WT/CFMC/W/72  
11 April 2017 
(17-1969) Page: 1/9 
 Original:  French  
 
  DIRECTOR -GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON  
"COTTON ROADMAP" PROJECT  
Communication from the Republic of Benin  
The following communication, dated 2 7 March  2017, is being circulated at the request of the 
delegation of Benin , on behalf of th e C4 countries . 
 
_______________  
 
 
 The Permanent Mission of the Republic of Benin to the Office of the United Nations and other 
International Organizations based in Geneva presents its compliments to the Secretariat of the 
World Trade Organization (WTO) a nd has the honour to provide it with the following information : 
 
 The co -sponsors of the Sectoral Initiative in Favour of Cotton ( the C4) have developed  a 
regional integrative project that seeks to promote  the cotton sector and the products thereof 
through  the creation and development of cotton value chains . 
 
 This project, known as  the "Cotton Roadmap", will help build the production and export 
capacities not only of C4 cotton producers , but of the population  of the West  and Central African 
subregion  in ge neral. It forms part of the implementation of the Nairobi Ministerial Decision, 
adopted on 1 9 December  2015. 
 
 The "Cotton Roadmap " project has the following objectives : 
 
a. to improve cotton production yields in the beneficiary countries ; 
b. to increase  the val ue added of cotton by processing the product locally ( particularly  
by-products) and in accordance with approved quality standards ; 
c. to promote a legal and institutional framework favourable to investment, industrialization 
and exports ; and 
d. to increase the m arketing of cotton and its by -products on subregional markets 
(expansion of intra -regional trade), and exports to the international market . 
The Mission of Benin wishes to inform the WTO Secretariat that the authorities of the 
C4 countries would very much w elcome the WTO's technical and financial support in implementing  
the above -mentioned project, through instruments such as Aid for Trade and the Enhanced 
Integrated Framework (EIF) programme . 
 
