COTTON TO CLOTHING

“We thank SITA for their support and are confident that the strong foundations already in place will support significant growth and success in the coming year”

Belinda Edmonds, Executive DirectorAfrican Cotton & Textiles industries Federation ( ACTIF )

SITASuppOrTING INdIAN TrAde ANd INveSTmeNT fOr AfrICA

COTTON TO CLOTHING

Partnering with the African Cotton & Textiles Industries Federation ( ACTIF ) for Investment Promotion

�� The partnership began during the design phase of SITA, with ACTIF playing an instrumental role in defining the project’s strategic direction and an MOU was signed in July, solidifying the institutional relationship.

�� During last year’s Origin Africa, ACTIF’s flagship event, SITA supported through sponsoring a side event on the topic of emerging market investment opportunities – bringing Indian companies together with East African policy makers. A collaboration on future similar events is foreseen both in India and on the African continent.

�� A joint mission to India was organized in April 2016, where ACTIF and SITA jointly presented on investment opportunities in East Africa to a number of Indian business associations and a group of ca. 30 Indian buyers / investors.

ACTIF’s close collaboration with the project helps to strengthen both parties and ensures that ACTIF and Indian partners can use the south-south linkages developed also long after the end of the project.

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About ITC

ITC is the joint agency of the World Trade Organization and the United Nations. ITC’s mission is to foster inclusive and sustainable economic development, and contribute to achieving the United Nations Global Goals for Sustainable Development. ITC works towards creating ‘trade impact for good’.

About DFID

The Department for International Development ( DFID ) leads the Government of the United Kingdom’s efforts to fight global poverty, deliver the Global Goals, and tackle global challenges. Promoting economic development and prosperity in the developing world is a key priority for DFID, and includes the creation of sustainable jobs and livelihoods, in particular for women and young people. DFID operates under the International Development Act, which came into force in 2002 and establishes the legal basis for United Kingdom’s development assistance.

FOR MORE INFORMATION

Contact person: Mr. Nicholas Watson, Coffee Task Team Lead – SITA

E-mail: watson@intracen.org

Follow us on Twitter: @ITC_SITA

Read our blog the voices of SITA: http://www.voicesofsita.com

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(CC) Textile Development Unit (TDU)

SOuTH-SOuTH LINKAGeS

India’s Potential for East Africa

�� India is among the top-4 emerging countries investing in Africa and the world’s 2 nd largest producer of textile and apparel

�� India’s fast growing consumer market will be a major driver for growth of the global apparel market. By 2025, India’s & China’s combined apparel market size to reach USD 740 bn

�� Abundance of institutional know-how, research and agricultural and manufacturing best practices in CTA.

East Africa’s Potential for India

�� East African countries are the most dynamic in Africa for global apparel sourcing ( Mc Kinsey 2015 )

�� Global buyers and retailers are demanding more sourcing from Africa – and demand far outweighs current supply

�� Market access to US ( AGOA ), EU and South Africa makes investing in East Africa a strong value proposition

�� Availability of cotton; opportunity for backward integration at a regional level

�� “First movers” – Large Indian ( and Chinese ) companies and major buyers already established in East Africa.

Milestones to date

In the first year of implementation, SITA worked towards

�� Cotton – Clothing Strategy in Tanzania and Textile & Apparel Value Chain Roadmaps in Kenya and Ethiopia

�� Sector investment profiles developed for Ethiopia, Kenya, Tanzania and Uganda

�� Cotton ginners’ training in Uganda: 50 % of the ginneries and more than 80 people were trained or sensitized on improving processes for contamination reduction

�� Seminar organized during Origin Africa 2015 in Ethiopia on “Emerging Market Investment Opportunities” bringing Indian investors and East African policy makers together

�� Outreach mission to India including marketing presentations to Indian potential investors / buyers ( ca. 30 companies ) on opportunities in East Africa and meetings with institutions for technology transfer.

SITA’S ApprOACH IN COTTON TO CLOTHING

In this sector, SITA aims to facilitate partnerships in the Cotton – Clothing sector between Indian and East African business and institutions for investment, trade and technology transfer. Specifically the project aims to:

1. Attract Indian businesses into the Cotton – Clothing value chain and linking them to East African partners for investment and sourcing opportunities. Support Indian companies in understanding, identifying and seizing business and investment opportunities in East Africa.

2. Enhance export competitiveness of select ginners, women weavers / knitters ( incl. Handloom ) and domestic SMEs through Indian knowledge and technology transfer. Value addition for niche products.

3. Raise business concerns and propose solutions on trade and investment environment.

Improving Uganda’s cotton quality through reduction of contamination

�� Cotton contamination forces ginners to sell their lint cotton at discount prices to international merchants. Discount prices are usually applied indiscriminately to all cotton originating from an area perceived to have contaminated cotton.

�� SITA and Uganda’s Cotton Development Organization ( CDO ) work with ginners to avoid contamination at each step of the production chain from farm to baled cotton, and to further strengthen Uganda’s reputation as premium exporter of cotton.

�� During the cotton harvesting season 2015 / 2016, SITA and CDO organized a first training for ginners, assessed the level of contamination during factory visits, and discussed findings and recommendations with the factory owners and managers.

�� 35 % of Uganda’s ginneries were assessed, while more than 80 people were trained or sensitized, including ginnery owners, managers, cotton buying agents and extension officers. Some of the recommendations to ginneries were immediately implemented, while other ginners were committed to support sensitization of farmers.

SITA AT A GLANCE

Donor: Government of the United Kingdom of Great Britain and Northern Ireland through the Department for International Development ( DFID ).

TIME-Frame: 2014-2020

Design Phase Implementation Phase

March 2014 April 2015 March 2020

Country Coverage: India, Ethiopia, Kenya, Rwanda, Uganda and the United Republic of Tanzania.

Beneficiaries:

�� East African businesses

�� Indian companies importing from or investing in Africa

�� National and regional trade and investment support institutions ( TISIs ).

Objective: Increased value of business transactions between India and selected East African countries by creating productive capacities, enhancing incomes, and promoting investment.

Strategy: The objective will be achieved by enabling access to markets in India and other countries, and by facilitating partnerships including investment and transfer of knowledge, expertise and technology from India to East Africa by:

�� Promoting public-private dialogue and partnerships;

�� Improving capacities of East African companies and TSIs; and

�� Creating business linkages.

Expected results:

�� Greater export flows from East Africa to international markets

�� Enhanced competitiveness of East African businesses

�� Increased investments, knowledge and technology transfer from India to East Africa

�� Improved business-development services provided by regional and national Trade Investment Support Institutions ( TSI’s )

�� Improved business environment fostered through public-private dialogue and partnerships.