1. ACTIF Presentation www.actifafrica.com / www.cottonafrica.com
Rajeev Arora
Executive Director
African Cotton & Textile Industries Federation /

2. INTRODUCING ACTIF
A regional trade body formed by the cotton, textile and apparel value chain stakeholders in Eastern and Southern Africa in June 2005
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 2

3. COTTON TRADE WORLD VS AFRICA
2011/12
Million tons
2012/13
2013/14
Million tons (projected)
World Production
28.042
26.684
25.63
Africa’s Share
5.6%
5.4%
6.0%
World Consumption
22.789
23.291
23.48
1.3%
1.5%
1.6%
World Imports
9.759
9.867
8.81
1.4%
1.7%
2.4%
World Exports
9.870
10.078
11.0%
12.6%
15.4%
Source ICAC June 2014

4. African Cotton Production
Million tons
Share of World Production
Production
Updated on April 2, 2013.
Source: ICAC June 2014

5. Supply & Use of Cotton Status in africa Region Imports 2013/14 Prod
Cons
Exports
North Africa
119
154
184 87
Francophone Africa
902
n/a 17
892
Southern Africa
506 59
164
404
World
25,628
8,811
23,461
000 Metric Tons
Source: ICAC June 2014

6. AGOA OPPORTUNITY
Total imports of textile & apparel products by USA stood at US$ 101Bn (Source: OTEXA, 2012)
SSA enjoys Duty free Quota free access into US for Garment exports under AGOA
Total U.S. Apparel imports from Africa under AGOA US$ 864 Million (0.8%) (Source: ACT, 2012)

7. EXPORTS UNDER AGOA 2013 DATA
Country
MSME
% Share
$ Million
Kenya
92.716
36.3%
308.77
32.4%
Lesotho
71.4
27.9%
321.27
33.7%
Mauritius
28.6
11.2%
191.4
20.1%
Swaziland
13.1
5.2%
49.97
South Africa
12.7
5.0%
20.60
2.2%
Madagascar
11.6
4.5%
20.7
Tanzania
10.5
4.1%
10.40
1.1%
Ethiopia
7.35
2.9%
Malawi
2.9
1.2%
8.4
0.9%
Botswana
1.5
0.6%
5.8
TOTALS
252.7
98.9%
948.0
99.4%
Source: ACT Report 2014

8. EU OPPORTUNITY
Africa enjoys duty free Quota free access into EU for Textile products through the Economic Partnership Agreement (EPA)
Total imports of textile & apparel products by EU stood at US$ 234Bn. (2012)
Total EU textile and apparel imports from Africa stood at US$ 9.3 Bn (4%)
Source: ITC calculations based on UN Comtrade

9. ROLE OF ACTIF
Foreign Direct Investments(FDI): ACTIF explores investment in the cotton textile & apparel value chain in Africa, including developing due diligence and match making for JV’s
B2B Linkages: ACTIF facilitates Business to Business linkages with member countries
Access to Information: ACTIF provides information access including reports and special studies for national policies and strategies
Market access: ACTIF actively develops linkages with member countries and regional economic communities (RECs) like EAC, COMESA, SADC

10. ROLE OF ACTIF
Policy & Advocacy: ACTIF is very active in advocacy activities in partnership with its members and partners to improve the policy environment across the region
COMESA CtC Strategy: ACTIF has been recognized as the private sector representative for the implementation of the COMESA Cotton to Clothing strategy. With support of our funding partners, ACTIF has developed an priority implementation plan from the strategy and is currently monitoring the implementation activities;

11. Highlights of key achievements
Extension of AGOA’s third country fabric provision to 2015
In 2011 & 2012, ACTIF was instrumental in engaging with key stakeholders including in US trade representatives, Members of US congress and Senate, Diplomatic corps and civil society. ACTIF Chairman was also invited to speak at a congressional hearing on AGOA. The end result was extension of AGOA’s third country fabric provision to 2015, saving over 300,000 jobs that were at stake!

12. Highlights of key achievements
Favorable Rules of Origin for the CTA sector adopted under EAC-COMESA-SADC tripartite
ACTIF has been actively involved in representing the private sector views in the EAC-COMESA-SADC tripartite discussions. This has led to favorable provisions for the Cotton, textile and apparel sector being adopted into the final draft of the tripartite document. The document is currently going through the political process before the FTA can be launched.