The project's terms of reference are contained in the following annex . WT/CFMC/W/72  
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  C4 – COTTON ROADMAP PROMO TION  
COTTON/TEXTILES SECT OR AND PRODUCTS THER EOF: FOR A COMPETITI VE, 
INCLUSIVE AND SUSTAI NABLE VALUE CHAIN  
Terms of Reference for the  Mobilization of Resources  
1  BACKGROUND  
1.1.  The present terms of reference (TOR ) seek to provide  C4 country policy makers with a  guiding  
framework  for the "Cotton Roadmap P romotion"  initiative , so that they can : (i) better  understand  
the structure  of the initiative, (ii) endorse  the various stages required for the formulation of the 
programme resultin g from th is initiative, and (ii i) define  their strategies  for mobilizing the 
resources needed to implement  the programme, which will  benefit the people  of the West and 
Central African subregions . 
1.2.  The TOR  were formulated following the 4th Ministerial Coordi nation Meeting of the Ministers of 
Trade of the C4 countries, which was held in Bamako, Mali, from 26 to 2 8 October  2016. At this 
meeting,  the outline of a programme entitled "Cotton Roadmap Promotion : for a competitive, 
inclusive and sustainable value cha in" was approved in the form of a Concept Note prepared with 
the support of the Geneva -based International Trade Centre (ITC) . 
1.3.  In view  of the recommendations  made in Bamako  concerning the preparation  of a 
programme d ocument (to be shared with C4 stakeholde rs, beneficiaries , and technical and 
financial partners), it is now necessary to define  more precisely the initiative's objectives and 
expected outcomes so as to determine the preferred resource mobilization strategy  for facilitating 
the financing and impl ementation of the programme , which is to be finalized  before  the next 
C4 Ministerial Conference  to be held  in Cotonou, Benin, in March  2017. 
1.4.  In this light, and following a review of  ongoing cotton initiatives in West and Central Africa, it 
should be noted that existing  initiatives focus mainly  on national projects and programmes . The 
regional dimension  is not given much consideration , with the exception of the All ACP Programme 
on Commodities, with its Special Chapter on Cotton ( currently in its final stage s) that is financed 
under the  9th and 10th EDF. At the ECOWAS level, other sectors such as cashew nut, palm oil, 
mango and shea butter are established as regional priorities and are covered by the West Africa 
Competitiveness  programme, which is to be funde d under the 11th EDF as part of the Regional 
Indicative Programme for West Africa . 
1.5.  Given its strategic importance in terms of food security and employment, the cotton sector 
deserves to be repositioned ; consideration should be given to the number of people  who depend 
on the sector, the product's value added, and the economic impact that exports  may have on the 
trade balance of pr oducing and exporting countries  and the regions to which they belong . 
1.6.  The new initiative , which the C4 has been working on since t he beginning of 2016, also 
involves the development of an innovative and integrated programme that focuses on local 
processing  and which no longer treats cotton as a mere commodity, but rather as a prime sector 
for the development and promotion of  a value chain that is not only robust and competitive 
(in terms of price and quality), but also inclusive ( creating jobs  and truly lucrative  for its 
stakeholders  and their communities) and sustainable (taking account of environmental issues, 
particularly  climate c hange and the dissemination of good agro -ecological practices relating  to 
cotton and its by -products) . 
1.7.  The aim is therefore to promote the emergence of a regional value chain that mainly covers 
the C4 countries (Be nin, Burki na Faso, Mali and C had), but als o includ es other West and 
Central  African countries that produce and /or export cotton and textiles . Focus would be placed  on 
the comparative and competitive advantages of each country in such a way as to ensure 
complementarity . WT/CFMC/W/72  
- 3 - 
  1.8.  Value chains cannot develop without capital, trade in frastructure (energy, industry , roads, 
railways, ports, logistics hubs , etc.), expertise ( to ensure that  production is in line with quality 
standards and requirements), and a predictable and secure legal and institutional framework . 
1.9.  The programme to be developed must therefore identify and promote each C4 country's 
comparative advantage as regards  its potential in terms  of production, processing and exports in 
the last four years, while taking into consideration the existing  capacit y and infrastructure of other 
countries in the subregions of West Africa (in particular, Côte d 'Ivoire, Nigeria and Senegal) and 
Central Africa (Cameroon and the Central African Republic) . Considering  the regional dimension of 
the sector  in this way , while  building on each country's existing achievements, will favour the 
development of synergies and complementarities in terms of expertise, know -how, investm ents, 
financing, infrastructure, and  trade , in a business environment that is more efficient  (being  more 
predictable) and more conducive to the development of economies of scale . 
1.10.   The fund ing of such a programme requires not only contributions from the budgets of 
stakeholder States and their respective private sectors, but also resources from technical and 
financial partners that want to support the attainment  of the United Nations' 2030 Susta inable 
Development Goals (SDGs) . The "Cotton Roadmap" programme would ultimately contribute to 
these goals by eliminating poverty (SDG  1) and hunger (SDG  2), creating j obs (SDG  8) and 
resilient infrastructure (SDG 9),  and protecting the environment (SDG  15). 
2  INITIATIVE OBJECTIVES  
2.1.  The initiative's objectives are as follows : 
a. to improve cotton production yields  in the beneficiary countries ; 
