Help needed to make textiles a winner
GROWING AMBITION INVESTMENT IN COMMERCIAL FARMING IS NEEDED TO INCREASE COTTON PRODUCTION. MEANWHILE, ONE COMPANY, PHENIX, IS READY TO EXPLOIT A STRONG SELLING POINT FOR ITS CLOTHING PRODUCTS

NATURAL FIBER Phenix believes organic cotton gives its T-shirts the edge

ACCESS to U.S. markets under AGOA offers the opportunity for the Ugandan textile industry to take off. For that to be possible, however, participation by foreign firms is crucial. Investment is being sought in spinning, weaving and the manufacture of garments.
“With AGOA, we can benefit mainly from textiles,” says Dr. Kisamba Mugerwa, Minister of Agriculture, Animal Industry and Fisheries. “Hitherto, we have been exporting raw cotton, but if we can produce yarn and clothes of good quality the sky’s the limit.”

Cotton has been exported from Uganda since it was introduced by the British in 1903, reaching a peak in 1969-70 before the economic decline of the Amin era. The present government has made determined efforts to revive production, which has been on an upward trend since 1995. Small-holder farmers predominate at present, but the government wants to see production boosted further with the introduction of large-scale commercial farming.

All efforts are focused on a single variety of long staples, Bukalasa Pedigree Albar (BPA), ensuring uniformity and easier quality control in the production of lint and yarn. In terms of its quality, Ugandan cotton is regarded as among the best in the world, and fertile soils and a good climate give the country natural advantages for growing it. Some areas have been certified for organic cotton production.
Government involvement in the sector ceased in 1994, when parastatals and government companies involved in ginning and fabric manufacturing were either sold or returned to their original owners. The sector is regulated by the Cotton Development Organization.
One of the first Ugandan companies to benefit from AGOA is Phenix Logistics, which produces high-quality executive white shirts, casual T-shirts, and cotton yarn. The company has made a $800,000 investment in buying and renovating the former Uganda Garments Industry Ltd (UGIL), which had been closed since1994, through the government’s Privatization Unit. Production recommenced last year.

YUICHI KASHIWADA Managing Director of Phenix Logistics (Uganda)

For Yuichi Kashiwada, Phenix’s Managing Director, the question is: what does Uganda have to offer that gives it an edge over China, Vietnam and other countries that are already exporting apparel at very cheap costs?
The answer, he says, is organic cotton. “Anything that gives Uganda a comparative advantage is good. That is why we are pushing the organic concept.
“We make T-shirts and polo shirts that are certified organic. No chemicals are used and they are environmentally-friendly. We want to create more and more products from organic cotton. This is just the beginning. The next step will be to produce better manufactured organic cotton fabrics for dresses, blouses and underwear. Even though production is small, we have a niche market and it makes us different from other producers.”
Mr. Kashiwada, a businessman with 40 years of experience, both internationally and locally, planned to start by producing for the local market and then to shift the emphasis to exports once reasonable standards of efficiency and quality were attained.

In order to reach the standards needed to compete on the international market, he invested in a thorough program of training for his staff. “Training really matters,” he says. “Making good products is not a question of machines alone. It is manpower and the skills of each person, and to achieve an even standard you need really intensive training.”
Although there are problems to be overcome, such as transport costs, progress is being made towards entering the U.S. market. “One of the largest clothing apparel companies, with huge marketing chains around the world, has committed itself to buying all our organic products,” says Mr. Kashiwada, “so this is a starting point.
“When I see demand increasing, I will expand, but in the cotton business you must be very careful. Demand can come down all of a sudden. This means I have to develop the local and the foreign markets together. We need to
create more and more local markets. The Comesa market, which Uganda, Kenya and Tanzania are trying to create, will be a large one with good opportunities.”