The World Trade Organization (WTO) aims to attract US$5 billion in private investment to develop Africa’s cotton processing industry and reduce raw material exports.
“The WTO has been committed to supporting African countries, encouraging efforts to add value to the harvest and develop the cotton value chain for the textile industry and for governments,” said WTO Director-General Ngozi Okonjo-Iweala yesterday at the Meeting of African Trade Ministers in Maputo.
The WTO wants to end the export of 90% of the approximately one million tonnes of cotton produced in Africa, of which only 2% is processed. The goal is for African producing countries to process up to 25% of their cotton by the next decade. To achieve this, the organisation is engaging with international organisations and agencies to boost investment attraction.
Under this plan, the WTO wants the African continent to focus on manufacturing clothing to supply domestic markets and for export.
The World Trade Organization also aims to support Africa in global trade of critical minerals and in the growing digital trade on the continent.
“African exports of digitally delivered services grew 15% in 2024, faster than any other region, but still represent only 1% of global digitally delivered service trade. There is plenty of room to grow, and the WTO can help provide the ecosystem for Africa to benefit from these new digital trade opportunities,” said Ngozi Okonjo-Iweala.
In the same remarks, she called on African trade ministers to support reforms at the WTO, ahead of the conference in March, noting that this is key to strengthening multilateral trade.
The WTO recognises that global trade is undergoing “the worst political disruptions in the last 80 years,” with unilateral actions undermining trade rules and companies seeking space to maintain their businesses in competitive markets.
For the organisation, it is time for Africa to intensify its efforts and increase production, shifting from a raw material exporter to goods and services of higher value, attracting more investment along the supply chain, creating jobs for youth, and increasing the continent’s share of global trade.
“At the WTO, we are focused on how Africa can secure more investment, capture more value to produce more, and thus trade more. We cannot trade more if we continue exporting only raw materials, which currently account for 60% of our exports. To help in this process, we need to reduce trade costs and accelerate the implementation of the African Continental Free Trade Agreement,” said Ngozi Okonjo-Iweala.
Mozambique’s Prime Minister, Benvinda Levi, who spoke at the opening of the meeting, said Africa must defend fairness in agricultural negotiations to correct distortions harmful to producers, while also ensuring that e-commerce promotes digital inclusion.
Mozambique is hosting the Meeting of African Trade Ministers to strengthen cooperation among countries on the continent and promote an inclusive trading system, with the adoption of the Maputo Ministerial Declaration expected.
The organisers expect the meeting to conclude with the adoption of the Maputo Ministerial Declaration, which will reflect Africa’s position to be presented at the 14th Ministerial Conference of the WTO.
