Global value chain: the role of commodity exchange markets in linking smallholder farmers in Sub-Saharan Africa

Kingsley Nnamdi Emeana

Research output: Contribution to conferencePaper

Abstract

Global value chain (GVC) is a development framework designed to help developing countries to upgrade in the value chain. It offers developing countries opportunity to link into the existing value chain without having to build a new chain. African countries dominated with raw agricultural commodity production can increase its participation in the GVC to generate more returns and accelerate economic growth in the region. Although, agricultural commodities are faced with several challenges such as price volatility, inadequate physical road networks and weak communications infrastructure, increased nontariff measures (NTM) by importing countries which impedes participations in the GVC. But development and promotion of commodity exchange markets in Sub-Saharan African (SSA) countries are viewed as means of tackling these challenges. Commodity exchange markets are expected to contribute to the reduction in transactions costs, improve price discovery, increase returns to participants, risk management and linking smallholder producers to global markets. However, establishing or promoting commodity exchanges in SSA countries are hindered by effective and efficient legal and regulatory framework, weak institutions such as the financial sectors to support the exchange markets, low volume of trade, government intervention and lack of efficient transportation system. Therefore, based on extensive literature review, this study is aimed to contribute to the literature on commodity exchanges markets and the role it plays linking smallholder farmers in SSA countries to the global value chain.
Original languageEnglish
Pages29-29
Number of pages1
Publication statusPublished - 6 Apr 2017
Event2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED) - University of the West of Scotland, Paisley, United Kingdom
Duration: 6 Apr 20177 Apr 2017

Conference

Conference2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED)
Abbreviated titleCAREED 2017
CountryUnited Kingdom
CityPaisley
Period6/04/177/04/17

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Emeana, K. N. (2017). Global value chain: the role of commodity exchange markets in linking smallholder farmers in Sub-Saharan Africa. 29-29. Paper presented at 2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED), Paisley, United Kingdom.