The story of how factories first emerged and spread across the world is incomplete without mention of the cotton, textile and apparel sector. The sector powered the first industrial revolution in Britain and the United States during the 18th and 19th centuries, and later helped drive the structural transformation of Asian economies like China, Vietnam and Cambodia in the 1970s and 80s.
Africa has long sought to replicate this time-tested strategy of using textile and apparel manufacturing as a springboard for broader industrialisation. Yet despite being a major cotton producer, limited progress has been made in this effort.
The continent's 37 cotton‑growing countries collectively produce between 6.3 million and 8.5 million bales of cotton a year, or around 7-10% of global output. However, much of this is shipped overseas unprocessed, with UN Trade and Development (UNCTAD) estimating that 70% of Africa's cotton is exported as raw fibre. Only 12% is converted into yarn and 18% into fabric.
This minimal level of local processing means Africa captures only a sliver of the value of its cotton, limiting the creation of skilled manufacturing jobs in economies where millions of young people are joining the labour force each year. Limited domestic production of processed fabrics and finished garments also deepens Africa's reliance on imported textiles. Indeed, the continent currently spends around $50bn annually in textile imports compared to the roughly $15bn it earns from exporting raw cotton - mostly to Asian manufacturing hubs.
Originally published by African Business.