Page 20 - November/December-2019

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African Cotton Initiative by

Afreximbank to boost African

cotton sector

The economic significance of cotton in the global boosting policies for production, promotion and
market is evident by its majority share of over 50% financing the consumption of cotton products. She
among fibers for apparel and textile goods. So, there believed that cotton value chain is a source of
is a need to create awareness continuously for income for people, especially in rural areas and
sustainable cotton and cotton products. Kanayo foreign exchange for many countries.
Awani, Managing Director of the Bank’s Intra-African
Trade Initiative announced that African Export-Import The African Corner is a section of the WTO premises
Bank (Afreximbank) is developing the African Cotton dedicated to African Cotton products sponsored by
Initiative to help augment the African cotton sector. Afreximbank and is responsible for the support and
recognition of African cotton value chain, fashion and
At World Cotton Day (October 07), Ms. Awani talked textile industry by collaborating with internal/external
about cotton initiative that would involve in overall customers and investors.

APTMA reports effects of

costly imported cotton on

textile industry

APTMA chairman Mr. Amanullah Kassim Machiyara addressed reporters regarding the deficit in raw cotton
production this year and said that the price of domestic raw cotton is comparatively higher than that of
imported cotton which has a detrimental effect on the textile industry.

According to the initial survey, the difference between production and demand is 5 million cotton bales. The
initially estimated cotton yield was around 15 million bales, later it was amended to 12 million bales and now
according to the second update, the cotton harvest might be 10.2 million bales. So, to overcome this
deficiency, APTMA chairman suggested that the government should remove taxes and duty on the import of
raw cotton to fulfill the requirement of domestic yarn manufacturing industries.

He demanded the government to immediately remove the 5% sales tax, 3% customs duty and 2% additional
duty imposed on the import of raw cotton to meet the requirements of the textile industry for local as well as
export business.

October/November 2019