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Prepared by the International Bureau of WIPO Dar es salaam, December 14 and 15, 2009

NATIONAL SEMINAR ON INTELLECTUAL PROPERTY AND COMPETITIVENESS OF AGRo -FOODS Small and medium-sized enterprises ( smes ). Prepared by the International Bureau of WIPO Dar es salaam, December 14 and 15, 2009 Holiday Inn Hotel. The Comparative Advantages and Challenges

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Prepared by the International Bureau of WIPO Dar es salaam, December 14 and 15, 2009

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  1. NATIONAL SEMINAR ON INTELLECTUAL PROPERTY AND COMPETITIVENESS OF AGRo-FOODS Small and medium-sized enterprises (smes)

  2. Prepared by the International Bureau of WIPO Dar es salaam, December 14 and 15, 2009 Holiday Inn Hotel

  3. The Comparative Advantages and Challenges Facing African Agro Products in the Global Market By Francis Mwimanzi

  4. Presentation Map • Introduction and Background • Introduction to the topic – why this • African Context in Agro-products • The Africa’s Comparative Advantages and Challenges • Inferences – Comparisons and Contrasts • What then – way forward • Conclusion

  5. Introduction and Background Economists commonly argue that “poor Countries suffer from a development ‘vicious circle’: …….the predominance of subsistence Production inhibits accumulation of savings; leading to low savings, low consumption which further inhibits investment; and because investment is low, economic growth is stagnant.” unfortunately • Many African economies fit this description.

  6. That is the supply side –production aspects • Accordingly the target market exacerbate the problem by market access barriers, regulations, prohibitive consumer preferences in developed country markets, which further inhibit the incentive to invest, particularly for export.

  7. Then the market side creates a scenario Where, African exports are commodity-dependent, where the buyer determines the rules of the game, sometimes without notice! Which has until recently caused a long-term decline in Africa’s terms of trade. And supply-side deficiencies, principally poor physical and fiscal infrastructure and low levels of human resource where governance problems and lack of capacity are abound.

  8. Introduction to the topic • Africa’s advantages and challenges in the global market are legion, and have been massively researched and documented. There are mountains of data to refer to, most of which are available in the internet, various research papers, newsletter and journals • Here I will just attempt to summarize them against the backdrop of Africa’s broader advantages and challenges in the global trade.

  9. Our main interest is in…. • How can these challenges be turned into tools of advantages and opportunities to increase its presence and market share in the global market? and • How can African producers turn their advantages into tangible assets in the global agro-products market?

  10. The Africa’s Comparative Advantages and Challenges As we all understand today, a feature of global economic systems is the rise of global value chains, embodying networks of actors, tied together by relationships, linking producers, processors, marketers, regulators and distributors, most times than not across boarders and oceans along the chain……….

  11. ….through the value chain………

  12. in production………

  13. in production………

  14. in infrastructure………

  15. In markets and marketing………

  16. Then?? • Besides the mentioned comparative advantages Africa has, it also has a substantial share of challenges that needs to be addressed before Africa could seizing these opportunities, particularly in building productive capacities, market access and entry. • What are the challenges then

  17. Comparative challenges………

  18. Comparative challenges………

  19. Comparative challenges………

  20. Production..…challenge in

  21. Infrastructure and logistics…

  22. Markets and Marketing…

  23. Markets and Marketing…

  24. Regulations.…

  25. prices…

  26. Policies in target markets…

  27. What is then the – way forward…

  28. Conclusion

  29. Conclusion

  30. Conclusion

  31. Conclusion

  32. Conclusion

  33. What are the critical success factors…

  34. My request • I have put ideas before your expert scrutiny, I hope you will have the time, energy and perseverance to work on them and hope that we will enrich our selves in challenges and opportunities for agri-business and agro-industry development for the African populations. • Africa is no doubt a major component of the world agro-economy and offers considerable opportunities as part of the solution to the global food crisis, by harnessing resources available.

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