At a Partners Conference on cotton on 27 July, Director-General Ngozi Okonjo-Iweala urged donor agencies to mobilise resources in support of cotton projects in least-developed countries (LDCs), including the Cotton-4 countries (Benin, Burkina Faso, Chad and Mali).
At a “Call for Action” signing ceremony later in the day, she welcomed a pledge from the African Export and Import Bank (Afreximbank) to provide up to USD 300,000 as grant-matching funds to support the preparation of cotton value chain development projects in African countries from 2023 to 2024.
The conference was organized jointly with the UN Conference on Trade and Development (UNCTAD) and the International Trade Centre (ITC). "This conference is not just about cotton. It is about people," the Director-General noted.
Donors should listen carefully to the project needs and priorities presented by the Cotton-4 countries and other LDCs so that they can provide tangible support to help realize these homegrown projects, she said.
“LDCs will need our support to mobilise the financial and technical resources they need so that the millions of people whose livelihoods depend on this sector can envisage a better life for themselves and their families,” she added.
DG Okonjo-Iweala noted that cotton is a vital crop in over 30 African countries, generating some USD 1.5 billion in export earnings but that the sector had been hit hard by the COVID-19 pandemic.
A WTO study shows that, although cotton production has since bounced back to pre-pandemic levels in many LDCs, GDP per capita initially fell by 2.1% on average in ten LDCs the study examined.
Cotton exports also dropped by 34% on average in value terms - corresponding to a USD 500 million loss in export earnings - though countries' experiences varied. Severe and persistent supply chain disruptions continue to jeopardise millions of jobs.
"Policymakers should aim to boost productivity sustainably, strengthen competitiveness and add value to cotton goods" in order to strengthen resilience to future shocks, the Director-General said.
