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Working Paper

Export Diversification in Africa : The Importance of Good Trade Logistics

TARIFFS REGULATORY FRAMEWORK EXPORT MARKETS PRODUCTION EXPORT SECTORS VALUATION FREIGHT FORWARDING GLOBAL MARKETS AUTONOMY AIRLINES FOREIGN OWNERSHIP IMPACT OF TRADE EXPORTS DOMESTIC MARKET EXPORTERS POLITICAL ECONOMY SHIPPING AGENTS INCENTIVES LANDLOCKED COUNTRIES COMPETITIVE POSITION INPUTS TRADE PERFORMANCE QUALITY TRADE EXPANSION DELIVERY CONFORMITY ASSESSMENTS TRENDS PREFERENTIAL ACCESS FINAL GOODS CUSTOMS PROCEDURES FOREIGN MARKETS DEVELOPMENT INFLUENCE TECHNICAL ASSISTANCE CARGO COSTS PER CAPITA INCOME FOOD EXPORTS TRADE INTEGRATION FOREIGN SUPPLIERS REGIONAL TRADE CUSTOMS LOGISTICS CONTAINERS CABOTAGE TRADE LOGISTICS FREIGHT FORWARDERS MARKETS WTO METAL PRODUCTS AGREEMENT ON TRADE AIR CARGO ACCESS IMPORTS TRADE POLICY LABOR DIVIDENDS PORTS EXPORT DIVERSIFICATION LINER SHIPPING AVERAGE TRADE CARGO DWELL TIME EXPORT PATTERNS MANUFACTURING POLITICAL ECONOMY OF REFORM BORDER TRADE CUSTOMS BROKERS LOGISTICS COSTS TRADE INDICATORS TRANSIT TRADE PREFERENCES TRANSIT CORRIDORS INTERNATIONAL TRADE TRANSPARENCY TRUCKS TRADE COSTS SHIPPING DELIVERY TIMES VALUE CUSTOMS AUTHORITIES BENCHMARKING COMPETITIVENESS FOREIGN DIRECT INVESTMENT TRADE REFORM INEFFICIENCY INTERMEDIATE GOODS AGRICULTURE CONSUMERS TARIFF BARRIERS TRADE FACILITATION PORT INFRASTRUCTURE COMPETITIVE GLOBAL ENVIRONMENT MUTUAL RECOGNITION OF STANDARDS FORWARDING TRADE DATA TAXATION REGIONAL INTEGRATION AGRICULTURAL PRODUCTS TRADE MUTUAL RECOGNITION AIR TRANSPORT GDP TRADE PARTNERS CONTAINER SHIPS GOODS TARIFF PREFERENCES SUPPLY CHAINS GLOBAL TRADE INVESTMENT APPAREL INDUSTRY PREFERENTIAL TRADE TARIFF SUPPLY LOGISTICS CHAIN SHIPS SUPPLY CHAIN MANAGEMENT COMMODITIES INTERMEDIATE INPUTS TRANSPORT COSTS APPAREL PRICE CONTROLS OUTCOMES SHIPPING COMPANIES SOURCING COMMODITY INTERNATIONAL MARKETS FREIGHT TONNAGE PRODUCTION COSTS COMPETITIVE ADVANTAGES STORAGE
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World Bank, Washington, DC
Africa | Africa
2015-07-29T18:56:07Z | 2015-07-29T18:56:07Z | 2015-06-15

Economic activity in many African countries remains highly concentrated and exports are often dominated by mineral resources or a few primary products. The World Bank’s 2011 report on light manufacturing in Africa identified poor trade logistics performance as a constraint that especially penalized African exporters that relied on imported inputs, very often making them uncompetitive. The report highlighted research that demonstrated how poor logistics added roughly a 10 percent production cost penalty in Ethiopia, Tanzania, and Zambia across the five subsectors of light manufacturing where opportunities were identified as greatest in Africa. The report outlined how in Africa poor trade logistics increase production costs (often wiping out the labor cost advantage) and lead to long and unreliable delivery times, making local firm’s unattractive suppliers to lead firms in global value chains (GVCs), particularly for light manufacturing. This note seeks to contribute to a review of progress in achieving export diversification through greater exports of light manufacturing products. It looks at recent trends in the exports of the five categories of light manufacturing identified as having strong potential in Africa. The note reviews progress in improving trade logistics in Sub-Saharan Africa, with a focus on the three countries highlighted in the light manufacturing study: Ethiopia, Tanzania, and Zambia, and additionally Kenya and Uganda.

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