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ISSUE No. 8 JANUARY - MARCH 2014

T h e O f f i c i a l P u b l i c a t i o n o f A f r i c a n C o t t o n & Te x t i l e I n d u s t r i e s F e d e r a t i o n

Style & fashion galore at ‘Origin Africa’ designers’ showcase - Addis Ababa

Fibre to Fashion


About ACTIF ACTIF is a regional trade body formed in June 2005 by the cotton, textile and apparel sectors from across sub-Saharan Africa to create a unified and recognized voice in both regional and global trade affairs. ACTIF’s mandate is to bring the disparate needs of the cotton, textile and apparel sectors into cohesive and consensus driven positions at regional and international trade and development forums. Over the years, ACTIF’s role as the voice of the Cotton Value Chain of Africa has continued to grow from strength to strength. ACTIF is now well recognized by the African Union Commission (AUC), key EU/National and regional associations and organizations, among other several development partners. ACTIF’s aim is to promote African cotton, textile and apparel value chain from Fibre to Fashion. It is the objective of ACTIF to brand Africa through the ‘Origin Africa’ campaign that is intended to help Africa make its position as a sourcing destination among other countries in the world by showcasing buyers, the scope of its niche design, fabrics and manufacturing abilities. ACTIF also intends to promote the concept of a regional value chain leading to increased market opportunities, business linkages, trade and investment across the region.

Mission “To develop and successfully deliver services that enhances our membership’s competitiveness in the world market.”

Vision “An integrated cotton, textile and apparel industry that effectively competes on the world market.”

Objectives • Build cooperation, interaction, partnerships, alliances, networks and market linkages; • Promote a regional supply chain, focusing on trade issues of all sectors of the value chain, building a platform for reducing constraints to regional trade; • Address challenges and increase competitiveness in the global post quota environment; • Address key policy issues that negatively affect regional and global trade; • Collect market data, generate information exchange and share regional expertise; • Promote investment and encourage international alliances and affiliations; • Recognize and support accepted principles of international codes of corporate conduct; • Facilitate awareness of new technologies and represent the regional membership at regional and international fora and lead advocacy and lobbying actions for the best interest of ACTIF members.


African Cotton & Textile Industries Federation JAN-MARCH 2014

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03 - About ACTIF 05 - Editorial 06 - Foreword 07 - ACTIF Board 08 - Member Profile

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09-12 - ACTIF News 13-14 - Industry News 15 - Country Focus 16-20 - Expert Analyses 21 - Pictorial - AGOA 24-31 - Features

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32-37 - Expert Analyses 38-41 - Trade Policy 42-43 - Regional Update 44-45 - Calendar of Events 2014 47-48 - ACTIF Members

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EDITORIAL

ACTIF lobbies for more support from EU Commission

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s we bid the year 2013 goodbye and welcome 2014, it is imperative to look back and take stock of some developments and events that shaped the African cotton value chain in the last year.

I will start with the partnership between the International Trade Centre (ITC), a subsidiary organization of the World Trade Organization (WTO) and the United Nation (UNCTAD) with ACTIF. ITC and ACTIF came together to offer trade-related technical assistance with the Centre facilitating a trip for ACTIF to meet ambassadors of COMESA member states in Brussels. We briefed them on the regional Cotton to Clothing (CtC) strategy developed and adopted by the trading block in 2009.

Rajeev Arora Executive Director, ACTIF

The key objective of the meeting was to outline the current state of the cotton value chain in the Eastern and Southern Africa (ESA) region and propose interventions to rejuvenate the textile sector. We also used the opportunity to heighten advocacy for the production and value addition of cotton in the sub‐region. In addition, the meeting lobbied for commitments of development aid towards the cotton value chain by support partners and agencies under the WTO platform. The COMESA CtC strategy was developed to bring cohesion into the disparate initiatives being undertaken by individual nations. The strategy was also developed to exploit the large unexploited trade potential in the region.

The key objective of the meeting was to outline the current state of the cotton value chain in the Eastern and Southern Africa (ESA) region and propose interventions to rejuvenate the textile sector

UNCTAD is currently spearheading efforts to develop a Pan African Cotton Road Map that will link all existing regional strategies for developing cotton production and value addition in Africa. ACTIF played an important role in the development of the road map by mobilizing private sector participation starting with its membership. During its mission in Brussels, ACTIF was acknowledged as the Pan African private sector representative of the cotton value chain. The federation made a presentation on the current position of the cotton value chain in ESA and strategic interventions needed to move it forward . A detailed coverage of ACTIF’s visit to the EU is featured in this edition and we hope you enjoy reading through. Please feel free to give us your feedback.

Rajeev

Editor: ACTIF and Alison & Davis Communications Editorial Board: Rajeev Arora, Joseph Nyagari, Nancy Bwore Contributors: Rajeev Arora, COMESA SC- Sindiso Ngwenya, Joseph Nyagari, Eléonore Johasy, Matthijs Crietee, Festus Musyoki, Prof Abdrahman Hassan Abdellatif, Godfrey Buka,Paul Ryberg, Gérald Estur, Barry Fisher, Matthias Knappe, Tine Bork, Dr. Paul Kamau, Diana Opoti, Varun Vaid Editorial and Design: Direction: ACTIF Photography: ACTIF Design and Layout: Alison & Davis Communications Advertising Sales: Anne Muthoki, Tel: +254 725 038 884 / +254 733 247 052, Email: sales@actifafrica.com Printed by: Colourprint ACTIF Head Office: TVR Plaza, Block 3A, Muthithi Road, Westlands, Nairobi, Kenya, P.O. Box1249-00606, Sarit Center, Nairobi, Kenya Tel: +254-733247052 / 725038884, Fax: +254-20-2022531, Email: info@cottonafrica.com, Web: www.cottonafrica.com Distributed by: Cotton Africa is published quarterly and distributed by ACTIF to Cotton, Textile & Apparel industry players including Spinners, Manufacturers, Fashion Designers, Textile Technology providers and traders in 23 African Countries, China, EU & the United States. The mailing list has been established with the help of ACTIF members across Africa and is updated on a regular basis. Any enquiries relating to the list should be addressed to the editor. Cotton Africa is subject to copyright. Should you wish to lift any material from the publication, kindly liaise with the editor beforehand.

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FOREWORD

CtC strategy vital in fight against poverty – COMESA Sec-General The Cotton-to-Clothing (CtC) strategy for COMESA member states in Africa is vital to the continent’s efforts in the fight against poverty. It is one of the major sources of income for millions living in the rural areas, and an important source of foreign exchange earnings. Some African countries have diversified their exports through textiles and clothing while production offers employment in producing countries since it requires low and semi - skilled workers, especially women. In line with new global developments in the cotton and textile sector, COMESA has nurtured a unified regional strategic approach to key industry interventions. The overall objective of the strategy is to bring cohesiveness into the disparate initiatives currently being undertaken on national basis. The strategies and actions articulated in the CtC strategy therefore, are designed to provide the basis for improving the performance of the sector. The urgency for a regional strategic approach is also borne out of the need to exploit the large trade potential estimated in 2003 at more than US$ 673 million for the region and US$ 31.0 billion per year on the world market. Countries of the region were able to secure only 6% share of the world market equivalent to US$ 1.9 billion. The COMESA secretariat has supported the strategy implementation in several ways including: a.) Support to member states to align existing strategies to the regional strategy and development of new ones where they do not exist to ensure that implementation takes place at National level. b.) Positioning the strategy document as a coordination tool for all development partners for resource

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mobilization. The European Commission was the first to adopt the strategy as the starting point for its development intervention under the EU Africa cotton partnership. Other UN technical agencies like UNCTAD, FAO, ITC, CFC and the World Bank have also adopted the strategy to inform their interventions under the framework of EU Africa cotton partnership. c.) The secretariat through the COMESA members States Ambassadors in Geneva also introduced the strategy within the framework of the WTO Director General Consultative Mechanism for Cotton. This initiative would serve to direct donors’ assistance (under the WTO cotton development support) towards our key priorities and strategic objectives. d.) The secretariat has also embarked on a new programme to support SMEs in the clothing and handloom sector in the region. The SME cluster programme is aimed at piloting the capacity building programmes for SMEs so as to develop products and skills and further enhance competiveness.

ACTIF has been playing a key role in linking various funding partners and stakeholders to develop the sector. It is the only Pan-Africa organization that has members across the value chain. It can act as a catalyst to the intra-industry trade in the region, thus supporting existing investors to expand and attracting new investors in the cotton to clothing value chain. However, to achieve this, ACTIF needs to focus on delivering service to its members. That is creating value by enhancing intra-industry trade among members from different countries. For example, if a member in Kenya can source lint from Zimbabwe convert to yarn and sell some of the yarn to Mauritius to convert into fabric that finds way into

Sindiso Ngwenya, COMESA Secretary General

Swaziland to produce garment that is sold in South Africa, Zambia, Kenya and Zimbabwe, then it shall have played its rightful role in the development of a regional value chain. The COMESA, the Southern Africa Development Community (SADC) and the East African Community (EAC) negotiations are progressing well. There is political commitment to deliver on the directive of the Head of States and Government on the tripartite Free Trade Area (FTA). The future competitiveness of the CtC value chain looks bright since most of the factors that contribute to the region’s manufacturing competitiveness such as high cost of energy, transport; telecommunication and generally unfavourable policy environment are being addressed in earnest. The regions are also investing in skills development. In the next five years, we foresee a very attractive region to investors. This include the textile and clothing investor who will want to take advantage of opportunities in the Free Trade Areas to serve the growing regional middle class in Africa and export the surplus to other continents.

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ACTIF BOARD

Jaswinder (Jas) Bedi

Lilowtee Rajmun

– Chairman Sector: Textile Country: Kenya

– Treasurer

Sector: Apparel Country: Mauritius

Eléonore Johasy

Sector: Textile Country: Ethiopia

Jolly Sabune – Director

Joseph Nkole – Director

Sector: Apparel Country: Madagascar

Hamma A. Kwajaffa – Director

– Director

Sector: Production & Ginning Country: Uganda

Sector: Production & Ginning Country: Zambia

Jack R. Kipling

Rajeev Arora

– Nominated Director

Country: Nigeria

– Executive Director

Country: South Africa

Barry Fisher – Co-Opted Director Country: Kenya

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Fassil Taddesse

– Vice Chairman

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Country: Kenya

Belinda Edmonds – Co-Opted Director Country: South Africa

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MEMBER PROFILE

Eléonore Johasy, Executive Director GEFP Eléonore Johasy, the Executive Director, Association of Free Zones Enterprises and Partners (GEFP) in Madagascar is among the few women in Africa who are leading the continent’s drive to claim a share of the global cotton and textiles market. Eléonore believes that the cotton value chain in Africa should be able to increase its capacity and supply more to the global market. “Stakeholders have to invest in both training and equipment in order to meet the set standards. It is also important to strengthen vertical integration and give substantial support to cotton production during the growing process as well as on market prices,” she says. She was appointed as an ACTIF Board member in June 2013 on behalf of GEFP. Eléonore started her career in teaching after training at the ESDE Paris in the field of management sanctioned by a Master’s degree. She then made a quick foray into the world of journalism as Corrective and Freelance practitioner in the daily newspaper L’Express de Madagascar in 1997-1998. For the next 10 years took advantage of her experience in the art of communication, and went on to specialize through the Global Development Learning Network of the World Bank Institute. Later on she worked as a consultant in the field of communication. She has worked for UNICEF, UNDP, UNIDO and various other programmes such as the Privatization and National Land Reform Program. By now her experience had extended to related areas such as e-governance in which she participated in the development of E-Gouvernance National Program (PNEG) as a member of the Cell Development of E-Governance (CDEG). She then completed the establishment of the National Agency for the Implementation of E-Governance (ANRE) in Madagascar where she was the Executive Director at the time of its establishment in 2007. Eléonore served as Minister of Youth and Leisure in 2011 where she was part of the transitional government of Madagascar before joining the Association of Free Zones Enterprises and Partners (GEFP) in early 2012. The Association of Free Zones Enterprises and Partners (GEFP) was created in 1998 to

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promote Export Processing enterprises and lobby for its members’ interests, dialogue with the state e.g. the Ministry of Economy & Industry and the Ministry of Finance on issues such as customs and taxes. GEFP also facilitate members’ communication with social, technical and financial partners besides assisting in coordination with other organizations, elaborating strategies for development, exploring new markets, fund rising among other activities. GEFP has a total of 77 Members in three sectors. There are 34 enterprises in Textile and Garments, 11 NTIC, 7 agribusinesses and 25 other partners. In Madagascar, activities in the Textile and Garment sector include spinning, weaving, knitting, printing and finishing, making clothing in warp and weft, knitting and production of textile accessories. As GEFP Executive Director, Eléonore endeavors to sensitize policy makers from both the public and private sector to prioritize the development of a flourishing textile and garment industry. She is convinced that development of such an industry is a quicker way to create jobs and value for the Malagasy economy at the moment. She is also involved in a project that promotes the sustainable production of environmentally-friendly organic cotton in the southwest of Madagascar as a member of the Advisory committee. Away from the day to day work, Eléonore is also active in sports and social work. She was Vice-President of the women’s football section of the Malagasy Football Federation from 2008 to 2010. She is a member of Vondrona Mira Lenta ho an’ny Fampandrosoana (VMLF) militant organization for gender equality in Madagascar and the National Council of Women of Madagascar (NCWM). Eléonore is also an Administrator of the SOS Children’s Village and President of the Association of Women Tesaka Antananarivo (FVTA). Privately, she likes hiking, biking and enjoys gardening besides her interest in history, passion for novels and detective movies.

Stakeholders have to invest in both training and equipment in order to meet the set standards. It is also important to strengthen vertical integration and give substantial support to cotton production during the growing process as well as on market prices

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ACTIF participates in ongoing EPA negotiations

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he European Union (EU) Commissioner for Trade, Mr Karel De Gucht visited Kenya in July 2013 and held a meeting with various industry stakeholders in Kenya on the Economic Partnership Agreement (EPA). The meeting came at a time when the EU was about to conclude negotiations with the East African Community (EAC) on EPA. ACTIF’s Executive Director, Mr Rajeev Arora represented ACTIF at the meeting.

