Resource Mobilisation Workshop in support of African Cotton Value-chains 30th November 2011 HOTEL AZALAI SALAM, Bamako, MALI

ALL ACP AGRICULTURAL COMMODITIES PROGRAMME EUROPEAN UNION

ACP GROUP OF STATES

COORDINATION UNIT (CU) ALL ACP AGRICULTURAL COMMODITIES PROGRAMME c/o Cardno Emerging Markets, Belgium Avenue Louise 479 (Box 53) 1050 Brussels – Belgium

Tel: +32 2 282 03 40 Fax: +32 2 290.15.53 web: www.euacpcommodities.eu

Resource Mobilisation Workshop in support of African Cotton Value-chains 30th November 2011 HOTEL AZALAI SALAM, Bamako, MALI

December 2011

Resource Mobilisation Workshop in support of African Cotton Value-chains. 30th November 2011, Bamako, MALI

List of Acronyms and Abbreviations AAACP

All ACP Agricultural Commodities Programme

ACA

African Cotton Association

ACP

Africa, Caribbean, Pacific

ACTIF

African Cotton & Textile Industries Federation

AFD

Agence Française de Développement

APROCA Association des Producteurs de Cotton Africains AfDB

African Development Bank

BCI

Better Cotton Initiative

CAADP

Comprehensive Africa Agriculture Development Programme

CERFITEX Centre de Recherche et de Formation pour l'Industrie Textile CFC

Common Fund for Commodities

CMDT

Compagnie Malienne pour le Développement des Textiles

CMIA

Cotton Made in Africa

COMESA Common Market for Eastern and Southern Africa COS

Comité d’Orientation et de Suivi1

ECCAS

Economic Community of Central African States2

EDF

European Development Fund

EMBRAPA Empresa Brasileira de Pesquisa Agropecuária3 EU

European Union

FAO

Food and Agriculture Organisation

FSP

Fonds de Solidarité Prioritaire

GIZ

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

ICOTEC

Interprofession Coton Textile Confection du Cameroun

IPPM

Integrated Production and Pest Management4

IOs

International Organisations

ITC

International Trade Centre

MAE

Ministère des Affaires étrangères et européennes

NEPAD

The New Partnership for Africa’s Development

PR-PICA

Programme Régional de Protection Intégrée du Cotonnier en Afrique

UEMOA

Union Economique et Monétaire Ouest Africain5

UNCTAD United Nations Conference on Trade And Development WB

World Bank

WTO

World Trade Organisation

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Steering and Monitoring Committee Communauté Economique des Etats de l’Afrique Centrale (CEEAC) 3 Brazilian Agricultural Research Corporation 4 GIPD (Gestion Intégrée de la Production et des Déprédateurs) 5 West Africa Economic & Monetary Union (WAEMU) 2

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Resource Mobilisation Workshop in support of African Cotton Value-chains. 30th November 2011, Bamako, MALI

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Opening Remarks His Excellency Ambassador of Burkina Faso in Brussels and Chairman of COS-Coton opened the workshop by wishing all participants a fruitful workshop. He recalled the importance of cotton sector in Africa and the role played by African countries for defending the interests of African cotton producers towards the international institutions, in particular the WTO where the so called C4 group (Made of Benin, Burkina Faso, Mali and Chad) continuously appealed for justice in African cotton trade practices. Despite steps put forward in supporting the cotton value chain in several African cotton countries, many problems still remain unanswered. West Africa, Central Africa and East & Southern Africa regions, under the auspices of their regional economic institutions (UEMOA, ECCAS and COMESA), with the support from the programme, have validated value chain development strategies and work plans for priority interventions were adopted. The fact that all stakeholders, including the African States, are now contributing to the implementation of these action plans is welcome, but lots of efforts remain to be done. We thank the AAACP for the support already provided and ask for a continuation of such assistance, in view of addressing the challenges that the cotton sector in Africa is still facing. The General Secretary to the Ministry of Mining, Investments and Trade in Mali congratulated the AAACP for supporting the cotton sector in Africa and more particularly in Mali, which benefitted from several interventions in the field of research, production and marketing. He welcomed the results achieved by the programme, notably its contribution for developing the capacities of cotton producers and all cotton stakeholders in Mali, hence improving the incomes of producers and reducing the level of poverty in the country. He thanked the international donors for supporting the cotton sector in Mali and in Africa, and urged them to continue their efforts for helping Africa to eradicate poverty.

