The ~floice for regi0na1 in egrated strategies
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- Bennett Payne
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1 Afrioa: Fro otton to clothirng The ~floice for regi0na1 in egrated strategies * 5.46% of world production out of SSA % of world consumption Asymmetric development Environmental costs 15% of world cotton exports Reduced incentives in value added distribution among actors and geographical areas, within climate change context
2 With the financial support of: With the technical support of: G *** * * * *** ON AGP... ~ International ~~ Trade q~ Centre UEMOA
3 Cotton statistics* 5.46% of world production out of SSA 0.77% of world consumption 15% of world cotton exports *based on ICAC figures
4 Constraints (global implications) Asymmetric development Environmental costs Reduced incentives in value added distribution among actors and geographical areas, within climate change context
5 Africa's opportunities at a glance frica 's land mass depicting the continent's potential Three regions, three specific situations but multiple strengths Potential for investors Climbing the value chain I. Promote wrrrkol mrqgrotlon I be~ cotton &rowers. gmners and spinner$ I. I C<>mp<Urlve trans;r limes producrlon available & lo meet the needs for fast fashion.
6 Africa's land mass depicting the continent's potential
7 Three regions, three specific situations but multiple strengths POLICY ALIGNMENT Three Regional Economic Communities have elaborated strategies: rationalization of production, space, transformation; economies of scale, etc. GEOGRAPHICAL COMPARATIVE ADVANTAGE Rain-fed production SOCIO-ECONOMIC ENVIRONMENT Labour intensive production Availability of qualified and cheap labour Young population - trainable labour Positive impact on food security and stability
8 Ut~tON l:.cooqej toulll MONlfAII{l OUt:.Sl.Af.R!CAJNt;. LA COIANISSIOH 0 l UNION ECONONIOVE ET r.iohetairf OUEST AfRICAINE STRATEGIE POUR LA COMPET1T1V1TE DE LA FIUERE COTON TEXTILE DANS L'UEMOA REGIONAL STRATEGY FOR COTTON - TO - CLOTHING VALUE CHAIN DEvELOPPEMENT DE LA FIUERE COTON-TEXTILE-CONFEcrJON EN AFRlQUE C~ nnn:2009
9 Potential for investors Growing national and regional markets (population. GOP, middle class growing. and Strategies will contribute to strengthen intra/inter regional markets). Investment friendly policies, regulations and incentives have been established across the region including the setup of special economic zones to take care of the investors' needs. Raw material availability. with Africa accounting for 5% of the world cotton production. and huge investment being undertaken to produce high quality fabric. Competitive production & transit times available to meet the needs for fast fashion. An increasing number of factories maintain strong social and environmental compliance and are already accessing both US & EU markets. Attract investment: integration of the value chain through joint ventures.
10 Climbing the value chain o I. Cotton as a driver for rural industrialization and local value adding I Set local and regional platform for coordination and consultation within the value chain, implying strong planning ability for the value chains Promote vertical integration between cotton growers, ginners and spinners İGive value to the fibre through local transformation (and in addition. valorisation ot all other products from cotton = > strengthen the local transformation industry) Ease business "Doing business" latest report shows some progress in some countries) Measures to promote private investment including the textile sector that can benefit greatly Improved legal and trade tools o Strengthened Private/public partnership and reinforced public and political will towards the development of textile industries - global development initiative and country levels o Strategic regional incentives meaning mutual facilities ; mutual learning, labour movement I. Collaboration and knowledge exchanges between SMEs and large companies, etc. I
11 Textile industry growth in Africa still needs some challenges to be addressed infrastructure... Infrastructure: rail. airport. waterways and road ports Expansion of onward and outward logistics Costs of utilities i.e. electricity, energy. water etc. Availability of input in the quauty and price Address costs of doing bus;ness by reduction of at l<"a.st 1CY>b in absence Trade fadlitatjon within and between reg;ons and with the rest of the world Human res-ource - specialized skius, middle and set~ior m.:tnagement Technology -lirrited modernization-ioweffidency. ~mited product range Integrate ento the Community IIWC!Sttnct~t Code chapt~on fel<llltfes to bcoffofdt<j to.,,.,tor> In!he cotton textile><ttof(uemoa) Protect fimr tegicmcd cexril mot*et (fight against fraoo. smuggling, counterfeiting} and industnal property access (/o regional, internatio Nted tot te:xtite industries to move doser to production areas as well as local consumption zones for African countries AGOA. GSP and other ~h mes are too complex and restrictive {Rules of O!'lgin. ban'iers. o thl!f, Non Trade Barriers. etc...} Marter access In emerging count1ies (mass maricets for the Issue of second hand clothing
12 From hard infrastructure... Infrastructure: rail, airport, waterways and road ports Expansion of onward and outward logistics Costs of utilities i.e. electricity, energy, water etc. Availability of input in the quality and price
13 .. to a secured business environme Address costs of doing business by reduction of at least 20% in absence of costs Trade facilitation within and between regions and with the rest of the world Human resource - specialized skills, middle and senior management Technology - limited modernization - low efficiency, limited product range Integrate into the Community Investment Code chapter on facilities to be afforded to investors in the cotton textile sector (UEMOA) Protect the regional textile market (fight against fraud, smuggling, counterfeiting) and industrial property Ensuring the supply of processing units fiber raw materials by a quota system in domestic production and regional
14 arket access (loca regional, internationa Need for textile industries to move closer to production areas as well as local consumption zones for African countries AGOA, GSP and other schemes are too complex and restrictive (Rules of Origin, barriers, other, Non Trade Barriers, etc... ) Market access in developed countries (Rules of origin, niche markets) Market access in emerging countries (mass markets for the future) Issue of second hand clothing
15 But the future is ours, provided...
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24 Thank you! In the case of Africa {many countries, large constraints), regionalism can be seen as a prerequisite for textile industry growth. In these three strategies. mutualisation of solutions have been thought at the service of the improvement of the cotton value chain. Project concepts have been designed in alignment with the three regional strategies and are available from the three regional focal points. Their contact details : COMESA Cotton Regional Focal Point: Frederick Kong'ong'o FJ<ongongoecomesa.int Phone: /32 Address: COMESA Secretariat, Ben Bella Road, P.O. Box 30051, Lusaka, Zambia Website: http // ECCAS Cotton Regional Focal Point: Joel Beassem jbeassem.ceeac@gmail.com, obalarabe@yahoo.fr Phone: Address: ECCAS General Secretariat, P.O. Box Libreville. Gabon Website: http //www ceeac-eccas org/index,php/fr/ UEMOA Cotton Regional Focal Point: Donatien Kueci Zola dzola@uemoa.int, mdandagui@uemoa.int Phone: Address: UEMOA Commission, 01 P.O. Box 543 Ouagadougou 01, Burkina Faso Website: http //www eaton uemoa jnt/spip php7rubrique1
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