CZI calls for value addition to revive cotton sector

CLOUDINE MATOLA

The Confederation of Zimbabwe Industries (CZI) has urged the country to prioritise value addition in the cotton sector to enhance its growth and boost foreign currency earnings.

The cotton industry is a key contributor to Zimbabwe’s economy and a vital source of income for families in Sanyati, Gokwe, Mwenezi, Chiredzi, and Checheche, among other dry regions. However, the sector has been struggling due to low cotton prices, delayed payments to farmers, and other structural challenges.

CZI Chief Economist Cornelius Dube emphasized the need to shift from exporting raw lint to producing value-added products such as yarn.

“Cotton is one of the strategic pillars identified under the National Development Strategy 1 (NDS1) as an area with significant industrialization potential. However, while we have a comparative advantage in producing lint, we lack the same advantage in manufacturing value-added products. If we shift focus to processing lint into yarn and other finished goods, we can increase export revenue and maximize economic benefits,” Dube said.

Dube further stressed the importance of increasing cotton production by commercializing farming and introducing incentives for farmers.

“The major challenge is the absence of incentives to encourage farmers to boost output, which would, in turn, support value addition. More farmers participating in cotton farming means greater opportunities for industrial growth beyond lint processing. If we increase cotton production, we can attract more investment into the textile industry,” he added.

He also highlighted the need to revive commercial cotton farming, which historically yielded higher output than small-scale farming.

“Currently, small-scale farmers dominate the sector, but their yields are low. In the past, when commercial farmers were active, production levels were much higher. One way to bring back commercial farming is by leveraging the newly announced title deed program, enabling farmers to own land and cultivate cotton on a commercial scale. This would allow them to market their produce independently, sell lint to spinners and weavers, and reduce dependence on lint exports,” Dube said.

Southern Cotton Company Managing Director and Cotton Ginners Association member Caos Nzenze echoed similar sentiments, stressing the need to increase primary production.

“We need to address the primary production of seed cotton, which has significantly declined. There is substantial potential to expand and revive the sector to its former glory when we used to export large volumes of cotton,” Nzenze said.

He also pointed out opportunities in the value addition process.

“There is considerable room for growth in value addition. Most ginners currently sell their cotton seeds to oil expressers. However, individual companies could enhance their operations by extracting oil and producing stock feeds for farmers, adding more value to the crop,” he added.

Cotton Producers and Marketers Association (CPMA) Chairman Stewart Mubonderi emphasized the need to streamline bureaucratic processes that hinder cotton farmers.

“For cotton production to improve, we must remove bureaucratic hurdles. For instance, registering as a cotton farmer requires traveling to the Agricultural Marketing Authority (AMA) offices in Harare, and cotton seeds are not readily available in local stores. If we make these processes more accessible, more farmers will be encouraged to grow cotton,” Mubonderi said.

He also raised concerns over delayed payments to cotton farmers, which have been a major deterrent to production.

“Tobacco farmers receive their payments on time, but cotton farmers sometimes wait for two or more years, which discourages them from planting. Timely payments are essential to keep the sector viable,” Mubonderi added.

Furthermore, he underscored the importance of value addition in maximizing foreign currency earnings.

“We should not export raw lint. Instead, we should process it into yarn or other textile products, which could fetch five to six times more revenue than selling it as lint. This would bring more foreign currency into the country,” he said.

The call for value addition comes as Zimbabwe seeks to industrialize its economy and move up the global value chain. Strengthening the cotton sector through processing and manufacturing could create jobs, increase exports, and provide sustainable income for farmers.