Prof. Dr. Michael Otto
Founder
“Africa is close to my heart—both personally and as an entrepreneur.”
Cotton made in Africa, an initiative of the Aid by Trade Foundation, is one of the world’s leading standards for sustainably produced cotton. Our goal is to help people help themselves, via trade rather than donations, in order to improve the living and working conditions of smallholder farmers in Africa and to protect our environment. We work with a wide-ranging network in cotton-growing countries, including numerous partners throughout the textile value chain as well as both governmental and non-governmental organisations, to ensure the implementation of the standard and the proper processing of certified raw materials throughout the world.
Our work is built on the three pillars of sustainability, which form the core of Cotton made in Africa’s standard:
Cotton plays a key role in the fight against poverty, as, in many countries in the region, fully half of the income earned by smallholder farmers and their families comes from selling cotton. However, cotton’s great potential for achieving economic development and poverty reduction has so far not been fully realised because of the many challenges farmers face: fluctuating global market prices, low productivity, and poor infrastructure in cotton-producing countries. This is the context that led to the founding of the Aid by Trade Foundation and its Cotton made in Africa initiative.
In many parts of the world, cotton is cultivated on huge fields, harvested completely by machine, and frequently subsidised. However, the cotton industry in Africa consists almost exclusively of smallholder farmers who grow cotton in rotation with other crops on small fields – one to three hectares in size – harvesting it all by hand. Productivity is often exceedingly poor for a variety of reasons, such as difficult climate conditions, low seed quality, the loss of soil fertility, and a lack of knowledge about methods of sustainable cotton production. This leaves families barely able to survive on their cotton sales. In addition, African cotton is at a disadvantage on the international market due to poor market connections and a disadvantageous political terrain. At the World Trade Organisation’s 2003 conference in Cancún, this conflict culminated in a protest by four African countries—Benin, Burkina Faso, Chad, and Mali—against prevailing cotton subsidies.
This inequality led Prof. Dr. Michael Otto, an entrepreneur and philanthropist from Hamburg, to found the Aid by Trade Foundation (AbTF) in 2005. The first to join forces with AbTF were the German Federal Ministry of Cooperation and Development (BMZ), the German Investment Corporation (DEG), and GIZ (then known as Gesellschaft für Technische Zusammenarbeit) as well as the Otto Group. The AbTF is a foundation under German civil law, based in Hamburg. Its objective is to help people to help themselves through trade in order to promote sustainable development, protect the environment, and secure a better future for coming generations. With the support of various partners from the worlds of business, politics, science, and non-governmental organisations (NGOs), the foundation aims to forge an international alliance of fashion brands and retailers that source Cotton made in Africa certified raw cotton, has it processed into textiles, and pays a licensing fee to use its seal. Cotton made in Africa then reinvests this licensing revenue in the cotton-growing regions of Sub-Saharan Africa in accordance with social business principles. Experts train the smallholder farmers in efficient and environmentally friendly cultivation methods that help them increase the quality and yield of their cotton, improve their living and working conditions, and protect their health and the environment.
After completing his schooling, a banking apprenticeship, studies in political economics, and a doctorate, Prof. Dr. Michael Otto entered his father’s business, now the Otto Group, in the early seventies. In 1972, The Limits to Growth, a book published by the Club of Rome, inspired him to become active in environmental protection and social justice. His activism has endured and prospered, spawning a variety of organisations and foundations that pursue diverse charitable objectives, including the Aid by Trade Foundation, founded in 2005. The continent of Africa is close to the entrepreneur’s heart, and his aim is for the foundation to improve people’s living conditions while making a genuine contribution to protecting the environment. “It is the courage and strength of our partners in Africa”, says Prof. Dr. Michael Otto, “that inspires and motivates us to keep working with them, day in and day out, to achieve our common objective.”
The Aid by Trade Foundation’s Board of Trustees comprises an international group of leading figures both from public and private businesses and from non-governmental organisations. It is the foundation’s supervisory body with at least six and at most twelve members, and it is chaired by Prof. Dr. Michael Otto and his deputy, Dr. Wolfgang Jamann (International Civil Society Center).
New members are nominated by the foundation’s executives and appointed by the Board of Trustees for two-year terms with the potential for reappointments. The foundation’s directors report to the Board of Trustees on its activities and plans twice a year.
The Management Board’s task is to put together a programme of concrete measures to achieve the foundation’s objectives. They are also responsible for the organisation’s continuing strategic development, which is based on the foundation’s statutes and decisions made by the Board of Trustees.
Overall responsibility for the Cotton made in Africa initiative is shared between the Aid by Trade Foundation (AbTF) and ATAKORA Fördergesellschaft GmbH (ATAKORA). The latter is responsible for marketing the Aid by Trade Foundation’s trademark rights, which currently comprise Cotton made in Africa and The Good Cashmere Standard by AbTF. Revenue from selling rights to use trademarks is paid over to AbTF, which then uses it in accordance with its objectives.
Tina Stridde was appointed Managing Director of the Aid by Trade Foundation by the Board of Trustees in 2015, and Christian Barthel and Sabine Kleinewiese share the executive management of ATAKORA Fördergesellschaft GmbH.
The Aid by Trade Foundation cooperates with an extensive network of international stakeholders to implement its foundation goals. Together, we work for better working and living conditions for smallholder farmers and their families, as well as environmental protection.
Do you want to join our committed team working for smallholder farmers, the environment, and a sustainable textile industry? You can find current job openings here:
You might recognise us from these media publications:
Are you looking for sustainable textiles? Do you want your purchase to contribute to a fair fashion industry? If so, this is a great way to directly support smallholder farmers in Africa and their families while protecting the environment. For every clothing item or home textile sold bearing the Cotton made in Africa seal, our partners pay a licensing fee that is reinvested in Africa. Every purchase matters!
You can buy a diverse range of Cotton made in Africa labelled products for example from the following CmiA licensing partners: