World Economic Forum has been told that if processing of Africa's cotton is done within Africa, it would facilitate the process poverty eradication in the continent. Speaking in Davos, Mr. Neil Kearney, General Secretary of the Brussels-based International Textile, Garment and Leather Worker's Federation (ITGLWF) said that Africa produces some of the best cotton in the world and in substantial quantities, but only 3% is processed into yarn and fabric locally, while 97 % is exported in raw form for processing elsewhere. As a result, the African clothing factories then have to import fabric at inflated prices making much local production uncompetitive internationally. Mr. Kearney said, “The IMF and the World Bank in past years imposed policies on African countries which destroyed the local processing of Africa's 'white gold'. Textile mills everywhere were forced to close down. Those that remained were choked by cheap imitation imports from China.
Now, without a textile industry the continent's garment industry is being snuffed out. The survival of garment industry today is dependent on vertical integration with local cotton being transformed locally into yarn and fabric. The facilities for this are almost non-existent in Africa today. Investments in both woven and knit facilities are urgently needed to revive Africa's ailing garment industry. Such investment will need to come from the private sector but will require government stimulus. Here the IMF and the World Bank need to assist in providing aid for
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| trade to promote such investment. It is a tragedy that Africa is being robbed of its future from the virtual looting of its raw materials, in this case, cotton. Action is urgently needed to reverse this situation which could result in the creation of tens of thousands of jobs along the labour intensive textile pipeline.” Lesotho has become a significant garment producer and exporter to the US market.
But, to remain in the game there is an urgent need for local backward linkages to yarn and fabric. Some such provision is now being made locally. He further added, “Such support could build a strong, viable, profitable and internationally competitive garment industry providing much needed secure jobs. Such jobs would provide the engine for development, enabling Lesotho to diversify into other sectors and building a sustainable economy capable of supporting improved education and other services, which would, in turn, further boost the local economy.” In conclusion Mr. Kearney said, “To date, trade and international financial policy in Africa has made it dependent on aid. That needs urgently to be reversed. Aid for trade should prioritise the development of a modern textile industry capable of efficiently transforming the continent’s cotton and maximising the value added through the export of finished garments. This would be a truly labour intensive route to development.” The International Textile, Garment and Leather Workers’ Federation is a global union federation bringing together 220 affiliated organisations in 110 countries with a combined membership of 10 million workers. 
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