Kenya’s exports have continued to grow and stood at 1 billion Euros as at 2012

The meeting noted that Kenya was an economic leader and key actor in the East African region the EU is Kenya’s biggest trading partner, with 25% of Kenya’s exports actually going to the EU. Kenya’s exports have continued to grow and stood at 1 billion Euros as at 2012. This is because of Kenya’s free access to the EU market, guaranteed by a temporary instrument pending Kenya’s ratification of the 2007 EPA framework. For this to be cemented,

it needs to be expanded to more areas by reducing trade barriers, simplifying customs procedures and by improving trade-related cooperation. The EPA negotiations between the EU and EAC are on-going since 2002. An interim agreement was reached in 2007 and the European Commission put in place the Market Access Regulation (MAR) which guaranteed a continued Duty Free, Quota Free access pending the conclusion of full EPA negotiations. The MAR has been revoked and will end on 1st October 2014. The only alternative to an EPA will be, as from that date, the EU Generalised System of Preferences (GSP) which contains different tariff lines. Only Least Developed Countries (LDC) continue to benefit from a Duty Free, Quota Free access under the GSP and Kenya is not classified as a LDC.

EABC partners with ACTIF

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major milestone for ACTIF in the year 2013 was the signing of a Memorandum of Understanding (MoU) with the East African Business Council (EABC). EABC is the apex body of business associations of the private sector and corporates from the five East African countries. It was established in 1997 to foster the interests of the private sector in the integration process of the East African Community. Originally comprising members from Kenya, Tanzania and Uganda, its membership was expanded after 2007 to include the private sector from Burundi and Rwanda. The MoU was signed on 19th July between by ACTIF Chairman, Mr Jaswinder Bedi and EABC Chairman, Mr Vimal Shah, at the Red Court Hotel in Nairobi, Kenya. The auspicious ceremony was witnessed by the Executive Director of ACTIF, Mr Rajeev Arora and the Executive Director of EABC Mr Andrew Luzze. The partnership will enhance the two organizations’ efforts in becoming the unified

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voice of East Africa in the cotton value chain. ACTIF is looking forward to the new cooperation for the benefit of members in the East African region.

ACTIF Signs MoU with East African Business Council July 2013

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ACTIF NEWS

ACTIF becomes International Apparel Federation member barriers through seminars, webinars and publications made by associations. Associations can also learn from each other in executing their important mandates. Some associations have developed a strong and broad array of services geared especially at the garment industry. Others have mastered the art of lobbying their respective governments on the significance of the garment industry. IAF’s support to ACTIF as a business maker for its members By Matthijs Crietee

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ffective January 2014, Africa Cotton and Textile Industries Federation (ACTIF) becomes a member of the International Apparel Federation (IAF). ACTIF is already a member of the International Textile Manufacturers Association (ITMF). The federation is now fully linked to the main international networks of the textile clothing manufacturing chain.

Associations and global networking Through such linkages, ACTIF underscores its strong commitment to global networking. In the relative short time of its existence, ACTIF has already established numerous linkages outside Africa. IAF and ITMF memberships will expand the federation’s network even further. Membership in the two global bodies is also symbolic of the position ACTIF has attained as a representative of the growing textile and garment industry in Africa. As the global federation of garment associations from over 60 countries in all continents, the IAF strongly believes in international networking. Often, contacts between industry associations worldwide can form a pioneer infrastructure over which small and medium industry players from different continents can connect. Small and Medium Enterprises (SMEs) meet for production and for export networking through trade events, trade missions and business enquiries all handled by business associations. They learn how to deal with trade

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IAF will support ACTIF in optimizing its role as ‘business maker’ for both organizations’ members through: Joint application for projects – As mentioned earlier, this will entail networking for associations and their members, knowledge transfer and empowerment of associations. The partnership between an African and a global federation makes a strong submission and ACTIF expects to access some public funds aimed at business development in Africa. IAF‘s support of ACTIF’s own or partners’ trade events - At this point in time, the interest in exploring garment producing possibilities in Africa is growing in many countries worldwide. IAF member associations will pass on details of trade events to their members and vice-versa. ACTIF is also frequently speaking at business events and sourcing seminars globally.

Transfer of knowledge of rules and regulations As the global federation for the garment industry, IAF is dedicated to a global trading environment with more transparency and less costs for international trade. Besides the IAF, some of its key members such as the AAFA from the United States and Euratex from Europe are concerned about the growing burden created by legislation, norms and other demands exerted on the garment industry. Reach legislation in Europe requires companies to monitor a huge list of chemicals that may be present in

garments. In the US, product legislation may differ per State, with California being the absolute champion in the amount and severity of the demands it imposes on companies. On Corporate Social Responsibility (CSR) and sustainability, governments in Europe especially, are starting to answer calls by the public alarmed by the horrific industrial accidents in Bangladesh to better control labour conditions in the clothing industry. The IAF is closely involved with a number of global initiatives on CSR and sustainability. These initiatives must help to prevent various governments from instituting prohibitive requirements. For the African garment industry, ACTIF’s IAF membership creates a good opportunity to learn about rules and regulations governing the sale of garments in the US and European markets. Understanding them is an important prerequisite to successful exports to these markets. Companies cannot rely on the instructions of their clients or business partners alone. ACTIF and IAF will work on ways to transfer such knowledge to the African industry.

The garment industry as a positive force The IAF has commended ACTIF for joining its global network. Now IAF’s membership is represented on every continent. The networking emphasizes the fact that the industry is the most global one in the world where supply chains of even small brands can be spread over several continents. It emphasizes also the positive force that garment industry can exert. The industry employs tens of millions of people globally. It is often a first stepping stone in the process of industrialization in a country. As the situation in Bangladesh shows, the development of the garment industry can manifest as a difficult force to control. In Africa, the garment industry is at an early stage and we can learn from the other places in the world. ACTIF’s excellent international connections will be very helpful in making sure no lessons learned are missed!

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ACTIF builds linkages with key partners in Europe By Rajeev Arora

To continue promoting and branding its Go-To event ‘Origin Africa’ Mr. Rajeev Arora also travelled to the Zeist, also in the Netherlands in June 2013. The Executive Director met with the Secretary General of International Apparel Federation (IAF) and the Director of MODINT to cement the relationship with IAF, finalize on ACTIF’s membership and also build on ACTIF’s contacts base in the EU in order to attract IAF’s members’ participation.

ACTIF Executive Director and Henrique Postma-Hazelaar-CBI Senior Progamme Manager

ACTIF travelled to The Hague, the Netherlands last year in June and met Mrs Henrique Postma-Hazelaar, Senior Programme Manager Regional Team Africa & Middle East at the Centre for the Promotion of Imports from Developing Countries (CBI). CBI is a Dutch based agency that provides specialized assistance to exporters from developing countries and to European Union importers. The agency is currently running export development programs for the home textile sector across Africa. The main purpose of the meeting was to develop a Memorandum of Understanding with CBI, develop interventions in Africa and introduce ‘Origin Africa’ to home textiles buyers in EU and invite them for a series of seminars during the event. JAN-MARCH 2014

Other key issues tackled were both federations’ working on Global Responsibility, Education, Technology and Sourcing; kicking off discussions with International Foundation of Fashion Technology Institutes (IFFTI) on how ACTIF could get assistance in building a regional centre of excellence. Introducing ACTIF to several associations in the EU countries of: Italy/UK/Portugal /Finland among others was also discussed alongside introduction to Sidley Austin the sixth-largest US based law firm who assist third world countries for the advocacy issues in EU/USA. IAF and ACTIF’s deliberated on the latter’s participation at the IAF annual conference in Shanghai on 24th September to make a presentation on value addition and introduction to Vlisco, the largest African wax print manufacturer in Holland with three mills in Africa. ACTIF would like Vlisco to advice on how the two organizations can work together to develop their market access and production in Kenya.

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IAF is the world’s leading federation for apparel manufacturers and their associations, apparel retailers and the supporting industry. Its membership includes apparel associations from nearly 40 countries representing over 150,000 members. IAF is a politically neutral global association, open to entrepreneurs and executives from the apparel chain worldwide. IAF which strives to be the global representation of the entire apparel supply chain, acknowledged the need for African countries to be well represented and therefore the importance to bring in ACTIF as a member. IAF also saw the need for its members to source from Africa with the changing paradigm. The Federation offered to provide the following platforms: • The IAF Convention and several other activities undertaken over the year. • Through IAF Committees, the ‘member help member’ program, projects and exchange of information between members through their websites and daily networking opportunities. • Through sharing trade data so as to inform members. ACTIF would also share information that would help IAF members to be better informed about Africa. • Advocating for prolonged periods of trade agreements which would be beneficial to all businesses.

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ACTIF is currently spearheading advocacy efforts to lobby for the extension of AGOA & 3rd Country Fabric beyond 2015. The Stakeholders meeting presented an excellent opportunity to discuss AGOA status, awareness level and how Tanzania can take better advantage of it.

ACTIF hosts a workshop in Tanzania

There were a total of 50 participants drawn from the private and public sectors including: Home Textile & Decor (14); Fashion & Apparel (11); Government Agencies (10); Textile Mills (2); Ginning Companies (1); Cotton Farmer Associations (1); ACTIF (2); and EATH (1). From the survey conducted ahead of the meeting, it was clear that the level of awareness on AGOA was poor. Tanzania recorded exports worth US$ 7 million in 2012, compared to over US$ 200 million by Kenya.

Participants of the ACTIF Workshop held in Tanzania in September 2013

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ollowing the ACTIF Annual General Meeting of 2012, the corporate membership category was amended to include individual Cotton Textiles & Apparel (CTA) industry companies. It was on this basis of expanded scope that ACTIF set out to engage with existing and potential members in Tanzania during the month of September 2013. The meeting was supported by East Africa Trade hub and was organized in conjunction with International Business and Trade Tanzania Initiative (IBUTTI)

and Tanzania Cotton Board (TCB). The meeting was officially opened by Mr Odilo Majengo, Director of Trade Promotion & Marketing who was representing the Minister of Industry and Trade. In his remarks, Mr Odilo thanked ACTIF and all the partners for convening the meeting that brought together key players in the cotton value chain. Mr Odilo reiterated that the government was willing to support the development of the sector especially to promote value addition as well as develop exports under AGOA.

The government representatives present admitted that there was a lot to be done but challenged the industry to have more effective advocacy to engage with government to develop favourable policies. The participants appreciated the role that ACTIF was playing in the region. However, they recommended that ACTIF needed to have more localized activities in Tanzania and if possible, a presence in the country.

SOURCE AFRICA 2014

Title: The African Textile, Apparel & Footwear Trade Event Date: 6 – 8 May 2014 | Venue: CTICC, Cape Town, South Africa Source Africa will take place for the 2nd time this year from 6 – 8 May at the CTICC in Cape Town, South Africa. The event will bring together over 2000 decision makers and professional visitors over a three day period with the full support of USAID. Source Africa will promote African manufacturers and designers to a global audience creating excellent opportunities for the producers to do business with overseas retailers as well as increase intra-regional trade. It will include a two day trade exhibition, designer showcase, African country pavilions, international business seminars, fashion shows as well as an opening plenary session. Another important element of the event will be the professional matchmaking program which pairs regional producers with regional/international retailers, brands and wholesalers. More than 200 business meetings were

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organised at the first event in April this year. Source Africa will be the most important pan-African textile, clothing & footwear trade event on the international calendar next year. An extensive range of products and services from more than 180 top manufacturers and suppliers will be on display. Source Africa is owned and organised by LTE South Africa – leaders in trade exhibitions, an accredited trade show organiser with more than 24 years’ experience covering all aspects of the exhibition industry. ACTIF will be supporting the Source Africa 2014 event by providing marketing support, member outreach and also be incharge of preparation and implementation of the event seminars. For contact details, see page 44-45

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DANIDA launches new B2B programme

Visit to DANIDA Regional Office in Tanzania, 2013. L-R Mr. Henning Høy Nygaard (Danish Consultant) Mr. Deogratias Mbona (CEO, IBUTTI), Mr. Claus Aabling (Danish Consultant) and Mr. Joseph Nyagari (ACTIF Program Manager)

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n June 2013, the Program Manager at ACTIF alongside two Danish consultants paid a courtesy call to the Regional DANIDA office in Dar es Salaam, Tanzania for a strategic meeting. The aim of the meeting was to give a summary of the Textile East Africa (TEA) Project that was implemented in Kenya with the support of DANIDA to explore opportunities for implementing similar projects in future.

marketing, and technical assistance at factory level. The primary output developed linkages between Danish buyers and Kenyan Suppliers in order to explore sourcing possibilities.

DANIDA was happy with the outcome of the project and even welcomed the idea of having The TEA Project TEA as a full value chain was a joint project that connects the collaboration regional players in East Africa. The donor advised that there between ACTIF, Kenya Association was an ongoing study to determine which value chains of Manufactures, to work with and two others Danish Fashion & that may be of interest to Textile Association ACTIF. F u r t h e r , (DFT) and Danish DANIDA divulged that it would be launching a B2B Federation of programme in January 2014.