13. Highlights of key achievements
Investment Development – PVH Investment Delegation to East Africa: At least twenty Textile & Apparel companies from 5 countries in Asia made a strategic visit to Ethiopia, Kenya and Uganda in April 2014 to explore investment opportunities. The mission was organized by Philippe Van Heusen (PVH) and Vanity Fair (VF) in partnership with African Cotton & Textile Industries Federation (ACTIF) working with its member associations in the 3 countries visited along with export and investment promotion agencies.
Investment Visit to Kenya
Investment Visit to Uganda

14. OTHER ACHIEVEMENTS Information Dissemination
Trade Events
ACTIF has developed and also successfully partnered in developing trade events for the cotton textile & apparel sectors in Africa under Origin Africa ( ) and Source Africa (2013 & 2014);
Information Dissemination
ACTIF has successfully developed a number of valuable reports
Capacity Building Seminars
ACTIF successfully organized Capacity building seminars for the CTA Industry in Africa under Source Africa events in 2013 and 2014 in Cape Town, South Africa

15. Priority Areas linked to COMESA CtC Strategy
PROPSOED STRATEGIC INTERVENTIONS UNDER THE COMESA COTTON TO CLOTHING STRATEGY
Projects
Priority Areas linked to COMESA CtC Strategy 1
Capacity building of national federations
Develop the industry's technical and human resource capacity 2
Cotton by-products markets prospects
Address emerging industry standards and target appropriate channels/products (apparel) 3
Promoting investments in East African region
Strengthen Regional and International Market Linkages 4
Textile & Apparel industry optimization to build competitiveness
Develop Quality Standards, Standardization and Systems across the value chain 5
CTA value chain development through value addition
Address emerging industry standards and target appropriate channels/products 6
Establishment of center of excellence 7
Evaluation of cotton support centers
Promote good agricultural practices and train farmers/ginners to improve productivity 8
Supply side analysis for 10 Countries: Mauritius, Zimbabwe, Zambia, Madagascar, Burundi, DRC Congo, Malawi, Egypt, Ethiopia & Eritrea
To capture country information and supply side data to enhance regional MIS and to promote trade across the regional cotton to clothing value chain

16. Supply & Use of Cotton Status in africa Region Imports 2018/19 Prod
Cons
Exports
North Africa
120
200
280 40
Francophone Africa
1,200
n/a 25
1,175
Southern Africa
680 70
260
500
World
28,000
9,000
000 Metric Tons
Source: Forecasts by Terry Townsend, ACTIF Consultant

17. WHY AFRICA?

18. Overview of global clothing industry
Clothing export industry has grown from US$40 billion in 1980 to $422 billion in 2012, averaging 29% growth annually
No major changes in main importing countries

19. World Clothing Import 1982
Source: WTO
Source: WTO

20. World Clothing Import 2012
Source: WTO

21. Overview of global clothing industry
The major exporting countries have been playing musical chairs:
from quota countries to non-quota countries
after expiration of MFA in 2005; to cheapest countries
to countries with Free Trade Agreements (FTAs) or Generalised System of Preferences (GSPs)

22. World Clothing Export 1980
Source: WTO
Source: WTO

23. World Clothing Export 2012
Source: WTO

24. Overview of global clothing industry
Country
GDP/Capita
(2012)
Min Wage
(2009 )
Latest
Malaysia
$16,800
295
275 (2013)
Mexico
$15,400
146
135 (2014)
China
$9,100
106
235 (2013)
Jordan
$6,000
204
268 (2012)
Swaziland
$5,700
86 (2011)
Indonesia
$4,900 86
180 (2012)
India
$3,800
88 (2012)
Vietnam 83
114 (2014)
Pakistan
$3,100
105
95 (2013)
Cambodia
$2,400 56
80 (2013)
Lesotho
$2,100
130 (2012)
Korea, North
$1,800 75
Kenya 69
139 (2013)
Bangladesh
$2,000 67
68 (2013)
Myanmar
$1,600 33
50 (2011)
Tanzania
(2013)
Ethiopia
$1,300
23 (2012)
Mozambique
$1,200
140 (2013)
Madagascar
$900 81
45 (2013)
Malawi
$800
26 (2012)
Wage Trends in Major Clothing Exporting Countries
Note:
GDP/capita gives an indication of the standard of living
Source: CIA Factbook / Wikipedia

25. Where will be the next Apparel production Frontier?
Countries where they have:
Geographical advantage: Nearness to raw materials and markets
Trading advantage: Bi-lateral or multi- lateral Free Trade Agreement
Demographic advantage: Abundance of unemployed labour

26. Why Africa? Africa has: Geographical advantage:
Cotton production Mali, Burkina, Cote D’lvoire, Mozambique
Close to EU & US
Trading advantage:
Duty Free to EU
AGOA
Demographic advantage:
Abundance of unemployed labour

27. WHY AFRICA? Healthy Growth Momentum
Robust growth over the past 10+ years
Economic Growth:
4.2% (2012), projected to accelerate to 4.5% (2013), 5.2% (2014)
5 out of the top 10 fastest growing economies in 2013 are African countries, 4 out of 10 in 2012 (IMF)
Business Insider predicted 9 out of the 20 fastest growing economy in the next 40 years will be African countries.

