The African Export-Import Bank (Afreximbank) has called for urgent and coordinated action to transform Africa’s cotton sector from a raw material supplier into a competitive textile and garment manufacturing hub, highlighting the need for structural reform in global trade systems.
The call was made by Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, during the Fourteenth World Trade Organization (WTO) Ministerial Conference held in Yaoundé, Cameroon. His remarks come at a time of increasing geopolitical fragmentation, which continues to reshape global trade dynamics and expose structural inequalities affecting developing economies.
From Raw Cotton Exports to Industrial Value Creation
Dr. Elombi emphasized that Africa must move beyond exporting raw cotton and instead focus on building integrated textile value chains capable of generating higher economic returns.
“A fair global trading system remains elusive for Africa,” he stated, urging governments to adopt bold industrial policies that protect emerging industries while fostering long-term competitiveness.
Afreximbank’s strategy centers on developing special economic zones dedicated to cotton processing. The bank is already supporting projects in Cameroon, Chad, and Mali, while expanding discussions in key markets such as Kenya, Rwanda, and Nigeria. In Nigeria alone, the institution has committed $2 billion to accelerate the transformation of the cotton sector.
The bank is working alongside strategic partners, including Arise Integrated Industrial Platform and Africa Finance Corporation, to implement an integrated development model combining financing, infrastructure, and quality assurance systems.
Industrialisation as a Path to Fairer Trade
The discussions at the WTO Ministerial Conference reinforced Africa’s growing push for fairer participation in global trade. WTO Director-General Dr. Ngozi Okonjo-Iweala described Africa as “the continent of the future,” highlighting the importance of strengthening regional value chains and boosting local production capacity.
Afreximbank underscored that industrialisation—not just export expansion—is essential to achieving sustainable economic growth. The bank is investing not only in textile production but also in supporting infrastructure, including energy, transport, and logistics systems within industrial zones.
In addition, initiatives such as the African Trade and Distribution Company and African Quality Assurance Centres aim to ensure that locally produced goods meet international standards, enabling African textiles to compete globally.
Policy, Not Just Capital, Will Drive Transformation
Despite significant financial commitments, Afreximbank stressed that investment alone will not be sufficient to transform the sector. Strong political will, efficient governance, and coordinated policy frameworks are essential to unlocking Africa’s industrial potential.
Dr. Elombi highlighted the need for governments to streamline administrative processes and align public institutions with industrial development objectives. Without such reforms, even well-funded initiatives may struggle to achieve meaningful impact.
A key example cited was the transformation of cotton value chains in Benin, where shifting from raw cotton exports to garment production has significantly increased export revenues—from approximately $40 million to as much as $800 million.
Ambitious Targets for Jobs and Import Substitution
Through its cotton industrialisation programme, Afreximbank aims to create up to 500,000 jobs and generate $10 billion in import substitution by 2030. These targets reflect a broader ambition to reposition Africa as a competitive player in the global textile and apparel industry.
As global supply chains continue to evolve, Africa’s ability to capture more value from its natural resources will depend on its success in building integrated, resilient, and competitive manufacturing ecosystems.
