U.S. International Trade Commission

Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

COMMISSIONERS

Irving A. Williamson

Deanna Tanner Okun

Robert A. Rogowsky

Director of Operations

Karen Laney-Cummings

Director, Office of Industries

Charlotte R. Lane

Daniel R. Pearson, Chairman

Dean A. Pinkert

Shara L. Aranoff, Vice Chairman
U.S. International Trade Commission

Washington, DC 20436

Publication 3989 April 2008

www.usitc.gov

Sub-Saharan Africa:

Factors Affecting Trade Patterns

of Selected Industries

Second Annual Report

Investigation No. 332--477
This report was prepared principally by the Office of Industries

Project Leader

Falan Yinug

Deputy Project Leader

James Fetzer

Andrea Boron, Gail Burns, Ray Cantrell, Jonathan Coleman, Daniel Cook, Alfred Dennis,

Erland Herfindahl, Brendan Lynch, Erick Oh, Laura Rodriguez, Mark Simone, and Ralph Watkins

Primary Reviewers

Nannette Christ and Cathy Jabara

Office of Economics

Kyle Johnson

Administrative Support

Phyllis Boone, Monica Reed, and Wanda Tolson

Special Assistance

David Lundy, Cynthia Payne, and Laura Polly

Under the direction of

Michael Anderson, Chief

Advanced Technology and Machinery Division
i 

Abstract 

his 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. 

T 

iii

CONTENTS

Page

Abstract ............................................................... i

Executive Summary ............................................... xiii

Chapter 1 Introduction and Overview ...................... 1-1

Industry and country coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

Information used in the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2

Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

Organization of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

Overview of SSA sector export trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4

Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5

Mining and manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6

Chapter 2 Agricultural and Fisheries Sector Profiles . . 2-1

Coffee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6

Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7

Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7

Rwanda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10

Price increases and demand growth .................................... 2-11

Ongoing liberalization of SSA coffee sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13

Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13

Success in differentiating coffee from a homogenous commodity . . . . . . . . . . . . 2-14

Shea butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-19

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-19

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-19
iv

CONTENTS–Continued

Page

Chapter 2 Agricultural and Fisheries Sector

Profiles—Continued

Shea butter—Continued

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-23

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-24

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-28

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-28

Rising cocoa butter equivalent demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-29

Increased prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-29

Growing consumer awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-30

Training/funding for improved production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-31

Increased private sector investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-31

Spices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-35

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-35

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-35

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-38

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-39

Vanilla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-39

Cloves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-39

Pepper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-40

Ginger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-41

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-41

Vanilla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-42

Cloves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-42

Pepper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-42

Ginger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-42

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-43

Production and price instability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-43

Growing global demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-44

Programs to promote production and investment . . . . . . . . . . . . . . . . . . . . . . . . . . 2-44

Political unrest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-45

Tropical fruit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-48

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-48

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-49

Bananas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-51

Pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-52

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-53

Bananas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-53

Pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-54

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-55

Bananas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-55

Pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-56
v

CONTENTS—Continued

Page

Chapter 2 Agricultural and Fisheries Sector

Profiles—Continued

Tropical fruit—Continued

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-57

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-60

Demand growth for bananas and pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-61

Bananas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-61

Pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-61

Development of new pineapple variety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-61

Increased foreign investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-62

Price increases for bananas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-62

Assistance to SSA from international aid programs . . . . . . . . . . . . . . . . . . . . . . . . 2-64

The development of industry organizations and government support

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-64

Country profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-65

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-65

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-67

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-70

Chapter 3 Mining and Manufacturing Industry

Sector Profiles ................................................. 3-1

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8

Policies and programs to promote the footwear industry . . . . . . . . . . . . . . . . . . . . 3-8

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9

Deeper regional integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10

Growth of private enterprise in Ethiopia and the development of partnerships

with the European footwear industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11

Impact of AGOA preferences on South African exports . . . . . . . . . . . . . . . . . . . . . 3-12

Natural rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-17

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-17

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-17

Profiles of leading SSA NR producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-20

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-20
vi

CONTENTS—Continued

Page

Chapter 3 Mining and Manufacturing Industry

Sector Profiles—Continued

Natural rubber—Continued

Liberia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-20

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-21

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-21

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-22

Guinea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-22

Democratic Republic of the Congo (DRC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-23

Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-23

Proposals to promote the industry and increases investment in the future . . . . . . . 3-24

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-24

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-24

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-25

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-26

Demand growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-26

Inadequate infrastructure and political instability in SSA countries supplying

NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-27

Processed diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-30

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-30

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-30

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-34

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-34

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-35

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36

Global price increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36

Beneficiation investment and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-37

Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-37

Botswana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-37

Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-38

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-39

Other efforts to facilitate SSA beneficiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-39

Textiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-43

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-43

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-45

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-46

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-47

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-48

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-49

Deeper regional integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-50

Foreign investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-50

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-51
vii

CONTENTS—Continued

Page

Chapter 3 Mining and Manufacturing Industry

Sector Profiles—Continued

Textiles—Continued

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-51

Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-51

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-51

Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-52

Policies to promote the industry and other country-specific factors . . . . . . . . . . . . 3-52

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-52

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-53

Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-53

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-53

Wood furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-56

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-56

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-57

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-59

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-59

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-61

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-63

Competition from China in the EU and U.S. markets . . . . . . . . . . . . . . . . . . . . . . . 3-64

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-64

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-65

Appreciation of the South African rand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-66

Reduced supplies of timber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-66

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-67

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-67

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-68

Zimbabwe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-68

Increased demand in South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-68

Foreign investment has developed new exporters . . . . . . . . . . . . . . . . . . . . . . . . . . 3-69

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-69

Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-69

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-69

Mali . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-70

Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-71

Zimbabwe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-71

Policies to promote the industry and increased investment . . . . . . . . . . . . . . . . . . . 3-71

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-72

Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-72

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-73

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-74
viii

CONTENTS–Continued

Page

Chapter 4 Services Sector Profiles............................. 4-1

Aviation services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-6

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

Increased tourist and business travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

Growth in time sensitive exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

Alliances and route expansions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

Increased capital investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9

Infrastructure development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9

Country profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-12

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13

Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-14

Seychelles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-14

Cape Verde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-15

Communication services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-19

Summary of findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-19

Industry overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-20

Sub-Saharan Africa trade in the global context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-20

Leading exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-21

Leading export markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-23

Factors affecting export patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-24

Introduction of competition and new licensing policies . . . . . . . . . . . . . . . . . . . . . 4-24

Liberalization of international gateway competition . . . . . . . . . . . . . . . . . . . . . . 4-24

Introduction of VoIP technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Liberalization of competition policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Expanded infrastructure development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-27

SSA telecommunications demand growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-28

Greater role of geographic links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-28

Increased African migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-28

Higher GDP per capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-28

Increased international trade and investment . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-29

Innovative applications of telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . 4-29

Country profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-30

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-30

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-30

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-32
ix

CONTENTS–Continued

Page

Chapter 4 Services Sector Profiles—Continued

Communication services—Continued

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-33

Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-33

Appendixes

A. Request Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

B. Federal Register Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1

C. Hearing list of participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1

D. Summaries of views of interested parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1

E. Harmonized tariff schedule categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1

F. Leading export shifts for all SSA countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1

Boxes

2.1. Product description for coffee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5

2.2. Shea butter production, processing, and marketing chain . . . . . . . . . . . . . . . . . . . . . . . . . 2-20

2.3. Production description for shea butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-21

2.4. Product description for spices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-38

2.5. Product description for bananas and pineapples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-49

2.6. Downstream tropical fruit production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-51

2.7. EU tariff preferences for bananas from ACP countries . . . . . . . . . . . . . . . . . . . . . . . . . . 2-60

3.1. Production description for footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

3.2. Peacock: An example of the Italian connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-12

3.3. TSONGA USA LLC: An example of export growth prompted by AGOA . . . . . . . . . . . 3-14

3.4. Product description for natural rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-19

3.5. Product description for processed diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-30

3.6. Precious-metal jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-32

3.7. The Kimberley Process Certification Scheme (KPCS) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-34

3.8. Petra Diamonds’ efforts for SSA beneficiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-40

3.9. Product description for textiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-45

3.10. Product description for wood furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-59

3.11. Shift in sourcing of wood furniture from SSA to China: One company’s story . . . . . . . . 3-66

3.12. Visions of a wood furniture city in Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-70

3.13. Ghana to help Liberia salvage rubber trees to make furniture . . . . . . . . . . . . . . . . . . . . . 3-73

3.14. The government of South Africa intervenes in forest products sector in 2007 . . . . . . . . . 3-75

4.1. Product description for aviation services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3

4.2. Product description for communication services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-19
x

CONTENTS–Continued

Page

Tables

ES.1. Sub-Saharan Africa: Summary of findings for selected industries . . . . . . . . . . . . . . . . . . xvi

ES.2. Sub-Saharan Africa, factors affecting trade patterns, by selected industry . . . . . . . . . . . xvii

ES.3. Sub-Saharan Africa: Summary of factors affecting exports patterns . . . . . . . . . . . . . . . . xix

1.1. Sub-Saharan Africa merchandise and services exports: Value by sector, 2001–06 . . . . . 1-5

1.2. Sub-Saharan Africa commercial services exports: Value by country, 2001–05 . . . . . . . . 1-7

2.1. Sub-Saharan Africa coffee exports, by selected exporters and key markets,

2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

2.2. Sub-Saharan Africa shea nut production, shea nut exports, and shea butter exports, by

leading countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-24

2.3. Shea processing firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-28

2.4. Sub-Saharan Africa exports of all SSA spices, by selected exporters and key markets,

2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-36

2.5. Sub-Saharan Africa exports of vanilla, cloves, pepper, and ginger, by selected

exporters, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-40

2.6. Sub-Saharan Africa exports of SSA bananas, by selected exporters and key markets,

2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-54

2.7. Sub-Saharan Africa exports of SSA pineapples, by selected exporters and key

markets, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-55

3.1. Sub-Saharan Africa footwear exports, by selected exporters and key markets, 

2002–06 ............................................................ 3-3

3.2. Sub-Saharan Africa natural rubber exports, by selected exporters and key markets,

2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-18

3.3. South Africa processed diamonds exports, by selected exporters and key

markets, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-35

3.4. Sub-Saharan Africa processed diamonds exports (other than those of South Africa),

by selected exporters, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-35

3.5. Sub-Saharan Africa textile exports, by selected exporters and key markets, 2002–06 . . 3-44

3.6. Sub-Saharan Africa wood furniture exports, by selected exporters and key

markets, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-57

4.1. Sub-Saharan Africa aviation exports, by reporting exporters, 2001–05 . . . . . . . . . . . . . . 4-2

4.2. Leading sub-Saharan African airlines, by international passengers and freight metric

tons carried, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4

4.3. Sub-Saharan Africa communications exports, by selected exporters, 2001–05 . . . . . . . . 4-22

4.4. Competition and state ownership in SSA telecommunications sector . . . . . . . . . . . . . . . 4-26

4.5. Largest wireless providers in SSA by total number of mobile subscribers as of

June, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-34

Figures

1.1. Sub-Saharan Africa merchandise exports: Average annual growth rates by sector,

2001–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4

2.1. Leading global and sub-Saharan Africa exporters of coffee, 2006 . . . . . . . . . . . . . . . . . . 2-9

2.2. Leading markets for global and sub-Saharan Africa exports of coffee, 2006 . . . . . . . . . . 2-10
xi

CONTENTS–Continued

Page

Figures—Continued

2.3. Shea processing and shea marketing chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-22

2.4. Leading sub-Saharan Africa exporters of shea butter and shea nuts . . . . . . . . . . . . . . . . . 2-25

2.5. Shea nut exports for selected major exporting countries . . . . . . . . . . . . . . . . . . . . . . . . . 2-25

2.6. SSA shea exports for selected major exporting countries . . . . . . . . . . . . . . . . . . . . . . . . . 2-26

2.7. EU imports of SSA shea butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-27

2.8. Leading global and sub-Saharan Africa exporters of spices, 2006 . . . . . . . . . . . . . . . . . . 2-38

2.9. Leading markets for global and sub-Saharan Africa exports of spices, 2006 . . . . . . . . . . 2-41

2.10. SSA vanilla and clove export unit values, 2002–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-44

2.11. Leading global and sub-Saharan Africa exporters of bananas, 2006 . . . . . . . . . . . . . . . . 2-56

2.12. Leading global and sub-Saharan Africa exporters of pineapples, 2006 . . . . . . . . . . . . . . 2-57

2.13. Leading markets for global and sub-Saharan Africa exports of pineapples, 2006 . . . . . . 2-58

2.14. Leading markets for global and sub-Saharan Africa exports of bananas, 2006 . . . . . . . . 2-58

3.1. Leading global and sub-Saharan Africa exporters of footwear, 2006 . . . . . . . . . . . . . . . . 3-6

3.2. Leading markets for global and sub-Saharan Africa exports of footwear, 2006 . . . . . . . 3-7

3.3. Leading global and sub-Saharan Africa exporters of natural rubber, 2006 . . . . . . . . . . . 3-25

3.4. Leading markets for global and sub-Saharan Africa exports of natural rubber, 2006 . . . 3-26

3.5. Leading markets for global and South African exports of processed diamonds, 2006 . . . 3-36

3.6. Leading global and sub-Saharan Africa exporters of textiles, 2006 . . . . . . . . . . . . . . . . . 3-47

3.7. Leading markets for global and sub-Saharan Africa exports of textiles, 2006 . . . . . . . . . 3-48

3.8. Leading global and sub-Saharan Africa exporters of wood furniture, 2006 . . . . . . . . . . . 3-60

3.9. Leading markets for global and sub-Saharan Africa exports of wood furniture,

2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-62

4.1. Leading global and sub-Saharan Africa exporters of aviation services, 2005 . . . . . . . . . 4-6

4.2. Leading markets for global exports of aviation services, 2005 . . . . . . . . . . . . . . . . . . . . 4-7

4.3. Leading global and sub-Saharan Africa exporters of communication services, 2005 . . . 4-21

4.4. Leading markets for global exports of communication services, 2005 . . . . . . . . . . . . . . . 4-23

xiii

Executive Summary 

nalysis of factors contributing to significant changes in sub-Saharan 

African (SSA) exports in 11 industries1

 during 2002−06 found that 

several internal factors within SSA contributed to increased SSA exports 

in nine of the 11 industries during the period. Increased global prices also 

contributed to export increases for several SSA industries such as coffee, 

processed diamonds, and natural rubber. Selected factors are highlighted below, 

while tables ES.1−3 summarize the study findings, including all factors. 

Industry-Specific Government Policies and Programs 

Encouraged Exports 

Government policies to encourage investment and expansion of domestic 

industries were evident in certain industries. For example, the Namibian 

government offered incentives in the form of Export Processing Zone status and 

training grants to foster an export-oriented diamond cutting and polishing 

industry. Ghana and South Africa sponsored or proposed programs to promote 

the wood furniture industry. In Ghana, government institutions played a crucial 

role in the pineapple and banana industries’ export growth by facilitating the 

development and distribution of a new pineapple variety, coordinating the coldstorage chain, and providing technical support to improve quality and acquire 

international standards certifications. 

Increased Investment Spurred Exports 

Increased demand spurred investment and led to the rapid growth of the wireless 

telephony industry; an expansion of airline fleets; an increase in textiles 

production; and an increase in agricultural programs for bananas, pineapples, 

spices, and shea butter. Investment was critical to the explosion of wireless 

telephony services in several SSA countries as well as to the increase and 

upgrade of air fleets by several SSA airlines. Ethiopian Airways’ ability to 

reliably service its market in combination with the flexibility it achieved through 

the Open Skies agreements led to plans to expand and upgrade its fleet. In 2004, 

when Ethiopian Airways signed an agreement for at least five new Boeing 787 

Dreamliners, it became the first African carrier to be a launch customer for these 

jets. In Kenya, a joint venture in textiles enabled the domestic partner to secure 

technology allowing expanded operations into apparel. In addition, increased 

foreign investment in the banana industries in Côte d’Ivoire, Cameroon, and 

Ghana increased the total area harvested for bananas by more than 12 percent 

during 2002−06. In Ghana, new investments by a large multinational fruit 

company helped increase Ghanaian banana exports. The increasing popularity of 

shea butter as an input in the cosmetics and edible fats industries prompted 

 

1

 The 11 industries are: 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.

 

A 
xiv

several multinational companies to invest in shea processing in Ghana and 

Burkina Faso. 

Infrastructure Improvements Contributed to Increased 

Exports 

Some SSA governments, as well as international lenders such as the World Bank, 

improved infrastructure or production facilities to assist domestic industries. 

Infrastructure and transportation services improvements were especially 

beneficial to exports of shea butter, certain tropical fruit, aviation services, and 

communication services. Côte d’Ivoire, Ghana, and Cameroon export the 

majority of their fresh pineapples and bananas to the EU, so proper cold storage 

facilities and appropriate tracking and handling equipment are key components 

for the industry. Also, expansion and upgrades of the fruit wharf at the port of 

Abidjan were key in Côte d’Ivoire’s increasing banana sector exports. Several 

landlocked countries in West Africa require adequate road and rail networks to 

transport goods primarily to Senegal and Ghana for export by freight or air. 

Improved roads in Ghana and railroads and air transport in Senegal facilitated 

increased SSA exports of shea butter. Improved airport facilities and more direct 

routes contributed to increased aviation services exports. 

SSA Regional Integration Facilitated Exports 

Strengthened ties among members of the Common Market for Eastern and 

Southern Africa (COMESA) and the formation of the East African Customs 

Union (EAC) also improved efficiencies and increased regional trade. The 

establishment of the EAC between Kenya, Uganda, and Tanzania in 2005 likely 

contributed to the increased level of footwear trade, particularly between Kenya 

and Uganda, in 2005 and 2006 by liberalizing tariffs on intra-EAC trade while 

establishing a common external tariff. 

Tariff Preferences Boosted SSA Exports 

Tariff preferences provided a boost to SSA exports of footwear and textiles. For 

example, the Cotonou Agreement, which requires the use of regional fabric in 

apparel receiving duty-free treatment to the EU, and South Africa’s elimination 

of tariffs from Southern African Development Community (SADC) partner 

members both contributed to increased intra-SSA textile exports during 2002−06. 

For footwear, the elimination of tariffs under the African Growth and 

Opportunity Act (AGOA) contributed to increased exports of footwear from 

South Africa to the United States during 2002−06. 

Sector and Market Liberalizations Increased SSA Exports 

Liberalizations in the coffee, communication services, and aviation services 

sectors in several SSA countries helped to facilitate greater exports. Reduced 

government intervention in the coffee sectors of several SSA countries allowed 

producer prices to be linked to higher prices. The introduction of competition and 
xv

new licensing policies in several SSA countries’ communication services sectors 

reduced the cost and increased the volume of international calls. 

Among the largest and most successful SSA aviation services industries (Kenya, 

Ethiopia, and South Africa), the use of code sharing and other cooperative 

agreements such as frequent flyer and open skies agreements between airlines 

and nations have been vital to their sustained export growth. Changes in EU 

market regulations permitting some shea butter in products labeled “chocolate” 

increased demand for shea butter in the EU. 

Some Sectors’ Exports Decreased 

Not all of the 11 selected industries experienced export growth. Indeed, the value 

of global SSA exports declined for spices, wood furniture, and pineapples. The 

overall decrease in SSA spice exports during 2002−06 was due primarily to 

decreased prices associated with overproduction of vanilla in Madagascar.2

Increased competition in key markets was the principal factor contributing to the 

decreased value of SSA wood furniture exports, as well as the main reason for 

decreased pineapple export values. Exports of SSA wood furniture faced intense 

competition with exports from China in key EU markets and the United States, 

while SSA pineapple exports lost EU market share to Costa Rican exports. Other 

factors contributing to the decrease of SSA wood furniture exports were the 

relative strength of the South African rand against the euro and the U.S. dollar, 

reduced resource supply, and increased local demand, particularly in South 

Africa. 

Unstable political conditions and a deteriorating economic environment 

contributed to decreased export volumes of pineapples and coffee from 

Côte d’Ivoire and pepper from Zimbabwe. Côte d’Ivoire’s political crisis 

curtailed most financial lending for small pineapple farmers, reducing 

production. Zimbabwe, SSA’s leading pepper exporter in 2002, experienced a 

sharp decline during 2003−06, following its land reform program that began in 

June 2002. 

 

2

 Following a cyclone-induced shortage of natural vanilla in 2000, the resulting global price 

spike compelled consumers to switch to artificial substitutes, thereby depressing demand for natural 

vanilla and decreasing the value of SSA exports, primarily from Madagascar and Comoros. 