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Session 1a – EU-Africa Partnership on Cotton6 The EU-Africa partnership was concluded during the forum of Paris in July 2004, which was attended by some 250 participants from 28 countries. The objective of the forum was respond to the cotton initiative taken by 4 African countries, called C4, and to address the concerns of African cotton value chains. It was decided to establish a partnership between the EU and ACP countries, as well as a Cotton Action Plan, which gave way to an “Action Framework” in February 2010. The EU-Africa Partnership on Cotton includes two components: 1) A “trade” component, which aims at establishing more equitable trade within the Doha Development Round, in accordance with the WTO rules; and 2) A “development” component which consists in enhancing the competitiveness and value addition of African cotton, in order to improve the incomes of cotton producers. The Action Framework of the partnership implements the objectives of the Trade and Development components in 6 strategic axes: 1. Improve the capacities to develop and update cotton strategies 2. Improve the institutional environment, internal organization and efficiency; 3. Improve the competitiveness of the African cotton value chains 4. Reduce the vulnerability of cotton value chains 5. Increase the value addition generated by the cotton value chains 6. Strengthen coordination at all levels The Action Framework is a strategic reference document which aims at harmonizing the strategies defined and implemented in view of promoting African cotton in the context of the EU-Africa partnership on cotton. The Partnership established a steering and monitoring instrument, called COS-Coton7. This structure is composed of representatives from ACP States, the European Union (EC and member States), ACP-EU institutions, Regional integration Organisations and private sector. The AAACP programme, implemented by five international organizations, whose objective is to strengthen the capacities of producers of agricultural commodities, has devoted to the cotton sector more than €16 million, out of a total of €45 million EU funding.

Session 1b – Pan-African Cotton Roadmap During a meeting organised by UNCTAD in December 2008, African cotton producing countries had requested to seek solutions for getting the cotton sector out of the impasse at the WTO level. Following this request, UNCTAD initiated a pan-African cotton meeting in Cotonou in June 2011, in collaboration with the Common Fund for Commodities (CFC), the ACP Secretariat, the COS-Coton, and the Government of Benin. The Cotonou meeting aimed at identifying synergies and establishing collaborations in view of overcoming certain obstacles and improving the efficiency, and in particular the effectiveness of cotton sector interventions for all stakeholders. It recommended the establishment of a Roadmap on the outlook of African cotton in the next 10 years. The objective of the Roadmap presented by UNCTAD is to create favorable conditions for the implementation of a pan-African development cotton strategy, taking into account the existing regional 6 7

All presentations can be consulted on Cos-Coton Website www.coton-acp.org Comité d’Orientation et de Suivi pour le partenariat UE-Afrique sur le coton

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sector strategies and national/regional agricultural policies, as well as the interventions from the international community in the sector. The activities set out in the Roadmap have three main orientations: 1. Improve the productivity of the value chain, with the strengthening of the capacities of players and the coordination of regional cotton strategies; 2. Develop and strengthen strategies for the marketing of African cotton; 3. Provide added value to African cotton by promoting African cotton value chains, in view of better satisfying the domestic and international markets The Roadmap proposed aims eventually at harmonizing existing national and regional cotton strategies and policies, as well as accompanying implementing organizations in view of increasing the impact and efficiency of their interventions. Questions and answers on Roadmap: UNCTAD responded to some of the issues raised by participants, including the following: •

The Roadmap addresses problems related to agricultural inputs and seeds in the framework of “Increasing productivity”: (i) research, extension and advisory services, (ii) agricultural inputs and funding, and (iii) soil protection and restoration of soil fertility

•

The Roadmap is aligned with the Action Framework (see session 1a)

•

The value added of the Road Map (steering line and logic of the Roadmap): The Road Map is derived from an extensive process of consultations with African governments of cotton producing countries, stakeholders in the cotton sector as well as regional and international partners; and builds on the existing national and regional strategies in the cotton sector thereby creating synergies between these. By increasing the consistency between the different initiatives, including the EU-Africa Partnership Action Framework, it gives a general direction to the development of the African cotton sector at a pan-African level.

•

The intra-african cotton trade is one of the commons goals of the three regional strategies taken into account by the roadmap. One objective of the Road Map is to exploit the large potential of this market.

•

With the regions having already adopted and validated cotton sector strategies, what’s left is to work at the continental level on the common objectives. The Roadmap does not replace the regional cotton strategies; it aims at complementing and strengthening these existing strategies. It will be presented to the COS-Coton, which will assess its added value as compared to what already exists. The issue is also how AU/NEPAD would integrate the Road Map into CAADP and its existing programmes on agriculture.

