African Value Chains
EENI - Business School.
Subject (Course): African Value Chains.
Trade Facilitation. Syllabus:
- Introduction to the African Value Chains
- Opportunities for African Companies
- African Growth poles
- How African enterprises can take advantage of the value chains?
- Case Study:
Cocoa Value Chain in West Africa
- Rules of Origin and transport costs
- Export costs in Africa
- Trade Facilitation
- One-stop border post
- FDI Cooperation
- Case Study: Shoprite (Africa's largest food retailer)
The African Development Bank estimates that the cost to transport a container from Durban (South Africa) to Lusaka (Zambia) - 1.633 kilometres/ 1.015
miles- are 8,000 dollars, and 1.800 from Durban to Japan!.
Sample of the subject - African Value Chains:
Subject Description (African
Regional Integration in Africa should facilitate the African Value Chains, both for regional market and for the global market. Regional Trade and cross-border investments are a key factor for the development of Value Chains in Africa (economic area of the African
The role of Regional Economic Communities is critical, by ex. For reduce non-tariff barriers (Rules of Origin) in Africa.
In some African countries (South Africa, Egypt, Morocco, Ethiopia, Kenya or Tunisia) companies are improving their value addition
in several sectors.
Regional Economic Communities are working in trade facilitation programs, but the cost of trading in Africa
is not competitive in many cases. By example…
- There are good examples of improving African Value Chains. By example, the Cocoa Value Chain in West Africa (mainly in
Ghana and Ivory Coast, the world largest exporters of cocoa), has increased from 12% (2000) to 18.6% (2013), by liberalisation and incentives programs (economic free zones), attracting foreign investors.
- Today more than 1 Million people in Ivory Coast and 800,000 in Ghana work in the Cocoa
Sector. Local farmers are receiving a fixed price (70% of FOB price).
- The Egyptian textile sector has increased his value addition substantially, and today contributes to 27% of Egyptian total production.
- According to the African
Development Bank, the One-stop border post can help to reduce clearance times (Customs Procedures) at borders.
By example, between Uganda and Kenya (Malaba), the border-crossing
time has been reduced from 24 hours (2011) to 4 hours (2012).
- In Chirundu (border post Zimbabwe - Zambia) the One-stop border post, part of the North-South Corridor, the time for cross the border for lorries has been reduced from 3 days to 2 hours.
Shoprite (Africa's largest food retailer)