An evaluation of African agriculture in the global value chains

Global Value Chains (GVCs) may create opportunities for African small farmers to enter international markets but also risks of being excluded from the world markets. This study evaluates African agriculture within the GVCs by reviewing available agricultural data and GVC literature on selected African countries. Africa is deeply involved in GVCs more than many regions around the world. However, the overall finding of this study consolidates the fact that African agriculture in the GVCs is still stagnated in the upstream role providing raw agricultural products to the world where value addition is being carried out outside the continent. Similarly, markets are still dominated by big companies and firms either directly or through their local agents in Africa. Upgrading within GVCs is limited due to multiple problems facing Africa, such as lack of infrastructure, financial deficiencies, insufficient investments, low input use and low efficiencies. African countries should overcome these difficulties in the long run. However, they may manage to turn some of the disadvantages (labor use intensity, less chemical use and large areas yet not opened to agriculture, etc.) into advantages in the GVCs by producing organic products and addressing niche markets in the short run