It’s A Great Time to Partner with Africa
February 23, 2012 
Africa is a unique continent. The fact that it is currently producing barely 4% of the world’s cotton does not tell the full story when it comes to Africa’s potential. With about 60% of the world’s uncultivated arable land, a projected population of more than 1.5 billion, and an expected GDP of $2.6 trillion by 2025, Africa is ready for take-off. Leading global research and consulting firms agree: Africa appears to offer a high return on investment.
The recent volatility experienced in cotton prices has been felt strongly in Africa, considering that more than 65% of the cotton produced in the region is exported in raw form. Apart from the global challenges, Africa is also faced with its own unique challenges: lack of infrastructure, low technology and a high cost of doing business.
The need for greater transparency across the cotton value chain is very real, especially because the middle of the chain – textile mills and accessories suppliers – is largely underdeveloped. Those gaps, however, present tremendous opportunities for investment in each sector, from cotton production through textile manufacturing.
As a regional body with members from 20 African countries, the African Cotton & Textile Industries Federation (ACTIF) is driven by its vision of an integrated cotton, textile and apparel industry that effectively competes on the world market.
ACTIF promotes stronger links across the cotton, textile and apparel value chain as well as regional integration within the existing regional economic blocs – namely the African Union (AU), Common Market for East and Central Africa (COMESA), South African Development Community and East African Community. We have no doubt that a unified regional approach will have the greatest impact in addressing domestic and global issues by advocating for transparency and an enabling environment to add cotton to the food security value chain.
Looking to the future, ACTIF and its regional partners are ready to engage various stakeholders and development agencies to promote much-needed investment, research, development and transfer of latest technologies.
ACTIF is currently one of the focal points of a regional effort to promote a Pan African cotton roadmap. Spearheaded by the United Nations Conference on Trade and Development, it seeks to develop short-, medium- and long-term strategies that address production, quality, market access, value addition and capacity building to enhance cotton production and create jobs.
ACTIF is an implementing partner for the private sector in the COMESA regional cotton-to-clothing strategy, which has helped identify key issues for development in the Pan African roadmap.
The current situation also calls for innovative products and solutions, thereby placing the spotlight on researchers, academics, financiers, insurance providers and other support agencies. These risk management instruments and solutions need to target all of the players in the value chain, down to the cotton farmers – who, more often than not, are the ones who bear the greatest brunt of price volatility.
There is no doubt that we are experiencing very interesting times in the cotton industry, and only strong leadership will result in price stability. ACTIF is working at national, regional and international levels for stronger interaction between all stakeholders prior to developing policies such as introducing quotas or restrictions for exports, which can distort the market equilibrium for price or create an artificial shortfall. Please share your thoughts and synergize with the Africa region by visiting ACTIF’s website: www.cottonafrica.com
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