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Nathan-MSI Group - Foodnet

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Objective 10: Promote Value Adding Activities<br />

Activities to achieve objective: In the work plan, 5 action steps are listed; these are combined<br />

into 2 steps below.<br />

1. Obtain or prepare a baseline document for the value-adding sector; and develop a list of<br />

value adding opportunities offering highest potential.<br />

Activity: It is very possible that the baseline study for the sector has been<br />

prepared. Therefore, before an independent study is launched a<br />

review will be made to find an already prepared document. If such<br />

a document can not be located a review will be undertaken by a<br />

local person who has the knowledge of the industry to develop a<br />

baseline information document for the sector. Also, the results<br />

from the working group brain storming session will be used to<br />

prepare a long list of ideas that permit adding value to raw cotton.<br />

Time: Start soon and finish by October 2002.<br />

Cost: WG/CDO/COMPETE with STTA.<br />

Responsible parties: WG/CDO/COMPETE: CDO as the coordinating body for the<br />

industry will be asked to work closely with COMPETE to develop<br />

this baseline information.<br />

Overall Output: A document that provides the status of the industry’s ability to<br />

respond to the AGOA opportunity. Also, the document will<br />

indicate whether there are local groups that can implement<br />

production of some of the identified new product ideas.<br />

COMPETE Output: Provide the STTA and have the document prepared.<br />

It might come as a surprise to the private textile milling and garment make-up that the<br />

CDO, a government organization, is the coordinating body for the industry. We suggest<br />

that a broadened private sector association, built from the Uganda Textile Millers’<br />

Association, be encouraged to take on the coordinating function for the processing<br />

sector. As for a baseline study, the present document certainly goes a long way in that<br />

direction, although it is by no means a comprehensive inventory of all make-up<br />

operations of any size in Uganda. We did not, however, brainstorm ideas regarding new<br />

value-added, cotton-based products. Under AGOA, the only products which can enter the<br />

U.S. market duty-free in the textiles sector are garments, not home furnishings nor other<br />

cotton-derived non-apparel items.<br />

2. Prepare pre-feasibility report for target value-adding opportunities; develop a target list of<br />

investors; and promote the opportunities to targeted investor groups.<br />

Activity: Based on the information of the baseline review select a few target<br />

opportunities that seem worthy of promotion. For these<br />

opportunities have pre-feasibility reports prepared and promote the<br />

opportunities to investors.<br />

Time: The pre-feasibility studies would be started in July, and be carried<br />

out on a priority basis until the list of opportunities has been<br />

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