A significant joint declaration has been made to galvanise investment financing in the African cotton sector. The declaration is a collaborative effort between United Nations Industrial Development Organization (UNIDO), World Trade Organization (WTO), International Trade Centre (ITC), and African Export-Import Bank (Afreximbank) with financial institutions Africa Finance Corporation (AFC) and International Islamic Trade Finance Corporation (ITFC).
- The joint declaration states that the signatories will promote cooperation in developing programmes that support private sector engagement and investment in the Cotton-4 countries and other cotton-producing countries in West and Central Africa, aiming to boost the region's production capacity.
- The parties also pledged to focus on establishing integrated regional hubs for sourcing sustainable textiles and clothing.
THE LATEST DEVELOPMENT: The move, which marks a critical step towards realising the investment needs of the "Cotton Roadmap Initiative," came up during the WTO 9th Global Review of Aid for Trade on 26 June.
- A Ministerial Dialogue was organised on "Cotton-to-Clothing: Charting Pathways to Create Sustainable Jobs for Women and Youth in West and Central Africa,” as part of the Partenariat pour le Coton's ongoing efforts to mobilise resources for West Africa's developing cotton/textile industry.
- This initiative aims to mobilise $12 billion for the Cotton Four countries (Benin, Burkina Faso, Chad, Mali – or “C4”) and Côte d’Ivoire to support the development of a truly sustainable cotton industry in the region.
- The Cotton-to-Clothing panel assembled representatives from the private sector, development finance institutions, and development partners and was moderated by WTO Deputy Director-General Paugam, with interventions from WTO Director-General Ngozi Okonjo-Iweala, UNIDO Director-General Gerd Müller, ITC Executive Director Pamela Coke-Hamilton, Benin Minister of Trade and Industry Alimatou Shadiya Assouman, CEO of the International Islamic Trade Finance Corporation (ITFC) Hani Sonbol, and President of Africa Finance Corporation (AFC) Samaila Zubairu, as well as a presentation on the Baseline Study of Cotton-to Textile/Apparel Value Chain Development in the C4 and Côte d’Ivoire by Gherzi Textile Organization, CEO Navdeep Sodhi.
- The involvement of financial institutions will be critical in improving access to energy and skill enhancement, while aiding in infrastructure projects, facilitating trade and unlocking investment opportunities essential to developing the cotton-to-textile/apparel value chain in West and Central Africa.
THE INITIATIVE: ‘Partenariat pour le coton’ was launched in February 2024 as the result of an innovative partnership between the WTO and FIFA. It brings together stakeholders including WTO, FIFA, UNIDO, ITC, Afreximbank, ILO, IAEA, the International Cotton Advisory Committee, the Better Cotton Initiative, the Cotton Made in Africa (“Partners”).
- Together as the Partnership, they support African cotton producing countries to integrate into regional and global markets, increase local processing for value addition, and thereby create more decent jobs to benefit local communities.
WHAT THEY SAID:
Our shared goal is fair and sustainable local cotton processing to create decent jobs and economic growth in the region. We at UNIDO offer our expertise to bring more local value addition in the cotton sector and support the development of a truly inclusive and sustainable textile industry. What we need is to also work towards establishing a ‘blue button’ seal to promote sustainable and fairly produced textiles around the world. We must fundamentally rethink how our economies and our global supply chains work and create a fairer globalisation that benefits all.
— Gerd Müller
Director General
UNIDO
West Africa stands at the cusp of a once-in-a-lifetime opportunity in the cotton and textile industry. I am happy with Gerd Müller of UNIDO and ITC and others as we are working to try and help them [Cotton Four] develop the cotton value chain in the countries.
— Ngozi Okonjo-Iweala
Director General
World Trade Organization
