CZI Calls For Focus On Value Addition To Boost Cotton Sector

The Confederation of Zimbabwe Industries (CZI) says the country should focus on adding value to its cotton to help grow the sector and earn more foreign currency.

CZI Chief Economist Cornelius Dube said that instead of just exporting raw cotton, the country should aim to produce products like yarn, which have a higher value. Said Dube (via Business Times):

Cotton is one of the strategic pillars identified under the National Development Strategy 1 (NDS1) as an area with significant industrialization potential.

However, while we have a comparative advantage in producing lint, we lack the same advantage in manufacturing value-added products.

If we shift focus to processing lint into yarn and other finished goods, we can increase export revenue and maximize economic benefits.

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Dube also called for the commercialisation of cotton farming and the introduction of incentives to encourage farmers to boost their yields. He said:

The major challenge is the absence of incentives to encourage farmers to boost output, which would, in turn, support value addition.

More farmers participating in cotton farming means greater opportunities for industrial growth beyond lint processing.

If we increase cotton production, we can attract more investment into the textile industry.

Dube also said it is imperative to bring large-scale commercial farmers back into the cotton sector and allowing them to market their produce independently. He said:

Currently, small-scale farmers dominate the sector, but their yields are low. In the past, when commercial farmers were active, production levels were much higher.

One way to bring back commercial farming is by leveraging the newly announced title deed program, enabling farmers to own land and cultivate cotton on a commercial scale.

This would allow them to market their produce independently, sell lint to spinners and weavers, and reduce dependence on lint exports.

Southern Cotton Company Managing Director and Cotton Ginners Association member Caos Nzenze, said:

We need to address the primary production of seed cotton, which has significantly declined. There is substantial potential to expand and revive the sector to its former glory when we used to export large volumes of cotton.

There is considerable room for growth in value addition. Most ginners currently sell their cotton seeds to oil expressers.

However, individual companies could enhance their operations by extracting oil and producing stock feeds for farmers, adding more value to the crop.