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COTTON TO TEXTILES TO FASHION: WORKING REGIONALLY
The cotton sector is central to Africa’s efforts in fighting poverty.
It provides income for millions of people, especially those living in
rural areas, and is an important source of foreign exchange earnings.
Textiles and clothing production have allowed some African countries to
diversify their exports and increase employment opportunities, including
for low and semi-skilled workers, particularly women.
Nonetheless, global trends mean African countries now need to think
regionally when it comes to strategies for the cotton to clothing
sector. While individual countries have difficulty establishing an
entire value chain from cotton to textiles and clothing, this can be
achieved at regional level. Moreover, regional economies of scale and
expertise can improve the sector’s performance and allow African
countries to tap into international markets for clothing and fashion.
ITC’s programmes in Africa encourage regional trade and cooperation for
global gains, targeting specific sectors of particular interest to
African countries. ITC assisted COMESA and the African Cotton Textile
Industry Federation (ACTIF) to develop a regional cotton to clothing
strategy, which was formally launched during the COESA Heads of state
summit in June 2009. In addition, in Central and West Africa ITC works
with the African Cotton association (ACA) and the African Cotton
Producers Association (AProCA) as well as with CEMAC and UEOMA to
develop a regional strategy for central and Western Africa. These
efforts involve representatives from all stages of the cotton value
chain drawn from across the Eastern & Southern African regions,
including farmers, seed developers, ginners, domestic merchants,
research institutions, textile and clothing manufacturers and public
sector representatives.
Among the strategies’ main objectives are to:
- Increase production of quality cotton and raise farmer incomes.
- Expand access to affordable agricultural inputs and farm credit.
- Improve production of quality lint and enhance market
penetration.
- Increase competitiveness and intra-regional trade in the textile
sub-sector.
- Diversify product lines and make clothing manufacturing more
efficient.
- Develop a regional value chain that uses African materials and
adds value to African cotton through textile processing and fully
exploits duty-free market access for clothing products.
ITC is assisting in implementation of the strategy. It will also seek
to attract other development partners to work on parts of the strategy
that go beyond ITC’s mandate and core competencies.
A BIGGER ROLE FOR AFRICA
ITC’s efforts are aimed at making Africa a stronger player in the
international cotton trade. This depends on boosting competiveness and
establishing stronger links with cotton importers, especially in Asia.
To compete better, all stakeholders – from farmers and ginners to
commission agents and government officials – need a better understanding
of destination markets and consumers, as well as the value chain itself.
The ITC Cotton Exporters’ Guide provides valuable information on cotton
markets and consumers, as well as a detailed overview of the cotton
value chain. Using the Guide’s marketing and trading analysis, African
farmers and ginners can improve their negotiating position and exploit
possible price premiums. The on-line version of the Cotton Guide is
envisaged for 2009.
ITC also plans to assist African cotton-producing countries to develop a
Cotton Trading School. This would involve using existing bodies, such as
universities, to host training events aimed at building capacity in
cotton trading. The curriculum will be based on the subjects covered in
the Exporter’s Guide.
FOSTERING SOUTH-SOUTH COOPERATION
Following the phasing out of the Agreement on Textiles and Clothing,
the textile industry and, thus cotton consumption, is shifting to Asia.
Building on its longstanding work with Asian textiles and clothing
producers, ITC is facilitating cooperation among developing countries,
with a special focus on links between Africa and Asia. This involves
five main themes.
Learning from success. Training programmes organized by ITC allow
successful cotton producers in countries such as China, Turkey and India
to share their knowledge with cotton professionals from Western,
Central, Eastern and Southern Africa. This includes the transfer of
cotton growing and processing technologies, such as good agricultural
practices and development of high yielding and resistant cottonseed
varieties.
Developing capacity to transform cotton. Through ITC training,
successful textile and clothing producers are relaying their experiences
to African countries. So far training events have taken place in China,
India, Turkey, Korea and Bangladesh, with plans to expand such
cooperation to Indonesia, Thailand and possibly Pakistan.
Promoting African cotton. ITC also links up African producers with
potential customers through promotional activities in Asia. These aim to
give African producers a better understanding of Asian markets,
including the need to assure importing countries of the reliability and
quality of supply.
Sourcing from other developing countries. Encouraging African producers
to search out suppliers in the developing world promotes savings on
items ranging from seeds and fertilizer to textile technology. ITC
currently is incorporating such work into its programme.
Encouraging intra-African cooperation. Better knowledge of the cotton
and textile sectors in other African countries is essential to regional
strategies, yet is often lacking. ITC views such cooperation as a first
step toward joint activities that could eventually differentiate African
cotton and textiles on world markets.
The ITC African Cotton Development Initiative is partially funded by the
European Union as part of the ACP (African Caribbean Pacific)
Agricultural Commodities Programme.
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