Publication Number: 3989

Report Title: Sub-Saharan Africa: Factors Affecting Trade Patterns of Selected Industries, Second Annual Report

Investigation Number: 332-477

Author's name(s): Falan Yinug, James Fetzer, Andrea Boron, Gail Burns, Ray Cantrell, Jonathan Coleman, Daniel Cook, Alfred Dennis, Erland Herfindahl, Brendan Lynch, Erick Oh, Laura Rodriguez, Mark Simone, Ralph Watkins

Date Published: April 2008

Report Description/Introductory Text: This report examines factors that contributed to the shift in global export patterns in sub-Saharan Africa (SSA) during 2002–06 for 11 industries: coffee; shea butter; spices (primarily vanilla, cloves, pepper, and ginger); tropical fruit (primarily bananas and pineapples); footwear; natural rubber; processed diamonds; textiles; wood furniture; aviation services; and communication services.

The value of global SSA exports increased in nine of the 11 industries during 2002–06, ranging from a 12 percent increase in the value of textile exports to a 262 percent increase in the value of natural rubber exports. For the most, part the nine industries benefited from three common factors: (1) increased global prices as a result of demand growth exceeding supply growth; (2) investment in new and expanded production capacity; and (3) implementation of policies and programs to promote industrial development, whether targeted to a specific industry or applied generally to all industries. Other factors that contributed to the development of these industries and facilitated export growth include: (4) growth of private enterprise and emergence of key business relationships; (5) infrastructural improvements; (6) deeper regional integration; (7) improved product quality; (8) liberalized market regulations; (9) effects of tariff preferences; (10) improved industry organization; and (11) product differentiation.

The value of global SSA exports declined for three of the selected industries during 2002–06: spices, wood furniture, and the pineapples sector of tropical fruit, industries which experienced decreases of 47, 46, and 5 percent, respectively. Factors contributing to decreased export values or mitigating export growth included; (1) increased competition in key markets; (2) low crop yield due to weather; (3) political instability; (4) overproduction; (5) effects of exchange rate changes; (6) reduced resource supply; (7) and increased local demand.

The change in volume of global SSA exports for most industries varied, ranging from a 28 percent decrease for pineapples to a 15 percent increase for natural rubber, with an exceptionally large increase for shea butter of 660 percent.

Topics Covered: Sub-Saharan Africa, Africa, exports, African exports, sub-Saharan African exports, shea butter, spices, vanilla, coffee, tropical fruit, bananas, pineapples, footwear, diamonds, processed diamonds, wood furniture, natural rubber, textiles, aviation services, communication services, telecommunication services, trade promotion, AGOA Forum, investment, industrial promotion, tariff liberalization, regional integration, export promotion policies, African trade ministers

Countries: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo (Dem. Rep.), Cote d'Ivoire, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Switzerland, Tanzania, Togo, Uganda, Zambia, Zimbabwe, United States

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