•

Resources for actions recommended by the Roadmap have yet to be identified.

The Chairman closed the debate by recalling that the document related to the Roadmap remains a working document which will be subject a specific discussion during the COS-Coton meeting foreseen the day after.

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Session 2 - Progress report on the cotton component of the All ACP Agricultural Commodities Programme After a succinct recall of objectives and expected results of the AAACP programme, the CU presented results achieved in the cotton sector, as follows:
Three main regional strategies validated (UEMOA, ECCAS, COMESA)
Focal points are operational within UEMOA and COMESA
Focal point in Central Africa is being established (ECCAS)
Strengthening of commercial capacities of regional organizations, demonstrated by -

A better understanding of buying markets

-

An improvement of negotiating capacity of African cotton exporters

-

A support to national organizations in charge of trading cotton


Promotion of African cotton. Here follows are some successful actions: -

Establishment of direct business relationships with main buyers

-

Decrease of African cotton contamination

-

Direct sales to final international buyers


Development if South-South collaboration, with increasing exchanges involving products, inputs, research and cotton processing techniques between African countries and/or regions
A better attention to quality: -

Prevention of contamination

-

Cotton instrument testing


Better support of cotton producers and enhancement of relationships between producers, ginners and buyers: -

Search for sustainable increase of productivity with concrete examples like IPPM, farmer field schools, inclusive business models, etc.

-

Good agricultural practices


Introduction of risk management tools: cotton market research, commodity price risk management; weather risk management.

Questions and answers on programme results: •

It will be necessary to assess the impact of results achieved in the cotton sector on the level of African cotton exports

•

How are the costs been shared, notably between ACA and APROCA? These two organizations have already met and found an agreement on this subject.

•

IPPM trains producers, CMDT has trained 27,000 farmers in Mali with 260 trainers (facilitators). Many producers have adopted IPPM and techniques for reducing contamination, for which an important number is ready to share the costs for the contamination kits. Literacy must become a component of IPPM in Mali, with a support from AFD which is about to launch a literacy programme in cotton producing areas.

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•

Mozambique requests to have activities in the field and to overtake the current phase of studies and pilot projects in order to actually increase the productivity of cotton producers

•

Zambia requests more support to increase the yields of cotton producers. Pilot partnerships between producers and ginners, developed under the programme, are appreciated and should be scaled up.

•

ACA, which is active in 19 countries, appreciates and thanks the AAACP programme for its support to the development of the cotton sector in Africa

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Session 3 - Presentations by Regional Coordination Committees’ representatives Representatives of Coordination Committees for Cotton Regional Strategies of ECCA, COMESA and UEMOA made presentations on: •

The conclusions of their regional strategy

•

The main axes of the Action Plans related thereto; and

•

Proposals for projects to finance

Concerning the proposals of projects to finance, the following can be outlined: •

•

•

For ECCAS, projects presented were dealing with (1) the implementation of a Coordination Committee for the follow up of its strategy and strengthening of technical secretariat; and (2) the improvement of African cotton competitiveness through a targeted promotion and increase of sales on key markets, in collaboration of African associations (ACA, APROCA). For COMESA, proposals are more global and relate to strategic support of the Cotton-toClothing value chain for increasing the added value and expansion of markets in East & Southern Africa UEMOA submitted three project proposals: (1) to secure the incomes of cotton producers in the UEMOA zone; (2) to strengthen the production and certification of non contaminated cotton; and (3) the establishment of a regional funding mechanism of the cotton-textile value chain in the UEMOA zone

Main observations and suggestions from participants were made as follows: •

A participant from Nigeria felt marginalized and excluded, as Nigeria was not consulted when regional strategies were elaborated, despite the fact that Niegria is an important producing country and processes cotton. Moreover, the Nigerian cotton value chain is facing important problems, in particular the quality of seeds and grading of cotton lint.

•

A participant from Benin outlined the lack of consideration of the weather risks. He also underlined the need to have a strategy in terms of producing inputs.

•

A participant from Senegal judged the duration (3 years) of the UEMOA project on contaminated cotton too short. On the other hand, he complaints that no cost estimate has been made regarding the project proposals

•

ACTIF is insisting on the need to focus more on added value generated by the support, especially when resources are rather scarce in regards to the needs

•

Mozambique suggests to better orientate the assistance towards the improvement of production, competitiveness and quality, utilizing a more pragmatic training approach which better involves women.

