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KENYA’S COTTON SUB-SECTOR REFORMS HIGH GROWTH POTENTIAL PRIVATE SECTOR PERSPECTIVE By Fred Kong’o African KENYA’S COTTON SUB-SECTOR REFORMS HIGH GROWTH POTENTIAL PRIVATE SECTOR PERSPECTIVE By Fred Kong’o African Cotton & Textile Industries Federation (ACTIF) Secretariat COTTON IN AFRICA SEMINAR Ngurdoto Mountain Lodge, Arusha 7 TH SEPTEMBER, 2007

Cotton-to-Garment Market and Institutional Support Structure Cotton-to-Garment Market and Institutional Support Structure

Kenya’s Cotton Sector Profile Kenya’s Cotton Sector Profile

Kenya’s Ginning Sector Profile Kenya’s Ginning Sector Profile

Reforms Government - Private sector Donor led • Most Gins bought by private sector Reforms Government - Private sector Donor led • Most Gins bought by private sector • Struggled to survive • Reforms currently supported and funded by the World Bank • Provide matching grant • All supply chain stakeholders; Established an Apex committee • Positive results; Apex committee developed cotton price formula acceptable to all • Influencing policy chain Government • Established cotton Authority • All stakeholders represented • To regulate the sector • Research to improve seed variety • BT trials on going • Supply seeds free, motivate farmers Ginners initiative • Formed Association to improve competitiveness and market access • Organized- regional basis -Eastern region well organized so far Buy input and spare parts together: Economies of scale Enter contract with farmers-protect territory Organize joint training for Technicians/ farmers-reduce cost Joint marketing and export of surplus cotton Make sense in establishing price and market Utilizes www. cottonafrica. com for price/market discovery

Bottom Line Needs • Is the glass half full or half empty? • Associations’ Bottom Line Needs • Is the glass half full or half empty? • Associations’ commitment to co-operate - formal • Communication & information key • Platform for information sharing • Public sector partnerships / dialogue a must • International alliances / linkages key • • Institutional support paramount; still work in progress Quality lint and honouring of contracts bottom line

WHAT DO WE SAY ABOUT KENYA’S COTTON SUB-SECTOR THE GLASS IS HALF FULL…. Regional WHAT DO WE SAY ABOUT KENYA’S COTTON SUB-SECTOR THE GLASS IS HALF FULL…. Regional & Global Cooperation ~ the key to market development and enhancing competitiveness - directly linked to the industry’s ability & desire to organise itself!