Organization and Performance of
Cotton Sectors in Africa : Learning from Reform Experience

Cotton is a major source of foreign
exchange earnings in more than 15 countries across all
regions of Sub-Saharan African (SSA) and a crucial source of
cash income for millions of rural people in these countries.
The crop is, therefore, critical in the fight against rural
poverty. The World Bank and other development institutions
have been and are currently assisting many cotton exporting
countries of SSA to improve their cotton sector performance
through projects supporting investment as well as through
policy and institutional reform. Many SSA countries have
been implementing or are considering implementing reforms of
their cotton industries. The ultimate objective of the
reform programs is to strengthen the competitiveness of
cotton production, processing, and exports in an
increasingly demanding world market and to ensure long-term,
sustainable, and equitable growth for these major sectors of
many African economies. The reform programs generally entail
redefining the role of the state; facilitating greater
involvement of the private sector and farmer organizations;
ensuring greater competition in input and output markets;
improving productivity through research and development,
extension, and technology dissemination; and seeking value
addition through market development and processing of cotton
lint and by-products. A number of SSA cotton sectors,
especially in West and Central Africa (WCA), are currently
facing serious short-term financial difficulties. It is
important to clarify that the purpose of this report is not
to provide quick solutions to these short-run problems.
Rather, it is to step back, build up a reliable broad
assessment of cotton sector performance from detailed
empirical information, and thereby provide guidance for the
design of strategies that will address the long-term
challenges of cotton production and marketing in Africa.
Finally, to ensure that a broad perspective was brought to
bear, the study was entrusted to a team which includes
independent researchers and experts in the field of cotton.