Subsequently, recovery of supplies from the SSA area hit by the cyclone caused a vanilla glut and 

further decreased world prices and export values. 
xvi

Table ES.1 Sub-Saharan Africa: Summary of findings for selected industries 

Industry 

SSA exporters 

experiencing 

significant 

export shifts Key markets 

Leading 

competitors in 

key markets Factors affecting shift in exports 

SSA export 

shift from 

2002 through 

2006 

Agriculture 

Coffee 

 

Increase: 

Ethiopia 

Kenya 

Tanzania 

Rwanda 

Guinea 

Cameroon 

Decrease: 

Côte d’Ivoire 

Uganda 

European Union 

Japan 

United States 

Algeria 

Brazil 

Colombia 

Vietnam 

Increase: 

1) Demand growth and price 

increases 

2) Policies and programs to promote 

the industry 

3) Increased investment 

4) Growth of private enterprise and 

emergence of key business 

relationships 

5) Improved product quality 

6) Product differentiation 

Decrease: 

1) Political instability 

2) Low crop yield and reduced quality 

Value: 

+$496 million 

+82 percent 

Volume: 

-61,000 mt 

-10 percent 

Shea butter Increase: 

Ghana 

Togo 

European Union 

United States 

European Union 1) Demand growth and price 

increases 

2) Policies and programs to promote 

the industry 

3) Increased investment 

4) Infrastructure improvement 

5) Increased supply 

6) Effects of market regulations 

7) Improved product quality 

Volume: 

+33,000 mt 

(2001 to 2005) 

+660 percent 

Note: this 

measure is in 

shea-nut 

equivalents 

Spices (vanilla, 

cloves, pepper, 

and ginger) 

Increase: 

Nigeria 

Tanzania 

Decrease: 

Madagascar 

Comoros 

Zimbabwe 

Uganda 

European Union 

United States 

Singapore 

India 

China 

India 

Indonesia 

Vietnam 

Increase: 

1) Policies and programs to promote 

the industry 

2) Demand growth 

Decrease: 

1) Overproduction 

2) Political instability 

3) Low crop yield due to weather 

Value: 

-$137 million 

-47 percent 

Volume: 

+1,000 mt 

+3 percent 

Tropical fruit 

(bananas and 

pineapples) 

Increase: 

Côte d’Ivoire 

Cameroon 

Ghana 

Decrease: 

Côte d’Ivoire 

European Union Costa Rica 

Ecuador 

Colombia 

Increase (bananas): 

1) Demand growth and price 

increases 

2) Policies and programs to promote 

the industry 

3) Increased investment 

4) Infrastructure improvement 

5) Improved industry organization 

Decrease (pineapples): 

1) Competition in key markets 

Bananas: 

Value: 

+$178 million 

+69 percent 

Volume: 

+53,000 mt 

+11 percent 

Pineapples : 

Value: 

-$9 million 

-5 percent 

Volume: 

-64,000 mt 

-28 percent 

Mining and Manufacturing 

Footwear 

 

Increase: 

Kenya 

Ethiopia 

South Africa 

European Union 

Uganda 

Zambia 

United States 

Malawi 

South Africa 

China 

Vietnam 

Italy 

Brazil 

1) Policies and programs to promote 

the industry 

2) Deeper regional integration 

3) Growth of private enterprise and 

emergence of key business 

relationships 

4) Effects of tariff preferences 

Value: 

+$11 million 

+33 percent 

Natural rubber Increase: 

Côte d’Ivoire 

Liberia 

Cameroon 

Nigeria 

European Union 

United States 

Malaysia 

Thailand 

Indonesia 

Vietnam 

1) Demand growth and price 

increases 

Value: 

+$596 million 

+262 percent 

Volume: 

+53,000 mt 

+15 percent 
xvii

Table ES.1 Sub-Saharan Africa: Summary of findings for selected industriesContinued

Industry 

SSA exporters 

experiencing 

significant 

export shifts Key markets 

Leading 

competitors in 

key markets Factors affecting shift in exports 

SSA export 

shift from 

2002 through 

2006 

Processed 

diamonds 

 

Increase: 

South Africa 

Botswana 

Mauritius 

Namibia 

European Union 

Switzerland 

United States 

Israel 

Israel 

India 

Belgium 

China 

1) Demand growth and price 

increases 

2) Policies and programs to promote 

the industry 

3) Increased investment 

Value: 

+$199 million 

+43 percent

Note: data 

represent only 

South Africa. 

Textiles 

 

Increase: 

Mauritius 

South Africa 

Tanzania 

Kenya 

Lesotho 

Ethiopia 

Madagascar 

European Union 

Other SSA 

 countries 

United States 

China 

India 

Pakistan 

Turkey 

1) Policies and programs to promote 

the industry 

2) Increased investment 

3) Deeper regional integration 

4) Effects of tariff preferences 

 

Value: 

+$50 million 

+12 percent 

Wood furniture 

 

Increase: 

Zimbabwe 

Mali 

Gabon 

Kenya 

Decrease: 

South Africa 

Ghana 

European Union 

Other SSA 

 countries 

United States 

China 

Indonesia 

Vietnam 

Canada 

Malaysia 

Other SSA 

 countries 

Increase: 

1) Increased investment 

2) Policies and programs to promote 

the industry 

Decrease: 

1) Competition in key markets 

2) Exchange rate effect 

3) Reduced resource supply 

4) Increased local demand 

Value: 

-$59 million 

-46 percent 

 

Services 

Aviation 

services 

 

Increase: 

Ethiopia 

Kenya 

Madagascar 

Seychelles 

Cape Verde 

European Union 

Other SSA 

 countries 

European Union 

United States 

Other SSA 

 countries 

Morocco 

UAE 

Qatar 

1) Demand growth related to 

increased travel and freight transport 

services 

2) Policies and programs to promote 

the industry 

3) Increased investment 

4) Growth of private enterprise and 

emergence of key business 

relationships 

5) Infrastructure improvement 

Value: 

+$331 million 

(2001 to 2005) 

+39 percent 

 

Communication 

services 

 

Increase: 

South Africa 

Kenya 

Côte d’Ivoire 

Mali 

Uganda 

Ethiopia 

Nigeria 

European Union 

Other SSA 

 countries 

United States 

Note: 

Communication 

exports from 

different 

countries are 

generally not 

substitutable. 

1) Demand growth 

2) Policies and programs to promote 

the industry 

3) Increased investment 

4) Growth of private enterprise and 

emergence of key business 

relationships 

5) Infrastructure improvement 

6) Deeper regional integration 

7) Effect of market regulations 

Value: 

+$355 million 

(2001 to 2005) 

+87 percent 

Source: Compiled by Commission staff. 

Notes: 1) Values for aviation and communication services are likely undervalued due to incomplete IMF reporting data. 2) SSA exporters 

in column 2 are listed based on greatest absolute change in export value for the most recent five-year period. 
Table ES.2 Sub-Saharan Africa, factors affecting trade patterns, by selected industry 

Agriculture Mining and Manufacturing 

Factors Coffee 

Shea 

butter Spices 

Tropical 

fruit Footwear 

Natural 

rubber 

Processed 

diamonds Textiles 

Wood 

furniture 

Factors contributing to increased exports 

Demand growth X X X X X X Price increases X X X X X Policies to promote the industry – SSA  governments X X X X X X X Policies/programs to promote the industry –  International organizations and governments X X X X X Increased investment X X X X X X Growth of private enterprise and emergence of  key business relationships X X Infrastructure improvement X X Deeper regional integration X X Improved product quality X X Effects of market regulations X Effects of tariff preferences X X Improved industry organization X Product differentiation X 

Factors contributing to decreased exports 

Competition in key markets X X Low crop yield X X Political instability X X X Overproduction X Exchange rate effect X Reduced resource supply X Increased local demand X Source: Compiled by Commission staff. 

xviii
xix

Table ES.3 Sub-Saharan Africa: Summary of factors affecting export patterns 

Coffee • Sustained rebound in world coffee prices since 2002. 

• Greater demand for premium and gourmet coffee, particularly in the United States. 

• Ongoing liberalization of the coffee sectors in several SSA countries. 

• Success in differentiating coffee from a homogenous commodity through superior quality, 

production process, or geographic origin. 

Shea butter • Increased demand for natural/organic products in developed countries brought on by increased 

consumer awareness of the natural “healing” benefits of shea butter. 

• Increased demand for products containing shea butter, such as cosmetics and chocolates, in 

markets with rising incomes. 

• Increased prices. 

• Standardization of EU regulations on other vegetable fats in chocolate besides cocoa. 

• Increased supply and improved quality of shea butter. 

• Effectiveness of funding and training by non-governmental and international organizations. 

• Increased private sector investment. 

Spices • Cyclone-induced global price spike for natural vanilla induced consumers to switch to artificial 

substitutes, depressing demand for natural vanilla after the SSA industry recovered and 

decreasing the value of SSA exports, primarily from Madagascar and Comoros. 

• SSA government policies and international government programs designed to support the 

industry and encourage investment. 

Tropical fruit • Competition from a new variety of pineapple (MD2) in Costa Rica contributed to a downward shift 

in exports from Côte d’Ivoire and Ghana. Leading SSA exporters have since adjusted their 

production strategies to regain market share. 

• Growth in demand for bananas and pineapples. 

• Increased prices for bananas. 

• Assistance from international aid programs. 

• Development of industry organizations in key SSA producing countries. 

• Increased foreign investment in banana production. 

• Changes in EU tariff preferences for bananas have continued to give SSA exporters a 

competitive advantage in the EU market. 

• Downstream fruit processing occurs in some SSA countries, though limited supply and 

inconsistent quality of raw materials hamper growth possibilities. 

Footwear • Policies and programs to promote the industry, particularly in Kenya. 

• Deeper regional integration. 

• Growth of private enterprise and emergence of key business relationships in Ethiopia. 

• Elimination of tariffs under AGOA contributed to increased exports from South Africa to the United 

States. 

Natural rubber • Increased prices resulting primarily from favorable economic climates in the Western economies 

and Asia, as well as growth in consumer demand for tires and other products made from natural 

rubber. 

Processed diamonds • Price increases driven by strong consumer demand. 

• Investment in new diamond-processing facilities and programs by SSA governments and 

international organizations to promote the downstream processing of rough diamonds. 

Textiles • Several agreements to promote intra-African economic cooperation were strengthened and 

trading partners took advantage of regional preferences. 

• Foreign investment encouraged SSA exports of textiles, fabric, and made-up articles, and in 

certain cases foreign investment encouraged new production in higher technology products. 

• New EU preference programs (Cotonou Agreement) requiring the use of regional fabric in apparel 

receiving duty-free treatment and South Africa’s elimination of tariffs on imports from SADC 

partner members. 

• SSA government policies to promote the industry. 

Wood furniture • Intensified competition from China and other East Asian suppliers in the U.S., UK, and other EU 

markets was the main factor contributing to the decrease in SSA exports. 

• Other factors for the decrease were: the appreciation of the South African Rand, reduced supply 

of timber for the regional pine furniture industry due to forest fires in South Africa and Zimbabwe, 

and increased local demand taking away from supply to the export market. 

• Despite this decrease over the period, foreign investment has developed new exporters and 

various policies to promote the industry and increase investment have been implemented in many 

SSA countries. 

Aviation services • Steady growth in SSA international passenger (both business and leisure) and air freight 

(transport of time-sensitive exports) traffic. 

• Expansion of cooperative agreements and alliances among national airlines and governments. 

• Continued investment in both capital equipment (airplanes) and infrastructure (airports). 

Communication 

services 

• Increased domestic competition and new licensing policies. 

• Expanded infrastructure development and introduction of new technologies. 

• Increased demand for telecommunication services brought on by the greater role of geographic 

links, increased African migration, higher GDP per capita in SSA, increased international trade 

and investment in SSA, and the development of new, innovative applications of 

telecommunications. 

Source: Compiled by Commission staff. 

1-1

CHAPTER 1 

Introduction and Overview 

his report provides information on competitive factors affecting selected 

industries in sub-Saharan Africa (SSA)1

 that have experienced significant 

shifts in exports.2

 This report describes industry and market conditions; 

identifies the leading SSA exporters, their key markets, and their global 

competitors; and identifies, describes, and analyzes factors that have contributed 

to significant export shifts in the selected SSA industries for the most recent fiveyear period for which data are available. In addition, the report includes brief 

overviews of the trends in SSA exports for the agriculture (including fisheries), 

mining and manufacturing, and services sectors. 

Industry and Country Coverage 

This report analyzes eleven SSA industries selected by the United States Trade 

Representative (USTR): certain spices (including ginger), coffee, shea butter and 

downstream products thereof, and tropical fruit (e.g. bananas, pineapples, and 

guavas) and processed products thereof in the agriculture and fisheries sector; 

footwear, natural rubber and downstream products thereof, jewelry and 

downstream diamond processing (e.g., polishing and cutting), textiles, and wood 

furniture in the mining and manufacturing sector; and aviation services and 

communication services in the services sector. For each industry, trade data were 

used to narrow the focus of the analysis to that part of the industry and to those 

countries within SSA that demonstrated substantial or consistent export value 

shifts from 2002–06.3

 

1

 Throughout the report “SSA” is used to refer to both “sub-Saharan Africa” as a noun and 

“sub-Saharan African” as an adjective. 2

 On July 27, 2006, the Office of the United States Trade Representative (USTR) requested that 

the U.S. International Trade Commission (Commission) prepare three annual reports under section 

332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) addressing factors affecting trade patterns of 

selected industries in sub-Saharan Africa. This report is the second in that series. The USTR 

requested that the Commission submit its report by April 3, 2008. A copy of the request letter is 

included in app. A, and the Commission’s notice of investigation, published in the Federal Register

of July 18, 2007 (72 F.R. 39445), is in app. B. 3

 Sub-Saharan Africa consists of the following 48 countries: Angola, Benin, Botswana, Burkina 

Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic 

Republic of the Congo, Republic of the Congo, Côte d’Ivoire, Djibouti, Equatorial Guinea, Eritrea, 

Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, 

Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, 

Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, 

Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe. Because data were unavailable for 

2006 for all commercial services sectors, export shifts for services are based on changes during 

2001−05. 

T 
1-2

Information Used in the Report 

Merchandise trade data throughout this report, unless otherwise indicated, were 

obtained from Global Trade Information Services, Inc.’s (GTIS) Global Trade 

Atlas database.4

 Industry sectors were defined based on 2-, 4-, and 6-digit 

harmonized system (HS) classifications (app. table E.1). To minimize the effect 

of incomplete trade data from SSA countries, the data presented for exports in 

this report represent the value of apparent exports rather than actual reported 

exports, unless otherwise noted. That is, as import data are generally considered 

more reliable than export data, and export data from a number of SSA countries 

were limited, export trade values were derived by aggregating import data values 

(including insurance and freight) from all countries reporting to GTIS.5

Furthermore, complete and reliable 2006 data for some industry sectors (e.g., 

aviation services and communication services) were not readily available. 

Services industry definitions were based on the International Monetary Fund’s 

(IMF) Balance of Payments Manual. Services sector data were compiled from 

various sources, including the IMF’s Balance of Payments Manual and the World 

Trade Organization’s (WTO) International Trade Statistics 2007. 

In addition to the trade data described above, information for this report was 

collected from a variety of industry and government sources, including domestic 

and foreign industry representatives; international organizations, including the 

WTO, the World Bank, the Food and Agriculture Organization (FAO) of the 

United Nations, and the IMF; U.S. and foreign government sources, including 

U.S. embassies in SSA countries and SSA countries’ embassies in the United 

States; and submissions of interested parties. In addition, Commission staff 

conducted fieldwork in East Africa (Ethiopia, Kenya, Tanzania, and Uganda), 

Southern Africa (Madagascar and South Africa), and West Africa (Côte d’Ivoire, 

Ghana, and Senegal). 

 

4

 Global Trade Atlas was the primary source of trade data for this report. Most data were 

collected as of July 24, 2007; however, Global Trade Information Services, Inc. (GTIS) 

periodically updates its database and certain values were updated at later times. All data are 

reported as nominal values unless otherwise indicated. Internal European Union trade data were 

excluded. Throughout this report, references to the European Union (EU) refer to the EU27: 

Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, 

Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, 

Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. 5

 Trade data used for the processed diamonds profile are an exception; as the import data are 

likely inflated due to double counting of reexports, SSA export data from the leading exporter, 

South Africa, were used. Import valuation for most countries reporting to GTIS is based on the 

cost, insurance, and freight, or C.I.F. value. Although this approach provided the broadest set of 

data, introduction of insurance and freight into the export values may cause additional variation. 

For example, increased freight costs associated with increased fuel costs over the period will also 

show up as increased export value. 
1-3

Approach 

The approach employed by the Commission to identify factors that affected trade 

patterns in the selected industries included several steps. First, the Commission 

analyzed export data in the selected industries to determine whether changes in 

exports over the most recent five-year period primarily reflected changes in 

prices or changes in quantity. Second, examination of data was combined with 

information gathered from domestic and foreign industry and government 

sources, as well as international organizations, to identify factors that were 

related to demand and supply conditions affecting each selected industry. For 

example, factors relating to demand include changes in global demand and 

changes in tariff preferences extended to the respective SSA countries in world 

markets. Examples of factors relating to supply include increased investment 

leading to increased capacity and changes in domestic government policies, such 

as tax policies, or infrastructure improvements. The factors identified in this 

report are not an exhaustive list and are not ranked according to significance. 

Any level of relative significance suggested in the report is a qualitative 

assessment based on the information gathered and is not the result of statistical 

analysis. 

Data sources for this report include public sources of export data, telephone 

interviews, e-mail correspondence with domestic and foreign industry 

representatives, information from other U.S. government agencies, and fieldwork 

conducted by Commission staff. In Ethiopia, Kenya, Tanzania, and Uganda, 

Commission staff met with representatives from the aviation services, coffee, 

communications services, footwear, shea butter, spice, textile, tropical fruit, 

wood furniture, and related industries. In Côte d’Ivoire, Ghana, and Senegal, 

Commission staff met with representatives from the aviation services, coffee, 

communications services, natural rubber, shea butter, tropical fruit, wood 

furniture, and related industries. In Madagascar and South Africa, Commission 

staff met with representatives from the aviation services, diamond processing, 

natural rubber, spice, textile, wood furniture, and related industries. 

Organization of Report 

The remainder of chapter 1 provides an overview of SSA sector exports. Chapter 

2 profiles the selected agricultural industries; chapter 3 profiles the selected 

mining and manufacturing industries; and chapter 4 profiles the selected services 

industries. 
1-4

Overview of SSA Sector Export Trade 

Continued SSA export growth has played an important role in the region’s 

strong recent economic performance.6

 From 2002 to 2006, the average 

annual growth rates of merchandise exports by sector from SSA increased 

from approximately 5 percent for textiles and apparel to approximately 

67 percent for energy-related products. Overall, the average annual growth 

rate of exports was 38 percent (figure 1.1). By comparison, global 

merchandise exports increased by 22 percent annually over the same 

period.7

 The mining and manufacturing sector has increasingly dominated 

SSA’s merchandise exports, going from 82 percent of the total in 2002 to 

91 percent of the total in 2006 (table 1.1). Although much smaller on an 

absolute basis, SSA services exports also increased significantly, growing by 

81 percent during 2001–05 (table 1.2). 

 

6

 Region-wide real gross domestic product (GDP) grew at an average annual rate of 5.1 percent 

from 2002 through 2006, and it is estimated to have grown at an annual rate of 6.1 percent during 

2007. IMF, World Economic Outlook Database. 7

 IMF, World Economic Outlook, 2007, 231. 

Figure 1.1 Sub-Saharan Africa merchandise exports: Average annual growth rates by sector, 

2002−06

0% 10% 20% 30% 40% 50% 60% 70% 80%

Energy-related products

 

 Transportation equipment

Chemicals and related products

 Forest products

 Machinery

 Textiles and apparel

 Electronic products

 Miscellaneous manufactures

 Footwear

 Agricultural products

Total merchandise exports

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU 

external trade.
1-5

Table 1.1 Sub-Saharan Africa merchandise and services exports: Value by sector, 2002−06 

 Change, 2002 to 2006 

Sector 2002 2003 2004 2005 2006 Absolute Percentage 

Million dollars 

Merchandise exports: 

Energy-related products 34,604 46,606 67,298 94,412 127,074 92,470 267 

Minerals and metals 21,128 25,937 34,210 40,245 47,397 26,269 124 

Transportation equipment 4,312 5,910 6,700 6,862 6,626 2,314 54 

Chemicals and related products 2,915 3,591 4,313 5,305 5,311 2,396 82 

Forest products 3,342 3,811 4,291 4,450 4,316 974 29 

Machinery 1,779 2,090 2,534 2,779 3,516 1,737 98 

Textiles and apparel 2,597 3,151 3,534 3,129 3,051 454 17 

Electronic products 797 974 1,245 1,363 1,436 639 80 

Miscellaneous manufactures 848 989 1,119 1,007 1,025 177 21 

Footwear 32 41 45 41 42 10 31 

Sub-total mining and manufacturing 72,354 93,100 125,289 159,593 199,794 127,440 176 

Agricultural products (including fishery products) 15,465 18,526 19,881 20,631 20,687 5,222 34 

Total merchandise exports 87,819 111,626 145,170 180,224 220,481 132,662 151 

Total services exports 16,862 21,470 24,644 28,000 na na na 

Total exports 104,681 133,096 169,814 208,224 na na na 

Merchandise exports as a percent of total trade 84 84 85 87 na na na 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries' official statistics, including EU external trade and WTO 

International Trade Statistics 2007. 

Note: na = not applicable.

Agriculture 

The value of agricultural sector (including fisheries) exports grew by 34 percent 

during 2002–06, with an average annual growth rate during the period of 

8 percent. As the growth in export value in agriculture lagged significantly 

behind the growth in mining and manufacturing, the share of SSA merchandise 

exports accounted for by agriculture declined from 18 percent in 2002 to 

9 percent in 2006. Furthermore, SSA export growth in the agricultural sector 

lagged behind growth in global exports in agriculture, which increased by 

45 percent during the same period.8

 Six SSA agricultural sub-sectors each 

generated total export earnings of more than $1 billion in 2006: cocoa and cocoa 

products, fresh fish and fish products, fresh and dried fruit, cotton, coffee, and 

tobacco. These six sub-sectors accounted for two-thirds of all SSA agricultural 

exports. 

The four selected SSA agricultural industries profiled in chapter 2, ranked by 

2006 export value, are: coffee, tropical fruit, spices, and shea butter. Exports of 

coffee and the bananas segment of tropical fruit increased significantly during 

2002–06, by 82 and 69 percent, respectively. Spices and the pineapples segment 

of tropical fruit decreased by 47 and 5 percent, respectively during the same 

period. Though specific export value shift data are not available for shea butter, 

industry sources estimate that export values increased moderately during 2001–

05. 

