Textile development fund a solution to local industry
May 13, 2008
I read with disappointment an article on the closure of Lira Spinning Mills in The New Vision of March 28, 2008. The milling factory was sold to Jinda International Textiles Corporation (JITCO), a Chinese firm, which was expected to bring in new technology and create 500 jobs, besides increasing the
By Aaron Wanyama
I read with disappointment an article on the closure of Lira Spinning Mills in The New Vision of March 28, 2008. The milling factory was sold to Jinda International Textiles Corporation (JITCO), a Chinese firm, which was expected to bring in new technology and create 500 jobs, besides increasing the value and amount of textile exports.
The Chinese were expected to invest $20m (about 334m) as stipulated in the deal signed in 2005, rehabilitate and upgrade the factory, produce yarn and textiles for export, rather than importing lint like it is today. None of these plans was attained. The fate of Lira Spinning Mills summarises the tale of the textile industry in Uganda today-misery and failure.
But why is Uganda, once with the best cotton quality in the continent, failing to attract genuine investors? Why should Lira Spinning Mills, for example, close due to “shortage of cottonâ€, in a country where the crop was once a leading export?
The Cotton Development Organisation, a semi-autonomous agency under the agriculture ministry that was established in 2000 by an Act of Parliament, was supposed to promote cotton production in the country, besides regulating the cotton sub-sector.
The organisation should tell us whether the claim by JITCO that cotton is in short supply is true, yet 90% of our cotton is exported. If well-managed, the cotton sector can create up to three million jobs, spanning from the fields, to the factories. But in a situation where powers that be are reluctant to come up with a textile policy despite repeated calls from stakeholders is frustrating. President Yoweri Museveni has rightly pointed out in a number of fora that the greatest disservice Africa does to itself is to export raw materials to the West, which are then brought back to Africa and sold at exorbitant rates as finished products. That is what is happening to our cotton daily.
If the cotton sector is to become the backbone of our economy again, the Government should put in place a textile development fund from which loans and seed capital would be given to small and large scale industries.
In India, the textile industry developed rapidly because of the government’s backing of the local players. The Government can emulate this through direct support to local players.
Indigenous institutions that are training should also be supported. A specialised garment training institute for women should be instituted in consultation with the Textile Development Agency.
The National Textiles Board Act 1974 should be reviewed to provide checks and balances to investors. The New Vision of June 12, 2007, reported that Angelique International, an Indian company, was ready to set up a $40m (about 668m) textile mill, which could absorb all of Uganda’s cotton. What happened to this investor?
Cotton farmers need to be encouraged to form an association that represents their concerns. The Uganda Cotton Ginners Association has been a flop because it is a tool of middlemen, who rip off farmers.
The trade ministry should be pressurised to formulate a textile policy. Stakeholders should form a National Apparel and Textile Federation, which would serve as an advocacy body and guide on matters of production, investment and policy.
A mechanism where the dumping rate can be reduced by 5% per annum should be instituted so that local manufacturers have room for growth.
Ailing textile mills, like the African Textile Mill in Mbale, need to be aided to contribute to national growth and create jobs for our graduates. Such facilities are crucial in helping attain the Millennium Development Goals, especially poverty reduction.
The revival of the textile industry is not easy but it can be achieved. An association of clothing and textile professionals aimed at uniting groups like textile and fashion designers, artists, technologists, weavers, spinners, printers and dyers is in the offing. The Government should support the emerging local textile industry to withstand pressures of import penetration. The creation of a fully-fledged ministry will help reawaken this sleeping giant.
The writer is a textile technologist and acting dean Faculty of Science, Kyambogo University
I read with disappointment an article on the closure of Lira Spinning Mills in The New Vision of March 28, 2008. The milling factory was sold to Jinda International Textiles Corporation (JITCO), a Chinese firm, which was expected to bring in new technology and create 500 jobs, besides increasing the value and amount of textile exports.
The Chinese were expected to invest $20m (about 334m) as stipulated in the deal signed in 2005, rehabilitate and upgrade the factory, produce yarn and textiles for export, rather than importing lint like it is today. None of these plans was attained. The fate of Lira Spinning Mills summarises the tale of the textile industry in Uganda today-misery and failure.
But why is Uganda, once with the best cotton quality in the continent, failing to attract genuine investors? Why should Lira Spinning Mills, for example, close due to “shortage of cottonâ€, in a country where the crop was once a leading export?
The Cotton Development Organisation, a semi-autonomous agency under the agriculture ministry that was established in 2000 by an Act of Parliament, was supposed to promote cotton production in the country, besides regulating the cotton sub-sector.
The organisation should tell us whether the claim by JITCO that cotton is in short supply is true, yet 90% of our cotton is exported. If well-managed, the cotton sector can create up to three million jobs, spanning from the fields, to the factories. But in a situation where powers that be are reluctant to come up with a textile policy despite repeated calls from stakeholders is frustrating. President Yoweri Museveni has rightly pointed out in a number of fora that the greatest disservice Africa does to itself is to export raw materials to the West, which are then brought back to Africa and sold at exorbitant rates as finished products. That is what is happening to our cotton daily.
If the cotton sector is to become the backbone of our economy again, the Government should put in place a textile development fund from which loans and seed capital would be given to small and large scale industries.
In India, the textile industry developed rapidly because of the government’s backing of the local players. The Government can emulate this through direct support to local players.
Indigenous institutions that are training should also be supported. A specialised garment training institute for women should be instituted in consultation with the Textile Development Agency.
The National Textiles Board Act 1974 should be reviewed to provide checks and balances to investors. The New Vision of June 12, 2007, reported that Angelique International, an Indian company, was ready to set up a $40m (about 668m) textile mill, which could absorb all of Uganda’s cotton. What happened to this investor?
Cotton farmers need to be encouraged to form an association that represents their concerns. The Uganda Cotton Ginners Association has been a flop because it is a tool of middlemen, who rip off farmers.
The trade ministry should be pressurised to formulate a textile policy. Stakeholders should form a National Apparel and Textile Federation, which would serve as an advocacy body and guide on matters of production, investment and policy.
A mechanism where the dumping rate can be reduced by 5% per annum should be instituted so that local manufacturers have room for growth.
Ailing textile mills, like the African Textile Mill in Mbale, need to be aided to contribute to national growth and create jobs for our graduates. Such facilities are crucial in helping attain the Millennium Development Goals, especially poverty reduction.
The revival of the textile industry is not easy but it can be achieved. An association of clothing and textile professionals aimed at uniting groups like textile and fashion designers, artists, technologists, weavers, spinners, printers and dyers is in the offing. The Government should support the emerging local textile industry to withstand pressures of import penetration. The creation of a fully-fledged ministry will help reawaken this sleeping giant.
The writer is a textile technologist and acting dean Faculty of Science, Kyambogo University