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<p style="text-align: justify;">The Expanding Enterprise Participation in the Textile and Clothing (T&C) Global Value Chain Project is a sub-component of the Lesotho Competitiveness and Financial Inclusion Project, funded by the World Bank. This project aims to enhance the competitiveness of Lesotho's T&C global value chain, aiding firms in recovering from the pandemic's impacts and capitalizing on new opportunities in global value chain reorganization. The primary objectives are to expand opportunities for Small and Medium-sized Enterprises (SMEs), improve productivity, and employment conditions.</p><p style="text-align: justify;">The project is a collaborative effort between the Government of Lesotho, the International Labour Organization (ILO), and the International Trade Centre (ITC). It targets all active firms in Lesotho's T&C sector, particularly emphasizing Basotho companies, as the renewal of the African Growth and Opportunity Act (AGOA) in 2025 is uncertain.</p><p style="text-align: justify;">The project offers tailored technical assistance packages covering pre-production support, production improvement, and post-production enhancement. It involves a 42-month international Technical Assistance phase, integrating the ILO's Sustaining Competitive and Responsible Enterprises (SCORE) program and the ITC's Global Textile and Clothing (GTEX) program. This will be followed by a 30-month national implementation phase, developed during the international TA phase.</p>
<p>To investigate the potential of expanding investment (and trade) linkages between India and Africa, capitalizing on the structural changes and resulting opportunities brought forth by the African Continental Free Trade Area (AfCFTA). </p><p>Will assess constraints and opportunities in each of these four areas and provide concrete recommendations for policy action. In addition, several transversal thematic areas will be probed and emphasized upon – technology and knowledge transfer, south-south cooperation at the institutional level, developing technical capacities, and environmental sustainability. The paper can eventually evolve into a strategic action plan for both policymakers and the private sector in India.</p><p>The objective is to analyze opportunities for enhancing Indian investment in Africa from four perspectives - automotive, pharmaceutical, agro-processing, textile, and renewable energy -with case studies in each to describe working models which may enhance business interest and highlight potential.</p><p>Case studies on investments under Supporting Indian Trade and Investment for Africa (SITA) will also be updated to reflect the current, post-investment operating environment.</p><p><br></p>
<p><strong>Project’s Target Areas and Groups:</strong></p><p>Target beneficiaries were drawn from the four lowland districts of Leribe, Berea, Maseru and Mafeteng.</p><p><strong>Target Groups:</strong></p><ul><li><p>Farmer Groups (Cooperatives and Associations)</p></li><li><p>The youth</p></li><li><p>Women</p></li><li><p>Individual smallholder farmers who have basic resources and motivation required to successfully improve agricultural productivity and diversify into market-oriented agriculture. However special concessions were made for the poorest of the poor who demonstrated enough passion and commitment to enterprise but lacking in basic means.</p></li><p><br></p><li><p><strong>Implementing Entities:</strong></p><ul><li><p>Ministries of Trade and Industry (MTI), of Agriculture and Food Security (MAFS) and of Small Business, Cooperatives and Marketing (MSBCM).</p></li><li><p>The International Trade Centre (ITC), as the main implementing entity. Responsibilities among these entities were shared in accordance with the following table:</p><p><strong>Outcomes and Responsibilities</strong></p></li></ul></li><li><table border="1" cellpadding="0" cellspacing="0" width="120%"><tbody><tr><td width="30%"><p align="center"><strong>Outcome</strong></p></td><td width="16%"><p align="center"><strong>Partner Organisations</strong></p></td><td width="52%"><p align="center"><strong>Focus Area</strong></p></td></tr><tr><td rowspan="3" valign="top" width="30%"><strong>Outcome 1</strong><br>Enhanced skills and knowledge of Smallholder farmers (SMEs) and their cooperatives in the use of appropriate technology in production of high-value FFVs.<br></td><td valign="top" width="16%">MTICM<br></td><td valign="top" width="52%">· Identification of beneficiaries and their location as well as specific needs within cooperatives<br>· Approval and coordination of Project management processes<br></td></tr><tr><td valign="top" width="16%">ITC<br></td><td valign="top" width="52%">· Office of Africa (Procurement and supply of appropriate agro-technology)<br>· Sector Competitiveness Section (Division of Market Development)<br></td></tr><tr><td valign="top" width="16%">MAFS<br></td><td valign="top" width="52%">· Identification of beneficiaries and their location as well as specific needs within cooperatives<br>· In collaboration with suppliers of equipment provide agronomical support and relevant training, crops department assist in the identification of Project beneficiaries and field services assist with extension work<br></td></tr><tr><td rowspan="2" valign="top" width="30%"><strong>Outcome 2</strong><br>Masianokeng Mushroom laboratory provides greater volumes of Mushroom Spawn for the ever-growing demand for the spawn in Lesotho.<br></td><td valign="top" width="16%">MAFS<br></td><td valign="top" width="52%">· In collaboration with suppliers of equipment install and lead production of additional spawn at the selected premises<br></td></tr><tr><td valign="top" width="16%">MTICM<br></td><td valign="top" width="52%">· The marketing department to assist with identifying potential markets for the mushroom<br>· Standardisation, Quality Assurance, Accreditation and Metrology (SQAM) should help with proper packaging of mushroom to ensure freshness and market value<br></td></tr><tr><td rowspan="3" valign="top" width="30%"><strong>Outcome 3</strong><br>Strengthened capacity of the DSQA to deliver Quality Assessment support services to SMEs.