28. WHY AFRICA? The US economy
Healthy Growth Momentum (Cont’d)
Even resource-poor countries (Mozambique, Ethiopia) have grown, backed by mineral resource discoveries and buoyant commodity prices
Africa’s trade with emerging countries has gained in importance, e.g BRICS (Brazil, Russia, India, China, South Africa)
The US economy
Its gradual recovery is good news for garment exporters in Africa with increasing support from American buyers

29. WHY AFRICA? Africa becoming a major consumer market
Total population of 1 Billion
More than 10 countries have GDP per capita exceeding $5,000
More than 10 countries have millionaire growing at between 20% to 108% over the last 5 years
Clothing export to Africa grown from $3.5 Bn in 2003 to 10.1 Bn in 2012
The Obama Administration and AGOA:
Anticipates a seamless renewal of AGOA beyond 2015
AGOA enjoys strong bi-partisan support

30. LONG TERM FUNDAMENTALS – OPPORTUNITY FOR AFRICA
Increasing capita fiber consumption in emerging economies
Source: PCI-Fibres, The Fiber Year, ITMF
Asia is destined to put more focus on its domestic market in the coming years. Africa is therefore set to establish itself as the next sourcing destination
Year
World
West Europe
Turkey
North America
China
India
2007
11.7
23.7
18.0
37.8
16.0
4.6
2009
11.0
21.9
14.6
30.2
17.2
4.8
2011
12.2
23.6
16.6
34.5
19.9
5.1
2013
13.0
24.0
16.9
36.2
21.1
5.5
Other reports show even higher trends for India

31. VALUE ADDITION OPPORTUNITIES
Increasing demand for high qulaity fabrics targeting AGOA & EU markets is a huge opportunity to invest in the Textile Industry;
Huge potential in the Cotton By Products Industry to enhance income to cotton farmers;
Increasing demand for African Fashion & Designs;
Increasing demand for hometextile & home decor from Africa;

32. CAPTURING VALUE ADDITION
Value Addition x 10 times which can create 9 million jobs if 100% value is added to current African lint
Fibre
1 Kg
1.6 US$
0.5 person
Yarn
0.75 Kg
3.40 US$
0.75 person
Fabric
3.35Mtr
8.5 US$
2.0 persons
Garment
2 Trousers
15.50 US$
4.0 persons
Retail
38.80 US$

33. Africa’s Land Mass depicting the continent’s potential
AFRICA’S POTENTIAL
Africa’s Land Mass depicting the continent’s potential

34. Changing Perceptions, Building Synergy & Doing Business
10th – 12th November 2014
HOTEL INTERCONTINENTAL
Nairobi, Kenya
Changing Perceptions, Building Synergy & Doing Business
Africa’s Cotton, Textile & Machinery Trade Fair
fiber  fabric  clothing  fashion  accessories  home  décor machinery

35. Origin Africa 2014 event
Changing Perceptions, Building Synergies & Doing Business
The event will highlight the creativity and innovation of the African cotton, textile and clothing industries
Special focus on business, trade and investment – regional and international – capturing the spirit, style and innovation of modern Africa.
Components:
Trade Expo; Seminars; B2B Meetings; Designer Fashion Showcase
Target Participants: 
Cotton, Fibre, Yarn & Textiles, Apparel & Fashion, Home Textiles & Décor, and Accessories sectors; Support Agencies; Investment Agencies; Export Agencies; Textile Machinery/Technology Suppliers; National Delegations; and Country Pavilions Investment Promotion;

36. Special features Cotton Fibre Component
B2B activities will be organized between Ginners and Spinners to promote cotton Trade and value addition in Africa;
Home Textile & Home Décor Component:
A special Home Textile Component has been included to showcase key regional suppliers;
Factory Visits 
Factory visits to be organized for investment delegations and sourcing agents;
Students Category
A Students Category has been included in the Trade Expo to showcase up coming talent;

37. B2B Meetings
This will be pre-arranged meetings to match African manufacturers with international and regional retailers, brands, wholesalers and agents.
An opportunity for African manufacturers to showcase African made textiles, apparel, footwear and services to European, American and African buyers.

38. Value Addition Opportunities exist across the entire value chain
conclusion
Value Addition Opportunities exist across the entire value chain
Thank you