Nairobi — Poor performance of the textile industry in Africa can be traced to its reliance on exports, a meeting has been told.

The ups and downs that come with it mean that the continent will always be victim of the same.

"The heavy dependence on production and export of primary commodities and the underdevelopment and weakness of national and regional markets are the two major features of Africa's economy that have accounted for its high vulnerability to external shocks," said African Union commission deputy chairman Erastus Mwencha.

Textile body

He spoke when he presided over the launch of the first pan-African cotton and textile body, the African Cotton and Textile Industries Federation (ACTIF).

Mr Mwencha said launch of the federation whose membership includes 23 national cotton and textile trade associations from 18 African countries will help meet the challenges of development in today's globalised economy.

He said that the world economic crisis hit African economies badly adding that export prices and earnings have fallen resulting in declines in government revenue and national incomes as well as rising unemployment and poverty.

Prime Minister Raila Odinga said that Africa, like Europe and the Asian Tigers can use the textile industry to spur economic development. He urged governments not to look to aid to propel industrial revolution but open up their borders for increased trade with each other.

"It is a pity that Africans have resigned to receiving local goods through Europe to evade the hurdles and barriers we have imposed in our continent," said Mr Odinga at the launch.

He said Africa has the capacity to move from struggling Third World economies to middle income status and subsequently to developed economies.

ACTIF chairman Jaswinder Bedi said the organisation's mandate is to bring the disparate needs of the cotton, textile and apparel sectors into cohesive and consensus driven positions at regional and international trade and development forums.

African countries have generally procured fabrics from Asia and designs from Europe and the United States. The federation's mandate is to help change that to ensure that fabric, design and fashion (the entire value chain) stems directly from the African continent.

"ACTIF's formation demonstrates that consensus is growing among African countries and is recognition that countries can no longer act in isolation or remain fragmented in this increasingly globalised economy," said Mr Bedi.

Since 2005 when the idea of setting up a continental cotton and textile body was mooted, members have aggressively promoted regional integration in collaboration with key partners.

They include the Common Market for Eastern and Southern Africa, the East African Community and the Southern African Development Community. It has also promoted market access across the region and to the United States through the African Growth and Opportunity Act (Agoa) which expires in 2015.

The federation says that it will advocate for this agreement to be extended or made permanent.

Africa currently produces 12 per cent of the world's cotton but 90 per cent of this is sold to other countries for processing.

Mr Bedi said a crisis of confidence could hit Agoa eligible countries, with buyers looking elsewhere for apparel should it not be renewed beyond 2015.

"Buyers need predictability to place orders in the long term," said Mr Bedi adding that the group is proposing an amendment to make the Act's provision long term to secure investment in the entire value chain, maintain existing buyers and attract new ones.

According to Mr Mwencha the share of sub-Saharan Africa in the EU textiles market which amounted to 3 per cent declined to about 1 per cent while that of China rose from 10 to more than 12 per cent.

Nevertheless, with Africa's growing middle class, there is tremendous market potential for cotton apparel within the continent, particularly through the Brand Africa initiative.

Africa's large and growing population (estimated currently at around 1 billion) and the increasing demand for African attire both within and outside the continent, especially among the diaspora, is another source of opportunity that should be fully harnessed.

USaid/East Africa's regional director Larry Meserve said that he hopes to see ACTIF position itself as a major player in the African cotton sector complemented by a financial strategy that leads to its long term sustainability.

"USAID/East Africa supports regional trade associations like ACTIF to unlock the potential in the cotton, textile and apparel industry and I believe the Origin Africa global campaign will raise awareness about Africa as a preferred sourcing destination," he said.