b. to increase the value added of co tton by processing the product locally (particularly 
by-products) and in accordance with approved quality standards ; 
c. to promote a legal and institutional framework favourable to investment, industrialization 
and exports ; and 
d. to increase the marketing of co tton and its by -products on subregional markets 
(expansion of intra -regional trade), and exports to the international market . 
3  EXPECTED OUTCOMES  
3.1.  The initiative's expected outcomes include the following : 
a. an increase in the local, regional and international d emand  for cotton/textiles from the 
C4 countries due to the quality, variety, availability and prices of cotton and cotton 
by-products ; 
b. direct investment  in production and industr y sectors to encourage  the local processing of 
cotton and cotton by -products ; 
c. a predictable and streamlined business environment favourable to commercial 
transactions in the cotton sector ; 
d. an improvement in the production, productivity and competitiveness of the cotton sector 
in producing countries . 
4  EXPECTED DIRECT IMPACT  
4.1.  Expected d irect effects include the following : 
a. the creation of jobs in the cotton/textiles sector and the economic benefits this will 
bring; WT/CFMC/W/72  
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  b. an increase  in the cash income of sector stakeholders ; 
c. improved living conditions for communities on cotton production and pr ocessing sites  in 
C4 beneficiary countries ; 
d. higher cotton yields per hectare in C4 countries ; 
e. a significant improvement in the processing rate f or locally produced cotton in our 
countries ; 
f. an increase in cotton's contribution to the GDP of beneficiary coun tries. 
4.2.   A provisional estimate of the number of jobs to be created and/or consolidated (and/or of 
the sustainable increase in the turnover of sector stakeholders) will be provided  in the project 
document . This estimate will have to be refined and  validated  with the authorities and beneficiaries 
three months after the start of the project . 
5  PROVISIONAL TOTAL BUDGET  
5.1.  In order to implement this programme, it is necessary to distinguish between the following 
types of budget : 
a. investment budget : allocated for the a cquisition of  equipment and materials used for 
artisanal, semi -industrial and industrial production and processing ; 
b. technical assistance budget : used to acquire  the knowledge and expertise needed  to 
upgrade  the sector in terms of production, processing, ma rketing and legal and 
institutional framework modernization/improvement ; 
c. in-kind contributions from  beneficiary countries : the resources that C4 countries (and 
their associate partners in the subregion that will benefit indirectly from the project) 
agree  to make available to facilitate the implementation of the programme and achieve 
the ex pected outcomes . In general, these contributions consist of  land, resources  
(financial, human and material) , and work tools that are vital for the effective 
deployment of technical assistance . 
5.2.  Such a programme will include activities to be conducted at regional level within the context 
of existing logistical and trade corridors , as well as other specific actions to be implemented at 
national level (in accordance with the si tuation and needs of the sector) . 
5.3.  It should be emphasized that in order to achieve the desired results, the programme should 
cover a period of seven years, with a four-year pilot implementation phase, followed by a 
three -year acceleration stage . 
5.4.  Within the  framework of these TOR  and on the basis of the information and documents 
available to the ITC, it is suggested that an indicative four-year budget be proposed to implement 
the pilot phase . Generally speaking, this period of time also corresponds to the pr ogramming 
period taken into account by the technical and financial partners  where funding is accepted . 
5.5.  The present TOR only take into consideration the budget to be allocated to C4 coun tries. The 
minimum budget for a four -year implementation phase (pilot) would be US$ 20,000,00 0 
(cf. Table 1). This budget would  essentially cover technical assistance and the transfer of expertise 
and know -how. The investment budget (for the purchase of equipment) and the contribution of 
C4 governments and private sectors must  be estimated separately . 
5.6.  A precise estimate of the programme's final budget , including technical assistance, 
equipment, and the contributions of C4 countries (and other associated countries) , will be provided  
in the consolidated programme document . The ov erall budget will also depend on the number of 
beneficiaries to be covered and the definitive scope of the needs to be covered at national and 
regional level . WT/CFMC/W/72  
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  Table 1: Provisional budget by result (estimate solely in comparison with the resources 
to be ear marked for technical assistance, as identified in the Concept Note endorsed by 
the Ministers of the C4 at the Ministerial Coordination Meeting held in Bamako in 
October  2016) – US$ 
Result  Year 1  Year 2  Year 3  Year 4  Total /R  
Result 1 : Improvement in cotto n quality 
and promotion of West African cotton on 
international markets  1,500,000  2,000,000  1,500,000  800,000  5,800,000  
Result 2 : Creation of value added for 
cottonseed and lint in the West and 
Central African region in particular  2,000,000  2,000,000  1,500,000  1,000,000  6,500,000  
Result 3 : Promotion of investment, 
transfer of technology and know -how 
through South -South cooperation  500,000  1,000,000  1,000,000  500,000  3,000,000  
Result 4 : Facilitation of trade in the 
West African corridors context  1,000 ,000 2,000,000  1,000,000  700,000  4,700,000  
Overall total  (excluding the investment 
budget and contributions from countries 
and regions)  5,000,000  7,000,000  5,000,000  3,000,000  20,000,000  
 