 

8

 GTIS, Global Trade Atlas, reporting countries’ total global imports. 
1-6

Mining and Manufacturing 

Growth in mining and manufacturing exports was strong during 2002–06; 

however, it was concentrated in energy-related products and minerals and metals, 

which grew at average annual rates of 67 and 31 percent, respectively, by value 

(figure 1.1). SSA exports of energy-related products grew nearly 270 percent by 

value during 2002–06, reflecting increased world petroleum prices as well as 

increased volume (table 1.1). Similarly, SSA exports of minerals and metals 

increased by 124 percent during 2002–06 as strong global demand increased the 

volume of exports and fueled higher prices for products such as gold, aluminum, 

steel, and copper. SSA exports of all other commodities in the mining and 

manufacturing sector rose 52 percent during 2002–06. 

The five selected industries in the SSA mining and manufacturing sector profiled 

in chapter 3, ranked by 2006 export value, are: natural rubber, processed 

diamonds, textiles, wood furniture, and footwear. Exports increased in four of the 

five sectors during 2002–06, with gains ranging from 12–262 percent. The one 

exception was wood furniture, which decreased by 46 percent. 

Services 

Services exports represented about 15 percent of total SSA exports during 2002–

05 (table 1.1).9

 The value of SSA services exports increased 81 percent during 

2001–05, from $15.5 billion in 2001 to $28.0 billion in 2005 (table 1.2).10 The 

composition of SSA services exports shifted toward travel and tourism during the 

period. Travel and tourism accounted for 47 percent ($13.5 billion) of all SSA 

services exports in 2005, an increase from 39 percent ($6.4 billion) in 2001.11

Transportation services accounted for 19 percent of all SSA services exports in 

2005, a decrease from 22 percent in 2001. All other services (including 

communications, construction, insurance, financial, computer and information 

services) decreased from 39 to 34 percent of all SSA services exports during 

2001–05. 

Services exports from SSA are concentrated in the five leading exporters (South 

Africa, Nigeria, Mauritius, Kenya, and Tanzania), which accounted for 

$19.4 billion in services exports in 2005, representing 69 percent of all SSA 

services exports (table 1.2). The predominant type of service exported varied 

among exporters. In 2006, for example, tourism services dominated the services 

exports from South Africa (67 percent), Tanzania (67 percent), and Mauritius 

(60 percent).12 Other services (including communications, construction, 

insurance, financial, computer, and information services) dominated the services 

exports from Nigeria (82 percent) in 2005. In Kenya, services exports were 

 

9

 “Services” refers to commercial services as defined by the IMF and consist of transportation, 

travel and tourism, and other services; other services include communications, construction, 

insurance, financial, computer and information, royalties and license fees, and other business 

services. 10 Services data were not completely available for 2006. 11 IMF, International Financial Statistics Yearbook, 2007. 12 WTO, Statistical Databases. 
1-7

divided between transportation services (48 percent) and tourism services 

(38 percent) in 2005. 

Table 1.2 Sub-Saharan Africa commercial services exports: Value by country, 2001–05 

Country 2001 2002 2003 2004 2005 

Absolute 

change 

Percent 

change 

Million dollars

Total Africa 32,200 34,500 42,500 51,400 57,600 25,400 79

Total sub-Saharan Africa 15,481 16,862 21,470 24,644 28,000 12,519 81

 South Africa 4,728 4,863 8,120 9,444 10,898 6,170 130

 Nigeria 1,653 2,524 3,473 3,336 4,164 2,511 152

 Mauritius 1,218 1,146 1,274 1,449 1,604 386 32

 Kenya 821 773 876 1,227 1,523 702 86

 Tanzania 853 860 900 1,058 1,181 328 38

 Other SSA countries 6,205 6,696 6,827 8,130 8,630 2,425 39

Source: WTO International Trade Statistics 2007. 

2-1

CHAPTER 2 

Agricultural and Fisheries Sector Profile 

he value of agricultural and fisheries exports from sub-Saharan Africa 

(SSA) grew steadily during 2002−06. Increased prices generally drove the 

increased value of exports, although the quantity of shea butter exports 

increased substantially, as well. Agricultural and fisheries exports decreased as a 

share of the total value of SSA exports because the value of mining and 

manufacturing exports grew at a much greater rate than agricultural and fisheries 

exports. The following tabulation summarizes factors that contributed to shifts in 

exports in the selected agricultural and fisheries sectors. 

T 

Factors Coffee Shea butter Spices Tropical fruit 

Factors contributing to increased exports 

Demand growth X X X X 

Price increases X X X 

Policies to promote the industry – SSA 

 Governments 

X X X 

Policies/programs to promote the industry – 

 international organizations and 

 governments 

X X X X 

Increased investment X X X 

Growth of private enterprise and emergence of 

 key business relationships 

X 

Infrastructure improvement X X 

Improved product quality X X 

Effects of market regulations X 

Improved industry organization X 

Product differentiation X 

Factors contributing to decreased exports 

Competition in key markets X 

Low crop yield X X 

Political instability X X 

Overproduction X 
2-2

Coffee 

Summary of Findings 

The value of SSA coffee exports increased each year during 2002−06, and by 

82 percent to $1.1 billion between 2002 and 2006 (table 2.1). Increases occurred 

for several SSA coffee-producing countries. The factors behind the overall 

increase were a sustained rebound in world coffee prices since 2002; greater 

demand for premium and gourmet coffee; ongoing liberalization of the coffee 

sectors in several SSA countries since the early 1990s; and success in enhancing 

demand by differentiating coffee by superior quality, production process, or 

geographic origin. The growing popularity of premium coffee in the United 

States in recent years has resulted in the United States becoming an increasingly 

important market for several SSA coffee exporters. 

Most of the value increase of SSA coffee exports resulted from higher prices. 

World commodity-grade coffee prices saw a dramatic rebound during this period, 

doubling from the depressed levels in the early part of this decade. Compared to 

value, the volume of SSA exports increased at a lower rate in Ethiopia, Kenya, 

Rwanda, and Tanzania.. In Côte d’Ivoire and Uganda, export volume actually 

declined during 2002−06. Nevertheless, for SSA as a whole, the growing demand 

by specialty and gourmet coffee producers for African-origin coffee beans 

contributed to some gains in volume, particularly in exports to the United States. 
2-3

Table 2.1 Sub-Saharan Africa coffee exports, by selected exporting countries and key markets, 2002−06 

 Exports Change, 2002 to 2006 

Country Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

1,000 dollars 78,172 100,407 126,707 193,319 190,947 112,775 144 EU 

Metric tons 49,302 70,541 79,087 81,864 78,343 29,041 59 

1,000 dollars 39,576 39,847 55,562 67,699 87,910 48,334 122 Japan Metric tons 32,344 30,948 36,551 29,055 37,606 5,262 16 

1,000 dollars 9,893 12,923 15,153 29,665 42,944 33,051 334 United States Metric tons 4,421 6,087 7,269 10,639 15,005 10,584 239 

1,000 dollars 11,126 11,482 17,054 24,485 23,415 12,289 110 All other Metric tons 5,823 6,435 9,965 10,166 9,080 3,257 56 

1,000 dollars 138,853 164,766 214,599 315,290 345,347 206,494 149 

Ethiopia 

Total Metric tons 91,890 114,011 132,872 131,723 140,033 48,143 52 

1,000 dollars 66,526 75,097 80,384 97,578 104,251 37,725 57 EU Metric tons 33,330 40,750 40,398 36,517 35,081 1,751 5 

1,000 dollars 12,726 15,438 14,003 21,275 24,139 11,413 90 United States Metric tons 5,020 5,922 4,871 5,058 5,823 803 16 

1,000 dollars 3,078 2,378 4,230 4,860 5,957 2,879 94 Switzerland Metric tons 911 733 1,117 1,286 1,369 458 50 

1,000 dollars 14,442 13,552 14,032 19,220 19,741 5,298 37 All other Metric tons 6,143 5,907 6,461 6,741 6,554 411 7 

1,000 dollars 96,812 106,511 112,695 142,978 154,131 57,319 59 

Kenya 

Total Metric tons 45,404 53,312 52,847 49,602 48,827 3,423 8 

1,000 dollars 93,684 112,456 109,094 126,541 118,915 25,230 27 EU Metric tons 126,996 129,283 111,244 98,237 70,479 -56,517 -45 

1,000 dollars 3,865 7,009 5,453 10,925 7,527 3,662 95 United States Metric tons 5,636 10,497 6,975 5,820 4,343 -1,293 -23 

1,000 dollars 3,488 4,247 3,306 5,405 4,411 923 27 Serbia Metric tons 3,917 4,044 3,506 4,312 2,894 -1,023 -26 

1,000 dollars 13,433 16,444 11,369 12,488 10,117 -3,316 -25 All other Metric tons 18,046 17,243 11,506 10,719 6,205 -11,841 -66 

1,000 dollars 114,607 140,299 129,345 155,468 141,047 26,440 23 

Uganda 

Total Metric tons 154,595 161,067 133,231 119,089 83,922 -70,673 -46 

1,000 dollars 52,087 59,815 72,721 72,110 79,458 27,371 53 Algeria Metric tons 83,765 65,506 84,265 65,191 57,288 -26,477 -32 

1,000 dollars 40,024 38,667 35,384 42,125 45,552 5,528 14 EU Metric tons 70,456 50,229 45,814 46,986 33,682 -36,774 -52 

1,000 dollars 779 1,125 1,080 484 971 192 25 United States Metric tons 1,362 1,709 1,473 529 614 -748 -55 

1,000 dollars 6,278 7,985 6,337 4,173 1,810 -4,468 -71 All other Metric tons 8,885 10,227 6,962 4,573 1,250 -7,635 -86 

1,000 dollars 99,323 107,709 115,654 119,004 127,881 28,558 29 

Côte d’Ivoire 

Total Metric tons 164,469 127,671 138,514 117,279 92,834 -71,635 -44 

1,000 dollars 22,080 35,484 26,167 48,709 43,233 21,152 96 EU 

Metric tons 19,643 32,216 19,964 29,210 21,941 2,298 12 

1,000 dollars 11,037 14,335 16,536 23,188 25,984 14,947 135 Japan Metric tons 6,794 8,012 8,607 9,154 9,613 2,819 42 

1,000 dollars 1,047 3,108 2,988 6,302 5,454 4,407 421 United States 

Metric tons 672 2,300 1,884 2,455 1,851 1,179 175 

1,000 dollars 2,923 5,780 4,436 6,735 6,165 3,242 111 All other 

Metric tons 3,045 5,456 4,616 7,276 4,559 1,514 50 

1,000 dollars 37,114 58,751 50,157 84,975 80,869 43,755 118 

Tanzania 

Total 

Metric tons 30,154 47,983 35,071 48,096 37,964 7,810 26 
2-4

Industry Overview 

Several SSA countries rely on coffee for the vast majority of foreign exchange 

(box 2.1). These countries include leading exporters Ethiopia, Kenya, Uganda, 

Côte d’Ivoire, and Tanzania. Because they are small producers relative to Brazil, 

Colombia, and Vietnam, which collectively account for over 60 percent of world 

production, SSA countries have little control over world commodity-grade coffee 

prices. This volatility is often the result of weather variations in Brazil, the 

world’s largest coffee producer. Additionally, the rise of Vietnam as a major 

producer and exporter over the past decade has made it increasingly influential in 

affecting world coffee prices. 

Compared to the large coffee plantations in Latin America, SSA coffee is 

produced on smaller farms, utilizing on average only a few hectares of land. 

Because virtually all of SSA agriculture is rain-fed, coffee production can be 

subject to a high degree of variability in both volume and quality from year to 

year.1

 Historically, SSA coffee exporters have been dependent on European 

markets, but in recent years the United States has become an increasingly 

important destination with the growing demand for premium or gourmet coffee 

among American consumers. 

 

1

 Rain-fed is defined as growing crops under conditions of natural rainfall rather than using 

manmade irrigation systems. 

Table 2.1 Sub-Saharan Africa coffee exports, by selected exporting countries and key markets, 2002−06−−Continued 

 Exports Change, 2002 to 2006 

Country Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

1,000 dollars 32,291 37,419 44,159 46,146 54,008 21,717 67 EU Metric tons 45,182 42,489 48,441 39,764 38,348 -6,834 -15 

1,000 dollars 573 2,879 3,729 2,348 6,330 5,757 1,005 Algeria Metric tons 834 3,040 4,279 2,035 4,333 3,499 420 

United 1,000 dollars 1,127 264 818 2,410 945 -182 -16 

States Metric tons 1,046 244 995 1,095 727 -319 -30 

1,000 dollars 739 805 1,223 1,474 2,215 1,476 200 All other Metric tons 838 828 1,198 924 1,171 333 40 

1,000 dollars 34,778 41,413 49,983 52,421 63,541 28,763 83 

Cameroon 

Total Metric tons 47,900 46,601 54,913 43,817 44,579 -3,321 -7 

1,000 dollars 16,568 13,915 26,252 36,459 45,038 28,470 172 EU Metric tons 12,878 10,872 16,754 17,403 19,805 6,927 54 

United 1,000 dollars 1,883 1,699 4,544 5,147 6,581 4,698 250 

States Metric tons 2,274 2,162 3,213 3,092 2,648 374 16 

1,000 dollars 0 0 5 1,457 1,515 1,515 na Russia Metric tons 0 0 8 627 581 581 na 

1,000 dollars 896 92 894 1,241 491 -405 -45 All other Metric tons 779 97 1,021 542 301 -478 -61 

1,000 dollars 19,362 15,719 31,715 44,326 53,647 34,285 177 

Rwanda 

Total Metric tons 15,931 13,132 20,996 21,663 23,335 7,404 46 

1,000 dollars 66,975 99,160 86,222 140,624 136,870 69,895 104 All other Total Metric tons 67,789 92,838 77,235 85,190 85,355 17,566 26 

Sub-Saharan Metric tons 607,824 734,328 790,370 1,055,086 1,103,333 495,509 82 

Africa Total Metric tons 618,132 656,615 645,679 616,459 556,849 -61,283 -10 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: na = not applicable. 
2-5

Box 2.1 Product description for coffee 

Coffee is produced in tropical and subtropical climates in Latin America, Asia, and Africa, largely by small landowners. 

There are two main types of coffee: Arabica and Robusta. Arabica is grown in higher altitudes in Latin America and 

northeastern Africa and accounts for two-thirds of total world production. Robusta is produced in low altitudes in Asia, 

western and southern Africa, and Brazil. Because of its superior flavor and aroma, Arabica coffee usually receives a 

higher price than Robusta, which is often used as a filler in coffee blends. There are only five coffee producing countries 

that consume a substantial amount of their own production: Brazil, Ethiopia, Indonesia, Mexico, and Colombia.2 

Coffee is one of the most actively traded commodities in the world. In many years, it is second only to oil as a source of 

foreign exchange for developing countries. For several of the world’s least developed countries, exports of coffee account 

for over 80 percent of foreign exchange earnings. Most of the world’s coffee is exported to the high-income countries of 

Europe, North America, Japan, and Australia. Coffee is a traded on major futures and commodity exchanges, most 

prominently in New York and London.1 

Coffee is a beverage that is made from the roasted beans of the coffee plant. The process of making coffee begins when 

the green beans (or berries) are picked from the coffee plant (usually by hand) and then washed and dried. The coffee 

beans are heated to between 180oC and 240oC for 8 to 15 minutes, depending on the degree of roast required. The 

longer the coffee is roasted, the darker it becomes. The roasted beans are then ground and brewed in order to create the 

coffee beverage. 

 

____________ 

 1 International Coffee Organization Web site. http://www.ico.org/index.asp (accessed various dates). 2 Baffes, Lewin, and Varangis, “Coffee: Market Setting and Policies,” 2005.

Ethiopia 

The Ethiopian economy is highly dependent on agriculture, with agriculture 

accounting for almost half of its GDP.2

 Coffee is the leading cash crop and 

consistently the leading export product, accounting for 35 percent of total export 

value in 2006.3

 Ethiopia has been the fourth- or fifth-leading exporter of coffee in 

the world over the past 5 years.4

 In addition, more than 25 percent of Ethiopia’s 

population is dependent on coffee production and trade.5

 Ethiopia is the 

birthplace of Arabica6

 coffee and, unlike the rest of SSA, domestic consumption 

is large, accounting for a significant proportion of its usage.7

 The combination of 

good rainfall during the past three years, following a severe drought in 2002−03, 

and a recovery in world coffee prices has benefited the Ethiopian coffee industry 

immensely. Coffee is produced largely in the central and southern areas of the 

country,8

 and 95 percent of production is from small landholders.9 

 

2

 EIU, Country Profile 2007: Ethiopia, 2007, 23. 3

 Ibid., 56. 

4

 USDA, FAS, Tropical Products: World Markets and Trade, June 2007, 9. 5

 McCarthy, “Linking Smallholder Producer Groups to Higher Value Markets,” 

February 12, 2007, 10. 6

 One of the two major species of coffee, Arabica, represents about two-thirds of the world 

market. Compared to the other major species, Robusta, Arabica coffee plants thrive at higher 

elevations in a cooler, drier climate. Arabica beans are generally considered to produce betterquality and more flavorful coffee. 7

 According to USDA, Ethiopia’s coffee consumption averaged 42 percent of production 

during 2002−06. USDA, FAS, Production, Supply and Distribution Online. 8

 EIU, Country Profile 2007: Ethiopia, 2007, 24. 9

 McCarthy, “Linking Smallholder Producer Groups to Higher Value Markets,” 

February 12, 2007, 10. 
2-6

Kenya 

Coffee is a major export for Kenya. However, farmers have successfully 

diversified their agricultural exports into cut flowers and fresh vegetables in 

recent years.10 Kenya is the third-largest coffee producer in Africa, and most of 

its production is exported.11 Ninety percent of the coffee grown in Kenya is 

Arabica, as Kenya has a comparative advantage in Arabica production due to 

higher altitudes.12 The majority of Kenya’s coffee is produced by small-scale 

farmers organized into cooperatives for marketing; however, several estates13

operate as well.14 

Uganda 

Coffee’s share of Uganda’s total exports has dropped considerably since the 

1950s when it accounted for over 90 percent of total annual export value.15

Currently, coffee accounts for roughly 20 percent of total exports.16 Because of 

the collapse in world coffee prices that occurred in the early part of this decade, 

Uganda has continued to diversify into other commodities, but it still ranks 

among the top ten coffee exporters in the world.17 Unlike most other SSA coffee 

producing countries, Uganda primarily grows the Robusta18 variety rather than 

Arabica, and it accounts for almost 90 percent of Uganda’s total coffee 

production.19 The lower-grade Robusta coffee is used to meet local demand, 

while the higher-grade Robusta is exported.20

Uganda is the second-largest SSA coffee producer after Ethiopia; however, its 

coffee production has suffered from coffee wilt disease21 for the past several 

years. There is currently no known fungicide for this disease, so the infected trees 

 

10 Kjollerstrom, Agro-based Industries and Growth, July 2007, 6−7. 11 USDA, FAS, Kenya Coffee, May 13, 2005, 2. 12 Loise W. Njeru (managing director, Coffee Board of Kenya) and Isaac Muchomba 

(executive secretary, Coffee Board of Kenya), interview by Commission staff, Nairobi, Kenya, 

October 17, 2007. 13 Estates are coffee farms on large parcels of land. Estate coffee is the product of one farm, 

unmixed with coffee from other farms. Estate coffee is grown, processed, and roasted under the 

control of the estate farm. Estate coffee is unique to an individual farm. 14 EIU, Country Profile 2006: Kenya, 2007, 30. 

15 EIU, Country Profile 2007: Uganda, 2007, 23. 16 Ibid. 

17 USDA, FAS, Tropical Products: World Markets and Trade, June 2007, 9. 18 Robusta is the other major species of coffee besides Arabica and has about one-third of the 

world market. Compared to Arabica, Robusta plants grow taller, are more resistant to pests and 

disease, and produce more fruits. It is grown in Africa and Brazil, and to a much smaller extent in 

Central America. The caffeine content of Robusta beans is about twice that of Arabica. Considered 

inferior-tasting to Arabica, Robusta is often used for instant coffee and in supermarket-grade 

blends. 19 EIU, Country Profile 2007: Uganda, 2007, 23. 20 Eugene Nsereko (commercial manager, NKG Coffee Alliance Trust), interview by 

Commission staff, Kampala, Uganda, October 22, 2007. 21 Coffee wilt disease (CWD), scientifically known as Tracheomycosis, is caused by a fungus 

that blocks water and nutrients from traveling to other parts of the coffee plant from the roots, in 

turn causing wilting and eventually death. The disease, which affects only Robusta varieties, was 

first reported in the Central Africa Republic in 1927. 
2-7

must be destroyed and the growing area disinfected.22 The government and 

universities are collaborating in research to find a coffee tree that is resistant to 

coffee wilt disease.23

Uganda’s government coffee replanting program was introduced in 1992 with the 

objective of increasing the productivity of the sector by replacing old Robusta 

coffee plants with newer, high-yielding varieties and expanding the area planted 

with Arabica. This program is administered by the Uganda Coffee Development 

Authority24 and provides the new coffee plants to producers free of charge.25 

Côte d’Ivoire 

Côte d’Ivoire is Africa’s largest producer of Robusta coffee, ranking fourth or 

fifth in world production. Because of the relatively greater importance of cocoa26

to its economy, coffee export revenue is relatively less significant to 

Côte d’Ivoire than to some other SSA countries such as Ethiopia and Uganda. 

