The Industrialisation and Enterprise Development
ministry’s plans to set up a textile city and an industrial park got a boost
last week following reports that firms from China, Turkey and Brazil are set to
roll out investments in the cotton industry. The firms will be investing along
the entire value chain including research, training, growing and manufacturing
apparels for the export market.
This was
underlined by the Kenya Chinese Chamber of Commerce vice-chairman William Zuo’s
revelation that talks were underway between members and local farmers,
ginneries, spinners and the national government. Mr Zhuo disclosed further that
his members are familiarising themselves with the industry value chain and
building partnerships with other players such as learning institutions. One of the Turkish firms,
HoneyDeco, on the other hand, is reportedly planning to build factories and has
already introduced high-yielding cotton seed varieties to farmers in Hola and
Bura irrigation schemes.
HoneyDeco’s ambitions are underlined
by its plans to sign contracts with farmers on 12,000 acres, up from the
current 3,000 acres. High-yielding seeds The Brazilians have also identified
sites where they will multiply high-yielding seeds in Kisumu and Homa Bay
counties. The Brazilians will also offer training opportunities and set up
classification laboratories. These, and other initiatives by Industrialisation
Cabinet Secretary Adan Mohamed, raise hopes that the Government is finally
getting its act together to benefit from the extension of the African Growth
and Opportunity Act (Agoa). Days when apparel manufacturers imported the bulk
of their raw materials may finally be coming to a close. But for the country to
see the dawn of a new day, the Government must continue to not only attract foreign
investors but also take steps to facilitate local investors to be involved in
the entire value chain of the industry. For starters, foreign firms could be
persuaded to include local investors who would buy shares and be involved in
the running of the enterprises. This would help the country to build internal
capacity.
Source: The Mississipi Journal, U.S.A Wednesday, 10 January 2018