The Textile East Africa Project was a joint collaborative project between ACTIF, Small & Medium Kenya Association of Manufactures, Danish Present at the meeting were Enterprises Fashion & Textile the Regional Coordinator Association (DFT) and of DANIDA Business Danish Federation of Small & Medium Partnerships and the B2B Programme Enterprises (DFSME). Some of the Coordinator. The programme has since project’s accomplishments include been launched and more details can mapping of textile companies in Kenya, be accessed at the embassy websites: capacity building on corporate social http://tanzania.um.dk/ and http:// responsibility, export coaching and kenya.um.dk/ JAN-MARCH 2014

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By Joseph Nyagari Programme Manager, ACTIF

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ith the looming expiry of AGOA in September 2015, ACTIF with the support of International Trade Center (ITC) convened a strategic meeting in May 2013 to discuss the future of AGOA beyond 2015. Bringing together industry stakeholders was in line with the COMESA regional Cotton to Clothing strategy under Result 1 of the EDF 10th Cotton program, whose objective includes supporting policy advocacy to support strategy implementation. A total of 50 stakeholders from 15 countries participated in the meeting representing a broad range of institutions connected to the Cotton Value Chain of Africa including Government Agencies; Cotton Ginning Associations, Textile Associations, Apparel Associations and individual industry representatives and manufacturers. The key objectives of the meeting were to: To develop a private sector position on the future of AGOA to be tabled at the AGOA forum in August 2013; To develop a common strategy for engaging individual governments for them to align their positions with the private sector; and to develop a common strategy for engaging the US Government, US Senate, US Congress and the Private sector players in US; ACTIF has been at the forefront of engaging the US Government and related agencies on behalf of the private sector seeking the sustainability of AGOA. Due to various initiatives undertaken by ACTIF and local African governments to enhance the competitiveness of the African textile and apparel industry, U.S. apparel imports from Africa had begun to stabilize by 2010, and there was reason for optimism that U.S. apparel buyers were beginning to return to Africa. During its first five years (2000-2004), AGOA had a transformative effect on Africa. This can be seen most clearly in the textile and apparel sector, where an estimated 300,000 new direct jobs and perhaps twice that number of indirect jobs in support sectors were created. Across Africa, new industries

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Kenya industry players’ landmark AGOA meeting emerged including in Botswana, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Uganda and Zambia. US apparel imports from Africa more than doubled between 2000 and 2004. According to ACTIF White Paper on AGOA (2013), the lives of an estimated 5-10 million Africans were improved by AGOA as it boosted the regional value chain. All of these accomplishments were at essentially zero cost to the US Government, as the private sector responded to the duty-free incentives created by AGOA Country Botswana Ethiopia

to invest and support the economic development of Africa by creating new jobs. Five AGOA countries experienced growth in their apparel exports during January-September 2013 measured both by volume and value: Ethiopia was up 47.5%, Kenya by 26.5%, Lesotho 8.6%, Malawi 50.2%, Mauritius 13.7%, and Tanzania up by 14.6%. South Africa was up by one measure but down by the other. Botswana, Madagascar and Swaziland experienced losses measured by both volume and value during JanuarySeptember 2013 period.

2012 (Jan - Sep)

2013 (Jan - Sep)

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Msme

2.801

$ million $9.915

1.238

$ million $4.827

% Growth Msme

$ million

-55.79%

-51.32%

3.510

$7.831

5.178

$7.936

47.51%

1.34%

Kenya

53.936

$188.943

68.235

$226.370

26.51%

7.50%

Lesotho

51.052

$222.494

55.432

$216.838

8.58%

12.59%

9.418

$28.499

9.300

$16.430

-1.25%

-42.35%

Madagascar Malawi Mauritius South Africa Swaziland Tanzania Subtotal of 10 Visa Countries Rest of

Total

1.445

$4.004

2.171

$6.144

50.22%

53.44%

18.312

$124.584

20.823

$136.775

13.71%

9.79%

0.520

$4.403

0.558

$4.099

7.33%

-6.90%

10.989

$46.877

10.138

$39.248

-7.74%

-15.89%

7.024

$5.917

8.046

$7.626

14.56%

28.89%

159.007

$643.467

181.119

$666.293

13.91%

3.55

0.927

$4.321

1.644

$26.493

77.35%

513.12%

159.934

$647.788

182.763

$692.786

14.27%

6.95%

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


COUNTRY FOCUS

Focus on Sudan Tracing the journey‌ from early 19th century, the 1926 boom - to date

From left: Prof. Elfadil A.Babiker(Ex- National Coordinator -Cotton Reseach Program) - Prof. Ahmed M .Mustafa, National CoordinatorCotton Research Progam

H

istorically, cotton has over the years acquired a strong footing in many African economies, both as a leading cash crop and as a foreign exchange earner. In Sudan (as in many African countries) cotton is a way of life, providing employment, reducing poverty, as well as, encouraging settlement in rural areas. This makes it an important economic cornerstone.

By Prof Abdrahman Hassan Abdellatif

Varieties

Length (mm)

Micronaire

Strength

Barakat

33-35

3.7-4.1

36-41

Barac(67)B

27-28

3.9-4.2

27-31

Acrain

25-27

3.5-3.9

25-29

Main commercial

Main newly released Hamid

27-29

4.5-4.8

28-31

Abdin

29-33

4.3-4.4

30-34

Wager

27-29

4.4-4.5

29-31

Burhan

27-28

3.9-5.0

28-29

Seeni 1(Bt.)

27-28

4.6-4.9

27-30

Properties of commercial and some newly released varieties

JAN-MARCH 2014

Commercial cotton production in Sudan dates back to as early as the first quarter of the 19th century. However, the big cotton production boom was in 1926, marked by the official launch of the Gezira Scheme. Cotton in Sudan is grown in irrigated and rain-fed field trails. The bulk of production (nearly 90%), is exported as raw fiber, while the remaining is locally consumed. Large scale production has since the beginning, been backed by a strong research program. The Agricultural Research Corporation (ARC) has an intensive program to develop new varieties, increase yield and improve quality to meet consumer demand. The broader objectives of the program include breeding for higher yields, earliness, disease and insect resistance, breeding new styles and

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variants having different balances of fiber characteristics and vertical upgrading of productivity through generation of multidisciplinary technological packages that fit into the Integrated Crop Management (ICM) strategy. ARC, through the program has released 50 varieties and registered lines to date. However, only some varieties are currently grown either commercially or in limited propagation plots, namely Barakat (34-36mm), Barac(67)B(27-28mm) and Acrain(25-26mm). Moreover, nine varieties were released between (2004/05 and 2005/06), of these Hamid(27-29mm), Abdin (29-33mm), Wagar (27-29mm) are grown. In addition, a release of Biotech (Bt) cotton, open pollinated, evaluated in different locations in the irrigated and rain-fed field trails, were also commercially released. However, promising advanced lines superior in quality to traditional Barakat-90, in length and having strength above 40 g/tex., were reported. Research on other promising lines of medium count, high yielding and early maturing is ongoing. As a result, having this wider spectrum of cotton quality will positively The writer is the Head of Cotton Technology –ARC Sudan. Email: ahlatief@yahoo.com.hk

15


Managing cotton price risk

- a Zimbabwe perspective

C

otton prices world-wide are known to fluctuate significantly and Zimbabwe is no exception. Here, producer prices have been a contentious issue in the last few seasons. The main contention is based on the fact that US dollar prices paid to cotton growers since 2009 were consistent with payments made in local currency over most previous seasons. However, the country is now trading in hard currency.

By Godfrey Buka

Market price assumptions are based on New York Futures (NYF) and the Cotlook Index as these are independent third party sources of price information

Prior to 2009, cotton growers were accustomed to annual price increases due to local currency depreciation. With the US dollar as the official currency in the country now, prices decline on the international market resulting in a crisis of expectation on the part of the grower. To determine domestic producer prices, the industry uses international lint market prices as a benchmark since these two prices are correlated. With increased intra-day price volatility, the risk impact of adverse price movements becomes sententious to traders and bankers. Therefore, the price paid to Zimbabwean growers, is normally estimated because the actual price

16

is known when the lint is sold six months later. In the 2010/11 season when international prices hit a record high, ginners and farmers agreed to an estimated price which later turned out to be far much more than what the market paid. Throughout the world, producer prices are determined by supply and demand of lint on the global market. Currently, 95% of the cotton (lint) processed in Zimbabwe is exported to international markets. Cotton merchants normally buy cotton before selling it thus creating price risk. The extent of price risk is driven by movements in the global price of cotton. With the 2010/11experience when there was a high default rate in forward sales after the record international price rise, not many merchants are now keen to sell cotton before buying it from the farmer. In that season, signed forward sales contracts were reneged due to a huge decline in prices. In Zimbabwe, minimum domestic cotton prices are normally set on the basis of an agreement reached between, ginners (contractors) and the recognised growers’ associations/ unions. The agreement is based on the principle of a constant seasonal pool price derived from world lint

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


prices prevailing at the time of agreement with a possible adjustment at the end of the buying season depending on realisable international lint prices. The agreement also factors in the principle of equal sharing of profit or loss between ginners and growers. Since the crop is exported some three or more months after it has been bought, it is difficult to predetermine the final prices. In the absence of any such an agreement, prices are determined by market forces.

costs is the profit which is shared equally between the farmer and the ginner. The final producer price paid equals the farmer’s break even price (total farmer’s production cost) plus the shared profit. At the end of the day, it is business acumen that counts if one is to survive in the cotton business and this applies to both the ginner and the farmer.

While the stakeholders are aware that they cannot control international lint prices, the only factor within their means of control are the yields

Depending on market trends, an adjustment at the end of the buying season will be based on actual lint prices. The agreed formula provides for constant sharing of profit or loss in the event of a drop or increase in the international price. By being paid a seasonal pool price, the grower will not incur any risk in the event of a decline in world prices and s/he stands to benefit in any upside potential when the adjustment is eventually paid. The agreed prices are subject to approval by the cotton governing body, the Agricultural Marketing Authority, a quasi-government body under the Ministry of Agriculture.

Market price assumptions are based on New York Futures (NYF) and the Cotlook Index as these are independent third party sources of price information. However, NYF quotations are used since the lint will only be exported some months after the purchase of seed cotton. The cotton bought in Zimbabwe between June and September will only be exported as from August to December. NYFs are a credible source of future cotton price indicators months ahead. However, these prices usually change on a daily basis.

While the stakeholders are aware that they cannot control international lint prices, the only factor within their means of control are the yields. The current average yield, at +/770kg/ha is very low compared to the average world seed cotton yield of 1700kg/ha or the +3000kg/ha achieved in other countries through the application of better technology. Local producers therefore can only enhance their earnings from cotton through improved yields. The Zimbabwean cotton industry is now taking a holistic approach in trying to enhance productivity which hinges on a full cycle of good cotton husbandry practices to boost farmer training through farmer field training schools in liaison with the Department of Agriculture, Technical and Extension Services and the Farmers’ Unions. This means increased investment in agronomy support which in the long run will cushion farmers in an environment of volatile international prices.

It is important to note that while international prices are quoted in US cents per pound of cotton lint, the domestic market price is a conversion of that quoted price in pounds to kilograms. After the crop has been bought from farmers, it is ginned and the fibre or lint obtained, which on average is 41% of the produce, then it is exported to international markets with only less than a tenth of total production being sold to local spinners. Ginned seed, which constitutes about 58% of the total mass of seed cotton, is sold locally to edible oil expressers and is normally the cheaper of the two products. All factors constant, the formula used when calculating the producer price which has been applied for the past three years takes into account the total product revenue - (i.e. income from lint and ginned seed sales) which is calculated using the projected international average lint price. All the costs of production for both the farmer and the ginner (breakeven price) are deducted from the total product revenue. The balance from deducting production JAN-MARCH 2014

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17


Investor appeal for East African textile and apparel sector growing steadily

N

umerous key factors point to a growing interest in the East African textile and apparel sector by investors.

One, the collective GDP of East Africa today stands at US$ 300 billion which has grown at a compounded annual By Varun Vaid growth rate of 13% over the last decade. Improved political and social scenario, increased access to international capital, a growing labour force and urbanisation across the region has fuelled the growth of the economy.

Respective governments in the region have also adopted a pro investment stance. With the political and social scenarios across the continents changing, African governments have identified textiles and apparel as the industry which can generate high employment as well as exports earning. In order to promote investments they are providing a host of incentives to investors across the board. These incentives including: Competitive corporate tax, liberal repatriation policies, availability of tax credit, reductions and exemptions, liberal /minimal foreign exchange controls, duty free import of raw material, machines and equipment, signing of double taxation agreement and establishment of Export Processing Zones/Special Economic Zones, among others. Availability of Cotton is also another driving factor. The cotton industry has been one of the key areas that a significant portion of the population has depended on for more than a century.

Duty Free Market Access through multiple Trade Agreements means by the CTA sector enterprises in East Africa means that their exports can enter most of the Figure 1: Cotton Production in East African countries (In Mn kg.) world’s richer economies free of any customs duties and with limited quota restrictions. The region enjoys preferential market access to major global markets of USA, EU and other developed countries under agreements like African Growth and Opportunity Act (AGOA), Economic Partnership Agreement (EPA) with EU and others. Four African nations are among the fastest growing CTA exporters, out of which 3 are from East Africa.

Data Source: National Cotton Council of America There is tremendous potential for further increment in cotton production in the region because of: a) Scope of productivity improvement through improved farm practices. b) The present penetration level of Bt cotton in the region is almost negligible. Use of Bt cotton technology would increase the productivity and hence would help boost the revival of the sector. c) Countries like Ethiopia, Uganda and Tanzania have a large area of irrigated farmland which is very suitable for planting cotton. Also, there is great potential for further expanding the cultivation and increasing the current yield. d) Reduction in the area under cotton cultivation in large producers like the US and Australia whereas cotton demand is growing. e) Existence of large tracts of fertile soils and weather suitable for cultivation of premium cotton varieties in some African countries. f) Low labour cost and ample availability in select African nations, improving law and order scenario as well as enhanced business support infrastructure

18

Table 1: Macro-economic indicators of selected East African countries Ethiopia

Kenya

Tanzania

Uganda

US$ 42 Bn

US$ 42 Bn

US$ 28 Bn

US$ 20 Bn

US$ 471

US$ 994

US$ 650

Total Investment (as % of GDP)

26%

22%

40%

27%

Gross National Saving (as % of GDP)

19%

14%

25%

16%

Population

89 Mn

42 Mn

43 Mn

GDP GDP per capita

US$ 574

36 Mn

Data Source: World Economic Outlook database, IMF

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


Current status of Cotton, Textile and Apparel sector in East Africa The Cotton, Textile and Apparel (CTA) sector is one of the most important sectors in East African countries providing employment to millions of people directly and indirectly earning valuable foreign currency for the countries.

Table 2: Fastest Growing Textile and Apparel Exporters* S. No. Country

Exports (US$ Mn.) 2000

2011

CAGR 2000-11

1

Ethiopia

6

85

27%

2

Jordan

85

1,009

25%

3

Vietnam

1,892

17,560

22%

4

Kyrgyzstan

38

277

20%

5

Uganda

13

61

15%

6

Cambodia

1,226

5,642

15%

7

Bangladesh

5,323

23,685

15%

8

Kenya

79

328

14%

9

Nicaragua

354

1,460

14%

10

Burkina Faso

97

368

13%

* From 2000 to 2011, with 2011 exports > US$ 50 mn Source: UN Comtrade Database

A brief CTA sector profile of major East African Countries is given below:

Tanzania

Tanzania is one of the major cotton producing country in East Africa. Cotton production in Tanzania is largely meant for exports. Major importers of Tanzania’s cotton are China, Indonesia, Thailand, Kenya, Portugal, Bangladesh, Vietnam and Pakistan. Tanzania is also the 4th largest producer of Organic cotton in the world. Textile industry of Tanzania comprises of around 20 firms employing about 20,000 workers. It is the world’s 2nd largest sisal producer. There are five large apparel producers in Tanzania mainly making knitted garments. They use both local and imported fabric; and produce largely for export market within East Africa, South Africa, the European Union and limited sales to the USA.