•

Malawi confirmed that productivity in relation to a decrease of fertility, added value and marketing are priority concerns. Problem of access to and utilization of inputs should be better considered.

•

Sodefitex and ACA. The improvement of productivity must be a key priority, with a particular emphasis for children and women. The dissemination of the quality charter for the UEMOA countries must constitute a priority for the next coming months. The fight against contamination can only be considered through a national dimension. No country can address this problem alone, and coordination at regional and panafrican levels must be pursued. In this context, Nigeria is requested to integrate ACA and APROCA.

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•

A representative of PR-PICA underlined that none of the three priority projects of UEMOA foresees a strengthening of the capacities of the researchers in the cotton sector.

•

UNCTAD recalled that several studies were carried out concerning cotton processing. Main constraints were identified; failing to address them would result in an inefficient utilization of resources and additional losses of market parts.

•

Tanzania, though not being a member of COMESA, represents one of the major cotton producers in East & Southern Africa. There is also a need to address the negative impact of secondhand clothes on cotton processing. The fight against fraud must be part of a set of measures aiming at stabilizing the prices. On the other hand, diversification efforts do not concern textile only.

•

FAO insisted on the need to better orientate the support so that it can guarantee good prices for the producers, notably by improving their negotiating power.

Resource Mobilisation Workshop in support of African Cotton Value-chains. 30th November 2011, Bamako, MALI

Session 4 –

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Open session for exchanges between Coordination Committees and donors

The table here below provides a summary of the exchanges between the different Regional Cotton Coordination Committees, the regional professional organizations and the development partners. Partners met

Exchanges

Status/Next steps

UEMOA GIZ

GIZ is active in agriculture sector in Benin, Burkina Faso and Mali. GAP, prevention of contamination and management of inputs were discussed

Projects submitted to GIZ for assessment. Advises/proposals are awaited.

AFD/France/ Mali

In UEMOA zone, AFD is also supporting the cotton value chains in Benin and Burkina Faso, in the framework of bilateral cooperation. It is this necessary to lobby during the programming phase with the States concerned that that cotton sector is included in the focal sectors.

Projects submitted for assessment. AFD/Mali will transmit the information to countries where it is established.

MAE/France

The ongoing project « Regional approach in the framework of the EU-Africa partnership on cotton » was recalled. Following discussions, it was suggested to carry out a study on agricultural credit in the UEMOA zone.

Projects submitted for assessment. The Cotton/UEMOA Coordination Committee will also prepare and submit a project fiche to the MAE, related to the agricultural credit.

EMBRAPA/ Brasil

The Brazilian cooperation is active through its support project to cotton (varietal improvement, IPPM) in the C4 countries, whose implementation is foreseen until end 2012. An extension of the project is being assessed, which would include transfers of technologies (production, ginning, etc.)

Projects submitted for assessment. Advises/proposals are awaited

Intervenes already in Mali (NB Senegal, Togo : forecast)

Projects submitted for assessment. Advises/proposals are awaited

It is intended to better establish the regional dimension of CERTIFEX within UEMOA, in relation to the Regional Technical Centre of Segou.

Discussions between UEMOACERFITEX to be followed up and translated into actions

BCI CERFITEX

Resource Mobilisation Workshop in support of African Cotton Value-chains. 30th November 2011, Bamako, MALI

Partners met

Exchanges

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Status/Next steps

ECCAS AFD/France/ Mali

In ECCAS zone, AFD is also supporting the cotton sector in Cameroon and Chad, through its FSP/MAE project

Projects submitted for assessment. AFD/Mali will transmit these proposals in other countries of central Africa where AFD is present.

ICOTEC

Contacts with « Interprofession Coton Textile Confection du Cameroun » (ICOTEC)

ICOTEC should become a member of the coordination committee for the ECCAS cotton strategy.

COMESA BCI

Projects submitted for assessment. Advises/proposals are awaited

APROCA AFD/France/ Mali

Discussion on organic/fairtrade cotton project (5 years) in which APROCA is involved

GIZ

Request for support to « Université du Coton »

To be further discussed during next meeting of APROCA (Banjul, 6th December, 2012)

ITC

APROCA requests ITC to disseminate the guide of exporter and to organise a workshop on this document

ITC

PR-PICA

Discussions with a representative of PR-PICA on future activities (NB APROCA is a member of PR-PICA)

ACA IOs, COS-coton

ACA shared about regional strategies and projects which were presented, in relation to its strategic plan (2011-2016). It enquired about how the support provided by AAACP would continue, in particular the prevention of contamination (CFC), the implementation of quality charter (WB), and marketing/market intelligence (ITC).