Growing cocoa is relatively less labor intensive compared to coffee and with 

cocoa prices relatively more attractive, farmers have been encouraged to produce 

cocoa for the past several years.27 In addition, Vietnam is a major world producer 

of Robusta, and its dramatic increase in production during the 1990s reduced 

Robusta prices for several years. Vietnam’s production has subsequently slowed 

since 2000, allowing Robusta prices to recover, and Côte d’Ivoire and Ugandan 

coffee exports have consequently benefited.28 However, widespread civil unrest 

in Côte d’Ivoire has reduced the volume of coffee exports during 2002−06, 

offsetting the infrastructure advantage it possesses through its seaports and road 

network, which is the most extensive in the West Africa region.29 

Tanzania 

The increase in world coffee prices in recent years, coupled with Tanzania’s 

movement toward premium and branded coffee, has resulted in a recovery in 

coffee production. Traditionally a large export earner for Tanzania, coffee 

production eased during the mid-1990s because of low world prices. About 

 

22 Lewin, Giovannucci, and Varangis, Coffee Markets, 2004, 85. 23 Uganda Coffee Development Authority officials, interview by Commission staff, Kampala, 

Uganda,October 22, 2007. 24 The Uganda Coffee Development Authority (UCDA) was established by statutory mandate 

in 1991 following the liberalization of the coffee industry. The UCDA has a statutory mandate to 

promote and oversee the development of the entire coffee industry through research, quality 

assurance, and improved marketing. UCDA Web site http://www.ugandacoffee.org/index.php

(accessed October 2–November 30, 2007). 25 Baffes, “Restructuring Uganda’s Coffee Industry,” October 2006, 14. 

26 Côte d’Ivoire is also the world’s largest producer of cocoa, accounting for about 40 percent 

of global supply. EIU, Country Profile 2007: Côte d’Ivoire, 2007, 30. 27 Jean-Louis Billon (chairman, Ivorian Chamber of Commerce and Industry), interview by 

Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 28 USDA, FAS, Production, Supply and Distribution Online. 

29 EIU, Country Profile 2007: Côte d’Ivoire, 2007, 26. 
2-8

95 percent of Tanzania’s coffee is produced by small landholders on plots 

averaging 1−2 hectares, with the remainder by larger, privately owned estates.30

About two-thirds of Tanzania’s coffee production is Arabica, with the remainder 

Robusta.31

Rwanda 

Coffee re-emerged as Rwanda’s top export earner following the rebound in world 

coffee prices and a recovery in production. Production was negatively affected by 

the country’s civil unrest in the mid-1990s and by low global prices. Coffee 

production reached its highest level of the post-genocide period in 2006, but 

remains only half of the former average production volume.32 The strong demand 

for Rwanda’s best Arabica coffee, mainly by U.S. specialty coffee buyers and 

roasters, has improved the outlook for the country’s coffee sector. 

Sub-Saharan Africa Trade in the Global Context 

Global exports of coffee totaled $12.0 billion in 2006. This value represents a 

103 percent increase from $5.9 billion in 2002.33 SSA coffee exports were 

$1.1 billion in 2006, accounting for 9 percent of the world total and down from 

10 percent of the world total in 2002. 

Leading Exporters 

The largest exporter of coffee to the world is Brazil, followed by Colombia and 

Vietnam (figure 2.1).34 Brazil accounted for almost one-quarter of the value of 

global coffee exports in 2006, and the United States, the European Union, and 

Japan were the leading destinations for most coffee exporters. 

Reflecting the continued rebound in world coffee prices since 2002, the value of 

SSA coffee exports increased 82 percent from 2002 to 2006. Ethiopia represented 

almost one-third of the SSA coffee exports by value in 2006, followed by Kenya, 

Uganda, and Côte d’Ivoire. The primary export destinations for SSA coffee in 

2006 were the European Union, Japan, the United States, and Algeria. 

 

30 Baffes, “Tanzania’s Coffee Sector,” June 2003, 1. 31 Ibid. 

32 EIU, Country Profile 2007: Rwanda, 2007, 27. 33 GTIS, Global Trade Atlas. 

34 Ibid. 
2-9

Leading Export Markets 

The leading global markets for coffee are the United States and the European 

Union, together representing almost 75 percent of the value of global imports in 

2006 (figure 2.2). The United States is the world’s largest consumer of coffee, 

although its per capita consumption is well behind Canada and several European 

countries.35 The European Union is the leading market for SSA coffee exporters, 

accounting for 63 percent of the value of SSA exports in 2006. Ethiopia and 

Kenya are the largest SSA suppliers to the EU market, with the largest importers 

being Germany, Italy, and Belgium. The United States has become the thirdleading market for SSA coffee, accounting for 9 percent of SSA exports in 2006, 

up from 6 percent in 2002. Ethiopia and Kenya are the leading SSA suppliers to 

the U.S. market. 

 

35 ICO, Coffee Market Report July 2007, 2007, 6. 

Figure 2.1 Leading global and sub-Saharan Africa exporters of coffee, 2006

Global Exporters

SSA

9%

Other

43%

Colombia

14%

Brazil

Vietnam 24%

10%

SSA Exporters 

Other

12%

Ethiopia

32%

Kenya

14%

Côte d'Ivoire

12% Cameroon

5% Tanzania

7%

Rwanda

5%

Uganda

13%

 $12,032 million $1,103 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.
2-10

Factors Affecting Export Patterns 

The significant rebound in world commodity-grade coffee prices during 2002−06 

was important in raising the value of SSA coffee exports. By 2006, coffee prices 

more than doubled from the extremely depressed levels in 2002. The continued 

strong growth of the premium and gourmet coffee industry for the past several 

years prompted several specialty coffee manufacturers to seek additional sources 

of supplies, including from several SSA countries, and consequently contributed 

to an increase in SSA exports during 2002−06. 

The continued liberalization of the coffee sector from extensive government 

control in several SSA countries, which began in the early 1990s, has improved 

the efficiency of coffee production and marketing. Changes in world prices are 

now transmitted more directly to producers, who receive a greater share of the 

coffee price with the reduced government intervention. Private sector 

involvement in the coffee sector has increased, including producer cooperatives. 

Industry-related groups are permitted to form associations of growers, 

processors, and exporters who seek to improve the quality of SSA coffee and 

promote SSA coffee in world markets. 

 

Finally, efforts in recent years to differentiate coffee from a homogenous 

commodity through superior quality, production process, or geographic origin 

has helped boost SSA coffee exports. The price of this “differentiated” coffee is 

determined in channels outside of commodity markets in specialty coffee 

auctions or directly between buyers and sellers. In these channels, coffee prices 

are often higher. Consumer markets for these differentiated coffees are still 

relatively small but are growing more rapidly than for conventional coffee. More 

Figure 2.2 Leading markets for global and sub-Saharan Africa exports of coffee, 2006 

Global Export Markets

Other

15%

EU

46%

Japan

8%

United States

26%

Canada

5%

SSA Export Markets

Other

9%

Algeria

8%

Japan

11% United States

9%

EU

63%

 $12,032 million $1,103 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.
2-11

importantly, consumers appear willing to pay a premium for these characteristics. 

Consequently, several SSA countries have made strong efforts toward 

differentiating their coffee in order to capture these higher returns. 

Price Increases and Demand Growth 

Following a precipitous decline in world commodity-grade coffee prices to their 

lowest levels in 100 years in real terms in 2002,36 a sustained rebound in coffee 

prices has benefited SSA coffee exporters. The collapse in coffee prices from 

1997 to 2002 had detrimental effects on several SSA coffee exporters. The 

rebound in world coffee prices since 2002 has largely resulted from smaller 

output levels from Brazil, the world’s largest coffee producer. Additionally, 

Vietnam’s coffee production, largely Robusta, has slowed in recent years after 

increasing dramatically in the 1990s. Global coffee consumption has also 

continuously increased since 2002, most notably in Brazil, the European Union, 

and the United States.37

The continued growth of demand for premium and gourmet coffee in the United 

States and other developed countries has resulted in an increased demand for 

high-quality coffee marketed by Starbucks and other premium coffee 

manufacturers.38 The specialty coffee market, which grew significantly in the 

past 15 years, now accounts for over 20 percent of the U.S. coffee market39

because of greater out-of-home consumption in cafes, coffee shops, and 

restaurants.40 Because of the specialty coffee industry’s consistent growth and the 

unique quality attributes of African coffee, Starbucks has purchased increasing 

amounts from SSA producers in recent years in order to expand its supply 

sources.41 Starbucks pays a premium for SSA coffee compared to prices on 

coffee exchanges in New York and London. In 2006, Starbucks bought coffee 

from six SSA countries: Burundi, Ethiopia, Kenya, Rwanda, Tanzania, and 

Zambia, although such purchases accounted for less than 10 percent of its global 

purchases. In 2007, Starbucks announced plans to double its coffee purchases 

from East Africa, the largest coffee-producing area in SSA.42 Other specialty 

coffee makers and large multinational coffee manufacturers43 are also increasing 

their purchases of African Arabica coffee because of the increasing demand for 

quality coffee. This trend is expected to continue.44 Surveys indicate the 

 

36 ICO, The Global Coffee Crisis, August 21, 2002. 37 USDA, FAS, Production, Supply and Distribution Online. 

38 Some of the other leading specialty coffee makers in the United States include Caribou 

Coffee, Green Mountain, PJ's Coffee, and Peet’s Coffee & Tea. 39 Stephen P. McCarthy (senior technical specialist, ACDI/VOCA), interview with Commission 

staff, Washington, DC, October 30, 2007. 40 Bryson, “Why the Coffee Kings Are Losing Their Power,” August 20, 2007. 

41 These quality attributes include flavor and aroma that are unique to African coffee because of 

the soil, climate, and altitude where the coffee is produced. 42 Xinhua News Agency. “Starbucks to Double Coffee Imports from East Africa.” May 8, 2007. 43 These manufacturers are Proctor and Gamble, Kraft, Sara Lee, and Nestle, the four largest 

coffee manufacturers in the world. 44 Stephen P. McCarthy (senior technical specialist, ACDI/VOCA), interview with Commission 

staff, Washington, DC, October 30, 2007. 
2-12

improvement in quality over the past few years and the continued demand for 

this quality is likely to be sustained.45

Ongoing Liberalization of SSA Coffee Sectors 

Several SSA countries reduced government involvement in their coffee sectors 

beginning in the early 1990s.46 Prior to these reforms, the governments of SSA 

coffee-producing countries had long controlled domestic marketing and trade 

because of coffee’s importance as a source of foreign exchange and government 

revenue. The two main factors behind the coffee sector reforms were the large 

decline in coffee prices caused by the end of the International Coffee Agreement 

(ICA)47 in 1989 and assistance by international financial institutions such as the 

World Bank and the International Monetary Fund that was tied to market 

reforms.48

The overhead costs of extensive government intervention were high, with 

farmers receiving a lower proportion of the export prices than they would have 

through a more efficient system. With the liberalization, growers have been paid 

more promptly and entrepreneurial activity has increased.49 The number of 

private exporting firms has increased, including producer cooperatives.50

Reduction in government involvement has allowed producer prices to be linked 

to world prices rather than fixed administrative prices and, as a consequence, 

producer prices have increased significantly as a share of the export price.51 The 

reduced government intervention has allowed exporters and buyers to directly 

interact, more effectively conveying quality concerns. Industry-related groups 

were permitted to form private associations of growers, processors, and exporters 

that sought to improve the quality of SSA coffee and to promote the SSA coffee 

in world markets. These associations include the Kenya Coffee Traders 

Association, the Uganda Coffee Development Authority, and the Eastern Africa 

Fine Coffees Association. 

Ethiopia 

Ethiopia’s coffee sector was removed from state control in 1991, when the 

Ethiopian People’s Revolutionary Party (ERDF) came into power. Since 1999, 

several coffee farmer cooperatives have been formed to provide a new marketing 

channel, which has encouraged farmers to improve the quality of their coffee by 

directly marketing their coffee for export.52 Ethiopia has also been successful in 

 

45 Xinhua News Agency. “U.S. Firm Seeks to Improve Coffee Quality in East Africa,” 

February 13, 2007. 46 This study identifies the factors during 2002–06 that caused an increase in SSA coffee 

exports. Although many of these government reforms occurred during the 1990s, the result of these 

reforms likely assisted in raising the value of SSA coffee exports during 2002–06. 47 After World War II and until 1989, international coffee trade operated under the International 

Coffee Agreement (ICA), which allocated export quotas to individual coffee-producing countries in 

order to raise and stabilize prices. 48 Akiyama, “Coffee Market Liberalization since 1990,” 2001, 83. 49 Baffes, Lewin, and Varangis, “Coffee: Market Setting and Policies,” 2005, 305. 50 Akiyama, “Coffee Market Liberalization since 1990,” 2001, 96. 51 Ponte, “Coffee Markets in East Africa,” September 2001, 18. 52 Komada, “New Role of Cooperatives in Ethiopia,” March 2007, 102. 
2-13

obtaining a premium price for its exports by developing organic coffee and 

branding Ethiopian coffee through “The Ethiopian Coffee Trademarking and 

Licensing Initiative.” The branding began in 2004 and Ethiopia has secured 

trademarks in several countries with licensed distributors.53 

Kenya 

In the last half of 2006, the government of Kenya authorized new legislation, 

known as the “Second Window,” creating a marketing channel to run 

concurrently with the central coffee auction, the traditional marketing outlet for 

Kenyan coffee producers held at the Nairobi Coffee Exchange.54 Kenya’s coffee 

farmers have long sought an alternative to the coffee auction in the belief that 

increased marketing competition would result in higher incomes. The Second 

Window allows farmers to sell directly to marketing agents for direct export of 

Kenyan coffee.55 The marketing agents are licensed and must demonstrate that 

they can access export markets, conduct market research, and provide a bank 

guarantee to protect farmers’ money.56 

Côte d’Ivoire 

Côte d’Ivoire removed its coffee and cocoa sectors from state control in the late 

1990s as part of an IMF/World Bank structural adjustment program. Further 

sector reforms followed, and in 2001 the government’s price stabilization fund 

for coffee and cocoa was abolished and replaced by the Coffee and Cocoa 

Exchange (BCC), a private organization whose objective is to regulate the 

marketing and export of coffee and cocoa. Farmers comprise two-thirds of the 

BCC’s membership and exporters the remaining third.57

 

The BCC regulates and improves revenue of producers, coordinates exports of 

coffee and cocoa, and promotes the Ivorian coffee and cocoa label in 

international markets. The reforms in the sector were aimed at ensuring minimum 

revenue, establishing good purchasing prices, and setting competitive values.58 

Tanzania 

In the early 1990s, Tanzania eliminated several agricultural marketing boards 

that were directly involved with production and marketing.59 The Tanzania 

Coffee Board (TCB), formed in 1993, is now focused on quality control through 

licensing and regulation. The TCB also licenses all operators in the coffee 

 

53 Ethiopian Coffee Network Web site. http://www.ethiopiancoffeenetwork.com (accessed 

September 11, 2007). 54 USDA, FAS, Kenya Coffee: Kenya Coffee Annual Report 2007, May 14, 2007, 5. 55 Loise W. Njeru (managing director, Coffee Board of Kenya) and Isaac Muchomba 

(executive secretary, Coffee Board of Kenya), interview by Commission staff, Nairobi, Kenya, 

October 17, 2007. 56 USDA, FAS, Kenya Coffee: Kenya Coffee Annual Report 2007, May 14, 2007, 5. 57 Tano Kassi Kadio (general manager, BCC), interview with Commission staff, Abidjan, 

Côte d’Ivoire, October 25, 2007. 58 Ibid. 

59 Beddies, et al., Tanzania Crop Boards Reform,” 2006, 492. 
2-14

business and conducts central coffee auctions, where all coffee in Tanzania is 

sold to licensed exporters.60 In 2004, the TCB permitted the direct export of 

premium specialty coffee rather than through the central auction. This direct 

export has allowed Tanzanian producers to develop closer relationships with 

specialty coffee buyers in the United States and the European Union, and better 

understand their requirements for a reliable supply of consistent, high-quality 

coffee.61 

Success in Differentiating Coffee from a Homogenous Commodity 

Following liberalization of their coffee sectors in the early 1990s, Ethiopia, 

Kenya, Rwanda, Tanzania, and Uganda, made efforts toward differentiating their 

coffee to capture higher returns. For most of the industry, coffee is a commodity 

that continues to be largely priced on exchanges in New York and London. 

However, a growing number of producers and coffee manufacturers differentiate 

their coffee on the basis of quality, production process, or geographic origin. The 

price of this coffee is determined in channels outside of commodity markets in 

specialty coffee auctions or directly between buyer and seller. In these channels, 

coffee prices are often higher.62 The differentiated coffee market includes 

gourmet and specialty, organic, “fair trade,”63 and eco-friendly or shade-grown64

for which consumers appear willing to pay a premium.65 Consumer markets for 

these differentiated coffees are still relatively small but are growing more rapidly 

than for conventional coffee. 

By mid-2007, Ethiopia’s Coffee Trademarking and Licensing initiative had 

secured trademarks of Ethiopian coffee in 28 countries, including the European 

Union, Japan, and the United States.66 This trademarking of Ethiopian coffee is 

an attempt to use intellectual property rights to increase export revenues. The 

Ethiopian Fine Coffee Stakeholder Committee, a new group formed to manage 

this initiative is composed of cooperatives, private exporters, and the Ethiopian 

Intellectual Property Office and has a network of licensed distributors around the 

world.67 In June 2007, Starbucks and Ethiopia ended a dispute over this 

 

60 Tanzania Coffee Board Web site. http://www.dreamweaver.co.uk/tcb/index.html (accessed 

September 14, 2007). 61 OTF Group, Improving Competitiveness, 2005, 43–44. 62 For example, Ethiopian fine coffee have achieved far greater export prices when traded in 

specialty coffee auctions. Ethiopian Coffee Network Web site. 

http://www.ethiopiancoffeenetwork.com (accessed October 9, 2007). 63 The International Fair Trade Association defines Fair Trade as “a trading partnership, based 

on dialogue, transparency and respect, which seeks greater equity in international trade. It 

contributes to sustainable development by offering better trading conditions to, and securing the 

rights of, marginalized producers and workers.” International Fair Trade Association Web site. 

http://www.ifat.org/ (accessed October 9, 2007). 64 Shade-grown or Eco-friendly coffee production maintains the environment through 

management of the forest canopy rather than producing coffee through traditional means under full 

or partial sun exposure. 65 Lewin, Giovannucci, and Varangis, “Coffee Markets: New Paradigms in Global Supply and 

Demand,” 2004, 100. 66 March, “Making the Origin Count: Two Coffees,” September 2007. 67 Ethiopian Coffee Network Web site. http://www.ethiopiancoffeenetwork.com (accessed 

September 11, 2007). 
2-15

trademark, and Starbucks is now able to use and promote Ethiopian coffee in its 

stores.68 

Another example is Uganda’s Good African Coffee (GAC) Company, which was 

founded in 2003 to purchase coffee directly from growers at prices to ensure 

them profitable returns on their labor.69 GAC claims that it adds value to the 

coffee through its stringent quality controls during roasting, blending, and 

packaging. Although Uganda mostly produces the Robusta variety, GAC also 

uses Arabica varieties grown in the more mountainous region of Kasese, Uganda. 

GAC produces four different single-origin, roast, and ground coffees and one 100 

percent Arabica freeze-dried coffee, which are named after regions in Kasese, 

where they originate. GAC’s products are now sold in large supermarkets in the 

United Kingdom, making GAC the first Ugandan coffee company to have a 

presence outside of Africa.70 

Several U.S. Agency for International Development (USAID) projects in SSA 

countries have sought to improve quality differentiation in the specialty coffee 

market. According to USAID, its programs in Ethiopia, Malawi, Rwanda, 

Tanzania, Uganda, and Zambia have all made progress.71 In one example given 

by a USAID representative, a key quality issue for SSA is to increase the use of 

washing to separate coffee beans from other cherries produced by the coffee 

plant. Because of the lack of a sufficient water supply, most farmers use dry 

methods. During 2001−06, USAID allocated more than $10 million for the 

Rwandan coffee industry to develop coffee washing stations and rebuild local 

infrastructure, helping to improve quality.72 

 

68 Mekay, “Starbucks Coffee Deal with Ethiopia Hailed As Model,” June 30, 2007. 69 Good Africa Coffee Company Web site. http://www.goodafrican.com/index.php (accessed 

October 9, 2007). 70 allAfrica.com, “Uganda: Great African Coffee Steams Its Way to Europe, S. Africa,” 

January 22, 2007. 71 Chris Kosnik (U.S. Agency for International Development), e-mail message to Commission 

staff, September 15, 2007. 72 USAID, “USAID and Rwanda Ambassador Celebrate Rwandan Coffee (April 11),” 2007. 
2-16

Coffee Bibliography 

Akiyama, Takamasa. “Coffee Market Liberalization since 1990.” In Commodity Market Reforms, 

edited by Takamasa Akiyama, John Baffes, Donald F. Larson, and Panos Varangis, 83–120. 

Washington, D.C.: The World Bank, 2001. 

allAfrica.com. “Uganda: Great African Coffee Steams Its Way to Europe, S. Africa,” 

January 22, 2007. 

http://w3.nexis.com/new/delivery/PrintDocdo?fileSize=233082&jobhandle=1862%3A39

(accessed various dates). 

Baffes, John. “Restructuring Uganda’s Coffee Industry: Why Going Back to the Basics Matters.” 

World Bank Policy Research Working Paper 4020, October 2006. 

Baffes, John. “Tanzania’s Coffee Sector: Constraints and Challenges in a Global Environment.” 