Kenya

most important industries to implement the long term Arid and Semi-Arid Lands (ASAL) development initiatives and industrialization strategy The garment sector of Kenya is principally driven by exports to the US under the African Growth and Opportunity Act (AGOA) initiative. There has been a lot of emphasis by Kenya’s Export Processing Zone Authority to promote and provide attractive investment opportunities in textile and garment sector.

Uganda

In Uganda, cotton is grown in nearly every part of the country and is entirely rain fed. It is grown on a regular basis by over 10,000 farmers. Over 90% of cotton is exported raw out of Uganda onto the global market. In Uganda, textile firms are mostly small or medium-sized. These mills produce both clothing and cloth for sale on the local market. Uganda’s apparel sector largely consists of small, locally owned companies that produce apparel and uniforms for domestic and regional markets. In December 2009, the Ugandan government launched National Textile Policy, with a vision to create a strong and vibrant textile and clothing industry with sustainable capacity and enhanced investments.

Ethiopia

Cotton is one of the major cash crops in Ethiopia. It offers considerable employment opportunity on farms in textile factories and ginneries. The Country produces cotton both for the local and export markets. The major export markets are Europe and parts of Africa. The Ethiopian government’s five-year Growth and Transformation Plan (GTP) gives special emphasis to export industries, including the textile and garment sector. Therefore, cotton production is a high priority, and the Ministry of Agriculture (MOA) aims to increase the current production levels.

Future scope of investments

The major factors that will bolster manufacturing investments in East African countries are: A. Duty Free Market Access through multiple Trade Agreement

CTA sector enterprises in East African countries enjoy preferential market access and their products can enter most of the world’s richer economies free of any customs duties and with limited quota restrictions.

In Kenya, cotton is currently grown mainly by small-scale farmers. An estimated 200,000 farmers grow most of the cotton on holdings of less than one hectare. Cotton is considered under the Country Vision 2030 as one of the

JAN-MARCH 2014

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19


Table 3: Trade Agreements African Growth and Opportunity Act (AGOA)

Actà

Descriptionà

Economic Partnership Agreements (EPA)

Duty free Free trade access to USA area between by economies the EU and of sub-Saharan the African, Africa Caribbean and Pacific Group of States (ACP)

Least developed country (LDC) status Duty-free, quota-free access to U.S. and some other markets

Ethiopia

#

Uganda

#

Kenya

Tanzania

#

current yield. d) Reduction in area under cotton cultivation in large producers like USA and Australia whereas the cotton demand is growing. e) Existence of large tracts of fertile soils and weather suitable for cultivation of premium cotton varieties in some African countries. D. Others

Other factors that will boost the textile manufacturing in East Africa include: • Low labour cost along with ample availability • Improving law and order scenario • Improvement in business support infrastructure

Figure 2: Labour cost in select African nations (US$ / month)

# Under Negotiation

B. Pro investment stance of Governments :

With changing political and social scenarios across the continents, African governments have identified textiles and apparel as the industry which can generate high employment as well as exports earning. In order to promote investments they are providing a host of incentives to investors across the board, including: • • • • •

Competitive corporate tax Liberal repatriation policies Availability of tax credit, reductions & exemptions Liberal /minimal foreign exchange controls Duty free import of raw material, machines & equipment • Signing of double taxation agreement • Establishment of Export Processing Zones/Special Economic Zones, etc.

Figure 3: Competitiveness of Textile and Apparel Industry in East African

C. Cotton availability

East African countries account for significant amount of cotton production. This is sufficient not only to meet the domestic consumption but also export significant level. The cotton industry has been one of the key areas in these countries and significant population has been dependant on the sector for more than a century. There is a tremendous potential for further increment in cotton production in the region because of: a) Scope of productivity improvement through improved farm practices. b) The present penetration level of Bt cotton in the region is almost negligible. Use of Bt cotton technology would increase the productivity and hence would help boost the revival of the sector. c) Countries like Ethiopia, Uganda and Tanzania have a large area of irrigated farmland which is very suitable for planting cotton. Also, there is a great potential for further expanding the cultivation and increase the

20

All of the above considerations make a strong case for domestic and international textile and apparel enterprises to starting seriously evaluating East African nations for investments. In fact several international companies from large textile and apparel exporting countries have already made investments in the region, while many are expected to follow suit from countries like India and Turkey. It is important for the local governing authorities to make sure that large FDI projects are established in their countries which will not only support employment creation but also create the upstream and downstream industry thereby uplifting the entire sector altogether.

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


PICTORIAL 1

2 4

3

5 7

6 8

1. ACTIF Meeting with the USAID in Washington | 2. AGOA stakeholders meeting in Kenya to develop the private sectors position on moving forward | 3. European Union (EU)-African, Carribean and Pacific Group of States (ACP) Meeting in Brussels, Belgium | 4. Fish Tank discussion during the Cotton Made in Africa Meeting held in Tanzania | 5. His Excellency Augustin Matata Ponyo, Prime Minster of the Democratic Republic of the Congo making his presentation during the U.S.-Africa Business Summit 2013 in Chicago, Illinois | 6. Speakers at the 29th IAF World Fashion Convention in Shanghai, China | 7. Panelists at the Textile Stakeholders Meeting to endorse the Petition to Save Kenya’s Textile Industry in Nairobi, Kenya | 8. Signing of the MoU at the Cotton Made in Africa Meeting in Arusha, Tanzania JAN-MARCH 2014

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21


EXPERT ANALYSIS

Productivity:

Africa’s top priority for cotton development

T

he most significant challenge in the development of the cotton sector in Africa is the low productivity of smallscale holders.

By GĂŠrald Estur

The current state of affairs translates into lower incomes for both farmers and ginners. Increasing productivity of producers and ginners is therefore the biggest hurdle in improving the competitiveness and profitability of cotton production in Africa. The average yield in Africa, around 800 kilogram of seed cotton per hectare, is only a third of the potential which is about 2.5 metric tons of seed cotton per hectare. The average yield in Africa is also 60% below the world average yield, and the gap is widening.

inputs, sub-optimal production practices as well as weak research and extension systems. In addition, most of the production is rain-fed, while more than half of the world cotton area is irrigated. Poor seed quality and the lack of improved varieties are also major factors contributing to reduced yields.

Cotton Seed Quality is Crucial to Yields Seed is the starting point for the cotton-toclothing value chain. The cotton plant is by nature a perennial, but is grown commercially as an annual crop to prevent diseases and to help combat pests. Seeds tend to degenerate each time they are multiplied. The seed sector comprises cotton breeders; seed growers; seed conditioners/distributors (usually ginners) and seed end-users (farmers). The establishment of a good stand of cotton seedlings is paramount to obtaining a high yield because this is the first phase of the production cycle that sets a limit on yield potential. Healthy and pure seeds give high germination rate and good crop stand which enables the plants to withstand stress, especially drought, during the crop season. There are several critical steps necessary for the production of high-quality planting seed. Once bolls open and the fiber-covered seed are exposed to the weather, seed quality begins to deteriorate, with progressive loss of vigor and germinability. Mechanical damage occurring during harvesting, ginning, and conditioning operations can also affect planting seeds.

There are myriad reasons why yields in Africa are lower and have not risen in tandem with the world average, including lack of access to

22

In Africa, cotton breeding is traditionally done by the public sector, which strictly controls the release of new seed varieties suitable for different agro-climatic zones. Following the liberalisation of the cotton industry in Eastern and Southern Africa, the system of certifying cotton seeds has collapsed in many countries. Propagation of pre-basic seed is done by governments, while basic and quality declared seed is generally multiplied by ginners, who

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


supply commercial seeds to cotton growers.

recommended number of generations that can be produced from the seed provided by the breeder. The use of poor quality seeds results in low yield levels.

Many growers receive seeds with a germination ratio below 70 percent. Planting seeds often exceed the

scheme is run by a joint partnership between the government and the private sector (Quton Seed Company). Cotton breeding programs in Africa must take into account a complex set of fiber quality parameters to respond to end-users’ demand. Conventional breeding should aim at developing new cultivars with improved characteristics, including higher seed cotton yield potential, better lint outturn, longer staple length and higher fibre strength. Low ginning outturn translates into lower producer price. All factors constant, the producer price could be 20% higher with a ginning outturn of 42%, instead of 35%.

How to Improve Cotton Seed Critical steps necessary to improve cotton seed performance and, thus, indirectly improve lint yield and fiber quality are well-known. The production of high quality planting seeds involves an internationally recognized seed certification scheme that limits the number of generations that can be produced from the seed provided by the breeder to maintain the genetic purity of each variety. Production of planting seeds typically goes through four stages of multiplication under official supervision and testing. Basic seeds are planted and grown under optimum conditions at the cotton research center. Each year, the center provides fresh breeders’ seed of all varieties under multiplication to licensed companies to ensure that the varieties are kept pure and that growers do not surpass three generations from pure self-pollinated seed. Licensed companies bulk up certified seed through a network

JAN-MARCH 2014

comprising selected growers. Fields are monitored, and picking is done carefully and separately from conventional cotton. All varieties are stacked and ginned separately at slower speeds than normal to minimize mechanical damage. Seed produced is then delinted mechanically or chemically (sulphuric acid) to remove short fibers from the seed. Effective seed conditioning techniques and procedures are used to minimize seed damage, increase germinability and storage longevity. Commercial seed is treated with fungicide, and eventually with aphicide.

Biotech (Bt) cotton, genetically modified for resistance to some insects and/or a herbicide reduces the use of chemical inputs, and may increase yields and/or reduce the cost of production. Biotech cotton now accounts for two-thirds of world production and trade. Only two countries in Africa have authorized the commercial use of Bt cotton, South Africa and Burkina Faso. Other African countries should learn lessons from the experience in Burkina Faso, where outcomes so far have been mixed, and have not met expectations yet. Enhancing the provision of certified healthy and pure seeds of improved varieties will ultimately increase the incomes of both the smallholder cotton farmers and ginners in Africa. The writer is an International Cotton Consultant. Email: gmpestur@aol.com

High quality seeds increase yields and improve quality. Planting delinted seeds reduces seed usage down to 8-10 kilogrammes per hectare compared to 15-25 kg/ha with conventional fuzzy seeds, and also reduces the need for re-sowings. To ensure the provision of high quality varieties for their cotton industry, African countries should emulate the successful example set by Zimbabwe, where the cotton seed production

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23


The lure of African fashion

T

he fashion industry is growing rapidly, energized by the growing middle class in most parts of the continent – all indicators point to a booming future. As one who has been privileged to be on the forefront of African fashion and a fashion correspondent for the television show – Designing Africa. I travel across the continent to top African Fashion weeks as well as conduct interviews with designers.

By Diana Opoti

My work and experience gives me a firsthand insight into the industry. That is comparing different countries and fashion markets and gaining useful understanding of the state of African fashion.

In the last five years, I have witnessed a great shift in African fashion. For a long time, our traditional African fashion has been used for inspiration on the international catwalk – now our designers are taking contemporary designs to the international catwalk and receiving stylistic nods from top industry professionals. For example, my home country, Kenya has an emerging generation of amazing talent, designers such as Katungulu Mwendwa who have proved that their designs can be worn anywhere in the world. There is also an increasing awareness of the fashion industry; fashion events and publications as well as a growing modeling industry.

Models from Lalesso, a leading fashion house in Kenya display some African outfits

African designers are creating amazing prints from cotton as well as more luxurious fabrics such as silks. For example, South African designer Sindiso Khumalo, Nigerian Jewel By Lisa and Maki Oh create their own amazing contemporary prints while Cameroonian designer 24

Arrey Kono takes inspiration from traditional ropes and creates amazingly futuristic pieces. The ‘million dollar question’ for the fashion industry players is; where are Kenyan and African designers getting their textiles and garments? What potential

lies in the opportunity presented by local textiles and apparel companies’ partnering with designers and the local fashion industry? While Kenya grows cotton, consumers in the country do not particularly enjoy refined cotton

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FEATURE

international fashion scene means that they need to compete at the same level and textiles play a great role in this industry. The leso as an example has been a domestic textile and has been adopted by numerous fashion houses. An example is how fashion house, Lalesso in Nairobi now use the print on silks and cotton/ polyester blend making their clothes. The Kikoy is another local textile that has been used to create beachwear apparel. There are a number of community-based projects across the Kenya such as Pendeza weaving, which creates textile from weaving and knitting natural fibres.

fabrics. The finished cotton textile available is coarse and undesirable for fashion apparel. What we then import as trending textiles for designers are quite expensive so designers offset textile costs on the consumer or opt for cheaper imported fabrics. Over the years, speaking to designers on the cost of their apparel in comparison to other cheaper garments available in the market, including “mitumba� (second-hand clothing), the cost of imported fabrics is a big factor. For those designers who use African inspired fabrics, there is also the challenge of not enough supply of the same print, which means that mass production becomes a challenge. While African inspired prints are widely acceptable, consumers out there in the market are interested in more than just these prints. The modern consumer is seeking more contemporary options and these in turn forces our designers to settle for imported textiles from other countries. In addition to this, even cotton available locally is not of superior quality making it undesirable for designer fashion apparel. Several years back, the local textile industry was a big player in the fashion industry with companies such as Kicomi known for this. Today, such companies are not visible enough and like other international textile designers, we need to see more updated prints to accommodate consumer’s expectations.

Right: Katungulu Mwendwa, a leading African fashion designer with a colleague during a past event

For us to remain relevant, we need to evolve our prints and their use in apparel, perhaps deliberately compete at a textile design trend level, produce more desirable and relevant trend colors and prints as well as avail more luxurious cottons and superior blends. There is also a shift in recent years, African textile designers are making their own prints, creating a twist to traditional African symbolism and giving it a fresh twist on textile.