<br></td><td valign="top" width="16%">ITC<br></td><td valign="top" width="52%">· Enterprise Competitiveness Section –SQAM Unit (Division of Business and Institutional Support)<br>· Trade Information Section (Division of Market Development)<br></td></tr><tr><td valign="top" width="16%">MTICM<br></td><td valign="top" width="52%">· Department of Standards and Quality Assurance (DSQA) – lead and design the strategy for standard knowledge development<br>· Department of marketing should start mentioning Lesotho’s products conformity to standards as a new marketing ploy<br></td></tr><tr><td valign="top" width="16%">MAFS<br></td><td valign="top" width="52%">· Agriculture research department<br></td></tr><tr><td rowspan="2" valign="top" width="30%"><strong>Outcome 4</strong><br>Strengthened consolidation/commercial Market Centre that manages an inclusive supply chain services linking cooperatives to domestic and international markets.<br></td><td valign="top" width="16%">MTICM<br></td><td valign="top" width="52%">· Coordination of design and implementation of the FFV supply chain<br>· Coordination of partnerships between producers and private sector (Consolidation-Marketing Centre operations)<br></td></tr><tr><td valign="top" width="16%">ITC<br></td><td valign="top" width="52%">· Export Strategy Section: build capacity and design sector strategy for the FFVs<br>· Export Strategy Section: Build capacity and design sector strategy for the FFVs<br>· Market Information System (mobile and printed versions for use by locals)<br></td></tr><tr><td rowspan="2" valign="top" width="30%"><strong>Outcome 5</strong><br>Improved financial management skills among target coops/smallholder farmers and as well as capacity enhanced to receive bank loans.<br></td><td valign="top" width="16%">MTICM<br></td><td valign="top" width="52%">· In collaboration with Ministry of Finance lead the deployment of the Credit Guarantee Scheme to Project beneficiaries<br></td></tr><tr><td valign="top" width="16%">ITC<br></td><td valign="top" width="52%">· Train farmers and cooperative growing FFVs to better deal with finance management issues including with finance houses e.g. bank loans repayment<br></td></tr></tbody></table></li></ul>
<p>Lesotho is a Least Developed Country with a relatively small and concentrated export basket. Some of the constraints affecting its private sector include: lack of adequate infrastructure and productive capacity, difficulties to navigate the complexity of foreign market requirements, difficulties to identify the opportunities offered by existing trade agreements, limited managerial capabilities, little technological innovation, and limited access to key inputs and market intelligence. All of these constraints impact the country’s ability to compete in global markets and hinder the government’s priorities to create jobs with a focus on youth and women as well as economic growth through enhanced trade competitiveness. The Government of Lesotho, through the Ministry of Trade and Industry (MTI), has formulated its 2021-25 National Export Strategy (NES) Roadmap. The NES Roadmap acts as a blueprint for the Government, the private sector and development partners in their joint effort to support Micro, Small and Medium Enterprises (MSMEs) and to expand the trade competitiveness of the country. The NES Roadmap provides a prioritized plan of action with specific activities to support exporting MSMEs at the national level in three strategic sectors: horticulture, textiles and apparel, as well as light industry. The implementation of these activities will help Lesotho to seize existing trade opportunities. The Government of Lesotho has requested ITC to lead in the design of project(s) to support the implementation of the NES Roadmap. The bankable project proposal to be developed should take into consideration the recommendations of Lesotho’s National Trade Policy Framework and the strategic and operational objectives of the NES Roadmap both at the national and sector levels. Indeed, such objectives will pay singular attention to post-pandemic recovery of MSMEs that were affected by the COVID19 global health crisis.</p>
<p>The project will provide the Ministry of Trade and Industry with advisory services and undertake quality control measures on the consolidated National Trade Policy to ensure alignment with the ITC approach of “Trade Policy for Export Success”; it will develop an implementation program for the National trade policy and formulate the National Export Strategy development roadmap.</p><p><br>The National Trade Policy will be used as a key reference to guide the country`s efforts in expanding productive capabilities in strategic export potential sectors. The strategy will therefore attempt to determine where Lesotho is as an exporting country and where it needs to be in order to achieve the socio-economic goals set out in the Vision 2020.</p>
While multi-dimensional poverty remains high in sub-Saharan Africa, the continent's high growth rates and youthful demographics make it an attractive investment destination. Big opportunities exist to create jobs, boost incomes and reduce poverty by connecting African small and medium sized enterprises (SMEs) to international trade and increasing local value addition to Africa’s assets in agrifood, manufacturing and services. ITC’s emphasis on digital connectivity and the green transition is helping transform digital landscapes across Sub Saharan Africa with our support to tech startups and tech hubs.
ITC delivers customised solution for landlocked developing countries (LLDCs) that confront particular trade development challenges and works to effectively integrate them into the global trading system. Although they lack territorial access to the sea, these countries can overcome trade barriers by joining regional and global value chains, improving diversification, enacting sound trading policies and improving their logistics, infrastructure and institutions.
We deliver customized solutions for least developed countries (LDCs), enabling them to increase their participation in the global economy and reach development goals through exports. We focus on creating access to digital technologies and capabilities in LDCs, where current internet penetration is at 27%, as this is increasingly critical to ensure opportunities are universally shared. We also assist LDCs in their bid for WTO membership, and support their implementation of WTO agreements.
ITC’s One Trade Africainitiative supports the implementation of the African Continental Free Trade Area (AfCFTA), empowering African enterprises, especially women- and youth-led businesses, to access market opportunities from continental integration. The initiative is an integrated package of technical assistance solutions that ITC is offering to the African business community operating in both the formal and informal sectors.
