Opportunities for African Companies (Value Chains) Export and Transport Costs in Africa
Introduction to the African Value Chains
Opportunities for the African Companies
African Growth Poles
How the African enterprises can take advantage of the value chains?
Case Study: The 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 (the African largest food retailer)
The objectives of the subject “African value chains” are the following:
To learn how the intra-African trade can benefit from the African value chains
To assess the importance of the One-stop border post in Africa
To analyze the impact of the African Value Chains on the transport and export
costs in Africa
To study success stories of the African Value Chains (the Egyptian textile sector, the cocoa value chain in West Africa...)
The African Development Bank estimates that the cost to transport a container from Durban (South Africa) to Lusaka (Zambia) - 1,633 kilometers/ 1,015
miles- are USD 8,000, and 1,800 from Durban to Japan!.
The Subject “African Value Chains” belongs to the following Online Programs taught by EENI Global Business School:
The Regional Integration in Africa should facilitate the African Value Chains, both for
regional and global market.
Regional Trade and cross-border investments are a key factor for the Value Chains development in Africa
The role of the Regional Economic Communities is critical, by ex.
reducing the Technical Barriers to Trade (Rules of Origin) in Africa
In some African Countries (South Africa, Egypt, Morocco, Ethiopia, Kenya or Tunisia), the companies are improving their value addition in several sectors
The Regional Economic Communities are working in Trade Facilitation programs, but the trading cost in Africa
is not competitive in many cases.
There are good examples of improving the African Value Chains. By example...
The Cocoa Value Chain in West Africa (mainly in Ghana and Ivory Coast, the World's largest cocoa
exporter), has increased from 12% (2000) to 18.6% (2013), by liberalization and incentives programs (economic free zones), attracting the 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 substantially increased his value addition, and today contributes to 27% of the Egyptian total production
According to the African Development Bank, the One-stop border post can help to reduce clearance times (Customs Procedures) at the 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 (African largest food retailer)
South Africa: