Com-Watch - Issue 37 - June 2014

Senegal
Senegal’s SODEFITEX Plans Diversification
The Textile Fibres Development Corporation of Senegal [SODEFITEX] has announced that it is to diversify its activities and has
developed a strategic plan ‘SODEFIX 2020’ to expand into other agricultural crops. SODEFITEX decision was based on cotton
price volatility. The plan also seeks to enhance the quality of cotton fibre through investing in research.
[Fibre2fashion 22/05/14]
Tanzania
Gatsby Trust To Review Cotton Program
The Tanzania Gatsby Trust [TGT] has organized a cotton sector workshop to review the Cotton and Textile Development
programme [CTDP] - an opportunity to review the sector and identify successes to be modeled by all in the sector. CTDP is
funded by the Gatsby Charitable Foundation [GCF] and the UK’s Department for International Development [DFID]. The CTDP
works under the auspices of the Tanzania Cotton Board [TCB] and with a wide range of public and private sector partners to
improve the incomes and livelihoods from cotton of 360,000 small scale cotton farmers in the Lake Zone regions The aim is to
sustainably transform the country’s cotton industry. The transformation includes major policy work on cotton pricing, licensing
and regulation; the development of private markets for key agricultural-inputs; and the facilitation of sector-wide use of improved
cotton seed. Gatsby has committed £10 million over 6-years whilst DFID have contributed nearly £6 million over 4-years.
Significant co-funding agreements are also in place with NORAD and DEG.
The quality of Tanzanian cotton has steadily fallen over the years. The sector needs to invest in its framers, providing them with
high quality inputs, including improved seeds and a range of reliable pesticides, mechanised land preparation and planting and
training. In the effort to address challenges in the sector, a committee commissioned by the government has recommended,
among other interventions, contract farming. In implementing this model, there have been a number of challenges, including
lack of proper understanding among stakeholders and lack of trust. Contract farming, which was approved by stakeholders in
2010 and rolled out countrywide in 2011 after 3-years of planning and piloting, saw a production of 351,151 tons of cotton in
the first season, the 2nd highest to be produced in the country. Very little finance was made available during the following season
when farmers had to buy inputs on cash, resulting into reduced production at 246,767 tons. In 2012/13, cotton ranked 4th after
tobacco, coffee and cashew nuts, contributing US$81.4 million to the economy.
[Daily News 15/05/14 / Business Week 25/05/14]
18