo

Thank you very much Angelo for your insights!

I would be interested in knowing more about the free trade zone application process - do you have any knowledge that you can share on this?

Certainly, I am motivated to explore this region further and will now plan towards an exploratory business trip in the coming months.

Whilst I am not immediately focusing on opening a retail clothes store yet, I would like to know if you are aware of many premium or high-end clothing shops located in the tourist areas of Sal and Boa Vista? I assume if there are any at all, they would most likely be concentrated around these tourism hot spots, would that assumption be correct?

*Other items I want to ask about is whether there is a demand for jewellery and accessory products? Do you know if there are trained jewellery makers that work with precious and semi precious stones and metals; as well, keen to know if there are skilled leatherworks artisans for bags and footwear?

Thank you for your offer of further assistance, I should like to call upon you again closer to the time and perhaps organise a meet if possible.

Much appreciated!

Elle

Thank you very much Angelo for your insights!I would be interested in knowing more about the free trade zone application process - do you have any knowledge that you can share on this?Certainly, I am motivated to explore this region further and will now plan towards an exploratory business trip in the coming months.Whilst I am not immediately focusing on opening a retail clothes store yet, I would like to know if you are aware of many premium or high-end clothing shops located in the tourist areas of Sal and Boa Vista? I assume if there are any at all, they would most likely be concentrated around these tourism hot spots, would that assumption be correct?*Other items I want to ask about is whether there is a demand for jewellery and accessory products? Do you know if there are trained jewellery makers that work with precious and semi precious stones and metals; as well, keen to know if there are skilled leatherworks artisans for bags and footwear?Thank you for your offer of further assistance, I should like to call upon you again closer to the time and perhaps organise a meet if possible.Much appreciated!Elle -@Mayellie

Hi Elle,

I've provided you with additional feedback below:

I would be interested in knowing more about the free trade zone application process - do you have any knowledge that you can share on this?

Yes. The free-trade zone is called the Technology Park and it is located halfway between the airport and the seaport. They had initially purposed it to attract technology companies but of course it would be silly to cater only to tech companies when there are so many possibilities. There is no "application process" per se. Rather, you simply have to locate your company inside the park. I will get the details from them tomorrow regarding how you would locate there and what is the rental cost.

Certainly, I am motivated to explore this region further and will now plan towards an exploratory business trip in the coming months.

Contact me a week before your arrival and I will be sure to be available to assist you.

Whilst I am not immediately focusing on opening a retail clothes store yet, I would like to know if you are aware of many premium or high-end clothing shops located in the tourist areas of Sal and Boa Vista? I assume if there are any at all, they would most likely be concentrated around these tourism hot spots, would that assumption be correct?

I don't believe there are any high-end retailing clothing stores in Sal or Boavista. I'm not sure any tourist thinks of CV as a destination to go shopping for high-end clothing. There are a few boutiques in the capital, but almost no one shops there for clothing. The locals who could afford to shop there would all rather go to Europe or the USA to do their shopping for high-end clothing. Selling high-end clothing in CV is not a good idea. The locals can't afford it (CV is an extremely poor country with average wages of $200), and tourists don't shop for such clothing here. Manufacture clothing here at very low cost, but export and sell in foreign markets. That is the winning business formula.

Other items I want to ask about is whether there is a demand for jewellery and accessory products? Do you know if there are trained jewellery makers that work with precious and semi precious stones and metals; as well, keen to know if there are skilled leatherworks artisans for bags and footwear?

There is no market here for real jewellery and accessories. As noted, locals can't afford high-end anything and foreigners do not come here to purchase high-end items (it's not even a thought that crosses rtheir minds). However, there is a huge market for fake jewellery and accessories, and for local jewellery and accessories. Anything cheap will sell BUT you can have a sustainable business doing this as there are thousands of people peddling such stuff (and most of it is made in China!)

Thank you for your offer of further assistance, I should like to call upon you again closer to the time and perhaps organise a meet if possible.

I'd be happy to meet. Let me know about one week before you arrive.

Best regards,

Angelo

P.S. For everyone on the forum, I always get the question in one form or another about starting businesses in CV to sell expensive items. Cape Verde is very different from the Caribbean where the economies are robust and the per capita income is quite high. Though small, those are upper middle income countries with significant wealth among their local population. Cape Verde is a lower income county. There is massive poverty though you cannot tell because it is wide-spread but there are no people starving in the streets where poverty would be plainly visible. Even the poorest of Cape Verdeans dress with dignity and carry themselves with pride. So the poverty is deceptive.

The average worker takes home about $200 per month and out of that, they must pay rent and utilities plus food (and prices have surged while wages remain stagnant). The locals can't afford anything at the end of the day. There are obviously some people with good jobs and good wages (about $500-$1000 per month for managers and directors) but that is such a tiny fraction of the population that you cannot make them a viable target market. With such a lack of purchasing power, you cannot make a market here for anything except for the barest of necessities (food, water, clothing, entertainment, etc). And even then, you must note that the Cape Verde population is TINY. Only half a million people (with half of that on the island of Santiago) and half the population is under 22 (ZERO purchasing power). So this is a microscopic market. You must always keep that in mind especially if you take the size of foreign markets for granted.

The biggest markets are transport of goods and services between islands, construction (targeting relocating foreigners and Cape Verdean immigrants located in the EU and the USA) and services targeting tourists. If you fall outside of those sectors, you will not have a succesful business here EXCEPT if you manufacture products or offer services for consumers OUTSIDE of Cape Verde.

Thank you once again Angelo!

I appreciate all the advice and information you have shared so far. 

I will get in touch again soon, once I have firmed up my travel plans.

Elle