International markets Beyond patriotism, it is important to see local designers in the field they are playing in. Finding a place in the

Where is the market? The big question is who really is making African textiles outside West Africa? In Kenya, the popular leso has perhaps only one local manufacturer in Mombasa and the rest of it comes from India and Tanzania. The Kikoy is another great example but its application in apparel is limited to beach and casual wear. African inspired fabrics and textiles were considered a passing trend. JAN-MARCH 2014

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African fashion designers currently face a number of challenges including high production costs in apparel manufacturing and a non- formalised fashion retail structure

African fashion designers currently face a number of challenges including high production costs in apparel manufacturing and a non- formalised fashion retail structure. Should we work on improving these systems, the growing middle-class across the continent would be a ready market for local apparel. But there is the challenge of convincing local consumers that products made in Kenya or Africa can match the quality of international brands. My feeling is that African designers are keen to turn their designs into profitable businesses. For this to happen, they may have to go into mass production, import cheaper fabrics or produce in cheaper markets. In addition, secondhand merchants are profiting from consumers keen to wear international brands at competitive rates. Unless these textiles are readily available, affordable and fashionable, it is unlikely that we will soon see a change in the consumption of local fabrics. The writer is a Fashion Correspondent and Creator, Designing Africa. twitter:@dianaopoti

25


COVER FEATURE

Style & fashion galore at ‘Origin Africa’ designers’ showcase - Addis Ababa ACTIF participated at the AGOA forum held in Addis Ababa, Ethiopia in August 2013. ACTIF Chairman, Mr Jaswinder Bedi was one of the key speakers during one of the private sector sessions.

Barry Fisher Senior Cotton Specialist

Also in attendance were the Executive Director, Mr Rajeev Arora and Program Manager, Mr Joseph Nyagari. Other participants during the forum were from the US and across Africa. They included US government officials, US trade representatives, Africa government representatives, trade officials, the private sector, civil society and women representatives, among others.

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he ‘Origin Africa’ Designers Showcase took center stage at the AGOA forum gala dinner on August 12, 2013 in Addis Ababa, Ethiopia. Showcasing the best in contemporary Ethiopian fashion, the event marked creativity, colour and glamour and provided a thrilling climax to the AGOA Forum. Ethiopia is acknowledged as a ‘rising star’ in the textile and clothing sectors, with multimillion dollar investments having taken place in recent years, an unmatched trend in the rest of the region. The ‘Origin Africa’ Designer Showcase is a fashion show organized to express the innovation, resourcefulness and creativity of African designers. It aims to raise awareness of Africa as a place to do business and as a sourcing destination for international CTA buyers. Mr Jaswinder Bedi, ACTIF Chairman while addressing

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Ambassador Michael Froman, United States Trade Representative (USTR) and Dr. Tedros Adhanom, Minister of Foreign Affairs, the Federal Democratic Republic of Ethiopia, giving a toast to the future of AGOA.

participants at the fashion event described it as a testament of the changing paradigm of Africa as a new horizon for sourcing. “The African fashion industry has shown a great deal of progress, where creative designs from our vast traditions and the latest designs are amazingly put together by professionals to come up with amazing pieces of work,” Mr Bedi said. The event saw eight top Ethiopian designers namely MAFI (who won the 2010 Designer of the Year award from Alliance Ethio-Francaise at the European Fashion Day in Addis Ababa and Origin Africa’s 2012 Design Award), Aynalem Ayete, Ruth Woldeselassie, Firkirte Addis (who won the Origin Africa 2010 Fiber to Fashion Award and was also named the second African brand to watch in 2013 by Zen Magazine), Eset Haile, Bethlehem Belete, The Yohannes Sisters and Genet Kebede showcase their collections, highlighting the

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creative opportunities that Africa offers international buyers.

the U.S. have risen from US $746 million to US $1 billion.

Evidently, all the designs were inspired by the rich African heritage, culture and strong traditions which designers then coupled with a twist of western flavour to come up with exquisite outcomes.

The Designer Showcase event was a collaborative partnership between the USAID East Africa Trade Hub and its trade association partner, ACTIF who worked tirelessly to put things together, set the direction and flow. They selected all the technical parameters to get the “look and feel” appreciated and ensured that the production was virtually faultless. The standing ovation at the end was a confirmation testimony. The event took virtually two months of constant application, going over every detail and double checking to ensure a flawless show.

Adding a vibrant flavor to the show were performances by the traditional children’s dance company, Yetemesegen Lijoch, where 40 children inspired the audience with traditional Ethiopian dance routines at the opening, culminating with an inspiring display of the national flags of each AGOA-eligible country. The cotton, textile and apparel industries in East and Southern Africa are considered by many to hold the key to regional prosperity and this can be seen by the global demand for fashion from around the world. The growing African middle class has also stimulated demand for stylish, African-made apparel, thus the USAID East Africa Trade Hubs has built on this momentum by supporting efforts such as the ‘Origin Africa’ Designer Showcase. The objective is to help businesses in Africa take advantage of trade opportunities available under AGOA. Since AGOA was signed into law in 2000, apparel exports to JAN-MARCH 2014

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Twenty seven models, led by Ethiopian Maya Haile – a celebrity New York based model and founder of Three Goats charity, also ensured a quick and crisp turnaround of the designs showcased on the cat-walk. There were many ancillary aspects and other preshow details behind the scenes. Approximately 460 high-ranking Ethiopian and U.S. government officials were in attendance, along with representatives from nearly all 39 AGOA-eligible countries. Special thanks to Mr. Barry Fisher (formerly of EATH) and Mr. Rajeev Arora of ACTIF, who meticulously supervised and managed the show.

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FEATURE

International Trade Centre

– Unwavering support for Africa’s cotton

By Matthias Knappe

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he International Trade Centre continues to offer unwavering support to the African cotton sector. Currently, ITC’s new project funded by the European Union under EDF 10, is an affirmation of sustained sector support. The Centre is committed to improving African cotton sector’s image, creating sustainable linkages with the market, as well as adding value to the continent’s cotton through various components. Under the first component, ITC works with selected ginners in Tanzania, Zambia and Zimbabwe or Uganda in Eastern and Southern Africa. In West and Central Africa, the Centre is in Benin, Mali, Senegal and Chad. Under the second component, ITC works in Zambia and Burkina Faso. These countries were jointly selected in a transparent process through the ACTIF and the COMESA as well as the African Cotton Association (A.C.A.) and the West African Economic and Monetary Union (UEMOA). ITC employs a two-pronged approach while promoting African cotton. First, we engage in promoting the cotton more generically in major cotton-importing countries. One

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aspect of this work refers to creating more market transparency. This is by providing accurate information on African cotton, its value chain and main stakeholders as well as on its main markets and consuming spinning mills.

The International Cotton Advisory Council recommends achieving 100 per cent instrument testing, when feasible, and clearly marking bales by using the international telephone prefix so as to identify, at least, the country of origin of the bales.

Through information and facilitation of personal interaction, we envisage “educating” cotton-consuming spinning mills about the full offer of cotton available from the selected African countries, including its fibre characteristics and efforts undertaken to reduce contamination levels. At the same time, we envisage creating sustainable feedback loops from spinners to ginners on their requirements and experience with African cotton, including on contamination issues to build ginners’ capacities.

ITC also intends to improve the image of African cotton in the market by inviting spinners to visit African cotton fields and ginneries to see for themselves how professionally cotton companies in Africa operate. Our experience shows that many spinners have a wrong impression of Africa in general and African cotton in particular, especially when it comes to the perception of contamination levels. Close interaction and witnessing first-hand can contribute improve the image.

One example where transparency could make a difference is in developing a transparent mechanism of bale codes. In the past, some intermediaries used their intimate knowledge of African cotton to sell some consignments at a higher grade than they bought it. They could do so as they knew that some Africa cotton classers have a tendency to class their cotton very conservatively. They would rather under-class than over-classing it, in order to avoid any possibility of future claims. Taking the chance that the cotton is at a higher grade and longer than classed or the spinners would not notice or initiate a claim was often a profitable affair. As bales were not marked clearly and the codes were not transparently available, spinners could not verify if the bale markings refer to the grade they bought. Overall, this has a negative effect on the reputation of African cotton and its ginners.

ITC also develops closer partnerships between ginners from the selected countries and preferred spinners from cotton-consuming and importing countries. The Centre supports relationship building that is coupled with activities to improve quality and reduce contamination. ITC works with pre-selected committed ginners to help them understand the requirements of preferred spinners and assists ginners in fulfilling the requirement. Spinners get to know the gin and farm operations, and have the possibility of engaging in improving cotton quality at the gin level to ensure they get what they need. Spinners have a direct involvement in the quality assurance process at the ginnery and indirectly with contract farmers. This builds transparency along the value chain, confidence and finally trust. Trust is the basis for developing a longer-term partnership that will benefit ginners as well as spinners. By working with visionary, committed

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ginners and spinners, we hope that the project can create a multiplying effect on both sides. Other spinners will join when they see that their competitors secured long-term reliable supply with improved quality features and economic prices. Thus, new ways of doing business could be developed that also have an impact on improving the image and quality of African cotton with regard to contamination levels. In the second component of the project, we support local fibre transformation through the development of low-capital intensive fibre transformation technologies, including the handloom sector in rural areas. Under this component we foster the development of strong south-south cooperation linkages with expertise available in India and Ethiopia to develop and advance t h e handloom sector in Zambia as well

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as in Burkina Faso. After an initial feasibility study to be carried out in two selected countries together with our south-south cooperation partners, the resulting action plan will be implemented to the most possible extent. Areas of technical assistance foreseen include loom production and maintenance, product development and design, productivity improvement as well as marketing in local, national and regional markets. The available funds only allow us to work the above-mentioned selected countries. However, by working very closely together with ACTIF and COMESA in Eastern and Southern Africa as well as ACA and UEMOA in West Africa, we ensure that information, lessons learned and knowhow acquired is

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shared widely among other cottonproducing countries in Africa.

The writer is Senior Officer and Programme Manager, Cotton, Textiles and Clothing, International Trade Centre (ITC). Email: knappe@intracen.org Disclaimer: Views expressed in this article are the contributors’ and do not necessarily coincide with those of ITC, UN or WTO. Designations employed do not imply the expression of any opinion on the part of ITC concerning the legal status of any county, territory, city or area, or of its authorities or its boundaries; or the endorsement of any firm or product.

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FEATURE

Kenyan textile companies visit Denmark By Festus Musyoki Coordinator, Textile East Africa Project

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n June 2013, the long awaited visit to Denmark by Kenyan companies finally materialized. Five Kenyan companies had applied to take part in this visit organized by Textile East Africa and 75% funded by DANIDA. The visit was a follow-up to a visit made by Danish buyers who had visited Kenya in mid April 2013. The five Kenyan companies included Alpha Knits, Bedi Investments Limited, Kamyn Industries Limited, Kenya Shirts Manufacturers and Kiboko Leisure-Wear Limited. The visit was a huge success for each of the five companies, as they all got a lot of enquiries from their Danish counterparts; a sign of good things to come. Textile East Africa is a Danish Kenyan collaboration, supporting sustainable development of the East African cotton, textile and apparel industry. ACTIF and the Kenya Association of Manufacturers (KAM) are partnering with two Danish

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organizations, Danish Fashion and Textile and The Danish Federation of Small and Medium Sized Enterprises. The Project is funded by the Danish government through DANIDA. The primary objective of Textile East Africa is to strengthen the Kenyan cotton, textile and apparel (CTA) industry and promote CTA exports from Kenya into Europe. One of the key deliverables of the project is to build trade /export link between Kenya and Denmark and other EU countries. To develop this link, first we brought into the country Danish buyers to tour the country and see for themselves what the country can offer as a sourcing destination for apparels and textile. They were in the country for one week in mid April 2013, visiting potential supply companies who could handle their orders. This was followed by the reciprocal visit by Kenyan companies two months later. As the curtains falls on The Textile East

Africa Project; it will be remembered numerous achievements. The projected mapped the Kenyan Cotton, Textile and Apparel sector, encompassing players from ginning, spinning, weaving, Knitting, apparel manufacture, fashion and design firms. The database that was created has since been converted into a CTA directory available on the ACTIF’s website www.cottonafrica.com under trade directory tab. During the project scope, technical training and support (TTA) was offered to eleven selected companies on how to improve their productivity efficiency wise and quality wise. Training on Corporate Social Responsibility (CSR) and the procedures of exporting and the whole subject of drawing up a successful export marketing plan were also offered. In addition, two universities and one vocational institution offering textile related courses were trained

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on quality management especially on apparel production and CSR. The training institutions were also supported to develop a curriculum in CSR, which will make it easier for students to internalize CSR even as they secure employment in the industry. The visit to Kenya by six Danish buyers in April 2013 exposed them first-hand to what the country is able to offer to Danish and the bigger European market. The five Kenyan Companies who visited Denmark for a week came back with lots of sample enquiries; which hopefully may result into orders

The primary objective of Textile East Africa is to strengthen the Kenyan cotton, textile and apparel (CTA) industry and promote CTA exports from Kenya into Europe

That visit was actually Textile East Africa Project’s the last activity and the companies visited Teko Design and Business School at the VIA University College in central Jutland, Denmark on the first day. Teko is Scandinavia’s largest design and business collage within the fashion and lifestyle industry and has over 1000 students. The remaining four days, the Kenyan companies made individual visits to various buyers. Between the five Kenyan companies, they visited a total of 40 companies.

The writer is the National Project Coordinator, Textile East Africa Project. Email: fkmusyoki@yahoo.com

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EXPERT ANALYSIS

Kenyan Clothing Industry stunted by technical skills gaps and low training

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he University of Nairobi through the Institute for Development Studies (IDS) has just completed a proposal for financing of a feasibility study for establishment of a Regional Center of Excellence (RCE) to train technical workers and mid-level managers for the clothing industry in Africa. The idea behind the RCE was first mooted by ACTIF Africa, which constituted a steering committee comprising of all stakeholders in the CTA value chain in Kenya. It is upon deliberations by this committee that the University of Nairobi was requested to develop a funding proposal to be used in seeking funds for a feasibility study. The need to establish the RCE emerged from research and recent discussions by key industry stakeholders in Kenya and elsewhere underscoring the need for high level training aimed at providing the industry with local technical workers (see www.uonbi.acfrn.ac.ke and www. cottonafrica.com). The emphasis here is on the clothing sector, which, unlike the textiles, has been forgotten over the years although it constitutes the largest part of the value chain. The proposed RCE is expected to offer a range of courses targeting potential technical workers in the apparel industry in different African

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countries, and relevant managerial skills for mid level managers in the industry.

start-up capital, easily transferable technology, and scale economies are not significantly important.

