Interview with Mr Jaswinder Bedi

Mr Jaswinder Bedi
Mr Jaswinder Bedi
Chairman
African Cotton & Textile Industries Federation (ACTIF)
African Cotton & Textile Industries Federation (ACTIF)

African Cotton & Textile Industries Federation (ACTIF) is a regional trade body formed in June 2005 by the cotton, textile and apparel sectors from across sub-Saharan Africa, to create a unified and recognized voice in both regional and global trade affairs. Individual countries within the region recognized that they could no longer act in isolation and remain fragmented in the face of current and future global challenges - hence there was need for regional integration that would in turn lead to market discovery, increased business linkages, trade and investment. ACTIF currently includes members from 17 countries ( Botswana, Egypt, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia & Zimbabwe) , but it is not restrictive in terms of geographical coverage and subscribes to an 'Africa wide' view. Born on January, 15, 1963, Mr Jaswinder Bedi is the Chairman of ACTIF. He is a graduate in Textile Technology, Bradford College,Yorkshire, UK. He started his career in 1995, leading the family business at IMD, Lausanne, Switzerland. From 2003 to 2005, he had been the MD of Orbit Chemical Industries Ltd. For 2003 to 2006, he was a Board Member of Federation of Kenya Employers and Export Promotion Council. Presently, Mr Bedi is also the MD of Bedi Investments Ltd (BIL), Nakuru-Kenya, a vertically integrated textile mill manufacturing synthetic yarns, woven fabrics and apparel for export to the US and the EU. He is the Director in Fine Spinners Limited, Nairobi Kenya, which spins cotton yarns and manufacturers A&E sewing threads. Along with this, Mr Bedi also holds the Chairmanship of Kenya Apparel Manufacturers Exporters Association (KAMEA), Kam Textile Sector, and Kam Comesa Committee. He is the Vice Chairman of Kam Trade Promotion Committee, Kenya India Business Council, and the Co-Chairman of World Bank Cotton Apex Committee (Kenya). He is also on the Board of Export Processing Zones Authority (Kenya). On personal front he is happily married with two sons, and is fond of International travel, Golf and Motor sports. In a talk with Face2Face team, Mr Jaswinder Bedi speaks on current movements in global as well as African cotton market.

Kindly apprise us and our members/visitors with more information about ACTIF’s activities allied to the welfare of African Textile & Garments sector?

ACTIF aims to be a nationally, regionally and internationally recognized trade body that provides effective regional representation at international forums, and is dedicated to the specific concerns of the industry and promotes improved competitiveness in both the regional and global market place.

The Federation is formed on the following principles:

•Emphasis on private sector 'ownership' with strong allegiance of nationally based trade institutions

•Endorses Public/Private sector partnerships

•Builds cooperation, interaction, partnerships, alliances, networks and market linkages

•Promotes a regional supply chain focusing on trade issues of all sectors of the value chain, and building a platform for reducing constraints in regional trade

•Addresses post MFA challenges and increases competitiveness in the global post-quota environment

•Addresses key policy issues

•Collects market data, generates information exchange and shares regional expertise

•Promotes investment and creates international alliances and affiliations

ACTIF has an elected Board of Directors, the composition of which is representative of the ginning, lint trade, textile and apparel sectors. In addition, four action committees have been created and are comprised of National Associations from member countries, dealing with issues relating to:

  • Global Trade Initiatives
  • Investment & Finance
  • The Inter-Regional Trade & Supply Chain
  • Production, Ginning & Lint Trade
  • Can you please draw the larger picture of current global cotton market and its long term projections? How is Africa positioned on it?

    The current global cotton market size is 26 million tons and Africa produces approx. 3 million tons approx. 12% of global market. Currently 90% of this cotton is being exported to the rest of the world but owing to market conditions a new divergent view of value addition is in the radar of thought. Hence going forward we envisage greater value addition of the lint in Africa as opposed to exportation. Further the land mass allows for increased cotton growing should the need arise. As we move towards greater competitiveness we envisage the freight costs becoming a deterrent to the exportation of cotton lint and thereby production at source will be the way forward.

    How is African textile and clothing industry faring?

    The industry has been struggling to stay competitive but with current market access i.e. duty free/quota free to the US under AGOA and the EU we have a comparative advantage. Also the new “trade for aid” sentiments for Africa is encouraging industry growth and to have a textile pipeline from spinning, weaving, knitting and apparel manufacturing targeting both the US and the EU.

    Which all are the challenges being faced by the sector?

    The greatest challenge is off course second hand clothing which crippled the existence of domestic textile industry and the surviving factories are primarily targeting exports. In exports the greatest challenge is competitiveness due to the costs of doing business which includes a strengthening of our local currencies against the USD (our currencies are NOT pegged to the dollar). Besides the costs we have NO support from government incentives and thereby creating an un-level playing field between us and our competing countries.

    What trade Initiatives are taken and to be taken to foster the sector in regional and global market?

    Trade initiatives are primarily undertaken by private sector with support of NGOs as our governments have NO budgets for such support. Simultaneously we are working to a BRAND AFRICA label.

    How would you comment on the rising prices of cotton and its ramifications?

    The rising prices of cotton are global and its effects are felt by all players in the world. Off course the impact may reduce global demand or create a shift to synthetics. There has always been a fine line relationship between cotton and polyester. However considering that polyester prices have also been rising we do NOT foresee any major shift in consumer preference until the mismatch is significant.

    Published on: 21/01/2008

    DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.