Nota Bene : The budget of US$20,000,000 (minimum budget for impl ementation over four  years only applies 
to the C4 countries in order to cover national, regional and international expertise, training, market surveys, 
trade prospection, participation in trade events and training and further training courses). It does not i nclude 
the budget for capital investment or the contributions expected from Governments, regional economic 
communities (for example, ECOWAS, WAEMU, CAEMC and ECCAS) or the private sector. The budget does not 
take into account support costs for technical co operation agencies such as the ITC (% of support costs 
amounting to 7% to 13% depending on the source of financing).  
 
5.7.  As regards the design of the programme, the C4 is relying on the expertise of the ITC in 
Geneva, as well as on its own competent human res ources to make their technical contribution to 
the development of a "bankable" programme document to be endorsed by the beneficiaries and 
the donors.  
5.8.  The procedure proposed by the ITC is based on two distinct but complementary approaches, 
namely: (i) the v alue chain for all aspects relating to the development of production, productivity 
and competitiveness in the sector (this is the production capacity -building component centring 
around trade promotion); and (ii) incorporation of the private sector's perspe ctive in policies, 
negotiations and trade agreements so as to improve the legal, institutional, physical and financial 
environment of the cotton sector in beneficiary countries (this is the trade facilitation component).  
5.9.  The ITC provides support for the de sign of the project document as a whole as it emerges 
from the C4 request, making competent experts available to the Group to prepare the Concept 
Note for the project (which identifies the main areas for action and the challenges to be met), the 
terms of r eference with a view to mobilizing resources (to be used to contact and hold discussions 
with technical and financial partners able to make a contribution to implementing the project), as 
well as the comprehensive project document  (detailed proposal based on the Concept Note and 
explaining the rationale  envisaged at the subregional level, at the C4 level and at the level of each 
C4 country).  
5.10.   Bearing in mind its excellent cooperation with the C4, the ITC Directorate is making its own 
resources available to t he C4, as well as the expertise required to support the C4 throughout the 
process of planning the "Cotton Roadmap" initiative, including the approach to TFPs identified.  
5.11.   In addition, the C4 countries, together with the ITC, will identify the complementary 
expertise to be contacted in other United Nations or international/regional/national development 
organizations so as to supplement the ITC's comparative advantages and achieve the desired 
results identified in the (final) comprehensive  project documen t, wh ich will be endorsed by 
C4 authorities in Cotonou in April  2017 during the C4 Ministerial Conference.  WT/CFMC/W/72  
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  5.12.   So far, with support from the ITC, the C4 has available:  
a. a Concept Note (mentioned above) endorsed by the C4 Minis ters in November  2016 in 
Bamako;  
b. (presen t) terms of reference with a view to mobilizing resources, submitted to the C4 for 
use as a tool for approaching TFPs in December  2016; and  
c. a project document being designed  (with ITC financing) according to the needs and 
expectations of the C4, to be subm itted at the C4 Ministerial Conference in Cotonou in 
April 2017.  
6  RESOURCE MOBILIZATIO N STRATEGY  
6.1.  It is necessary to identify potential bilateral and multilateral partners to be approached with a 
view to mobilizing financial resources to enable the programme  to be implemented.  
6.2.  In this connection, all stakeholders should be fully involved in the programme, and there 
should be a communication strategy aimed at making the programme one of the national and 
regional priorities and applicable to all discussions on trade, development, industrialization or 
investment.  
6.3.  More precisely, from January  2017 onwards, it is important to be able to rely on strong 
political will among C4 decision -makers, involvement of the beneficiaries targeted by the 
programme, unreserved com mitment by the private sector in the C4 (and countries associated 
with the programme), and the mobilization of TFPs and technical support from certain 
development agencies such as the ITC.  
6.4.  While awaiting finalization of the programme document (which should  necessarily take into 
account certain identified donors), the C4 has available the final communiqué of the Bamako 
Ministerial Coordination Meeting, the Concept Technical Note prepared with support from the ITC, 
which represents a preliminary draft of the programme, as well as the TOR to promote awareness 
and mobilize the donor community in Geneva, and in the field in order to obtain from them a 
contribution towards financing the "Cotton Roadmap".  
6.5.  Once the donors have bee n identified, the scope of the p rogramme will have to be taken into 