In Kenya, a recent study by Kamau et al (2013) has demonstrated that the clothing (apparel) industry continues to rely heavily on expatriate technical workers, which is not only expensive to the industry but also impedes on the backward linkages and technology transfer as envisioned in the EPZ Act and Vision 2030. The research shows that most of the technical skills expatriate workers are employed on a two year contract (work permit requirements) but due to language barriers and cultural differences, the understudy programmes have not been effective in terms of developing local skills. In the absence of locally trained workers, clothing firms have continued to import this labour from Asian countries.

Labour requirements can be met with low and semi-skilled workers especially women. This industry provides one of the first stages of economic upgrading beyond primary c in the early stages of their growth paths, and has provided a stepping-stone for the development of industrial capabilities.

Historically, the textile and clothing industry has played a major role in the economy of developing countries, especially in Africa where the need for industrial development is urgent. The industry is therefore at the forefront of export diversification, foreign exchange earnings, creating employment opportunities especially for the low skilled workers, and attracting foreign direct investment (FDI). The clothing industry is labour intensive, involves relatively low

Moreover, this industry is among the few through which developing nations participate in international trade; and therefore an important source of export revenue and employment. In Kenya, employment in the clothing industry grew from 5,000 in 2000 to 36,000 (in 2003) but then declined to 25,904 in 2011. This was largely driven by the establishment of the Export Processing Zones (EPZ) and the enactment of the US-AGOA trade preference that benefitted African countries. However, the termination of Multifibre Arrangement (MFA) in 2005, the ascendancy of China to hegemonic status in global clothing trade and production, the rise of buyer-driven value chains, the shift towards just-in-time delivery and lean retailing methods have intensified competition in the clothing industry. The competitiveness of this industry

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in the global market is hedged on labour skills, productivity and availability. Research has shown that in addition to being labour intensive, the industry needs a complement of skilled technical workers. These are the people who design the products, plan the production lines, maintain the machinery, control and manage the quality of products, and ensure that local and international standards are met. Without such workers, the industry is unlikely to be competitive in regional or international markets. As mentioned earlier, recent research has highlighted serious gaps in skills across several African countries (see www.acfrn.uonbi.ac.ke). At present, the skill gaps are being filled by foreign technical workers. The percentage of such workers ranges from 53% in Kenya to 98% in Lesotho. For a sustainable industry, Africa needs highly skilled local workers. The study conducted in Kenya that analyzed technical skills gap in 2011 was based on a survey that targeted all export oriented clothing firms. The 16 firms that participated in the survey had a combined workforce of 19,528 employees with a minimum of 23 and a maximum of 4,500 workers. The industry is dominated by female workers who accounted for about 69 per cent of the total labour force. Apparently, female dominance JAN-MARCH 2014

was clustered in the lower cadre comprising helpers and machine operators. In technical, supervisory and managerial positions, male dominance is evident – accounting for more than 60 per cent of these positions. At the time of the survey, the industry had about 348 expatriate workers accounting for about 2 per cent of the total employment even though we think the reporting on this was underestimated by the respondents. The use of expatriate workers in Kenya is both widespread and limited among the firms. It is widespread in the sense that 14 firms out of 16 reported having at least one expatriate worker and limited in the sense that the average number of expatriate workers among the 14 firms is only 20 implying that firms generally have low expatriate labour force. While the number may seem small on the face value, it is the clustering of these workers in technical skills and managerial categories that raises serious issue of technical skills gaps. The research established that of all expatriate workers, 75 per cent of them were in technical skills category while 17 per cent were in managerial positions and only 8 per cent were in operations. Examination of training programmes in Kenya’s clothing industry shows that neither the government nor the

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By Dr Paul Kamau

firms have taken up the responsibility of training technical skills required for the clothing industry. Existing curricula in the few training institutions is geared towards textile production and not clothing. Although firms pay a training levy of about KSh50 per worker per month, evidence shows that firms do not utilize this training fund because the Department of Industrial Training (DIT) requires that the training be done externally and not on the job. Firms do not have technical training programmes but concentrate in safety, sewing and health issues which we suspect is driven by the buyers’ requirements. Therefore in addition to establishing the RCE, there is need for coordination between the government, industry, associations, and training institutions in developing curriculum for technical skills that match the industry’s needs. In the meantime, the understudy programmes need to be strengthened to facilitate knowledge transfer. Finally, there is need for the industry to be sensitized to enhance the utilization of the training levy managed by the DIT.

The writer is a Senior Research Fellow, Institute for development Studies, University of Nairobi Email: pkamau@uonbi.ac.ke

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EXPERT ANALYSIS

Can Kenya meet Danish demands? Experiences from the first Direct B2B encounters between Danish buyers and Kenyan suppliers

I By Tine Bork

n April 2013, a delegation of six Danish garment companies visited Kenya for their first ever B2B meetings with Kenyan manufacturers. Just two months later in June 2013 five Kenyan companies paid a return visit to Denmark. Is this the start of something new and beautiful? Time will tell, but no doubt, the initial steps have been taken.

appalling labour conditions and factory accidents in Asia are raising eyebrows not only in the textile and garment industry but also amongst customers, media and policy makers internationally. Hence, the Danish industry is on the look-out for alternative destinations for future production.

The Danish Federation of SME’s and the Industry Association Danish Fashion & Textile have for the last two years implemented the project Textile East Africa in collaboration with ACTIF and KAM, and with financial support from DANIDA. Activities have among others included mapping and profiling the Kenyan textile & garment industry, training and technical assistance, export training and coaching, among others. However, the underlying goal has been to increase Kenya’s exports to Denmark and elsewhere.

Turning the question around, one could ask: Why should Kenyan manufacturers even care about supplying to the fashion industry in Denmark? One very good reason is that the main market for the Danish garment industry is not local but international. With annual exports alone amounting to approximately 4 billion USD, the garment industry is among the top 5 export industries in Denmark, despite the fact that virtually no garments have been stitched in Denmark for the last 20 years. What has remained and blossomed in the Danish industry, however, are critical and excellent competencies within design, sourcing, logistics, marketing and sales.

Why Kenya? Although the idea of producing in Africa in general and Kenya specifically is novel to the Danish garment industry, there is unmistakably little but growing awareness of the need to investigate and identify new future sourcing destinations. Since the early 90’s, virtually all Danish garment production had been outsourced to both near-markets in Southern and Eastern Europe and later to Asia – China, India and Bangladesh in particular. However, this is changing: Prices in China are rising steeply and the comparatively small orders from demanding Danish customers are not given high priority. Likewise, lack of social compliance, 34

Why Denmark?

The outcome of the two delegations As a result of the two visits more than 20 Danish companies were directly exposed to Kenyan manufacturers and vice versa. It was certain that the facilitation of B2B meetings both in Kenya and Denmark is key to allowing companies to discover each other. None of the Danish companies would have gone to Kenya on their own, just as none of the Kenyan companies would have gone to Denmark. None would have been able to find the right contacts,

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let alone feel confident that there would be a purpose without a positive introduction and supply of profiles and sector information ahead of time. The Kenyan participants in the delegation to Denmark represented a diverse group of companies. They ranged from 80 to 1600 employees and with product ranges covering socks, eco-jersey, men’s shirts, Kikois, uniforms among others. 53 individual B2B meetings with over 20 Danish companies were held. The Kenyan companies visited traditional companies in the old garment cluster in Jutland, Western Denmark; work wear producers mid country on the Funen Island, modest looking family companies in Southern, more remote areas and smaller trendy designer oriented companies in the Copenhagen area. The Kenyan manufacturers were very well received throughout. “The biggest eye opener for me was their interest towards “production in Africa”. All the buyers that we met (in Denmark, ed.) seemed very keen and wanted more information on capacities, logistics, quality, current buyers etc. This is a very positive sign of interest towards repositioning their sourcing strategies from Asia to Africa“, Mr Sati Bedi, COO of Bedi Investments says. As a direct result of the delegation, JAN-MARCH 2014

all of the Kenyan companies have returned with serious requests for specific quotes and/or development of samples based on Danish product designs and specifications, and/or agreements to further investigations on the possibilities of finding alternative textile suppliers, logistics, revising cost calculations etc. In general, some of the key requirements of the Danish industry derived from the visits and interaction include: • Short lead times (and here Kenya’s strategic location should be an advantage) • Flexibility and willingness to handle small frequent order volumes and niche productions • Ability to produce FOB rather than just CMT • Having insight in developments in fabrics and trends • Using local/regional cotton and fabrics (if available...) • Capable of producing fully finished fashion garments • Demonstrating high social compliance and/or at least have a good story to be used for branding the “Made in Kenya”angle • Not forgetting the one obligatory requirement in garment manufacturing globally: Competitive pricing

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Next step of action It is fair to say that the Kenyan garment industry at present does not have a whole lot of experience in handling European and Scandinavian customers. Apart from a few EPZ companies mainly targeting the US market, most companies have no sporadic export outside the SSA. Hence, meeting the demands of Danish customers will be a challenge to the Kenyan industry, and the five Kenyan companies in particular. Whether or not they will be successful in becoming suppliers to Danish companies remains to be seen. What is important now is that they make a serious effort to follow up on the requests. If the Kenyan delegates and industry now achieve the difficult goal of attracting and maintaining some Danish customers and partners, then others will likely follow. It might be attractive to be a frontrunner on the design side of fashion, but when it comes to production, most truly prefer to walk the beaten path and let others pave the way. That is not least the case with the Danish garment industry. Let us hope that the first steps have indeed been taken. The writer is the Head of Projects and B2B-linkage specialist at The Danish Federation of SME’s. Email: bork@hvr.dk Website: www.dfsme.dk

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EXPERT ANALYSIS

By ACTIF Writer

AGOA renewal before 2015 faces numerous hurdles

ACTIF delegation and the African Diplomatic Corps during the Lobbying mission in Washington DC

A high powered delegation led by the Chairman, African Cotton & Textile Industries Federation (ACTIF),Mr Jas Bedi visited Washington, D.C. on September 30 - October 4, 2013 to lobby key stakeholders’ support for renewal of the African Growth and Opportunity Act (AGOA) ahead of its September 2015 expiry date.

challenges. For instance, the U.S. Federal Government shut down on October 1, 2013, due to the funding lapse caused by Congress’ failure to pass a budget for Fiscal Year 2014, resulted in the cancellation of many important meetings.

Other members of the delegation were Rajeev Arora, ACTIF Executive Director, Min Li, the Executive Secretary of Lesotho Textile Exporters Association, Guy M’Bengue, President of Côte d’IvoireTrade and Investment Promotion Board (APEXCI), Eric Buchot, the representative of the International Trade Centre in Geneva, James Kiiru from the Kenyan Embassy, Christopher Nyaka, Embassy of Lesotho and Paul Ryberg, an Industry Lobbyist.

One of the foremost obstacles facing the renewal of AGOA ahead of September 2015 is an investigation initiated by the U.S. Trade Representative, Michael Froman. His office instructed the International Trade Commission (ITC) to undertake a comprehensive analysis of AGOA and develop recommendations for its renewal. The ITC study results are expected in April 2014. This process poses a threat to the renewal of AGOA and affects renewal time lines as it could force the process to be put on hold until the final findings from the commission are released.

The team met with Congressional and Administration officials, as well as with the African Diplomatic Corps and other key stakeholders. However, the delegation faced several

Mr Paul Ryberg, a member of the ACTIF delegation cites the investigation as a big challenge which could have serious consequences. Some of them include failure to

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secure renewal of AGOA within 2014 since serious legislative activity basically come to a halt by July of every election year in the United States. Mr Ryberg emphasizes that putting off the renewal of AGOA until 2015 would cause major job losses, the same way Congress’ delayed renewing the AGOA third‐country fabric provision until August 2012. According to Mr Brock R. Williams of the Congressional Research Service, one of these challenges facing the renewal of AGOA after 2015is the non-reciprocal nature of the AGOA preferences. Some Analysts argue that the United States should focus more on two-way trade agreements with the region, particularly with more advanced countries such as South Africa, given improving economic conditions in Africa in recent years. Questions about how the current and potential AGOA beneficiaries can better utilize the AGOA program and its duty-free benefits have also been raised. Mr Williams notes in his report that studies suggest that even among

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some countries that make significant use of AGOA, the low-skill apparel production which AGOA has spurred has not led to the production of higher-skill manufactured products. The ACTIF mission was an unqualified success in launching the discussion in Washington over renewal of AGOA beyond 2015. It was clear, however, that given the numerous other serious issues that require its attention, it will be difficult to convince Congress to act to renew AGOA prior to 2015. Once Congress focuses its attention on AGOA renewal, budget issues will

The discussions produced a joint statement on the need for prompt action to renew AGOA. The delegation discussed pertinent issues with stakeholders including the growing urgency for AGOA’s renewal arguing that this needs to be done within 2014. The delegation highlighted that any delay into 2015 raises the serious risk of devastating job losses, much worse than those experienced in 2012 when renewal of the AGOA third‐country fabric provision was delayed until the last minute.

15 years. The team also suggested that the AGOA Third‐Country Fabric provision, which accounts for more than 90% of AGOA apparel imports, must be renewed for the full term of the extension of AGOA. ACTIF had a series of meetings with various groups. They included Congressional meetings with representatives from both Democrats and Republicans, the private sector including US apparel importers and retailers, The National Council of Textile Organization (NCTO), Think Tanks, NGOs and the African

ACTIF Chairman, Mr. Jaswinder Bedi giving a speech at the Washington International Trade Association (WITA) meeting in Washington DC.

make it difficult to fund the proposed extension for at least 15 years. Moreover, various new participants in the AGOA process are proposing various “improvements” to AGOA, some of which are likely to be controversial and could delay the renewal process. The ACTIF delegation met twice with representatives of the U.S. apparel importers and retailers.