World Bank Africa Region Working Paper 56, June 2003. 

Baffes, John, Bryan Lewin, and Panos Varangis. “Coffee: Market Setting and Policies.” In Global 

Agricultural Trade and Developing Countries, edited by M. Ataman Aksoy and John C. Beghin, 

297–309. Washington, D.C.: The World Bank, 2005. 

Beddies, Sabine, Maria Correia, Shashidhara Kolavalli, and Robert Townsend. “Tanzania Crop 

Boards Reform.” In Poverty and Social Impacts of Reforms, edited by Aline Coudouel, Anis A. 

Dani, and Stefano Paternostro, 491−520. Washington, D.C.: The World Bank, 2006. 

Bryson, York Emily. “Why the Coffee Kings Are Losing Their Power.” Advertising Age, 

August 20, 2007. http://adage.com/print?article_id=119940 (accessed various dates). 

Crown, Judith. “Coffee: The Generation Gap.” Business Week, October 8, 2007. 

http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db2007105_442051.htm?chan=s

earch (accessed various dates). 

Economist Intelligence Unit (EIU). “Trading up.” Business Africa, July 1, 2006. 

——. Country Profile 2007: Côte d’Ivoire. 2007. 

——. Country Profile 2006: Kenya. 2006. 

——. Country Profile 2007: Ethiopia.2007. 

——. Country Profile 2007: Rwanda. 2007. 

——. Country Profile 2007: Uganda. 2007. 

——. Country Report April 2007: Ethiopia. 2007. 

Global Trade Information Services, Inc. (GTIS). World Trade Atlas Database. Annual data 

complied from reporting countries’ official statistics, including EU27 external trade. 

http://www.gtis.com/gta/usitc/ (accessed various dates). 
2-17

International Coffee Organization (ICO). Coffee market Report July 2007. London: ICO, 2007. 

http://dev.ico.org/documents/cmr0707e.pdf (accessed various dates). 

Kjollerstrom, Monica. Agro-based Industries and Growth: Prospects for sub-Saharan Africa. 

United Nations Department of Economic and Social Affairs. Innovation Briefs Issue 3, July 2007. 

Komada,Yuka. “New Role of Cooperatives in Ethiopia: The Case of Ethiopian Coffee Farmer 

Cooperatives.” African Study Monographs Supplementary Issue, 35 (March 2007): 87−108. 

Lewin, Bryan, Daniele Giovannucci, and Panos Varangis. Coffee Markets: New Paradigms in 

Global Supply and Demand. Washington, D.C.: The World Bank, 2004. 

https://scaa.org/pdfs/2004_Coffee_Markets.pdf (accessed various dates). 

McCarthy, Stephen. “Linking Smallholder Producer Groups to Higher Value Markets, Ethiopia’s 

Coffee Cooperatives: A Case Study.” Presentation to the World Bank on Rural Institutions, 

February 12, 2007. 

March, Elizabeth. “Making the Origin Count: Two Coffees.” WIPO Magazine, September 2007. 

http://www.wipo.int/wipo_magazine/en/2007/05/article_0001.html (accessed various dates). 

Mekay, Emad. “Starbucks Coffee Deal With Ethiopia Hailed As Model.” allAfrica.com, 

June 30, 2007. http://allafrica.com/stories/printable/200706300046.html (accessed various dates). 

OTF Group. Improving Competitiveness and Increasing Economic Growth in Tanzania: The Role 

of Information and Communication Technologies. Washington, D.C.: The World Bank, 2005. 

http://www.infodev.org/en/Publication.81.html (accessed various dates). 

PFK Consulting LTD. and International Research Network. Tea and coffee industry in Kenya. 

2005. http://www.epzakenya.com/UserFiles/File/Beverages.pdf. 

Ponte, Stefano. “Coffee Markets in East Africa: Local Responses to Global Challenges or Global 

Responses to Local Challenges?” Centre for Development Research Working Paper 01.5, 

September 2001. 

Sebolt, Allison. “Coffee On-the-Go.” Food Business News, September 18, 2007. 

U.S. Agency for International Development (USAID). “USAID and Rwanda Ambassador 

Celebrate Rwandan Coffee (April 11).” Washington, D.C., 2007. 

U.S. Department of Agriculture (USDA). Foreign Agricultural Service (FAS). (Author: Kevin N. 

Smith). Kenya Coffee: Kenya Coffee Annual Report 2007. GAIN Report No. KE7005, 

May 14, 2007. 

——. (Author: Mary Onsongo). Kenya Coffee: Kenya Coffee Annual Update Report 2005 

GAIN Report No. KE5008, May 13, 2005. 

——. Production, Supply and Distribution Online. 

http://www.fas.usda.gov/psdonline/psdHome.aspx (accessed various dates). 

——. Tropical Products: World Markets and Trade. Circular Series FTROP 2-07, June 2007. 
2-18

Wasserman, Miriam. “Trouble in Coffee Lands.” Regional Review, Federal Reserve Bank of 

Boston, Quarter 2, (2002): 4−12. http://www.bos.frb.org/economic/nerr/rr2002/q2/q202.pdf. 

Xinhua News Agency. “Starbucks to Double Coffee Imports from East Africa.” May 8, 2007. 

http://w3.nexis.com/new/delivery/PrintDoc.do?fileSize=2330082&jobHandle=1862%3A39

(accessed various dates). 

Xinhua News Agency. “U.S. Firm Seeks to Improve Coffee Quality in East Africa.” 

February 13, 2007. 

http://w3.nexis.com/new/delivery/PrintDoc.do?fileSize=2330082&jobHandle=1862%3A39

(accessed various dates). 
2-19

Shea Butter73

Summary of Findings 

Total shea SSA exports increased an estimated 35 percent during 2001–05, while 

shea butter exports increased 660 percent and shea nut exports increased 

21 percent.74 Factors that have affected this growth include (1) rising demand for 

cocoa butter equivalents (CBEs)75 (2) increased prices, (3) growing consumer 

awareness of shea butter, (4) training/funding for improved production, and 

(5) increased private investment in SSA shea processing. Rising demand for 

CBEs, the result of growing world chocolate consumption, is considered the 

primary factor affecting international trade in shea butter. Increased investment 

in SSA processing, which resulted in higher SSA shea butter production, is also 

considered a major factor affecting the shift in SSA shea butter exports vis-à-vis 

shea nut exports. 

Industry Overview 

 

SSA producers account for all global shea nut production and are the major 

source of global trade in unrefined shea butter. Most refined shea butter is 

produced in Europe, which is a major exporter of refined shea butter and related 

downstream products. Shea nuts and butter are used in the production of a variety 

of products, including vegetable fats and cosmetics (box 2.2). 

 

73 HTS subheadings 1207.99.02 and 1515.90.21 include shea and other nuts and oils/fat not 

elsewhere specified or identified, respectively. SSA production is dispersed across large rural areas 

and is characterized by numerous small/micro-enterprises. Other products including cosmetics, 

lotions, hair products, and soaps (HS 3304, HTS 3305.10, HTS 3305.20, and HTS 3401.11.00) do 

not specify the percentage of shea in the final product. Industry representatives have stated in 

Commission interviews that there is no good source of trade and production data for shea nuts, 

butter, or downstream products. The best data available for trade and production are based on 

industry knowledge and are subjective. Therefore, this section is a qualitative analysis of the shea 

industry. 74 LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. The term “shea” 

refers to both shea nuts and shea butter, similar to the use of the term cocoa when referring to both 

cocoa bean and cocoa butter. 75 CBEs are used sometimes as substitutes in confectionary products to replace cocoa butter due 

to costs and certain property differences. 
2-20

Box 2.2 Shea butter production, processing, and marketing chain1 

Production is primarily naturally occurring and largely determined by weather patterns. Shea tree plantations have not 

been established because of the difficulty of domestication, crop oversupply, and a long tree life-cycle (a minimum 9 to 14 

years is necessary for a tree to bear fruit). Shea fruit is collected after falling to the ground (June to August). After harvest, 

the fruit is separated from the nut and the kernel removed from the dried nut by either traditional (manual) or mechanized 

shell cracking. The kernel is then dried to a moisture content of 7–40 percent, allowing for storage without quality loss. 

Shea butter is then extracted from the kernel. The kernels are ground and heated to facilitate the conversion into a paste. 

The paste is kneaded and boiled, separating the fat, which is skimmed and cooled to create an unrefined shea butter. 2 

Unrefined shea butter is further processed into refined shea butter by removing any natural ingredients that are 

marketable.3 Refining is often facilitated by chemicals. The four major processes involved in refining shea butter are: 

(1) de-gumming, (2) neutralization, (3) bleaching, and (4) deodorization.4

Fractionation is the process of separating the two components of shea butter—the olein (oil) and the stearin (fat). The 

stearin is used to produce CBEs and other vegetable fat products, while the olein is usually used to produce margarines. 

The cosmetic industry uses shea butter in a variety of forms, including refined, unrefined, hydrogenated, and chemically 

modified. 

Cultural practice in most villages where shea is gathered requires sales transactions through the men, despite the desire 

of many purchasers to work directly with the women producing the kernels and butter.5 Cash sales are made to 

intermediary buyers, directly to exporters, or with local businesses when income is needed, rather than selling product on 

credit to buyers who are willing to give higher returns at a later date.6 Intermediary buyers, typically individuals or small 

enterprises with additional available capital, often purchase shea during periods when prices are low, selling the product 

later when prices rebound. 

There are also several medium-scale oil processing firms, including Kassardjians (Ghana) and Nioto (Togo), that produce 

unrefined shea butter via semi-mechanized extraction. These companies sell under various contract arrangements to the 

large international oil processing firms.7 These firms produce shea products (e.g., refined butter and fractioned stearin for 

consumption by consumer-product industries, such as confectionary and cosmetics firms). There are a few major 

international buyers of shea that dominate international trade and prices.8

____________ 

1

 For more detailed information on production, processing, and marketing chain of shea butter, see USAID WATH four 

part study on shea butter. USAID WATH. “Agricultural Studies.” 

http://www.watradehub.com/index.php?option=com_content&task=view&id=507<emid=117 (accessed 

February 5, 2008). 2

 Shea butter can be extracted via traditional, semi-mechanized, and fully mechanized commercial methods. 3

 Many U.S. shea product producers refer to “refining” as only the neutralization process, which is only one step in the 

refining process, as defined elsewhere. 4

 De-gumming avoids color and taste reversion. Neutralization creates a more stable end product and more effective 

downstream refining. Bleaching removes pigments from the butter. 5

 Industry representatives, interviews by Commission staff, Accra, Ghana, November 1, 2007. 6

 Lack of communication channels between producers and the market also contribute to imperfect information at point 

of first sale and lack of commercial development of the industry. Other factors also affect this price differential including 

high transportation costs and differences in marketing chains by country. Industry representatives, interviews by 

Commission staff, Accra, Ghana, November 1, 2007. 7

 Boateng, Agro-Processing, May 10, 2005. 8

 Industry representatives, interviews by Commission staff, Accra, Ghana, November 1, 2007. 

Shea butter is derived from the nut of the shea tree, also known as a karite tree, 

which can only be grown in sub-Saharan Africa (box 2.3).76 Shea nut production 

is dispersed across western and central Africa’s semi-arid Sahel region, spanning 

 

76 There are two species of shea trees, the more predominantly exported Vitellaria paradoxa,

grown in West Africa, and the Vitellaria nilotica, grown in northern Uganda and southern Sudan. 
2-21

Box 2.3 Product description for shea butter 

Shea products are used for a variety of purposes globally including as an edible vegetable fat (cooking oil, margarine, and 

cocoa butter equivalent), hair and skin products, lamp fuel, and housing insulation.1 Shea butter has a number of natural 

benefits found in smaller concentrations in other vegetable fats for the hair and skin including moisturizing, regenerative, 

anti-eczema and anti-wrinkle properties, and ultraviolet protection.2 Many popular cosmetic products containing shea 

butter also contain a variety of essential oils and other natural products.3 

____________ 

1 Many Africans value the shea oil, the other byproduct of shea kernels, for its nutritional content in areas where other 

oils such as olive and palm oil are not available. USAID WATH, “The Shea Butter Value Chain: Production, 

Transformation and Marketing,” November 2004, 1; and Pobeda and Sousselier, “Shea Butter,” April 1999. 2 USAID WATH, “The Shea Butter Value Chain: Study Synthesis,” November 2004, 5; American Shea Institute Web 

site. http://sheainstitute.com (accessed August 2, 2007); and American Shea Institute, 2007 Shea Butter Handbook, 2007. 3 Among these ingredients are lavender, chamomile, aloe, jojoba, butter, kukui oil, tea tree oil, babassu oil, therapeutic 

minerals, and honey. USAID WATH, “The US Market Study,” November 2004, 2. 

19 countries commonly referred to as the “Shea Belt.”77 Production, however, is 

concentrated in Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, Nigeria, and 

Togo.78 

Shea butter’s characteristics differ by geographic region, with certain butters 

better suited for different end uses. Ugandan butter has properties that more 

closely resemble olive oil, while western African shea has properties similar to 

cocoa butter.79 Ghanaian and Nigerian shea butters tend to receive higher prices 

than other West African shea butters because of higher oil content.80 However, 

Ugandan and Sudanese shea butter, with their higher oil content and less distinct 

smell, is preferred by cosmetics firms and commands the highest prices when 

available.81 

Shea is processed to differing degrees and marketed through several different 

channels in SSA (figure 2.3). Shea may be exported as nuts or kernels and in a 

refined or unrefined butter form.82 Most SSA exports are nuts, but steps have 

been taken to develop greater indigenous processing, allowing greater sales of 

value-added products. 

 

77 In total, there are 19 countries producing shea nuts: Benin, Burkina Faso, Cameroon, Central 

African Republic, Chad, Côte d’Ivoire, Democratic Republic of the Congo, Ethiopia, Ghana, 

Guinea, Guinea Bissau, Mali, Niger, Nigeria, Senegal, Sierra Leone, Sudan, Togo, and Uganda. 

The American Shea Butter Institute Web site. http://sheainstitute.com/training.html (accessed 

July 31, 2007). 78 Industry representative, interview by Commission staff, Accra, Ghana, November 8, 2007. 79 This difference is due to the oleic acid content of each regional variety. Ugandan butter has a 

59 percent oleic acid content, compared to 47 percent in Nigerian butter and 39 percent in that of 

Burkina Faso. See Ferris, et al., “Evaluating the Market Opportunities,” October 2001. 80 Fintrac, Inc., “Market and Technical Survey: Shea Nuts,” 1999, 4. 81 This variety is generally unavailable because of ongoing civil strife in those countries. 82 For terminology purposes of this chapter the term “kernel” and “nut” will be equivalent. 

Box 2.2 explains how the kernel is actually derived from the nut. 
2-22

Shea butter competes with a number of other products in both the edible fats 

industry and in the cosmetics (and natural products) industry, but competition is 

limited due to CBE regulations. Shea is the primary vegetable fat used in CBE 

manufacturing, although less healthy cocoa butter substitutes, such as the 

hydrogenated oil (“shortening”) made from soybean, cotton seed, rapeseed 

(canola), and palm oil are also CBEs that can be used as direct alternatives to 

cocoa butter.83 The use of CBEs is primarily limited to certain markets (e.g., the 

European Union and Brazil), where regulations permit only 5–10 percent of 

CBEs as a replacement for cocoa butter in products labeled “chocolate.”84 CBE 

regulations are contentious in certain markets because of consumer concerns over 

product ingredients and labeling (e.g., “butter” versus “margarine”).85

When left unrefined, shea butter, unlike other oils, has high levels of naturally 

occurring chemicals that benefit the skin and hair. These natural healing benefits 

are highly marketable, especially as consumer awareness of shea butter has 

 

83 Other permitted vegetable fats, referred to as CBEs, include borneo, sal, koku gurgi, and 

mango kernel. These less healthy vegetable oils, which are also not as compatible with cocoa butter 

as CBEs, are referred to as cocoa butter replacers (CBRs) and cocoa butter substitutes (CBSs), 

when used as a cocoa butter alternative. EC, “Directive 2000/36/EC,” August 3, 2000; LMC 

International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 84Coatings and fillings are not covered by CBE regulations and as such the United States is a 

major consumer of CBSs. North America, as a whole, consumes approximately one-fifth of global 

coca butter alternatives (CBEs, CBSs, and CBRs). Stapleton, “Market Trends for Cocoa Butter 

Alternatives,” March 26-27, 2007. 85 CBE use is of issue because some consider the use of CBEs in chocolate creates an inferior 

product that is essentially different from chocolate produced from 100 percent cocoa. 
2-23

grown, creating an opportunity for SSA unrefined shea butter producers to 

increase the volume and value of exports. Demand for plant-derived natural 

chemicals grew by 4.6 percent annually during 2000–05.86 However, 

multinational oil-processing firms primarily process shea butter outside SSA 

using a method that creates a white, uniform, odorless refined butter more 

suitable as an emulsifier but lacking these healing benefits.87

 Sub-Saharan Africa Trade in the Global Context 

 SSA countries primarily export shea nuts and butter, while Europe solely exports 

shea butter. SSA countries account for 100 percent of global production and 

export of shea nuts. Shea is primarily an export commodity for SSA with the 

equivalent of 80 percent of all shea nuts being exported in either nut or butter 

form. The seven major West African producing countries harvest approximately 

500,000 mt of shea nuts per year. This compares to estimates of shea nut 

production in table 2.2, which represents best-case scenarios as yields normally 

fluctuate on a three-year cycle. SSA countries account for most unrefined shea 

butter production and exports, while Europe is the primary producer and exporter 

of refined shea butter. Shea butter is also produced in India and Japan. 

It is estimated that 30–54 percent of SSA shea nuts are exported. Assuming an 

average 500,000 mt annual nut harvest, approximately 150,000–270,000 mt of 

nuts are exported annually.88 The remainder (approximately 30,000–350,000 mt) 

is converted into 60,000–91,000 mt of crude or unrefined shea butter, of which 

half is exported.89

 

86 Demand has especially grown in the United States. USAID WATH, “The US Market Study,” 

November 2004, 4. 87 Fintrac Inc., “A Marketing Manual for West Africa,” 2002. 88 USAID WATH, “Refining in West Africa,” October 2004, 2; and USAID WATH, “The 

Shea Butter Value Chain: Production, Transformation and Marketing,” November 2004, 2. 89 USAID WATH, “Refining in West Africa,” October 2004, 2. 
2-24

Leading Exporters 

SSA shea butter exports are predominately from countries with sea ports. Ghana, 

Togo, and Côte d’Ivoire are estimated to be the largest shea butter exporters, 

while Mali, Ghana, Burkina Faso, and Benin are estimated to be the primary shea 

nut exporters (figures 2.4 and 2.5).90 Though one-third of shea producing 

countries are landlocked, Ghana, Togo, Côte d’Ivoire, and Benin, all with sea 

ports, are major SSA exporters as estimates of intra-SSA trade is not fully known 

(e.g., Burkina Faso ships shea through Ghana, which is not always recorded, 

resulting in Ghana having larger exports, as the Burkinan shea is eventually 

exported). 

 

90 For detailed explanation of how data is calculated see USAID WATH, “The Shea Butter 

Value Chain: Study Synthesis and Recommendations for WATH,” November 2004, 2; and USAID 

WATH, “The Shea Butter Value Chain: Production, Transformation and Marketing,” 

November 2004, 2.

Table 2.2 Sub-Saharan Africa shea nut production, shea nut exports, and shea butter exports, by leading 

countriesa 

Shea nut production (estimated collection) Exports (shea nuts) Exports (shea butter) 

Leading 

producer Metric tons 

Leading 

exporter Metric tons 

Leading 

exporter Metric tons 

Mali 150,000 Mali 50,000 Ghana 15,000 

Ghana 130,000 Ghana 45,000 Togo 15,000 

Nigeria 

 100,000 

Burkina 

Faso 37,000 Cote d'Ivoire 10,000 

Burkina Faso 75,000 Benin 35,000 Burkina Faso 3,000 

Benin 50,000 Nigeria 20,000 Mali 3,000 

Côte d'Ivoire 

 40,000 

Côte 

d'Ivoire 15,000 Niger 1,000 

Togo 40,000 Togo 15,000 Sudan 200 

Sudan 10,000 Cameroon 2,500 Uganda 100 

Uganda 6,000 Guinea 450 Benin 100 

Total sub-Saharan Africa 601,000 219,950 47,400 

Source: USAID WATH, “The Shea Value Chain: Production, Transformation and Marketing,” 

November 2004. 

a

Aggregate levels are not representative of actual levels as data reflect estimates made in 2004 of total 

SSA production for maximum potential shea production; on average 3 kg of shea nuts are required to 

produce 1 kg of shea butter. 
2-25

Figure 2.4 Leading sub-Saharan Africa exporters of shea butter and shea nutsa

SSA Exporters, Shea Butter

Other

3%

Ghana

32%

Togo

32%

Burkina Faso

6%

Côte d'Ivoire

21%

Mali

6%

SSA Exporters, Shea Nuts 

Other

1%

Mali

23%

Ghana

20%

Benin

16%

Côte d'Ivoire

Nigeria 7%

9%

Togo

7%

Burkina Faso

17%

 267,350 metric tons 601,000 metric tons 

Source: WATH best-case scenario estimates. For detailed explanation of how data is calculated see 

USAID WATH, “The Shea Butter Value Chain: Study Synthesis and Recommendations for WATH,” 

November 2004, 2. 

 aAggregate levels are not representative of actual levels as data reflect estimates made in 2004 of total 

SSA production for maximum potential shea production.

