SESRIC and International Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank (IsDB) Group conducted a field visit to Tunisia during 26 February – 1 March 2024. The field visit was conducted as part of the third research project prepared within the framework of a joint research trilogy initiated between the two institutions to assess the impacts of African Continental Free Trade Area (AfCFTA) on African OIC countries.

In connection with the objectives of the third research project with the ITFC, the Centre conducted a background study to evaluate the possibility of generating greater welfare benefits by creating regional value chains along the corridor as well as facilitating the participation of the Trans-Saharan Road (TSR) corridor countries into global value chains. Initial findings revealed that there are opportunities in some sectors, including textile, leather products, agri-food industries, and petrochemicals and inorganic fertilizers, for creating a value chain following the cost reductions associated with the operationalization of the AfCFTA as well as the TSR corridor. The textile sector was selected as a case study.

According to the research paper, all TSR corridor countries have either a comparative advantage or have the capacity to develop their cotton sector. Despite having comparative advantages in cotton production, the TSR corridor countries, except Tunisia, have significant trade deficits in textile products. Developing textile industries in the region would significantly help to reduce the trade deficit and support socio-economic development. Considering the existing production capacities in cotton production, and significant local demand for textile products, which is primarily met from abroad, the TSR corridor countries have the opportunity to develop a regional value chain in the cotton-to-textile sector by establishing regionalised sourcing networks.

To this end, SESRIC and ITFC conducted a field visit to Tunisia to meet public and private actors involved in the textile value chain and confront the initial research observations with additional primary data and opinions of specialists in Tunisia. During the field visit, Dr Kenan BAGCI, representative of SESRIC, and Mr Abdouramane Diallo, representative of ITFC, met with the officials from the Ministry of Commerce and Export Development, Ministry of Industry, Ministry of Transport, Directorate of Customs, Foreign Investment Promotion Agency (FIPA), Centre de Promotion des Exportations (CEPEX), Agence pour la Promotion des Industries et de l’Innovation (APII), Tunisia Investment Authority (TIA), Centre Technique du Textile (CETTEX), Fédération Tunisienne du Textile et de l’Habillement (FTTH) as well as several independent experts. Based on the data and information shared by the relevant stakeholders during the field visit, SESRIC and ITFC will prepare a case report investigating the possibility of creating a regional value chain in the textile sector in the TSR region.