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The other issue was the period of the AGOA Act. The team argued that the renewal must be fora sustainably long period of time in order to provide the stability and predictability necessary to attract investment particularly in the context of the development of regionally integrated value chains in the capital‐ intensive textile sector. The ACTIF delegation recommended that the renewal must be for no less than

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Diplomatic Corp. The African Diplomatic Corp has been on the forefront of pushing for the AGOA renewal. Their meeting with ACTIF saw a revision of ACTIF’s position on the period of the renewal from 15 -20 years to not less than 15 years. The ACTIF delegation resolved to continue the momentum in the campaign to convince Congress to renew AGOA.

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By Paul Ryberg

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President Obama Calls for AGOA extension on Africa Visit

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US President, Barack Obama touched down in Senegal on June 28, 2013, for a week-long visit to the West African nation, South Africa and Tanzania. Accompanied by First Lady, Michelle Obama and their two daughters, the President’s mission focused largely on trade and investment. Throughout the visit, Obama President repeatedly vowed to work closely with the US Congress to renew and improve the African Growth and Opportunity Act (AGOA). In Tanzania, Obama announced the launch of a new initiative known as “Trade Africa,” which is intended to increase economic ties between Africa and the United States, while simultaneously strengthening intra-African regional trade. The new initiative is expected to focus initially on the East African Community (EAC), whose members are Kenya, Tanzania, Uganda, Burundi and Rwanda,

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and will include negotiation of a bilateral investment treaty and trade facilitation agreement. Newly confirmed U.S. Trade Representative, Michael Froman accompanied the President on the mission to Africa. The full US Senate confirmed Michael Froman to be the next U.S. Trade Representative on June 19, last year. Mr Froman succeeds Ambassador Ron Kirk, who served as USTR in President Obama’s first term and resigned in March. Froman was President Obama’s primary advisor on international economics on the National Security Council. In that capacity, Mr Froman has been one of the Obama Administration’s leading spokespersons on Africa economic relations and AGOA in particular. Indeed, in his Senate confirmation hearing, he repeated a call he has made several times in the past for a “seamless” renewal of AGOA well in advance of its 2015 expiry.

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AGOA apparel imports continue to recover after renewal of Third-Country Fabric Provision

F

ollowing six months of devastating losses, US apparel imports from Africa under AGOA finally began to recover in January 2013 in response to Congress’ renewal of the AGOA ThirdCountry Fabric Provision the previous August. The improvement continued through April 2013, according to the latest trade data just released by the US Department of Commerce. AGOA textile and apparel imports were up 16.79% from 75.474 Million Square Meter Equivalents (sme) in January - April 2012 to 88.142 million sme in January-April 2013. The recovery was even more impressive focusing just on apparel imports, which were up 20.80% measured by sme, but up only 12.00% by value. Although Congress renewed the AGOA Third-Country Fabric Provision in August 2012, Congress’ delay until the eve of the critical provision’s expiry wrong signals to US apparel importers, who shifted their orders out of Africa during the months of uncertainty. As a consequence, US textile and apparel imports from Africa during the second half of 2012 were down -7% from the same period in 2011, falling from 125.933 million sme to 117.545 million in sme in July-December 2012. Before the 2012 uncertainty, US apparel imports from Sub-Saharan Africa fell sharply from 2004 to 2010, following the expiration of the MFA system of quotas, down -52% from 462.268 million sme in 2004 to just 222.354 million sme in 2010. Evidently, it took five years from 2005 until 2010 for AGOA textile and apparel imports to begin to recover from the damage caused by the end of the MFA. By mid-2011, however, this recovery was undercut by the uncertainty surrounding whether, and if so when, Congress would renew the critical third-country fabric provision. This uncertainty caused serious new losses through December

40

2012. The main lesson from this unfortunate experience Congress should not wait until the last minute to extend AGOA beyond its current expiry date of September 30, 2015. With the reinstatement of Cote d’Ivoire’s AGOA visa in March 2013, a total of 28 AGOA beneficiaries have approved AGOA apparel visa systems, qualifying them for duty-free access to the US market. These are: Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Cote d’Ivoire, Ethiopia, The Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda and Zambia. Madagascar’s AGOA eligibility was suspended effective January 1, 2010. Nine of the AGOA visa holders Botswana, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, South Africa, Swaziland, and Tanzania – plus Madagascar exported significant volumes of apparel to the United States in January-April 2013. Together, these ten countries accounted for over 99% of total U.S. apparel imports from Africa during the period. Apparel imports from these ten countries increased by 20.61% over that period as measured by volume in sme, and 11.99% by value. Four AGOA countries experienced growth in their apparel exports during January-April 2013 measured both by volume and value: Kenya up 33.1%, Lesotho 16.5%, Mauritius 15.9%, and Tanzania 26.2%. Ethiopia, Madagascar, South Africa, and Swaziland were up by one measure but down by the other. Botswana and Malawi experienced losses measured by both volume and value during January-April 2013.

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


Benin Approved for AGOA folkloric apparel

T

he US Committee for the Implementation of Textile Agreements (CITA) announced June 19, 2013 that Benin was approved to export folkloric apparel and ethnic printed fabrics duty-free under AGOA Category 9. The approved items of folkloric apparel are: Bomba, Barmassou (Daunchiki), Boubou (Batik Peulh or Aizo), Daunchki, King’s hat (Daa Zaa), Peulh, Tako, Tchanka, and Wanwolovo. CITA’s notice approving these folkloric garments also provides detailed requirements for the fabrics used and the manufacturing process. For example, modern features such as zippers, elastic, velcro, etc must be excluded from the garments. The ethnic printed fabrics now eligible for duty-free import from Benin under AGOA must be made from either US or African-origin yarns and fabrics and must be printed with characteristic African designs.

Bangladesh suspended from GSP

T

he Office of the US Trade Representative (USTR) announced on June 27, 2013, that it is suspending Bangladesh from the Generalized System of Preferences (GSP) program over its failure to respect workers’ rights following tragic apparel factory fires and the collapse of an apparel factory building. Although this action will have no direct impact on Bangladesh’s apparel exports (apparel is not duty-free under the GSP), it amounts to a stark “vote of no confidence” by the US Government

JAN-MARCH 2014

| FIBRE TO FASHION African Cotton & Textile Industries Federation

in Bangladesh’s ability to protect its workers following the tragedy. US apparel importers were already skittish about continuing to source from Bangladesh, and the suspension from GSP eligibility will probably reinforce those concerns. The desire to achieve dutyfree status for apparel from Bangladesh has been one of the main driving forces behind the Doha Round LDC Duty Free Quota Free (DFQF) initiative. USTR’s suspension of Bangladesh from GSP will probably also take some of the wind out of the DFQF initiative.

41


REGIONAL UPDATE

Kwajjafa Ali elected Vice-Chairman of continental Task Force Mr Kwajjafa Ali

ACTIF Board Member, Mr Kwajjafa Ali was elected Vice-Chairman of the Africa Commodities Task Force for the next 2 years. The Task force functions under the Africa Union (AU) Commission with a mandate to enhance the performance of the African commodity sector as a key engine of economic growth and development in the Continent. It is also a follow-up mechanism for the efficient and effective implementation of the Arusha Declaration and Plan of Action on African Commodities. The Chair was taken by the Sierra Leone government while Secretariat & Co‐ordination will fall under the AU Commission. The Sierra Leone workshop follows the establishment of the African Task Force on Commodities launched in Addis Ababa in April 2010. The Task Force was established by the Extra Ordinary Session of the Conference of the African Union Ministers of Trade held in Arusha, Tanzania in November 2005. The session is referred to as the Arusha Declaration and Plan of Action on African Commodities. ACTIF was represented at the workshop by Mr Rajeev Arora and Mr Kwajjafa. The Task force discussed and developed a framework of its 42

work program. The Cotton and Textile federation agreed to share details of the Pan African Cotton Map developed with UNTACD for the AUC‐Secretariat to review and adopt for implementation. In addition, the federation was also tasked to share the overall cotton production and value addition information of its members’ countries for preparation of the Pan African report on cotton supply and demand side. ACTIF is to work with the AUC‐Secretariat in developing a Market Information System for all commodities and replicate Cotton MIS model for other commodities. Reference was made to the International Cotton Advisory Committee (ICAC) which captures cotton production in Africa annually vis-àvis the international market information.

Town, Mr Arora stressed the need for value addition and enhanced cotton production. He presented an overview of world cotton production and consumption against Africa. Mr Arora also covered a summary of the regional and international market opportunities. ACTIF proposed the need of sustainable cotton and made reference to several programs of niche cotton such as Better Cotton Initiative, Cotton Made In Africa, Fair‐trade Cotton, and BT (GMO) Cotton. Mr Arora noted that there is huge potential for cotton production in Africa that also translates to job creation and sustainability of the nations.

The plan of action under the AU Commission recognizes that commodities constitute the major share of exports of the majority of members’ countries and constitute the largest source of revenue and employment for their population.

While making a presentation at the Workshop in Free

During the workshop, it was observed that the problem facing African countries are low productivity and

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


AU Headquarters, Addis Ababa

low product quality that limit the competitiveness of their products. The challenge of persistent decline and volatility of commodity prices, limited value addition and processing of commodities in African producing countries is also a liability. Participants further blamed inadequacies of commodity value chains and imbalances in commodity trading and marketing systems for preventing African producers from getting fair and equitable prices for their products. The African Union pointed out that the export of primary commodities account for between 80 and 90 per cent of the total exports of many African countries and the long term decline in prices, the deterioration in the terms of trade and the instability of commodity market are major constraints to growth and poverty reduction on the continent.

JAN-MARCH 2014

The plan of action under the AU Commission recognizes that commodities constitute the major share of exports of the majority of members’ countries and constitute the largest source of revenue and employment for their population. The Sierre Leone workshop noted that all the Action Plans need to be facilitated by enhanced international financial and technical support i n c l u d i n g various support measures like the common fund for commodities and providing support to the operationalization of the International Task force on commodities in

| FIBRE TO FASHION African Cotton & Textile Industries Federation

UNCTAD XI launched. This will bring new ideas and innovative solutions to the attention of the international community and promote partnerships. Participants also recommended that a follow�up mechanism should be established under the AU�Commission to monitor the implementation of the Arusha Plan of Action with the participation of Africa Financial Intuitions and private sector, CFC, UNTACD, FAO and other relevant bodies and organizations called upon to collaborate in this regard.

During the workshop, it was observed that the problem facing African countries are low productivity and low product quality that limit the competitiveness of their products

43


CALENDAR OF EVENTS 2014

DATE

EVENT

CONTACTS

7th – 11th

Ambiente

Messe Frankfurt | +49 69 75 75-0

11th

Textile Investment Conclave

+91-11-23325012 | mail@citiindia.com

VENUE

FEBRUARY Frankfurt, Germany Ahmedabad, Gujarat, India

12th – 15th

Biofach

+49 (0) 9 11. 86 06-49 09

Nuremburg, Germany

12th -15th

11th Dhaka Int’l Textile & Garment Machinery Exhibition

Mr. Akai Lin | +886-2-26596000 ext. 176 akai@chanchao.com.tw

Dhaka, Bangladesh

17th – 20th

Apparel Sourcing Paris Spring 2014

Tel.: +33 155 268 989 | Fax: +33 140 350 900 texworld@france.messefrankfurt.com

18th – 20th

Magic Market Week

+1 218-740-7092 cs@magiconline.com | www.magiconline.com

3rd – 5th

Intertextile Shanghai Apparel Fabrics Spring Edition 2014

Paris, France Las Vegas, USA

MARCH Tel: +852 2802 7728 textile@hongkong.messefrankfurt.com

Pudong, Shanghai

11th – 13th

Spinexpo 23rd Session

+ 852 2824 8580 | info@spinexpo.com

Shanghai, China

11th – 13th

Techtextil Russia 2014

+7-495-6498775/, +7-4 95 721 10 -57/ -58/ -59 anna.manvelova@russia.messefrankfurt.com www.messefrankfurt.ru

Moscow, Russia

11th – 13th

The Netherlands Textile & Accessories Fair

+90 216 575 28 28 (Pbx) info@fashiontexnetherlands.com, sales@pyramidsfair.com

11th – 14th

Exintex 2014

+52 222-243-4200 info@exintex.com, direccion@exintex.com

Puebla, Mexico

13th -14th

IFAI Canada Expo 2014

Barbara Connett | +1 651 225 6914 bjconnett@ifai.com

Toronto, Canada

12th - 15th

ACA Annual Meeting

Fahala Adeyemi | +229 97 11 9679 | fahala2002@yahoo.fr

Yamoussoukro, Cote de Ivoire

18th – 22nd

Intertextile Guangzhou Home Textile 2014

+852 2238 9902 / 2230 9221 Grace.Lin@hongkong.messefrankfurt.com Alex.Tian@hongkong.messefrankfurt.com

Guangzhou, China

19th -21st

32nd International Cotton Conference BREMEN 2014

+49 421-339 700 | info@baumwollboerse.de

Bremen, Germany

20th – 22nd

Technotex

+91-11-2332 2881 | www.ficci.com

26th -29th

Texpo Eurasia 2014

+90(212) 867 11 00 gulbinbozkurt@tuyap.com.tr

26th -29th

22nd China International Clothing & Accessories Fair

+86-10-6505 3207/6505 4123 lidongmei@cwtw.com, gouxiaomeng@cwtc.com

27th – 29th

12th International Machinery Exhibition of Garment & Textile Technology MEGATECH

+92-21 111 734 266 info@megatechpakistan.com

Amsterdam, Netherlands

Bombay, India Istanbul, Turkey Beijing, China Lahore, Pakistan

APRIL

44

1st – 2nd

INTERFILIERE Hong Kong 2014

852-2815 0667 hongkong@eurovet.fr | www.eurovet.fr

1st – 2nd

Prime Source Forum

primesourceforum@yehshen.com

8th – 11th

INDEX 14

+32-2-734930 | abby.bailey@edana.org

9th – 11th

PeruMODA

http://www.perumoda.com/EN

20th -23rd

Hong Kong International Home Textile and Furnishings Fair

+852 1830 668 | exhibitions@hktdc.org

23rd – 26th

12th Indonesia International Textile and Garment Machinery & Accessories Exhibition

62-21-6493717, 6493727, 6397863

Wan Chai North, Hong Kong Hong Kong Geneva, Switzerland Lima, Peru Wancahi, Hong Kong Jakarta, Indonesia

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


M AY 1st– 3rd

9th China Guangzhou International Fashion Brand Fair 2014

86-20-3866 7261, 189-2240 2195 ruihongfair@163.com | www.ruihongexpo.cn

6th – 8th

Source Africa 2014

+27 21 790 5849 sourceafrica@vodamail.co.za www.sourceafrica.co.za.