account and donors will have to be made aware of the multiannual strategic planning (the pilot 
phase of the project is originally planned for a period of four years).  
6.6.  The C4 could also encourage the creation of a trust fund for cotton or a special cotton fund to 
receive annual contributions from multiple donors which would make commitments according to 
their respective priorities for the targeted technical assistance elements designed for building 
production capacity, trade p romotion, trade facilitation or investment. The trust fund would consist 
of two windows, one for action to be carried out at the regional level and the other for activities to 
be conducted at the level of beneficiary countries. The introduction of such a f inancing 
arrangement, to be led by a development agency that enjoys the trust of both countries and 
donors, would have the merit of financing all the p rogramme's components in a neutral, integrated 
and foreseeable manner.  
6.7.  For the remainder, it is up to the  C4 to establish a communication strategy in capitals, in 
Geneva, Brussels and other sites in order to promote awareness and convince TFPs of the 
relevance and opportunity of financing a "Cotton Roadmap" project.  
6.8.  It is important to distinguish the C4's tra ditional partners which support the cotton/textiles 
sector, namely:  
6.1  European Union  
6.9.  Two tools are available to the C4 (and its associated partners in West and Central Africa), 
namely:  WT/CFMC/W/72  
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  a. the National Indicative Programme (NIP) , endorsed by each country, and wh ich has 
generally laid emphasis on rural development and value chains; as well as  
b. the Regional Indicative Programme (RIP) , which has been developed for West Africa 
within ECOWAS and for Central Africa within ECCAS.  
6.10.   The NIP and the RIP  are financed under th e 11th EDF. The two components, notably the RIP 
and its "Competitiveness for West Africa" element are tools to be used by ECOWAS countries to 
ensure that cotton is one of the regional sectors to be promoted.  
6.11.   Chad is a Member of ECCAS and could advocate (to gether with the CAR and Cameroon in 
particular) that the Central African RIP could also focus on cotton.  
6.12.   Moreover, the C4 could also contact the Secretariat of ACP countries in Brussels to ask that 
cotton be taken into account in the new "Intra -ACP" progra mme being drawn up, also with 
technical contributions from the ITC.  
6.13.   In addition, it is strongly recommended that the C4 disseminate this i nitiative among 
EDF national and regional coordinators (Ministries responsible for finance, planning and 
cooperation) so that they can incorporate the "Cotton Roadmap" programme proposal into the RIP 
immediately (for action at the regional level) and into the NIP (for action at the national level ). 
6.2  Development banks (World Bank, African Development Bank and Islamic 
Develo pment Bank, BOAD, CASDB)  
6.14.   One of the World Bank's current priorities concerns the development of global value chains 
(GVC). There are many national projects receiving support from the West and Central African Bank 
which focus on support for the competitiven ess of sectors with a view to closer involvement 
in GVC. 
6.15.   For a strategic product such as cotton and bearing in mind the approaches of the 
World  Bank, it is important to promote awareness among national and regional representatives in 
Abuja and Yaoundé so t hat the "Cotton Roadmap" programme is taken into account in their 
current or future financing plans.  
6.16.   In the case of ADB, the 2013 -2022 ten -year strategy underlines the importance of GVC  for 
Africa's integration into the global economy. The policies and str ategies for the private sector, 
regional integration, agriculture and human development also have the same aim. The ADB's 
departments responsible for regional integration (ONRI), agriculture and the private sector could 
also be approached to highlight the "Cotton Roadmap" initiative. The new direction at the ADB lays 
emphasis on industrialization (and thus on energy), as well as trade facilitation. The "Cotton 
Roadmap" programme should find an echo among the ADB's directors within the framework of the 
"High  5"1 of President Akinwumi ADESINA and the development of trade corridors in West and 
Central Africa.  
6.17.   Furthermore, the resources of the "International Trade Finance Corporation" (IFTC) of the 
Islamic Development Bank also afford a real opportunity to be se ized. The IFTC finances technical 
assistance for members of the Islamic Bank. So far, it has generally been active at the national 
level. Nevertheless, taking into account the results to be achieved by the "Cotton Roadmap" 
initiative, the IFTC could be int erested in supporting regional action complementing that already 
existing at the national level and aimed at building production and trade capacity.  
6.3  Traditional bilateral partners supporting the cotton sector  
6.18.   These are Turkey, China, Brazil and India, whic h provide technical support and know -how 
and, in some countries, also make substantial investment.  
                                                