Figure 2.5 Shea nut exports for selected major exporting countries

-

20,000

40,000

60,000

80,000

100,000

120,000

2000 2001 2002 2003 2004 2005

Year

Estimated exports (tons)

Ghana Benin Togo Burkina Faso Mali

 Source: LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 

Note: Based on limited data.
2-26

Figure 2.6 SSA shea exports for selected major exporting countries

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2000 2001 2002 2003 2004 2005

Year

Estimated SSA exports (metric tons, nut weight equivalent)

Nuts Butter (nut equivalent)

Industry estimates are that SSA exports of shea nuts and butter, in nut-weight 

equivalents, increased by 35 percent during 2001–05.91 Over the same period, 

shea butter exports increased by 660 percent, while nut exports increased by 

21 percent. As a result shea butter exports accounted for 26 percent of total shea 

exports in 2005 as compared to only 5 percent in 2001. These general trends for 

all shea-exporting SSA countries are reflected by the exports of certain SSA 

countries shown in figures 2.5 and 2.6. 

Approximately 80 percent of shea exports are destined for Europe.92 However, 

during 2001–05, SSA exports of shea nuts to India increased from zero to 

12,000 mt. These exports are processed by Foods Fats & Fertilizers Ltd. (3F), 

and approximately 2,000 mt of the processed butter (stearin) was exported from 

India, with nearly one-half going to the EU.93

 

91 Nut-weight equivalent is calculated based on requiring approximately 3 metric tons of nuts to 

produce 1 metric ton of butter. Industry representative, interview by Commission staff, 

November 1, 2007; LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 92 LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 93 3F, based in India, is one of the “big 4” oil processors. See Box 2.3 for definition and uses of 

stearin. LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 

Source: LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 

Note: Based on limited data.
2-27

Figure 2.7 EU imports of SSA shea butter

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Estimated EU Imports (metric tons)

Togo Ghana Mali Burkina Faso Cote d'Ivoire Benin Nigeria

Although not the largest producers of shea nuts, Ghana and Togo are the largest 

SSA exporters of shea butter and related products.94 Since the early 1990s, 

Ghanian and Togolese shea butter exports to the European Union increased from 

almost nothing to over 15,000 mt annually in 2005 (figure 2.7). With the largest 

concentration of shea trees in West Africa, Burkina Faso has a large potential to 

expand exports of shea butter to Europe and the United States.95 It is estimated 

that the country has production potential of 771,100 mt of nuts annually; 

however, only 36,300–72,600 mt are currently harvested annually.96

 

94 The Shea Network Web site. http://www.thesheanetwork.net/ghana.html (accessed 

July 31, 2007). 95 USTR, The African Growth and Opportunity Act Competitiveness Report, July 2005. 96 Ibid. 

Source: LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006. 

Note: Based on limited data.
2-28

Leading Export Markets 

The leading export markets for SSA shea nuts are major processing countries, 

including Denmark, India, and the United Kingdom. Meanwhile, Europe, the 

United States, Japan, Russia, and India are the leading export markets for shea 

butter and downstream products.97 Most of the international trade is conducted by 

four large processing companies: AarhusKarsham, Loders Kralaan, 3F, and 

Ghana Specialty Fats (table 2.3). 

Approximately 90 percent of shea exported from SSA is destined for the 

confectionary/chocolate market in products such as CBEs. In most of the 

European market, shea is primarily used in the edible food market and only a 

small portion is used in cosmetics. The United States and France are the primary 

markets for shea butter for use in cosmetics and natural products.98 Most 

industrial refining of shea for the U.S. market is completed in Europe, but several 

firms are about to begin processing in the United States.99 U.S. imports are 

estimated at 2,500–8,000 tons of refined and unrefined butter annually.100

Factors Affecting Export Patterns 

The ability of SSA to export shea products is dependent on a number of 

competitive factors. Factors that have affected this growth include: (1) rising 

CBE demand, (2) increased prices, (3) growing consumer awareness of shea 

butter, (4) training/funding for improved production, and (5) increased private 

investment in SSA shea processing. Rising demand for CBEs, the result of 

growing world chocolate consumption, is considered the primary factor effecting 

international trade in shea butter. 

 

97 Industry representative, e-mail message to Commission staff, November 8, 2007. 98 3F Ghana Web site. http://3fghana.com/sheanut.htm (accessed September 5, 2007). 99 Industry representative, interview by Commission staff, Accra, Ghana, November 8, 2007. 100 Estimates are not for any specific year, rather a general estimate for recent years. USAID 

WATH, “The Shea Butter Value Chain: Study Synthesis,” November 2004, 5; and industry 

representative, interview by Commission staff, Accra, Ghana, November 8, 2007. See “Factors” 

section “Growing Consumer Awareness” for more detailed information on U.S. shea imports. 

Table 2.3 Shea processing firms (the “big 4”) 

Company 

Estimated 

buying 

market 

share 

(percent) 

Tonnage (nut 

weight 

equivalents) Export type Processing location Major selling market 

AarhusKarsham 60 150,000 nuts Denmark EU, US, Russia, Asia 

Loders Kralaan 25 62,500 butter Ghana, Togo N/A 

Foods and Fats & Fertilizers 

Ltd. 10 25,000 nuts India India, UK 

Ghana Specialty Fats 5 12,500 stearin Ghana (not producing yet) N/A 

Source: Industry representatives. 
2-29

Rising Cocoa Butter Equivalent Demand 

Demand for CBEs in Europe is the primary factor affecting demand for shea 

butter.101 From 2000 to 2005 the global CBE market grew approximately 20,000 

mt (29 percent) to an estimated 90,000 mt.102 Though European markets are 

considered to be mature for chocolate and chocolate containing CBEs, demand is 

increasing for three reasons: (1) changes in CBE regulations in multiple 

countries/regions that allow use of CBEs in chocolate, (2) reduced demand for 

less healthy CBE substitutes, and (3) rising incomes in emerging economies (e.g., 

Latin America and Eastern Europe).103

Western Europe and East Asia consume nearly two-thirds of global CBE 

production, but most growth has occurred in new markets. Most Asian markets 

do not have any regulations on chocolate labeling with respect to CBEs. Though 

the European Union recently enacted new, more liberal CBE regulations, certain 

EU members already permitted the use of CBEs in products labeled chocolate, 

causing the regulation to have little impact on overall European consumption 

growth. The majority of the 2000–05 growth in CBE consumption occurred in 

markets, such as Brazil and Oceania, where similar legislation was passed. It is 

estimated that the Brazilian market for CBEs grew from zero in 2003 to 8,000 mt 

in 2005.104

Healthier eating and rising incomes caused the most significant growth in CBE 

consumption. Increased consumer demand for products containing limited or no 

trans fats resulted in greater demand for CBEs as chocolate manufacturers 

replace these hydrogenated fats with healthier fat substitutes, such as CBEs.105

The switch to CBEs was most predominant in Latin America (Brazil) and eastern 

and central Europe. Rising incomes in emerging countries in Latin America, 

Eastern Europe, and the Asia-Pacific region has resulted in increased chocolate 

consumption which, in turn, has increased demand for CBEs. 

Increased Prices 

The price of shea is mostly affected by its quality (e.g., oil and moisture content) 

and the price of cocoa (through shea’s use in CBEs). Increasingly, quality is 

becoming a more important factor than cocoa prices in determining the price 

received for shea as cosmetic demand grows. Cosmetic firms are expanding 

relationships directly with producers to ensure high-quality product by offering 

price premiums. Price premiums are paid for certain natural characteristics that 

also improve the butter’s desirability, such as higher oil content, and lower 

moisture content and free fatty acids.106 Other factors that attract premiums 

 

101 Industry representative, interview by Commission staff, Accra, Ghana, November 2, 2007. 102 Stapleton, Gerard. “Market Trends for Cocoa Butter Alternatives.” LMC International Ltd. 

Presented at the Cocoa Outlook 2007 on March 26–27, 2007. Oxford, UK. 103 LMC International, Ltd., “The Impact of Directive 2000/26/EC,” June 2006, 54. 104 Ibid. 105 The other primary cocoa substitutes are cocoa butter replacers (CBRs), which are typically 

composed of vegetable fats from soybeans, cottonseed, rapeseed, and palm olein all of which 

require hydrogenation to form the correct consistency for use in chocolates. LMC International, 

Ltd. “The Impact of Directive 2000/26/EC,” June 2006, 54. 106 The price premium is received by the exporter. 
2-30

include specific iodine values, melting points, and purity.107 These factors are 

partially determined by the production processes used in the refining of the 

butter. 

Cosmetic firms, such as The Body Shop, increasingly purchase shea directly 

from village women instead of village middlemen, who are traditionally men. By 

purchasing directly from women, firms ensure that price incentives for higherquality nuts and butter are realized by the producers.108 Additionally, firms are 

able to directly work with individual women’s groups to provide them the 

necessary resources and skills to utilize best production practices.109 

Though primarily linked to cocoa prices, shea prices also fluctuate considerably 

from year to year and seasonally in response to changes in production volumes, 

quality, and availability.110 Average annual prices during 2002–06 fluctuated 

between $300 and $400 per mt. Prices increased between 2000 and 2002 and fell 

from 2003 to 2005, only to rise sharply to record levels above $600 per mt in 

2007. Comparatively, cocoa prices increased significantly in 2002 peaking at 

over $2,200 per mt, only to fall and fluctuate around $1,400 to $1,700 per mt 

before beginning a sharp rise at the end of 2006. Prices of $2,100 per mt at the 

end of 2007 were more than double the January 2002 price.111 The recent shea 

price increase since 2005 has been in part a result of increased purchases by the 

“big 4,” largely in response to increased demand.112 

Growing Consumer Awareness 

In recent years the cosmetics industry has promoted products containing 

unrefined shea butter to increase consumer awareness and build shea as a viable 

product to compete in the growing natural, organic market. Traditionally, the 

cosmetics industry preferred refined shea butter to unrefined because it is lowpriced, readily available, of a consistent quality, and less likely to turn rancid.113

In the 1990s, European cosmetics companies, such as The Body Shop and 

L’Occitane, began incorporating, often in large quantities, unrefined shea butter 

into product lines while promoting its healing and “natural” characteristics.114

The Body Shop also actively promoted its shea products as “fair trade” through 

increasing awareness of the role rural African women play in producing shea.115

 

107 Boateng, Agro-Processing, May 10, 2005, 5. 108 Industry representative, interview by Commission staff, Accra, Ghana, November 8, 2007. 109 Ibid. 110 International Shea Butter Conference, October 5, 2007; LMC International, Ltd. “The 

Impact of Directive 2000/26/EC,” June 2006, 84. 111 Industry representative, interview by Commission staff, Accra, Ghana, November 8, 2007; 

International Cocoa Organization (ICCO), “ICCO Monthly Averages of Daily Prices,” 

February 4, 2008. 

http://www.icco.org/statistics/monthly.aspx?AD=2002&MD=1&AH=2008&MH=1&Tipo=Tabla&

Datos=USD (accessed February 4, 2008). 112 According to industry representatives, during the current crop season, prices continued to 

increase when prices have historically declined. The exact reason for this is not known. Industry 

representative, interview by Commission staff, Accra, Ghana, November 8, 2007. 113 Ferris, et al., “Evaluating the Market Opportunities,” October 2001, 52. 114 Ibid. 115 This suggests to the consumer that paying a premium price for shea products returns greater 

income to poor communities in Africa. Ferris, et al., “Evaluating the Market Opportunities,” 

October 2001, 10. 
2-31

In the United States, most cosmetic firms traditionally purchased refined shea 

butter from European processors, but more recently there has been more interest 

in purchasing shea directly from Africa in order to obtain product containing 

greater levels of its natural, healing qualities.116 This gives Africa the opportunity 

to increase shea exports directly to the United States, improving Africans’ returns 

on exports. 

Training/Funding for Improved Production 

A number of poverty elimination and rural development programs were 

established across SSA to improve shea production and marketing. Among the 

organizations working in this area are U.S. and Japanese international 

development agencies and the U.N. Food and Agriculture Organization through 

the Common Fund for Commodities. Other programs, funded by organizations 

such as the World Bank, aim to improve the overall competitiveness of SSA 

across a broad array of products, including shea butter.117 These programs 

generally attempt to improve traditional, labor-intensive production practices that 

typically result in inconsistent and poor quality butter. Consistently high-quality 

shea butter likely receives price premiums from exports, as the butter is suitable 

for use in cosmetics.118 USAID and other organizations, such as the Prokarite 

Project, have provided extensive training and aid for increased mechanization in 

rural communities.119 Also, some small SSA cosmetic shea butter enterprises and 

larger international firms have gone directly to their shea butter sources to 

provide training, supervision, and machinery so that the end product meets their 

standards.120

Increased Private Sector Investment 

Traditionally, multinational oil-processing firms produce shea butter in European 

refineries to ensure consistent quality and quantity. Recent investments by 

multinationals in SSA shea processing, such as in Ghana, increased capacity to 

produce bulk shea butter domestically, rather than export shea nuts for processing 

overseas. Shebu Ltd., a subsidiary of Loders Croklaan, emerged in 2001 as a 

major SSA shea butter extractor. Shebu purchases shea nuts from Loders 

Croklaan’s suppliers (Kassardjians and Olam) and produces shea butter for 

Loders Corklaan to export from SSA rather than shea nuts.121 In 2005 the shea 

butter extractor planned to further expand its suppliers through direct purchase. 

Loders Kralaan has moved to extract all of its shea butter within SSA. In Togo, 

the company sources shea butter from the single industrial processor, Nioto, 

which has resulted in a substantial shift in Togo’s exports from shea nuts to 

 

116 Ferris, et al., “Evaluating the Market Opportunities,” October 2001, 52. 117 USAID WATH, “The Shea Butter Value Chain: Production, Transformation and 

Marketing,” November 2004, X. 118 USAID WATH, “The Shea Butter Value Chain: Study Synthesis,” November 2004, 6. 119 Semi-mechanical methods have been introduced for extracting shea butter, such as roasters 

and kneaders to improve Ghana’s traditional method’s low yields and efficiencies. In Northern 

Ghana, the diesel or electric plate-grinder is the most commonly used “advanced” technology and 

is used for a variety of agricultural products. USAID WATH, “The Shea Butter Value Chain: Study 

Synthesis,” November 2004, 6. 120 USAID WATH, “The Shea Butter Value Chain: Study Synthesis,” November 2004, 6. 121 Ferris, et al., “Evaluating the Market Opportunities,” October 2001, 26. 
2-32

butter. Blue Mont Trading LTD installed a fractionation plant in Ghana in 2006, 

expanding processing capabilities from 40 mt per shift to 75 mt per shift.122 In 

2006, ADM and Wilmar Holdings built a plant in Ghana that will begin its first 

processing season in 2007, producing stearin for export to the European 

market.123 In 2004, Cam, a Swiss group, invested $35.6 million in a partnership 

with a Burkinabe village chief to build the Oil Works and Metal Barrel 

Manufacturing Plant of Burkina with the capacity to extract 50,000 mt of shea 

butter annually and produce metal barrels for the packing of the shea butter.124 

 

122 Boateng, Agro-Processing, May 10, 2005, 10. 123 Dialog Global Reporter, “U.S. Equity News,” 2006. 124 Financial Times, “Burkina Faso,” July 16, 2004. 
2-33

Shea Butter Bibliography 

American Shea Institute. 2007 Shea Butter Handbook. 5th Annual Shea Butter International 

Conference. October 5-6, 2007. 

Boateng, Roselyn. Agro-Processing: Blue Mont Trading (Ghana) LTD. Accra, Ghana: Databank 

Research, May 10, 2005. 

Business Wire. “Karlshamns Expects Considerable Growth Potentials from New EU Regulation.” 

June 28, 2000. 

Economist Intelligence Unit. Country Profile 2007: Côte d’Ivoire. 2007. 

——. Country Profile 2007: Ghana. 2007. 

European Community (EC). “Directive 2000/36/EC of the European Parliament and Council of 

23 June 2000 Relating to Cocoa and Chocolate Products Intended for Human Consumption.” 

Official Journal of the European Communities L 197/19, August 3, 2000. 

Ferris R.S.B., C. Collinson, K. Wanda, J. Jagwe, and P. Wright. “Evaluating the Market 

Opportunities for Shea Nut and Shea Nut Processed Products in Uganda.” U.S. Agency for 

International Development. Foodnet and Natural Resources Institute. October 2001. 

http://www.foodnet.cgiar.org/Projects/Sheanut_Rep.pdf (accessed September 20, 2007). 

Financial Times, “Burkina Faso: Shea Butter, Barrel Project with Swiss Group Approved,” 

July 16, 2004. 

Fintrac, Inc. “Market and Technical Survey: Shea Nuts.” Prepared for USAID, May 1999. 

Food Navigator.com Europe. “Aarhus links up for chocolate formulations in Brazil.” News 

Headlines. June 23, 2004. http://www.foodnavigator.com/news/ng.asp?id=53016-aarhus-links-up

(accessed November 9, 2007). 

International Shea Butter Conference, October 5, 2007. 

LMC International, Ltd. “The Impact of Directive 2000/26/EC on the Economies of those 

Countries Producing Cocoa and Vegetable Fats Other than Cocoa Butter: Main Report.” Prepared 

for the European Commission – DG Agriculture and Rural Development. New York, June 2006. 

Naude, Wim and Marianne Matthee. “The Significance of Transport Costs in Africa.” Policy 

Brief. No. 5. United Nations University. 2007. 

Pobeda, M. and L. Sousselier. “Shea Butter: The Revival of an African Wonder.” Global 

Cosmetic Industry. 164, 4 (April 1999): 340–41. 

U.S. Agency for International Development West Africa Trade Hub (USAID WATH). “Refining 

in West Africa.” West Africa Trade Hub Technical Report No. 3, October 2004. 

——. “The Shea Butter Value Chain: Production, Transformation and Marketing in West 

Africa.” West Africa Trade Hub Technical Report No. 2, November 2004. 
2-34

——. “The Shea Butter Value Chain: Study Synthesis and Recommendations for WATH.” West 

Africa Trade Hub Technical Report No. 1, November 2004. 

——. “The US Market Study.” West Africa Trade Hub Technical Report No. 4, November 2004. 

U.S. Trade Representative (USTR). The African Growth and Opportunity Act Competitiveness 

Report. Washington, DC: USTR, July 2005. 

http://www.ustr.gov/assets/Document_Library/Reports_Publications/2005/asset_upload_file604_

7857.pdf (accessed September 26, 2007). 
2-35

Spices125

Summary of Findings 

Between 2002 and 2006, the value of SSA spice exports to all markets decreased 

by 47 percent (table 2.4). Adverse weather conditions during the period resulted 

in irregular production that contributed to considerable inter-year variability in 

prices. For example, rapid growth in export values during 2002–04 can be 

associated with higher vanilla prices in the wake of a cyclone that hit 

Madagascar’s vanilla-growing areas in 2000. Despite declines in export value 

during 2002–06, the quantity of spice exports increased by 3 percent, led by 

vanilla, cloves, and ginger. Factors contributing to this growth include increasing 

global demand for spices and programs designed to promote the industry and to 

encourage investment. These programs include funding for training in 

production, processing, and marketing. Political unrest in some countries offset 

these factors for spice exports. 

Industry Overview 

Spice exports from SSA involve a wide variety of products and every SSA 

country reported exports in 2006. However, exports are highly concentrated both 

in terms of products and exporting countries. In 2006, Madagascar was by far the 

largest spice-exporting country in SSA followed by South Africa, Comoros, and 

Tanzania (table 2.4). All other SSA countries exporting spices accounted for less 

than 5 percent of the region’s total. Vanilla beans, cloves, pepper,126 and ginger 

accounted for 93 percent of the $156 million in SSA spice exports in 2006. 

Nearly 50 percent of SSA spice exports were vanilla beans ($76 million), while 

cloves, pepper, and ginger together represented 44 percent ($41 million 

[26 percent], $19 million [12 percent], and $9 million [6 percent], respectively). 

 

125 Owing to the dominance of vanilla, cloves, pepper, and ginger among SSA spice exports, 

these products and the countries that export them will be the focus of this profile. Spices are 

defined as those products classified in Harmonized Schedule (HS) heading 0904, pepper, paprika, 

anaheim and ancho peppers, bell peppers, jalapeno peppers, and allspice; HS 0905, vanilla beans; 

HS 0906, cinnamon; HS 0907, cloves; HS 0908, nutmeg, mace, and cardamoms; HS 0909, seeds of 

anise, badian, fennel, coriander, cumin, caraway, and juniper berries; and HS 0910, ginger, saffron, 

turmeric, thyme, bay leaves, curry, origanum, and dill. 126 The largest category of pepper exported by SSA include the genuses Capsicum and Pimenta, 

which include paprika, anaheim, ancho, bell, and jalapeno. The other SSA pepper export is from 

the genus Piper, which includes black and white pepper. 
2-36

Spice production in SSA is characterized by small-scale farming by producers 

with limited land and limited access to credit. There are no accurate estimates of 

the total number of SSA producers or processors. Many SSA spice farmers 

belong to grower associations that assist in processing, marketing, and exporting 

their products. For example, it is estimated that there are at least 400 local vanilla 

grower associations in Madagascar alone, representing more than 10,000 

members, and that association membership is growing.127

Most spice production is labor intensive with little mechanization or use of 

chemical inputs. After harvest, farmers typically sell their products to local 

traders or buyer cooperatives who, in turn, sell to processors and exporters. The 

nature and extent of processing depend on the particular spice, but generally 

involve rudimentary, traditional drying, and sorting, that lower the quality of the 

 

127 IFAD, “IFAD Project Sets up Innovative Vanilla Growing Scheme in Madagascar,” 

April 12, 2007, 1. 

