ESACO tips Ethiopia to become regional leader in cotton production

Addis Ababa, December 14, 2024 (FMC) – The immense potential of Ethiopia in cotton production would position the country a regional leader in the sector, Chairperson of Eastern and Southern Africa Cotton Organization (ESACO), Driana Lwanda remarked.

A two-day regional workshop on harnessing opportunities and inclusive dialogue for sustainable cotton and textiles sector transformation is taking place in Addis Ababa.

In his opening remarks, Ethiopia’s Agriculture State Minister Meles Mekonnen emphasized the importance of the workshop in fostering sustainable economic growth through the cotton and textiles sector.

The state minister highlighted that the ministry has recognized the importance of enhancing production and productivity of cotton.

To this effect, various measures are put in place to achieve the objectives of import substitution and export promotion to generate foreign currency, ensuring industrial input and structural transformation while securing high level of employment opportunities, he added.

Explaining the untapped potential of the cotton and textile sector with ample land and water resources, suitable agro-climatic conditions and productive workforce, Meles stressed the government’s commitment to transforming its economy, particularly through cotton and textile production.

With 3 million hectares of land suitable for cotton cultivation, the country has the potential to produce over 3 million tons of cotton annually— sufficient for both domestic needs and export, he added.

The state minister stressed that the ministry has given emphasis on increasing cotton production and productivity.

To this effect, the workshop is crucial to address gaps in the cotton value chain, share experiences and strategies to tackle the challenges and enhance the sector’s competitiveness as well as create collaboration among stakeholders including international and local cotton promoters, he elaborated.

“At this forum, invited participants from various international and local cotton promoters will have the chance to share their experiences with the objective of anticipating global challenges and the significance promoting efficiency and effectiveness in the cotton and textile sector,” he said.

Ethiopia’s Industry State Minister, Hassen Mohammed on his part reiterated that cotton is a highly strategic cash crop for structural change with a significant contribution to job creation, foreign exchange earnings, poverty reduction as well as import substitution, increasing productivity and industrialization.

Cotton is key input both to backward and forward linkage to establish textile and apparel industries, he said.

Africa has significant room to grow it, he said, adding, however, the cotton and textile sector continue to face multiple challenges such as productivity and quality, global price volatility, as well as access to finance, technology transfer and high competition.

Through the Homegrown Economic Reform, the government of Ethiopia has given priority for the development of the sector, he noted.

“Ethiopia has identified the manufacturing, particularly the cotton, textile and garment sector as priority areas of development in the recent homegrown economic reform agenda… Our focus on the textile and garment sector is based on a keen realization that Ethiopia offers…which includes abundant trainable workforce, cheap electric power and commitment of the government to create a conducive and enabling environment for improving the cotton production,” he explained.

Chairwoman of the Eastern and Southern Africa Cotton Organization, Driana Lwanda on her part emphasized the importance of cotton in providing livelihoods for millions across Africa while acknowledging the sector’s challenges, such as low productivity and rising production costs.

​​​​​​She highlighted the potential for Ethiopia to emerge as a regional leader in cotton production, provided that issues like market prices and government support are effectively addressed.

“Ethiopia is a shining example of opportunities and challenges. With the vast untapped potential of the cotton and textile sector, the country is positioned to become a regional leader. Yet challenges such as low market prices, high transaction cost, among others must be addressed to unlock the potential,” she said.

The chairperson stressed the importance of consultation to align efforts at national and regional levels and sustainable cotton value chain.