Guangzhou, China Cape Town, South Africa

6th – 9th

The Textile & Sewn Products Industry Week

+54-11-4855-3037 | info@emitex.com.ar

13th -14th

PERFORMANCE DAYS Functional Fabric Fair

+49 89 9394 6012 info@performancedays.eu

13th -15th

Techtextil North America 2014

+1-770-9848016 www.usa.messefrankfurt.com

Georgia, USA Tokyo, Japan

Texprocess Americas 2014

Buenos Aires, Argentina Munich, Germany

21st - 22nd

Premium Textile Japan 2015 Spring/Summer

+81-3-5215-5469 | Fax.+81-3-6805-0793 enquiry@japancreation.com

2nd – 5th

Sampe Tech 2014

Priscilla Heredia | +1 (626) 331.0616 ext 610 priscilla@sampe.org

Washington, USA

16th – 20th

ITMA ASIA + CITME 2014

+86 10 85229662 85229224 85229153 itmaasiacitme2@bjitme.com

Shanghai, China

15th -17th

SPINEXPO 6th Session New York

+852 2824 8580 | info@spinexpo.com

New York, USA

22nd – 24th

Colombia Moda 2014

+574 444 5086 contactenos@inexmoda.org.co

Medellin, Colombia

AUGUST 27th – 29th

Intertextile, Shanghai Home Textiles

Ms Grace Lin | +852 2238 9938 grace.lin@hongkong.messefrankfurt.com

30th – 2nd Sept

Tendence 2014

+49 69 75 75-0 tendence@messefrankfurt.com

Shanghai, China Frankfurt, Germany

SEPTEMBER 6th - 10th

Maison & Objet – International Home Decor

www.maison-objet.com/

Paris, France

10th – 12th

53rd Dornbirn Man-Made Fibers Congress

+43 (0)1 319 2909-41 http://www.dornbirn-mfc.com

Dornbirn, Austria

17th - 19th

Premiere Vision – The World’s Leading Fabric Fair

www.premierevision.com/en

Paris, France

29th – 1st Oct 2014

IAF 30th World fashion Convention

+31 – 30 2320908 | Broeksma@iafnet.com

14th – 16th

Specialty Fabrics Expo and Advanced Textiles Expo

+1 651 222 2508 ifaiexpo@ifai.com

15th – 17th

6th International Conference on Future Technical Textile (FTT 2014)

+44 (0) 7951 727876 info@technical-textile.com

16th – 18th

ITMF Annual Conference

+41-44 283 63 80, +41- 44 283 63 89 secretariat@itmf.org, www.itmf.org

21st – 24th

8th International Garment & Textile Machinery & Accessories Exhibition & Conference IGATEX 2014

+92 21 35810637-39 info@fakt.com.pk

2nd – 7th

International Cotton Advisory Committee (ICAC) 73rd Plenary Meeting

+1-202 463 6660 secretariat@icac.org

7th – 8th

Texcare Forum 2014

texcare@messefrankfurt.com

12th -14th

Int’l Apparel, Textile, Footwear and Machinery Trade Exhibition South Africa

+27 (0)21/7905849 deidreh@worldonline.co.za

13th – 15th

China Sourcing Fair: Garments & Textiles

+852 8199-7308

Medellin, Colombia

OCTOBER Minneapolis, USA Istanbul, Turkey Beijing, China Lahore, Pakistan

NOVEMBER

JAN-MARCH 2014

| FIBRE TO FASHION African Cotton & Textile Industries Federation

Thessaloniki, Greece Frankfurt, Germany Cape Town, South Africa Johannesburg, South Africa

45


MEMBERS


MEMBERSHIP

ACTIF welcomes new members ACTIF wishes to welcome our new members, who joined in the second half of 2013. These include: Bajaj Steel Industries Ltd - India (Associate), Sutlej Textiles & Industries Ltd - India (Associate), Bolloré Africa Logistics Kenya Ltd (Associate), VEIT GmbH-Germany (Associate),

members of existing national associations, may join directly as corporate members. Registered individual companies who are domiciled in Africa and must be involved in the business of cotton, textile and/or apparel may also become corporate members.

Makueni Ginneries Ltd - Kenya (Corporate) and COGERCORwanda (Corporate).

ACTIF is a member organization and together we can be the voice of Africa and build a region that speaks in a unified voice, working together on a platform that offers the desired services to make the industry prosper through sharing of information, creating an environment that nurtures alliances and networking opportunities to enhance market access. A “New Dawn” has come and the international community has realized the potential of Africa including the CTA region. As stakeholders, we need to seize this opportunity and aggressively market our value, by leveraging on platforms setup by ACTIF.

ACTIF has also recently increased its footprints in West Africa by registering Ligne Rouge Sarl of Cameroon and Produce Monitoring Board of Sierra Leone as Corporate and Associate Members, respectively. The federation is focusing on developing linkages in the cotton value chain and assisting in building value addition activities in their countries. Following the launch of the new Corporate Category, individual companies in relevant sectors who are not

ACTIF MEMBERS CORPORATE MEMBERS S/no COUNTRY

MEMBER NAME

CONTACT PERSON

1

BURUNDI

Compagnie de Gerence du Coton (COGERCO)

Nahimana P. Claver

2

CAMEROON

Ligne Rouge Sarl

Caroline Sack

3

COTE D’IVOIRE

Cote D’Ivoire Export and Trade Promotion Agency (APEX)

Guy M’Bengue

4

COTE D’IVOIRE

Pan Gobal Merchants C.I

Pankaj Bedi

5

ETHIOPIA

Ethiopian Cotton Producers, Ginners & Exporters (ECPGEA)

Assefa Aga Roba

6

ETHIOPIA

Ethiopian Textile & Garment Manufacturers Association (ETGAMA)

Fassil Taddesse

7

KENYA

Ashton Apparel (EPZ) Ltd

Pankaj Mehta

8

KENYA

Association of Fashion Designers of Kenya (AFDK)

Sally Karago/ Lucy Njoroge

9

KENYA

Cotton Development Authority (CODA)

Anthony Muriithi

10

KENYA

Equator Apparels Co. Ltd

George Kaburu

11

KENYA

Export Processing Zones Authority EPZA

Cyrille Nabutola

12

KENYA

Kapric Apparels EPZ

Thomas Puthoor

13

KENYA

Kenya Apparel Manufacturers Exporters Association

Jaswinder Bedi

14

KENYA

Kenya Association of Manufacturers (KAM)

Betty Maina

15

KENYA

Makueni Ginneries Ltd

David Masika

16

KENYA

Mega Garments Industries

Aditya A Awatani

17

KENYA

Thika Cloth Mills

Tejal Dohia

18

KENYA

Ultra Ltd

Ida Kibunja

19

KENYA

United Aryan EPZ

Pankaj Bedi

20

KENYA

WEAMACO (Handloom Weavers Marketing Coop. Society)

Rose Mwathi

21

LESOTHO

Lesotho Textile Exporters Association (LTEA)

Whai-Min Li

22

MADAGASCAR

Groupement des Enterprises Franches et Partenaires(GEFP)

Eleonore Johasy

JAN-MARCH 2014

| FIBRE TO FASHION African Cotton & Textile Industries Federation

47


MEMBERSHIP 23

MALAWI

Cotton Development Trust

Patrick Khembo

24

MALI

UN.SCPC

Soloba Mady Keita

25

MAURITIUS

Mauritius Export Association(MEXA)

Lilowtee Rajmun

26

MOZAMBIQUE

Mozambique Institute for Cotton

Norberto Mahalambe

27

NAMIBIA

Namibian Manufacturers Association(NMA)

David Namalenga

28

NIGERIA

National Cotton of Nigeria(NACOTAN)

Ali Kwajaffa

29

NIGERIA

Nigerian Textile Garment & Tailoring Employers Association

J P Olarewaju

30

RWANDA

UTEXRWA

Celestin Sebuhinja

31

SOUTH AFRICA

Apparel Manufacturers of South Africa (AMSA)

Johann Baard

32

SOUTH AFRICA

Cotton South Africa

Hennie Bruwer

33

SOUTH AFRICA

Export Council For The Clothing Industry

Jack Kipling

34

SOUTH AFRICA

Gelvenor Consolidated Fabrics

Anton Poplett

35

SUDAN

Sudan Cotton Company Ltd-SCCL

Mr. Mohi Eldeen A. Mohammed

36

SWAZILAND

Swaziland Cotton Board

Daniel Khumalo

37

SWAZILAND

Swaziland Textile & Apparel Traders Association

Jay Hall

38

TANZANIA

International Business & Trade TZ Initiative (IBUTTI)

Deogratias Mbona

39

TANZANIA

Tanzania Cotton Association (TCA)

Dr. Hamisi Kigwangala

40

TANZANIA

Tanzania Cotton Board

Gabriel Mwalo

41

UGANDA

Uganda Cotton Development Organization(CDO)

Ms. Jolly Sabune

42

UGANDA

Uganda Ginners And Cotton Exporters Association

Bruce Robertson

43

UGANDA

Uganda Textiles And Garment Manufacturers Association

Robert Mubiru

44

ZAMBIA

Cotton Association of Zambia

Joseph Nkole

45

ZAMBIA

Cotton Board Of Zambia

Dafulin Kaonga

46

ZIMBABWE

Zimbabwe Clothing Manufacturing Association

Jeremy Youmans

47

ZIMBABWE

Zimbabwe Cotton Ginners Association

Godfrey Buka

ASSOCIATE MEMBERS

48

S/no COUNTRY

MEMBER NAME

CONTACT

1

DUBAI

Saham Star General Trading LLC / c/o Saham East Africa Ltd

Jan Willem Van Es

2

GERMANY

VEIT GmbH

Chinedu Nkemeta

3

INDIA

Bajaj Steel Industries

Lav Bajajw

4

INDIA

Sutlej Textiles and Industries Ltd

Dhiraj Banka

5

INDONESIA

PT. TEXCOM

Rajaguru Raja

6

KENYA

BollorĂŠ Africa Logistics Kenya Ltd

Philip Aluku

7

KENYA

Integrated Community Org. for Sustainable Empowerment & Education for Development (ICOSEED)

Mugo Makanga

8

KENYA

MES (UK) Ltd / Sesby Global Sourcing

Kotzer Avner

9

KENYA

SGS Kenya Ltd

Cyprian Kabbis

10

NIGERIA

Crown Natures - Nigeria

Lara Aromolaran

11

NIGERIA

Federal Ministry of Agriculture & Rural Development

Damilola Emmanuel

12

SIERRA LEONE

Produce Monitoring Board

Ibrahim Turay

13

SINGAPORE

Kaybee Exim PTE Ltd

Sandeep Goel

14

SOUTH AFRICA

YKK South Africa

Andrew Taylor

15

TANZANIA

Wakefield Inspection Services

Moses C Bujaga

16

TURKEY

Marks and Spencer

Oguz Ates

17

UK

Plexus

Nick Earlam

FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


FEEDBACK FORM

Thank you for taking the time to fill in our feedback form. By providing us your feedback, you are helping us understand what we do well and what improvements we need to implement. If you missed details on advertising, please refer to next page (overleaf). (Kindly fill in, scan and send back)

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Your Comments... Christopher Igwe Idumah

Nick Earlam

Textiles … The material of today, tomorrow and the future. Technical textiles, geotextiles, engineering textiles, industrial textiles, automotive textiles, aerospace textiles, marine textiles, geo membranes, medical textiles and a host of others. Textiles it is!

I think ACTIF has the potential to be the leading Fibre and Textile Body in Africa – I would just encourage a global overview approach to the whole sector which you are managing very well and don’t change the current management in the short term as they have got it right.

Ben Finley

Thomas Puthoor

The magazine is a great idea…

This exclusive magazine is very interesting/informative and valuable to the CTA sector. It gives us an in-depth update and news regarding Textile and Apparels covering Eastern and Southern Africa - COMESA/SADC and the EAC.

Dr Christian P. Schindler “It is important to have a magazine like “Cotton Africa Magazine” that informs on a regular basis about Africa as a sourcing destination for cotton based textile products. Africa’s growth potential is significant and this needs to be made visible and communicated to all partners along the entire textile value chain from fiber to retail. In combination with activities in Africa (conferences and exhibitions) and abroad, the African cotton textile industry is set to grow strongly. This makes a case for a magazine.”

JAN-MARCH 2014

| FIBRE TO FASHION African Cotton & Textile Industries Federation

Hamma Ali Kwajaffa The magazine should try to capture members interests in such a way that it would make all to rush for the publication:-Issues of smuggling, tackling infrastructural decay, concerted effort on patronage, campaign of made in Africa fabrics, creating a special column on current prices of cotton and other issues that deeply capture members interests should be tabulated, in such a way that, it becomes a must read to all members.

49


ADVERTISING FORM

Cotton Africa magazine is the voice of the Cotton Textile & Apparel value chain in Africa. We endeavour to produce a high quality, authoritative and timely publication that is the reference point for stakeholders and policy makers across the African continent. Cotton Africa magazine can also be accessed online on; http://magazine.cottonafrica.com/magazine. The French version can be accessed on the homepage symbolized by the French flag tab. The print copies of the magazine are distributed FREE of charge to all ACTIF members across 23 African Countries as well as at our own and partners’ events. The online version (in both English and French) is also broadcast widely to over 8,500 contacts in our database regionally and internationally. Our target readers include textile and apparel manufacturers, fashion designers and traders, technology providers, farmers associations and ginners across the CTA value chain, suppliers, ACTIF national associations, policy and decision makers, national and international trade bodies, donors as well as national and international media. PLEASE TICK (X)

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FIBRE TO FASHION | JAN-MARCH 2014 African Cotton & Textile Industries Federation


Cotton Africa Magazine  

ACTIF is a regional trade body formed in June 2005 by the cotton, textile and apparel sectors from across sub-Saharan Africa to create a uni...