Table 2.4 Sub-Saharan Africa exports of all SSA spices, by selected exporters and key markets, 2002–06 

 Exports Change, 2002 to 2006 

Exporters Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

1,000 dollars 115,453 178,986 134,209 36,924 31,103 -84,350 -73 United States Metric tons 852 1,825 686 1,661 1,335 483 57 

1,000 dollars 65,122 74,877 41,531 21,372 29,426 -35,696 -55 EU Metric tons 2,064 2,695 1,777 1,515 2,290 226 11 

1,000 dollars 19,333 28,179 27,989 16,302 14,567 -4,766 -25 Singapore Metric tons 3,728 13,400 11,262 5,183 4,325 597 16 

1,000 dollars 17,711 36,173 29,858 19,580 18,056 345 2 All other Metric tons 2,231 7,694 2,986 5,093 3,692 1,461 65 

1,000 dollars 217,619 318,215 233,587 94,178 93,152 -124,467 -57 

Madagascar 

Total Metric tons 8,875 25,614 16,711 13,452 11,642 2,767 31 

1,000. dollars 7,068 7,049 7,447 5,349 5,577 -1,491 -21 EU Metric tons 5,701 4,460 3,882 2,107 2,273 -3,428 -60 

1,000 dollars 2,477 1,986 1,407 2,463 1,477 -1,000 -40 United States Metric tons 1,771 1,505 1,134 1,165 353 -1,418 -80 

1,000 dollars 376 497 810 1,315 1,182 806 214 Australia Metric tons 278 357 466 378 363 85 31 

1,000 dollars 2,959 6,831 4,827 4,386 4,880 1,921 65 All other Metric tons 7,146 7,592 6,521 4,555 4,037 -3,109 -44 

1,000 dollars 12,880 16,363 14,491 13,513 13,116 236 2 

South Africa 

Total Metric tons 14,896 13,914 12,003 8,205 7,026 -7,870 -53 

1,000. dollars 13,827 18,607 5,929 6,383 3,992 -9,835 -71 EU Metric tons 634 608 502 1,051 668 34 5 

1,000 dollars 348 592 258 844 3,085 2,737 786 India Metric tons 63 311 120 264 936 873 1,386 

1,000 dollars 3,475 1,565 6,263 4,322 2,754 -721 -21 Singapore Metric tons 605 832 2,193 1,388 857 252 42 

1,000 dollars 6,428 7,142 17,074 2,078 1,919 -4,509 -70 All other Metric tons 509 778 523 743 433 -76 -15 

1,000 dollars 24,078 27,906 29,524 13,627 11,750 -12,328 -51 

Comoros 

Total Metric tons 1,811 2,529 3,338 3,446 2,894 1,083 60 

1,000. dollars 712 2,627 3,810 5,023 5,970 5,258 738 India Metric tons 111 1,319 1,729 1,625 1,779 1,668 1,503 

1,000 dollars 1,563 5,957 11,336 4,713 1,928 365 23 Singapore Metric tons 270 2,728 3,838 1,529 641 371 137 

1,000 dollars 835 451 637 763 877 42 5 EU Metric tons 364 261 396 429 437 73 20 

1,000 dollars 2,228 711 691 515 552 -1,676 -75 All other Metric tons 1,650 1,543 1,829 2,079 337 -1,313 -80 

1,000 dollars 5,338 9,746 16,474 11,014 9,327 3,989 75 

Tanzania 

Total Metric tons 2,395 5,851 7,792 5,662 3,194 799 33 

Sub-Saharan 1,000 dollars 292,452 423,899 328,269 165,023 155,830 -136,622 -47 

Africa Total Metric tons 35,932 53,057 49,374 42,566 37,185 1,253 3 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 
2-37

final product.128 For example, in Nigeria, traditional methods of splitting and sundrying ginger result in high rates of spoilage, and poor quality and appearance.129

Most SSA spices are exported with little or no processing.130 In particular, 

processing activities that add significant value, such as grinding, blending, and 

canning, are typically undertaken by large-scale international spice companies in 

the importing country. For example, there is no processing of pepper in 

Uganda,131 and in Nigeria, ginger is sold on the world market in split-dried form, 

where importing countries further process it into ginger powder, essential oils, 

oleoresin, and ginger ale concentrates.132 Similarly, only minimal processing 

(e.g., removing stems, cleaning, and drying) of cloves is undertaken before 

export for use as either a food ingredient or in cigarette manufacturing.133 Often, 

importing countries will process and package products for re-export. For 

example, ginger imported by India from SSA is ground and re-packaged for 

export all over the world, and most of the SSA clove exports to Singapore are 

processed and re-packed for distribution to other Asian markets. SSA vanilla is 

exported as raw vanilla beans and further processed in the countries of 

destination.134

Spice production in most of SSA lacks internal marketing infrastructure, such as 

transparent pricing systems, grades, and standards. For example, clove exports 

from Madagascar have been hampered by the inability of suppliers to meet 

quality standards of importing countries,135 and Nigerian ginger exports 

reportedly have gained a reputation for low quality because of poor production 

and marketing infrastructure.136 There is also little coordination between farmers, 

buyers, processors, and exporters. 

There are three distinct market segments for SSA spice exports. The retail sector, 

such as supermarkets, grocery delicatessens, and specialty food stores; the 

catering sector, such as hotels, restaurants, and other institutions; and the 

industrial sector, including manufacturers of processed food, beverages, tobacco 

products, cosmetics, pharmaceuticals, and detergents (box 2.4).137

 

128 Trade and Industrial Policy Strategies and Australian Agency for International 

Development. SADC Trade, Trade Information Brief, Spices, undated (accessed January 31, 2008). 129 Yiljep, Fumen, and Ajisegiri, “The Effects of Peeling, Splitting and Drying on Ginger 

Quality,” December 2005. 130 Trade and Industrial Policy Strategies and Australian Agency for International 

Development, SADC Trade, Trade Information Brief, Spices, undated (accessed January 31, 2008). 131 International Society for Horticultural Science, The Uganda Horticultural Sector in 

Uganda, January 2005. 132 Yiljep, Fumen, and Ajisegiri, “The Effects of Peeling, Splitting and Drying on Ginger 

Quality,” December 2005. 133 UNCTAD, The Market of Cloves in the European Union, 2006. 134 Nielsen-Massey Vanillas, Inc. official, interview by Commission staff, December 12, 2007. 

Nielsen-Massey Vanillas, Waukegan, IL, is the largest vanilla importer and processor in the United 

States. 135 UNCTAD, The Market of Cloves in the European Union, 2006 136 Chemonics International Inc., Global Market Assessment, November 29, 2001. 137 Trade and Industrial Policy Strategies and Australian Agency for International 

Development. SADC Trade, Trade Information Brief, Spices, undated (accessed January 31, 2008). 
2-38

 Sub-Saharan Africa Trade in the Global Context 

Global spice trade was $2.4 billion in 2006, of which SSA countries contributed 

$156 million, or 6 percent (figure 2.8). By far the leading SSA exporting country 

is Madagascar, accounting for 60 percent of SSA spice exports in 2006. Other 

major SSA exporters include South Africa, Comoros, and Tanzania. 

Box 2.4 Product description for spices 

Spices have multiple uses. According to the U.S. Food and Drug Administration, spices are defined as, “any aromatic 

vegetable substance in the whole, broken, or ground form, whose main function in food is seasoning rather than 

nutritional, and from which no portion of any volatile oil or other flavoring principle has been removed.”1

 In addition to 

culinary ingredients, spices are used in pharmaceuticals, essential oils and soaps, and tobacco products. The vast 

majority of vanilla is used as an ingredient in vanilla ice cream. Vanilla is also widely used in baked goods and 

confectionery products. Recent high prices of vanilla led to increased production of synthetic vanilla that is significantly 

cheaper than natural. There are no synthetic alternatives for the other spices covered in this report. Cloves are commonly 

used in cooking, including as a flavor in many foods and beverages, and in cigarette manufacturing.2

 Clove buds and 

stem oils are also commonly used as a fragrance component in soaps, creams, lotions, detergents, and perfumes. Ginger 

is an ingredient found in many types of cuisine, especially in Asian dishes, as well as an additive in processed meat 

products and an ingredient in soft drinks, such as ginger ale.3

 Recent research has discovered important properties of 

ginger oil in the treatment of certain medical conditions. Peppers serve primarily as a cooking ingredient, providing a “hot 

or spicy” flavor, commonly found in Latin American and Asian dishes. 

____________ 

1

 21 CFR § 101.22 (2002). 

2

 Manitoba Agriculture, Food and Rural Initiatives, “Herb and Spice Industry Overview.” 3

 Chemonics International Inc., “Global Market Assessment,” November 29, 2001.

Figure 2.8 Leading global and sub-Saharan Africa exporters of spices, 2006 

Global Exporters

SSA

6%

Brazil

5%

Other

44%

China

15%

Indonesia

10%

India

12%

Vietnam

8%

SSA Exporters 

Madagascar

60%

South Africa

8%

Comoros

8%

Nigeria

5%

Zimbabwe

2%

Uganda

5%

Other

6%

Tanzania

6%

 $2,440 million $156 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade.
2-39

Major markets included the EU, United States, and Japan, which together 

account for about one-half of global trade. Close to 55 percent of SSA spice 

exports in 2006 were destined for either the EU or the United States. Other 

important markets for SSA spice exports were Singapore, India, and Japan. 

Leading Exporters 

Vanilla 

The world’s two leading vanilla exporting countries are in SSA—Madagascar 

and Uganda—and together these two countries accounted for about 71 percent of 

global exports in 2006. Other major global suppliers are Indonesia, India, and 

Papua New Guinea. The top five exporting countries accounted for nearly 

90 percent of global exports in 2006. Madagascar is by far the world’s largest 

vanilla exporting country, with over 87 percent and 64 percent, respectively, of 

SSA and global exports in 2006, followed by Uganda, Comoros, Mauritius, and 

South Africa.138 Although the value of SSA vanilla exports declined from 

$215 million in 2002 to $76 million in 2006 (a decline of 65 percent), the 

quantity of exports actually increased by 75 percent (table 2.5). 

World vanilla prices increased from 2002 to 2004, but fell dramatically in 2005 

and 2006, largely in response to the sharp fall and subsequent recovery of vanilla 

production in Madagascar during this period. 

Cloves 

Global exports of cloves totaled $103 million in 2006, a decline of 36 percent 

from $139 million in 2002. SSA clove exports were $41 million in 2006 and 

accounted for 40 percent of total world clove exports, up from 29 percent in 

2002. Indonesia was the world’s largest clove exporter in 2006, accounting for 

27 percent of the world clove market, followed by Madagascar and Sri Lanka 

with shares of 23 percent and 13 percent, respectively. Other major global clove 

exporters are Brazil, Comoros, and Tanzania. Madagascar was responsible for 

nearly 55 percent of SSA clove exports in 2006, followed by Comoros with 

23 percent, and Tanzania with 21 percent. Declining world clove prices 

accounted for the decline in world export values between 2002 and 2006. In 

order to increase the prices of cloves received by clove producers, in 2002 

Indonesia banned clove imports until the local price of Indonesian cloves 

increased to a certain price level.139 The use of cloves in Indonesia is almost only 

for cigarette factories, known as kretek.140

 

138 GTIS, Global Trade Atlas. 139 Feitos, Orion, “Brazilian Cloves Exports,” August 19, 2002; and industry officials, 

interview by Commission staff, Antananarivo, Madagascar, November 7, 2007. 140 Feitos, Orion, “Brazilian Cloves Exports,” August 19, 2002. 
2-40

Pepper

Global exports of pepper rose steadily from $857 million in 2002 to about 

$1.1 billion in 2006, an increase of 28 percent, spurred by growing demand for 

pepper in the major world markets. SSA pepper exports were just $19 million in 

2006, accounting for less than 2 percent of the world total. The largest exporter 

of pepper in the world is China ($178 million in 2006), followed by Vietnam 

($165 million), India ($151 million), and Indonesia ($108 million). SSA pepper 

exports declined substantially during 2002–06, falling from nearly $30 million to 

about $19 million during this period, reflecting declining production in both 

South Africa and Zimbabwe, the two leading SSA pepper exporting countries. 

This decline was offset to some degree by both Madagascar, the third-leading 

SSA pepper exporter in 2006, and Malawi, the fourth-largest, which rapidly 

expanded their exports during this period. 

Table 2.5 Sub-Saharan Africa exports of vanilla, cloves, pepper, and ginger, by selected exporters 2002–06 

 Exports Change, 2002 to 2006 

Product Exporter 2002 2003 2004 2005 2006 Absolute Percentage 

1,000 dollars 190,306 274,414 195,903 65,164 66,638 -123,668 -65 Madagascar Metric tons 1,176 1,446 729 1,788 2002 826 70 

1,000 dollars 9,768 27,829 8,743 5,783 6,878 -2,890 -30 Uganda Metric tons 71 122 70 171 273 202 285 

1,000 dollars 14,698 23,676 21,000 4,260 2,431 -12,266 -84 Comoros Metric tons 86 96 45 55 54 -32 -37 

1,000 dollars 224 2,945 710 404 297 73 33 All other Metric tons 5 35 17 24 13 8 160 

1,000 dollars 214,996 328,864 226,356 75,611 76,244 -138,752 -65 

Vanilla 

SSA total Metric tons 1,338 1,699 861 2,038 2,342 1,004 75 

1,000 dollars 24,575 40,108 34,706 25,988 22,398 -2,177 -9 Madagascar Metric tons 5,908 20,043 13,808 8,485 6,587 679 11 

1,000 dollars 9,377 4207 8,510 9,361 9,315 -62 -1 Comoros Metric tons 1,528 2,037 3,074 3,060 2,789 1,261 83 

1,000 dollars 4,786 9,171 15,887 10,309 8,501 3,715 78 Tanzania Metric tons 782 4,212 5,849 3,354 2,566 1,784 228 

1,000 dollars 2,703 817 1,935 1,207 719 -1,984 -73 All other Metric tons 480 350 641 375 186 -294 -61 

1,000 dollars 41,441 54,303 61,038 46,865 40,933 -508 -1 

Cloves 

SSA total Metric tons 8,698 26,642 23,372 15,274 12,128 3,430 39 

1,000 dollars 10,657 12,606 9,705 8,847 6,914 -3,743 -35 South Africa Metric tons 8,431 6,672 6,057 4,174 3,171 -5,260 -62 

1,000 dollars 13,603 12,643 8,960 5,606 3,536 -10,067 -74 Zimbabwe Metric tons 9,487 8,293 6,838 3,455 2,605 -6,882 -73 

1,000 dollars 2,205 3,008 2,204 2,461 3,224 1,019 46 Madagascar Metric tons 1,177 1,569 1,184 1,394 1,664 487 41 

1,000 dollars 915 1,425 1,621 1,751 1,908 993 109 Malawi Metric tons 519 418 643 833 1,158 639 123 

1,000 dollars 2,252 1,908 2,302 2,048 3,256 1,004 45 All other Metric tons 1,422 2,120 1,307 1,022 1,626 204 14 

1,000 dollars 29,632 31,590 24,792 20,713 18,838 -10,794 -36 

Pepper 

SSA total Metric tons 21,036 19,072 16,029 10,878 10,224 -10,812 -51 

1,000 dollars 1,407 1,627 7,006 11,720 7,167 5,760 409 Nigeria Metric tons 1,580 1,263 4,931 9,349 6,055 4,475 283 

1,000 dollars 116 91 143 248 610 494 426 Togo Metric tons 115 68 110 166 476 361 314 

1,000 dollars 0 14 0 238 380 380 na Benin Metric tons 0 0 0 160 389 389 na 

1,000 dollars 17 498 508 1,512 321 304 1,788 Ethiopia Metric tons 24 608 520 1,356 329 305 1,271 

1,000 dollars 712 805 815 254 629 -83 -12 All other Metric tons 548 1,126 854 1,529 782 234 43 

1,000 dollars 2,252 3,035 8,472 13,972 9,107 6,855 304 

Ginger 

 

SSA total Metric tons 2,243 2,457 5,895 11,204 7,702 5,459 243 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: na = not available. 
2-41

Ginger 

Global exports of ginger totaled $222 million in 2006, a 50 percent increase from 

$148 million in 2002. SSA ginger exports were $9.1 million in 2006, accounting 

for over 4 percent of total world exports, and up from 2 percent in 2002. The 

world’s largest ginger exporting country is China, followed by Thailand, India, 

Brazil, Nigeria, and Taiwan. China accounted for nearly 64 percent of the value 

of world ginger exports in 2006. Between 2002 and 2006, world ginger prices 

increased modestly, while world ginger export quantities increased by 45 percent, 

reflecting strong world-wide demand. Nigeria accounted for nearly 79 percent of 

SSA ginger exports in 2006, followed by Togo, Benin, and Ethiopia. The primary 

destinations for SSA ginger were the EU, India, Morocco, and the United States. 

Nigeria was by far the largest SSA supplier to these markets. Nigerian exports of 

ginger to the United States increased fourfold during 2002–06. 

Leading Export Markets 

Spices from SSA are exported to numerous markets worldwide (figure 2.9). 

However, the United States and the EU are by far the leading markets for vanilla, 

pepper, and ginger, accounting for 83 percent, 53 percent, and 25 percent, 

respectively, of total SSA exports of these products. About 70 percent of SSA 

exports of cloves are sent to Singapore and India. 

Figure 2.9 Leading markets for global and sub-Saharan Africa exports of spices, 2006 

Global Export Markets

India

5%

Singapore

5%

Malaysia

5% Other

35%

United States

20%

EU

22% Japan

8%

SSA Export Markets

India

9%

Japan

5%

Singapore

12%

EU

32%

United States

25%

Other

17%

 $2,440 million $156 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade. 
2-42

Vanilla 

In 2006, the leading world markets for vanilla were the United States and the EU, 

together representing almost 80 percent of the value of global imports. The 

United States was the world’s largest consumer of vanilla (mostly used in ice 

cream manufacturing), purchasing nearly 42 percent of global imports that year. 

The EU accounted for another 38 percent of world vanilla imports, while Japan 

and Canada accounted for 7 percent and 5 percent, respectively. In 2006, over 

77 percent of U.S. vanilla imports were supplied by SSA countries, mostly from 

Madagascar (69 percent) and Uganda (7 percent). The EU and Japan relied on 

SSA countries for roughly 77 and 93 percent, respectively, of their vanilla 

imports. 

Cloves 

The leading world markets for cloves are India and Singapore, where cloves are 

primarily imported for use in cigarette manufacturing. Together these countries 

accounted for about 70 percent of the value of world imports in 2006. Other 

major markets are the EU and the United States, with global import shares of 

7 percent and 4 percent, respectively. Singapore and India are the leading world 

markets for SSA clove exports. About 30 percent of India’s clove imports were 

from SSA countries, while over 57 percent of Singapore’s imports were of SSA 

origin in 2006. Madagascar is the largest supplier to these markets. The United 

States relied on SSA countries for about one-half of its clove imports in 2006. 

Pepper 

The leading global markets for pepper are the United States and the EU, 

accounting for about one-half of the value of global imports in 2006. Other 

important pepper importers include Malaysia, Japan, and Singapore. World 

demand for pepper grew rapidly from 2002 to 2006, up 25 percent by value and 

32 percent by quantity, in part reflecting a growing trend toward the use of more 

spices for culinary use in developed countries and rising incomes in developing 

countries. The leading market for SSA pepper exports is the EU followed by the 

United States and Malaysia. 

Ginger 

In 2006, Japan was the world’s leading importer of ginger, accounting for about 

one-third of global imports, followed by the EU, Pakistan, and the United States, 

which together accounted for another 39 percent. During 2002–06, Japan’s share 

of global imports fell from over one-half to about one-third. At the same time, 

EU and U.S. ginger imports grew rapidly, as did those of Pakistan. The EU is the 

leading market for SSA ginger exports, accounting for over one-quarter of SSA 

exports in 2006, mainly from Nigeria. India was the second-leading destination 

for SSA ginger exports, followed by Morocco and the United States. 
2-43

Factors Affecting Export Patterns 

During 2002–06, the general trend in SSA spice exports was toward increasing 

volumes, decreasing values, and a high degree of year-to-year instability in both 

volumes and values. In general, key factors contributing to the volume growth of 

SSA spice exports included rising global demand and SSA government policies 

and international government programs designed to promote spice industries and 

to encourage investment. However, for spice exports and countries, these 

favorable factors were likely offset by political instability. 

Production and Price Instability 

The principal cause for the overall decrease in SSA export values for spices was 

the decrease in the world price for vanilla. With limited domestic spice 

consumption in SSA, export patterns are driven largely by production. During 

2002–06, the volume of SSA vanilla exports fluctuated widely from year to year, 

rising or falling by 25 percent or more in 3 of the 4 years, and by over 10 percent 

in the fourth year. The value of exports also fluctuated widely from year to year, 

and was relatively unchanged only in 2005 and 2006. Vanilla price volatility 

during the period was driven primarily by the relatively inelastic demand for 

spices in leading markets, and by production changes beginning with Cyclone 

Hudah, which struck northeastern Madagascar in April 2000141 and led to 

widespread destruction of the principal vanilla-growing areas in the country.142

World vanilla prices, spurred by the supply shortage, rose sharply in 2002 and 

2003,143 peaking in July 2004 at $470,000 per ton (figure 2.10).144 Madagascar’s 

2004 crop recovered, but in response to record high prices in preceding years, 

global demand fell partly because many industrial users of vanilla beans, such as 

frozen dessert manufacturers, switched to cheaper synthetic vanilla.145 By 

January of 2005, average vanilla prices were close to their early 2000 price levels 

of $35,000 per ton.146

 

141 FAO/GIEWS, Foodcrops and Shortages, April 11, 2000, 3. 142 FAO/GIEWS, “Crop Outlook Further Deteriorates in Madagascar and Mozambique 

Following Cyclone Hudah,” April 12, 2000. The cyclone destroyed over 30 percent of the 

Madagascar crop and the storage houses containing much of the inventory. Gersema, “Vanilla 

Prices Go Through the Roof, Poor Growing Seasons in Madagascar Cause Spike in Costs,” 

August 2003. 143 UNCTAD/WTO, “Spices,” 4. 144 Ibid. 145 Business and Market Expansion Program officials, interview by Commission staff, 

Antananarivo, Madagascar, November 7, 2007. 146 Unit values from USITC, Dataweb. 
2-44

Growing Global Demand 

Spice exports have benefited from strong international demand growth during 

2002–06; world imports grew at an average of almost 6 percent annually, with 

increases in both developed and developing countries.147 Factors driving demand 

include growing ethnic populations inside developed countries and expanding 

non-food uses such as health, pharmaceutical, and cosmetic products.148 In 

developed countries, such as the United States and the EU, culinary spice use has 

increased as the trend toward spicier ethnic foods continued during 2002–06.149

For example, pure extract of ginger is sold as a health product to aid digestion. 

