Push to stimulate cotton investment growth

Experts have pushed for increased investment in the cotton sector to boost production to meet the country’s yawning deficit for cotton, the most widespread profitable non-food crop in the world.

African Institute of Corporate Citizenship (AICC), Cotton Council of Malawi (CCM) and Eastern and Southern Cotton Organisation (Esco) made the calls during a press briefing in Lilongwe yesterday.

The briefing was convened ahead of the commemoration of the World Cotton Day in Salima today.

In his brief, Esco secretary Sunduzwayo Banda said the government can emulate tax holidays neighbouring Zambia has adopted to stimulate investment.

“In Zambia, we have just been given tax holidays on ginning. You can get a five-year tax holiday.  The money you are not paying tax could be invested into productivity activities,” he said.

Banda, who is also Cotton Council of Zambia chief executive officer, said the investment can enhance value addition which would help Malawi and the region to boost their production.

He also said his organisation seeks to enhance annual earnings in East and Southern Africa to $1 billion (over K1 trillion).

Besides tax holidays, he also asked government to increase its funding towards cotton in its national budgets.

AICC chief executive officer Driana Lwanda observed that in the past 10 years cotton production has been going down due to rising prices of production inputs and natural disasters.

She said: “The other thing is that farmers are not using the recommended good agricultural practices.”

World Cotton Day is commemorated on October 7. However, authorities in the country are marking the event three days earlier. This year’s theme is ‘Making cotton fair and sustainable for all: From farm to fashion’.