ACTIF Did not discuss with specific development partners

ACA seeks a support from COS-Coton to fund meetings of its technical commissions.

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Session 5 - Presentations by EU and Representative of EU Member States on support to the sector Mr Yves GUEYMARD (France) made a presentation in collaboration with Mr. Wolfgang BERTENBREITER (GIZ/Germany) on other support provided to the cotton sector by the EU Member States. The presentation covered the following: • Projects financed by AfD/France : the “Fonds de lissage” in Burkina Faso and FSP cotton project, regional approach in the framework of the EU-Africa partnership; • Better Cotton Initiative (BCI) et Cotton made in Africa (CMIA) Thereafter, Ms Aude SAUVAGET (EU) made a brief presentation on the new intra-ACP EDF10 cotton programme. The specific objective of this programme, called “Appui à la consolidation du Cadre d’Action pour le Partenariat UE-Afrique sur le coton »8, is to support cotton stakeholders, national governments and African economic integration organizations to implement cotton strategies (at national, regional and panafrican levels) on a coherent manner, so as to ensure a sustainable development of the African cotton sector. There are three expected results: (1) Regional cotton strategies are operational at national level, and coordinated through a continental approach; (2) planning and monitoring capacities of professional associations are strengthened in relation to strategy implementation; and (3) internal competitiveness and sustainability of African cotton value chains are improved. Participants made the following observations and remarks : • The Permanent Secretary of the Burkina Faso cotton value chain underlined that the “Fonds de lissage” is functioning well and has already played a role in stabilizing incomes of producers during the last campaigns. However, the architecture of the fund is not yet achieved, and its re-funding should be envisaged as well as any other measure aiming at reinforcing its sustainability. • A participant from Nigeria asked what selection criteria were used for determining the countries which could benefit from the support to the cotton sector. He was also wondering why France provides a support to Bt cotton, whilst Bt cotton is a controversial matter within African cotton countries? • UEMOA confirmed that the information component of the FSP project could not be implemented yet. However, UEMOA is discussing with the AfDB for setting up an information system which should first be tested at small scale (pilot project) before being generalized. • APROCA expressed its satisfaction regarding the support the institution received in the framework of FSP and CMIA/BCI • All participants expressed their great satisfaction following the official announcement of the approval by the EDF Committee of the future EDF10 cotton programme. Main requests for clarifications bore on breakdown of costs, by country and by result area, of the €11 million allocation to the programme. The President of COS-Coton responded that there was no breakdown by country. The basis of the programme is to facilitate the implementation of the regional cotton strategies. The breakdown of the means by result area results from the feasibility study. The representative of France outlined that the support from FSP is not a specific support to the cotton sector in Burkina Faso and to Bt cotton. Other countries are also involved (Cameroon, Mali, Togo). On 8

Strengthening of the Action Framework for the EU-Africa Partnership on Cotton Support Programme

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the other hand, it is not correct to talk about a support to the Bt Cotton, but rather one of the components of the FSP is studying the impact of the utilization of Bt cotton (like for example the agroecological constraints, evaluation of transmission of genes, impact of stinging insects). The ACP Secretariat brought a comment concerning the feeling of exclusion expressed by a representative from Nigeria. While recognizing the important role played by Nigeria for the cotton sector in West Africa, he would like to underline that Nigeria has been called several times to participate to international or regional meetings in the framework of the cotton component of the AAACP. However, it was found difficult to identify interlocutors and invitations remained unanswered.

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Session 6 - Main conclusions and follow-up actions at international, pan-African and regional levels As concluding remarks for this Resource Mobilisation Workshop in support of African Cotton Valuechains, the President of COS-Coton thanked all participants for their active contribution to the success of this workshop, in particular representatives from professional and regional organizations, as well as funding agencies and partner international organizations. He welcomed in particular the official announcement and the presentation of the new intra-ACP cotton support programme which should be launched some time in 2012. Additionally, he wished that the contacts which were taken during this workshop could be pursued, in particular by the regional cotton Focal Points (RCFP), with the support from the Coordination Unit of the AAACP. Finally, he urged the regional organizations to take the necessary arrangements for accommodating the RCFP within their structures so as to ensure the ownership and sustainability of the support.