Mr. Rajeev AroraExecutive Director,

African Cotton & Textile Industries Federation (ACTIF)www.cottonafrica.com

COTTON TEXTILE & APPAREL VALUE CHAIN

INTRODUCING ACTIF

The Vision:

An integrated cotton, textile and apparel industry that effectively competes on the world market

Mission:

To develop and successfully deliver services that enhance our membership’s competitiveness in the world market

A  regional trade body formed by the cotton, textile and apparel value chain stakeholders  in Eastern and Southern 

Africa in June 2005

ACTIF STRATEGIC OBJECTIVES

Strengthen market linkages through collection, synthesis and dissemination of information and through B2B;

Drive productivity & Quality improvements through provision of training to the ginning, textile and apparel segments of the CTA value chain;

Provide training to enhance risk‐management in the sector

Promote the competitiveness of the sector through representation of private sector perspectives on trade policies at the regional and international level

MEMBER SERVICES -HIGHLIGHTS

Maintain an online trade link on cotton africa.com

Maintain a trade directory of the regional stakeholders to be available to members on the website.

Publish and disseminate trade and market news to members via a newsletter, e-flashes and on the website.

Organize trade delegations to attend international events; e.g. ICAC, ITMF, AGOA, CCA & others.

Participate in the resolution of trade barriers among member countries that will result in increased trade

Capacity building of member Associations in-collaboration with partners

Organize trade events aimed at promoting members products and attracting investments into the region.

CURRENT SCENARIO

Africa - The next frontier?

AFRICA TODAY

GDP - $1.6trillion

Consumer spending -$860billion

316million new mobile connections since 2000

60% of worlds un-cultivated arable land

52 cities more than 1million population

20 companies $30b revenue

AFRICA TOMO…

GDP - $2.6trillion 2020

Consumer spending -$1.4 trillion in 2020

1.1 billion working age population in 2040

128 million households with discretionary income

50% of population to live in cities by 2030

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WORLD PROD/CONSUMPTION2010/11

Production m MT Consumption m MT

World 25.02 25.0

China 7.08 9.90

India 5.60 4.53

USA 4.04 0.70

Pakistan 1.89 2.25

Brazil 1.48 1.0

Africa 1.27 0.43

others 3.68 5.19

Source ICAC

CURRENT SCENARIO CONTINUED..

Lack of a harmonized regional strategy  for  CTA value chain development

Lack of political commitment for sustainable policies 

Porous borders leading to dumping and smuggling

Second hand clothing

Cheap imports with no anti dumping policies

ACTIF’S ROLE

ROLE OF ACTIF

Foreign Direct Investments(FDI): 

ACTIF can assist to explore investment in the cotton textile & apparel value chain in Africa, including developing due diligence and match making for JV’s

B2B Linkages:

ACTIF can assist to facilitate Business to Business linkages with member countries

Access to Information: 

ACTIF has can provide information access including reports and special studies for national policies and strategies

Market access: 

ACTIF can assist in developing linkages with member countries and regional economic communities (RECs) like EAC, COMESA, SADC 

ADVOCACY ON AGOA

Meeting with Rep. Charles Rangel (D‐NY), former Chairman of the House Ways and Means Committee (May 2011)

Meeting with Diplomatic Corps (May 2011) 

LINKAGES WITH EU

Developing linkages with EU & other related partners for collaborations to develop the cotton value chain

ROAD MAP FOR COTTON

ACTIF, UNCTAD, Cos Cotton, CFC, EU, AAACP & Other stakeholders including government representatives from over 20 African countries

Pan African Cotton Meeting, June 2011, Benin

MOU WITH AUC

ACTIF Signs MoU with African Union Commission for developing CTA sector, Pan African

ACTIF LINKS WITH CHINA

ACTIF meets with CNTAC in 2011

ORIGIN AFRICA

Theme: 

Celebrating the spirit, style & innovation of modern Africa

Held every year in partnership with USAID COMPETE and other partners

Components:

Origin Africa Trade Expo

Symposium Seminars

Designer Showcase (fashion show) events

Previous events

2010 – Kenya, 2011 – Mauritius, 2012 - Ethiopia

MARKET DEVELOPMENT: ACTIF CONNECTS RETAIL CHAINS WITH

AFRICAN SUPPLIERS

ACTIF connects Importers & Retail Chains of US & EU with African Suppliers

COLLABORATIONS & LINKAGES

ACTIF‐COMPETE: Secretariat & programs support

ACTIF‐COMESA:MoU, CTA regional strategy implementation & others

ACTIF–CDE: Supply side analysis

ACTIF‐ITC: South South cooperation program

ACTIF‐EAC (MoU for CTA development EAC region)

ACTIF‐SATH – Linkages for CTA development in SA region 

ACTIF‐AU (MoU for CTA development Pan Africa)

ACTIF‐ACA: (Pursuing an MoU for stronger linkages  with West Africa)

Linkages with India, China for developing trade & investments

CAPTURING VALUE ADDITION ?

Value Addition x 15 times which can create 9million jobs if 100% value is aded to current African lint

Fibre

1 Kg

2.8 US$

0.5 person

Yarn

0.75 Kg 

4.50 US$

0.75 person

Fabric

3.35Mtr

9.0 US$

2.0 persons

Garment

2 Trousers

16.50 US$

4.0 persons

Retail 

2 Trousers 

45.40 US$

is possible…

Connecting Africa’s Value Chain

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IT’S TIME FOR AFRICA….. LIONS READY TO ROAR!

3/22/2013

THANK YOU…