Industrial parks in Africa are using shared water treatment, electricity connections and logistics services to reduce the infrastructure costs manufacturers face when establishing textile operations. However, experience in Ethiopia shows that keeping these services financially viable remains a challenge.
The approach shifts part of the initial investment burden from individual factories to industrial park developers. Manufacturers pay to access common facilities rather than financing every utility installation themselves.
For countries seeking to process more cotton into yarn, fabric and finished products, shared infrastructure could help attract investment beyond garment assembly into spinning, weaving, dyeing and finishing.
Common Services Lower Barriers to Investment
Rajeev Arora, a Kenya-based cotton, textile and apparel specialist, said shared industrial infrastructure could strengthen connections between production stages.
Speaking at an October webinar hosted by the Africa Cotton, Textile and Apparel Centre, he highlighted parks that combine manufacturing space with centralised water treatment.
Research by the Nigerian Economic Summit Group also identifies common wastewater treatment, testing laboratories, logistics facilities and transport links as tools for spreading investment costs and creating economies of scale.
These services are particularly relevant to wet processing. Bleaching, dyeing and finishing require water, chemicals and thermal energy, alongside systems to treat the resulting effluent.
Read more: Can Africa Turn Its Cotton Strength Into a Global Textile Industry?
Hawassa Demonstrates Water Recovery—and Operating Costs
Ethiopia’s Hawassa Industrial Park provides an example of centralised wastewater management. According to the Industrial Parks Development Corporation, its treatment plant was designed to handle 11 million litres of wastewater daily. The city administration reports a water recovery rate of approximately 90%.
The facility uses zero liquid discharge technology to treat wastewater for reuse within the park.
However, a World Bank study found a substantial gap between operating costs and factory charges during the period it examined. Treatment cost approximately $3.40 per cubic metre, while factories paid $0.80 per cubic metre.
The park developer also covered substantial electricity costs. The study raised questions about whether tenant fees were sufficient to sustain the service and highlighted technical skills and service-contract arrangements as operational concerns.
The findings illustrate that shared infrastructure can reduce manufacturers’ costs while leaving developers responsible for financing the difference.
Benin and Togo Develop Shared Treatment Networks
An International Finance Corporation review updated in March 2026 records operational common effluent treatment plants at the Glo-Djigbé Industrial Zone in Benin and the Adétikopé Industrial Platform in Togo.
For Glo-Djigbé, the review reports internal water reuse of approximately 85–90% within textile operations.
Access to common treatment does not remove factories’ individual responsibilities. Operations generating more heavily polluted wastewater must carry out preliminary treatment before discharging into the shared network.
The review also requires monitoring of potential effects on community groundwater supplies, as industrial water at the zones is drawn from deep aquifers.
Energy Supply Remains a Separate Challenge
Shared water infrastructure addresses only part of textile manufacturers’ utility requirements.
The IFC review states that the assessed ARISE zones obtain electricity from national grids, supported by emergency generators. Renewable options, including rooftop solar, were under consideration.
Adétikopé has also published plans for a solar project, potentially involving an independent power producer under a 20-year power purchase agreement. The project information describes development work but does not establish that the proposed supply is operational.
Textile specialist and industrial designer Oluwambe Akinmoye said renewable electricity could support some factory activities, alongside investment in machinery that consumes less energy.
Read more: Re-Engineering the African Textile Ecosystem: A Strategic Value-Chain Roadmap
Financing and Skills Determine Long-Term Performance
Arora proposed combining development finance, commercial lending and equipment leasing to reduce upfront investment requirements.
Leasing arrangements with machinery manufacturers and financing companies could help factories acquire low-water dyeing equipment and automated looms. Grants could support feasibility studies, technical assistance and vocational training.
He also called for closer cooperation between manufacturers, training institutions and machinery suppliers to prepare workers to operate and maintain new equipment.
At the same webinar, Dr Debanjan Das of West Virginia University cautioned that better environmental performance does not automatically generate stronger financial returns. He encouraged manufacturers to prioritise energy, water and waste projects with a clear payback and maintain transparent production records for buyers.
For Africa’s developing cotton-processing hubs, the opportunity lies in combining shared facilities with reliable operations, realistic service charges and the technical skills needed to maintain them.