1 The current President of the ADB launched the "High Five" for the economic transformatio n of the 
African continent. These "High Five" or top priorities are: Light up and power Afr ica, Feed Africa, 
Industrialise  Africa, Integrate Africa and Improve the quality of life for the people of Africa.  WT/CFMC/W/72  
- 8 - 
  6.19.   Cooperation with these four countries needs to be strengthened in such a way as to 
encourage them to organize their respective interventions better around a rational framework for 
national and regional intervention endorsed as part of the "Cotton Roadmap" programme. Such an 
approach would make their action in the field even more meaningful and have a greater impact as 
it would not be on an ad hoc basis in resp onse to a specific need but rather part of a series of 
actions that should produce tangible results for the benefit of the target populations.  
6.20.   Their action would be in accordance with the national development plans of the beneficiary 
countries inasmuch as the "Cotton Roadmap" programme itself is based on national and regional 
strategies and development plans.  
6.21.   Moreover, as part of the "Cotton Roadmap" programme, these partners, already active in 
the subregion, could be called upon to a greater extent for the  investment budget, transfer of 
know -how and expertise components. Taking into account the level of their cotton industries, it is 
highly likely that the C4 countries (and their associated partners) will make good use of the 
transfers and investment to be received from Turkey, India, Brazil and China.  
6.4  Non-traditional partners also to be approached  
6.22.   Partners such as Japan (in the TICAD IV project), Germany (as part of the digital initiative 
for Africa, with the importance of technologies to be used for develo pment), France (through the 
trade capacity building programme – PRCC), Canada (with its new development aid policy) and the 
United States of America (via the West Africa Trade Hub, which promotes initiatives under the 
AGOA) are important partners to be app roached.  
6.23.   Other partners supporting the efforts of West and Central African countries, namely: 
Switzerland, Australia, New Zealand and the Scandinavian countries could, to a lesser extent, also 
be approached even though countries in East and Southern Africa  are usually their priority.  
6.24.   Australia and New Zealand might be interested by the aspects relating to building 
production capacity. These two countries have proven competence and expertise in the areas of 
research and agricultural development.  
6.25.   As to Switze rland, on a number of occasions in the past it has supported action by the C4. 
Perhaps those activities concerning processing/local value added and in support of women's 
economic autonomy might attract its attention. The "Cotton Roadmap" programme dimensio n, 
which lays emphasis on environmental aspects, is also likely to be of interest to them.  
6.5  Public/private partnerships (PPP)  
6.26.   The PPP -based approach, as well as the financial set -up, should also be explored because 
PPP can supplement the resources to be mob ilized from traditional or non -traditional TFPs while at 
the same time protecting the interests of the population.  
6.6  Timetable for the next phases  
Action  Deadline  Responsibility  
Revise, amend and approve the proposed TOR  1 January  2017 Permanent missions of  the C4 in 
Geneva and the ITC  
Forward the TOR to political leaders in the C4 
(revised text 8  March  2017 on the basis of the 
comments from the C4 forwarded to the ITC)  31 January  2017 C4 coordinating country  
Approach potential donors for support of the 
initiative and invite them to the Ministerial 
Coordination Meeting in Cotonou  31 March  2017 C4 coordinating country Permanent 
missions of the C4 in Geneva and ITC  
ITC as facilitator  
Submit a first draft of the comprehensive 
"Cotton  Roadmap" programme doc ument  Between 1 and 
5 April 2017 C4 experts C4, ITC and possible 
donors identified and informed  
 WT/CFMC/W/72  
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  6.7  About the ITC  
6.27.   The ITC  is the joint technical cooperation agency of the United Nations and the WTO, set up 
in 1964, with headquarters in Geneva. Its mission is to encourage sustainable economic 
development and to contribute towards achieving the sustainable development objectives of 
developing countries and countries with economies in transition through international trade.  
6.28.   In fulfilling its terms of reference , the ITC lays special emphasis on  implementing projects in 
least developed countries, landlocked developing countries, and small island developing States.  
6.29.   The ITC provides integrated solutions around a hub consisting of six areas of intervention. 
These co nstitute a coherent series of interventions adapted and personalized in order to provide 
solutions adapted to the needs and expectations of beneficiaries.  
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