Afreximbank Urges Africa to Shift from Raw Cotton Exports to Thriving Textile Industry
By Nexio News
Yaounde, Cameroon – The African Export-Import Bank (Afreximbank) has called for urgent collaboration among governments, businesses, and development partners to transform Africa’s cotton sector into a competitive textile and garment manufacturing hub. The push comes as global trade faces increasing fragmentation, leaving African economies vulnerable to raw commodity dependency.
Speaking at the 14th World Trade Organization (WTO) Ministerial Conference in Yaounde, Afreximbank’s President, Dr. George Elombi, urged African leaders to take bold policy actions to protect and grow local industries.
“A fair global trading system remains out of reach for Africa,” Dr. Elombi said. “We must act decisively to shield our emerging industries from unfair competition while creating policies that foster long-term growth.”
A Continent of Untapped Potential
WTO Director-General Dr. Ngozi Okonjo-Iweala echoed this sentiment, describing Africa as “the continent of the future—a continent of hope.” She emphasized the need for stronger regional value chains to boost production and trade within Africa.
The WTO conference, the first held in Africa since 2015, highlighted the urgent need for trade reforms that support industrialization in developing economies. Afreximbank is leading efforts to shift Africa’s role from a raw material supplier to a manufacturing powerhouse.
From Cotton Fields to Factories
Currently, Africa exports most of its cotton as raw material, missing out on the higher profits from finished textile products. To reverse this trend, Afreximbank is investing heavily in special economic zones (SEZs) dedicated to cotton processing.
Key projects are already underway in Cameroon, Chad, and Mali, with discussions expanding to Kenya, Rwanda, and Nigeria. In Nigeria alone, the bank has committed $2 billion to modernize the cotton industry.
One standout example is Benin’s Glo-Djigbé Industrial Zone, where raw cotton that once generated $40 million in exports now produces up to $800 million in value-added garments.
More Than Just Money: Policy & Infrastructure Matter
Dr. Elombi stressed that financing alone won’t drive transformation. “Political will and efficient public sector execution are crucial,” he said.
Afreximbank is working with partners like Arise Integrated Industrial Platforms (Arise IIP) and the Africa Finance Corporation to provide industrial infrastructure, financing, and quality assurance. The bank is also improving energy and transport networks within industrial zones while ensuring products meet international standards.
Ambitious Job Creation & Economic Goals
By 2030, Afreximbank’s cotton industrialization program aims to:
- Create 500,000 jobs
- Generate $10 billion in import substitution
The initiative is part of a broader push to make global trade more inclusive for developing economies.
The Road Ahead
With Africa’s population set to double by 2050, the continent must industrialize rapidly to provide jobs and economic stability. Afreximbank’s strategy offers a blueprint—but success hinges on strong government policies, private sector investment, and regional cooperation.
As global trade dynamics shift, Africa has a rare opportunity to rewrite its economic future—one thread at a time.
— Reported by Nexio News