Programs to Promote Production and Investment 

Because the domestic consumption of spices in SSA markets is generally low, 

the level of spice exports is highly dependent on production. In several SSA 

countries, technical and financial assistance programs by national governments 

and non-governmental organizations (NGOs) have been geared to support the 

sector. This assistance is aimed at both supporting spice producers and improving 

marketing and exporting infrastructure. Assistance includes providing loans to 

small farmers, establishing product quality grades and standards, and improving 

rural infrastructure. 

 

147 Government of Australia, Spices, 2. 148 Angrisani, “Cultural Revelation,” December 10, 2007. 149 Industry representative, telephone interview by Commission staff, December 3, 2007. 

Figure 2.10 SSA vanilla and clove export unit values, 2000–06

0

50,000

100,000

150,000

200,000

250,000

300,000

2000 2001 2002 2003 2004 2005 2006

Year

Vanilla

0

1,000

2,000

3,000

4,000

5,000

Dollars per ton

Cloves

Vanilla Cloves

Source: GTIS, Global Trade Atlas. 
2-45

Programs to promote spice production can be found throughout the region. For 

example, an International Fund for Agricultural Development (IFAD)150 project 

for small-scale vanilla producers in Madagascar provided training in improved 

production techniques and assistance in managing financial risks associated with 

seasonal high price and income volatility. Part of this program included the 

establishment of 18 credit unions covering 43 communes that provided farmers 

with access to affordable financial services for both borrowing and saving.151 In 

Uganda, assistance to vanilla and cardamom farmers was provided by the 

USAID-funded Uganda Agricultural Productivity Enhancement Program 

(APEP).152 Working with the two main Ugandan vanilla grower associations, the 

Association of the Vanilla Exporters of Uganda (VANEX) and the Ugandan 

National Vanilla Association (UNVA), the program involves: (1) training 

growers in improved production technologies, (2) helping grower associations to 

coordinate and monitor farmer activities, (3) promoting the quality of vanilla 

from the farm through processing, and (4) making Ugandan vanilla more 

competitive in world markets. In Nigeria, the Kaduna State Agricultural 

Development Project is working to improve ginger production, processing, and 

marketing by establishing processing centers and providing micro-credit to 

farmers. 

Political Unrest 

During 2002–06, political instability negatively affected exports of SSA spices. 

For example, Zimbabwe, the leading SSA pepper exporter in 2002, experienced a 

sharp decline during 2003–06, following Zimbabwe’s land reform program that 

began in June 2002.153 Exports of cloves by Comoros, the second-largest SSA 

clove exporting country, were adversely affected by periodic political unrest in 

Anjouan, a region that accounts for 90 percent of the Comorian clove crop.154

 

150 IFAD, a specialized agency of the United Nations, was established as an international 

financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. 151 IFAD, “Project Sets up Innovative Vanilla Growing Scheme in Madagascar,” 

April 12, 2007, 1. 152 USAID, Uganda Agricultural Productivity Enhancement Program, 2007. 153 Land was acquired from large-scale commercial farmers for redistribution to resettled smallscale farmers. USAID FEWS, Zimbabwe Livelihood Profiles, September 2005, 9. 154 EIU, Country Profile: Comoros, 2007. 
2-46

Spices Bibliography 

Angrisani, Carol. “Cultural Revelation.” Supermarket News, December 10, 2007. 

http://supermarketnews.com/ethnic_specialty/cultural_revelation. 

Cadot, O., L. Dutoit, and J. de Melo. “The Elimination of Madagascar’s Vanilla Marketing 

Board, Ten Years On.” World Bank Policy Research Working Paper 3979, August 2006. 

Chemonics International Inc. Global Market Assessment: Nigerian Exports of Agricultural and 

Natural Products. Prepared for United States Agency for International Development/Nigeria, 

November 29, 2001. http://www.usaid.gov/ng/downloads/markets/global_market_assessment.doc

(accessed December 21, 2007). 

Economic Intelligence Unit (EIU). Country Profile: Comoros. 2007. 

Feitosa, Orion, “Brazilian Cloves Exports – Next Crop Foresight 2002-08-19,” Brazilian 

Peppertrade Board, August 19, 2002. http://www.peppertrade.combr/vernoticia.php?dn-133. 

Gersema, Emily. “Vanilla Prices Go Through the Roof, Poor Growing Seasons in Madagascar 

Cause Spike in Costs.” Associated Press, August 2003. 

Global Trade Information Services, Inc. (GTIS). World Trade Atlas Database. Annual data 

compiled from reporting countries’ official statistics, including EU27 external trade. 

http://www.gtis.com/gta/usitc/ (accessed various dates). 

Government of Australia. Spices. Trade Information Brief. Trade and Industrial Policy Strategies 

(TIPS), 2007. http://www.sadctrade.org/files/TIB-Spices-final.pdf (accessed January 31, 2007).

International Fund for Agricultural Development (IFAD). “Project Sets up Innovative Vanilla 

Growing Scheme in Madagascar.” Rural Poverty Portal, April 12, 2007. 

International Society for Horticultural Science. The Uganda Horticultural Sector in Uganda. 

January 2005. http://www.actahort.org/chronica/pdf/sh_1.pdf. 

Manitoba Agriculture, Food and Rural Initiatives, “Herb and Spice Industry Overview – Four 

Market Applications/Barriers and Challenges – Manitoba.” December 2005. 

http://www.gov.mb.ca/agriculture/financial/agribus/ccg02s01.html. 

Trade and Industrial Policy Strategies and Australian Agency for International Development. 

SADC Trade, Trade Information Brief, Spices. http://www.sadctrade.org/files/TIB-Spicesfinal.pdf (accessed January 31, 2008). 

Ugandan Ministry of Agriculture. Animal Industry and Fisheries. National Agricultural Advisory 

Service. Kampala, May 23, 2003. 

http://naads.or.ug/manage/reports/20reportVanilla%20consultative%20wshop%20report.pdf. 
2-47

United Nations Council for Trade and Development (UNCTAD). The Market of Cloves 

in the European Union. Geneva: International Trade Center, 2006. 

http://www.epicescomores.com/pdf_doc_gie/CCI_Girofle_Cloves.pdf (accessed 

January 25, 2008). 

United Nations Conference on Trade and Development/World Trade Organization 

(UNCTAD/WTO). International Trade Centre. “Spices.” Market News Service, 5, June 17, 2005. 

Food and Agriculture Organization of the United Nations. Global Information and Early Warning 

System on Food and Agriculture (FAO/GIEWS). “Crop Outlook Further Deteriorates in 

Madagascar and Mozambique Following Cyclone Hudah.” Special Alert No. 305, FAO 

Corporate Document Repository, April 12, 2000. 

——. Foodcrops and Shortages No. 2, Madagascar, April 11, 2000. 

U.S. Agency for International Development (USAID) Famine Early Warning System (FEWS). 

Zimbabwe Livelihood Profiles, September 2005. 

——. Uganda Agricultural Productivity Enhancement Program, 2007. 

http://www.apepuganda.org/index.htm. 

U.S. International Trade Commission (USITC). Interactive Tariff and Trade Dataweb (Dataweb). 

http://dataweb.usitc.gov (accessed various dates). 

Yiljep, Y.D., G.A. Fumen, and E.S.A. Ajisegiri. “The Effects of Peeling, Splitting and Drying on 

Ginger Quality and Oil/Oleoresin Content.” Manuscript FP 05 009. Vol. VII, December 2005. 

Agricultural Engineering International: The CIGR EJournal. 

http://ecommons.library.cornell.edu/bitstream/1813/2626/32/FP+05+009+Yiljep+final+12Dec20

05.pdf (accessed December 3, 2007). 
2-48

Tropical Fruit155

Summary of Findings 

Growth in consumer demand for both bananas and pineapples in the major 

consuming markets of the EU and the United States spurred worldwide trade and 

contributed to an increase in exports from SSA producers between 2002 and 

2006. Increasing prices in the EU market led to SSA exports of bananas 

increasing by 69 percent between 2002 and 2006 in terms of value compared to 

only 11 percent in terms of volume. Cameroon and Côte d’Ivoire, the largest 

SSA banana exporters, together accounted for almost 90 percent of the total SSA 

growth by value in banana exports. While increased prices were caused primarily 

by growth in demand, the new EU banana tariff regime (see box 2.5) may have 

also contributed to the increase. Multinational produce firms expanded their SSA 

operations in order to take advantage of increased EU demand and the tariff 

preferences granted to SSA countries. 

 

Total SSA exports of pineapples decreased slightly during 2002–06, as 

Cameroon and Ghana experienced increases that were offset by a significant 

decrease from Côte d’Ivoire. The introduction of a sweeter, consumer-preferred 

variety of fresh pineapple in the market drove a shift in demand for this variety 

(box 2.5). Cameroon, Côte d’Ivoire, and Ghana were slower than competing 

producers in Latin America to supply the new variety and consequent lost market 

share in the EU. West African producers responded by converting their 

production from the traditional Smooth Cayenne variety to the new MD2 variety. 

This transition had a negative impact on SSA pineapple exports, but should 

enable a more competitive SSA industry to emerge in the near future. 

Certain factors benefitted both banana and pineapple exports during 2002–06. 

Assistance from international aid programs and foreign governments provided 

Cameroon, Côte d’Ivoire, and Ghana with the ability to upgrade their 

infrastructure during this period. Export facilities and feeder roads were 

improved, which provided small pineapple growers, as well as larger banana 

plantations, with the ability to get their product to the market with greater 

efficiency, preserving product quality from farm to the final consumer. These aid 

programs, as well as increased foreign investment in new operations and 

increased support from industry organizations, significantly improved the 

competitiveness of SSA exports. 

 

155 The majority of SSA non-citrus tropical fruit production is from two product categories, 

pineapples (HS 0804.30) and bananas, including plantains (HS 0803). Together these two products 

make up more than 60 percent of the total volume of all tropical fruits produced in SSA. Pineapples 

and bananas are also the most heavily traded tropical fruits and experienced the most significant 

shifts in exports during 2002-2006. This section will cover the pineapple and banana sectors in 

Côte d’Ivoire, Cameroon, and Ghana because those countries experienced large shifts in exports. 
2-49

Industry Overview 

Production of bananas and pineapples has thrived in Cameroon, Côte d’Ivoire, 

and Ghana due to favorable climate conditions and soil fertility. Bananas and 

pineapples flourish in subtropical equatorial climates where the temperature 

remains high. As a result of these climatic requirements, tropical fruits are 

typically grown in various Latin American, African, and Asian countries situated 

around the equator. 

Nevertheless, the lack of a comprehensive “cold chain” from farm to port and 

adequate road networks seriously impacts the competitiveness of SSA exports.156

Because fresh tropical fruits are highly perishable, efficient infrastructure 

systems are critical to the success of banana and pineapple export industries. 

However, pre-cooling and cold-storage facilities are limited for producers and 

exporters throughout SSA. While there are some facilities in place in Ghana, 

these are largely unused because a complete cold-storage chain, while under 

construction, has yet to be completed. As a result, approximately 40 percent of all 

Ghanaian agricultural output is lost annually due to inadequate cold-storage 

facilities, infrastructure, and road networks.157 Cold-storage facilities and supply 

 

156 The percentage of tropical fruit products shipping from Cameroon, Côte d’Ivoire, and 

Ghana by sea freight has grown significantly as the number of reefers with cold storage capabilities 

has increased. Pineapples and bananas are generally transported from the farm at ambient 

temperatures prior to reaching the port for sea-freight shipping but will be cooled slightly once in 

the hold of the reefer vessel or container. Air freight remains expensive and therefore is generally 

used only for the highest-quality products. Adongo, “Reflecting National Circumstances and 

Development Priorities,” 8. 157 “Ghana-Irrigation is a Priority,” edited by Pita Adams, Africa Research Bulletin,17054A–

17055A. 

Box 2.5 Product description for bananas and pineapples 

The banana and its relative the plantain are often regarded as the fourth most important food crop for the world after rice, 

maize, and wheat. Bananas are generally eaten raw, while plantains are most often cooked. Bananas are also eaten dried 

as a snack food. Bananas grow in tropical climates on trees and in clusters. These hanging clusters together make up a 

“bunch,” which is the most common commercial form and can weigh up to 50 kg. The majority of global production occurs 

in developing countries and plays an important role in their economy and food security. Bananas are generally exported 

from developing countries to developed country markets. 

Pineapples are second only to bananas as both the EU’s and the United States’ most popular tropical fruit. Pineapples are 

also produced in warm equatorial climates. Fresh pineapple is difficult to ship long distances because it can quickly 

become over-ripe if not properly handled. As a result, a large percentage of pineapples traded globally are processed and 

canned. The Smooth Cayenne pineapple was traditionally the most prevalent; however, it had several undesirable 

characteristics such as tough flesh and large spikes. A new pineapple variety, the hybrid MD2, possesses characteristics 

preferred by consumers, which has led to its increased consumption in recent years. For example, it is uniform in size and 

ripeness, has spineless leaves, and is less resistant to internal browning, thus giving it a longer shelf life and making it 

easier for producers to ship and handle. Consumers also prefer the MD2 variety because it is sweeter, less acidic, and 

more palatable. Del Monte launched this variety in Costa Rica and began marketing it as the MD2 variety in the late 

1990s.1 

____________ 

1 Del Monte, The History of the Pineapple, October 2006. The development of new pineapple breeds dates back to 

the 1970s when Dole, Del Monte, and the Maui Land and Pineapple Company partnered with University of Hawaii 

scientists and the Pineapple Research Institute to develop and introduce new hybrid pineapple varieties. 
2-50

chains, as well as more dependable road networks, are being developed in all 

three countries. 

 

Recently, large international agribusiness corporations have begun to play a more 

significant role in the pineapple sector in West Africa and in the banana sector in 

Ghana. Compagnie Fruitière, of which Dole Food Company, Inc., has a 

40 percent stake, began its Ghanaian operations in August of 2003 under the 

locally registered name of Golden Exotics Ltd. Compagnie Fruitière plays an 

influential role in the region and has a history of large banana and pineapple 

production facilities throughout West Africa. As more international firms have 

entered SSA through partnerships, joint ventures, or direct investment, and as 

worldwide demand for tropical fruits has increased, the hectarage utilized for 

production of these fruits has increased significantly. 

Downstream processing of tropical fruit in Cameroon, Côte d’Ivoire, and Ghana 

is fairly limited. Despite the fact that SSA firms generally have adequate 

technical expertise allowing them to remain competitive, they face numerous 

challenges that limit the possibility of growth.158 Downstream processing, of 

pineapple juices and concentrates as well as sliced and canned pineapple, is 

limited primarily due to concerns about the reliability of the supply of the fresh 

goods needed for processing. The lack of sufficient fresh produce for processing, 

which has intensified as a result of the transition to newer varieties; rising fresh 

produce prices; and quality concerns are the primary supply issues that limit the 

expansion of downstream processing in SSA (box 2.6). 

 

158 Industry official, interview by Commission staff, Ghana, October 30, 2007. 
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Bananas

In Cameroon, Côte d’Ivoire, and Ghana, most bananas are grown on medium to 

large plantations that are located near the major road networks, allowing for more 

efficient transport of the produce. Farm sizes have become the norm in SSA 

because large capital investments are needed in order to establish efficient 

growing plots. 159 In addition, expansion requires a significant amount of capital 

expenditure prior to generating an output because banana trees take 

approximately 12 to 16 months to bear fruit and the bananas are generally 

harvested only once a year. 

 

In Côte d’Ivoire, banana plantations cover an area of approximately 

5,500 hectares. The industry has experienced significant consolidation; since 

1993, the number of plantation sized farms has dropped from 83 to fewer than 

30.160 As West African producers have become increasingly export oriented, 

consolidation has occurred as a result of the competitive pressure from Latin 

American countries outside of the EU tariff-exempted African, Caribbean, and 

 

159 Minot, “Are horticultural exports a replicable success story?” 36. 160 Industry official, interview by Commission staff, Côte d’Ivoire, October 24, 2007. 

Box 2.6 Downstream tropical fruit production

A limited number of firms in Cameroon, Côte d’Ivoire, and Ghana are operating in the downstream sectors of the fresh 

tropical fruit industry. Downstream processing includes the processing of tropical fruits, primarily pineapples and 

mangoes, into various forms such as fruit salads, juices, concentrates, and sliced and canned produce. Bananas are 

only processed into a limited amount of forms, such as dried chips, and only a very small amount of banana processing 

occurs worldwide. 

In Côte d'Ivoire, pineapples are the only fresh produce to benefit from a well-structured processing industry. The 

processing is primarily done by two firms, Confripral and Safco. Both firms produce pineapple juice and concentrate, 

while Confripal also produces fruit pulp in cans. In Ghana, downstream industries consist of several small-and 

medium-sized companies. The processing firms in Ghana include: Blue Skies, which ships fresh pineapples and other 

tropical fruit, both organic and non-organic, also processes fruit into fruit salads; Astek, which is a large processing and 

packaging company that produces fruit juices; Dansak Farms, which produces fresh fruit juices as well as dried fruits and 

nuts; Ebenut Ghana, which produces dried fruits and nuts; N’Kulenu, which is a producer of preserves and fruit sauces; 

and Athena Foods, which produces fruit juices and concentrates.1

 

 

While demand for processed products has increased in European markets, the challenges that limit downstream 

processing in SSA generally lie on the supply side. The primary concern has been the availability of high-quality fresh 

fruit needed for processing. Processors compete with exporters that demand high volumes of fruit and often offer higher 

prices for raw materials.2 The transition to the new MD2 pineapple variety has also limited the availability of raw 

materials, especially for the juice producers. Juicers generally prefer to use the Smooth Cayenne pineapple variety, 

however, very few growers are still producing the Smooth Cayenne variety as a result of the fresh market preference for 

MD2.3

 The supply of quality raw materials is also a hindrance to downstream processing of tropical fruits. Quality 

standards are of significant importance to European importers, and if SSA processors are not able to maintain their 

quality certifications, then their business is impacted tremendously. One problem is that fruit acidity levels are often 

inconsistent. Second, varying levels of supply cause inconsistent quality. For example, in 2004 Athena Foods of Ghana 

had an oversupply of the Smooth Cayenne variety due to the lack of demand in Europe and as a result, quality 

decreased.4 

____________ 

1

 Sofreco,”Strategic Evaluation of the Agro-Industrial Sector,” September 4–7, 2002. 2

 Industry official, interview by Commission staff, Ghana, October 31, 2007. 3 Industry official, interview by Commission staff, Ghana, October 31, 2007. 4

 Industry official, interview by Commission staff, Ghana, October 31, 2007.
2-52

Pacific (ACP) regions to reduce the cost of production while at the same time 

adhering to the strict quality and sanitary conditions that European importers 

require.161 A portion of overall banana production does come from smaller farms; 

however, according to the Food and Agriculture Organization (FAO), smaller 

growers are “usually located in poor soils, with steep slopes and limited water 

availability... [they] are finding it increasingly difficult to compete and are 

slowly disappearing.”162 In Côte d’Ivoire, the largest export companies are the 

Banana Development Society (SCB), a venture in which Dole Food Company, 

Inc. has controlling ownership interest; Banador, a subsidiary of Chiquita Brands 

International; and Canavèse. The employment generated by these banana 

operations is estimated at approximately 20,000–30,000 jobs.163

While the banana industry is relatively young in Ghana and smaller than some of 

its SSA competitors, it has a competitive advantage in its productivity. Hotter 

temperatures in Ghana allow banana trees to produce an average of 1.7 bunches 

of bananas per year compared to 1.3 bunches in Cameroon and Côte d’Ivoire.164

Pineapples 

Pineapple-producing companies in Cameroon, Côte d’Ivoire, and Ghana range in 

size from small individual subsistence farmers, to medium-size local companies, 

to cooperatives and joint ventures generally established through investments by 

larger multinational produce firms. The larger cooperatives and joint ventures 

generally operate at almost all stages of the value chain and often produce, 

process, and export the product.165 There are 56 pineapple exporters in Ghana, 

with the largest five accounting for 57 percent of the product.166

Small landholders that produce pineapples on farms generally between 0.5 and 

10 hectares in size continue to play a crucial role in the SSA pineapple industries 

and make up a significant percentage of production.167 These small growers 

generally have limited access to inputs such as mechanical equipment, training, 

and seeds, but are vital to the industry’s success because large exporters 

generally have to subcontract with them in order to acquire their needed supply 

of fruit. In Ghana, exporters buy approximately 40 percent of their export 

requirements from small independent growers under various arrangements.168 In 

Côte d’Ivoire an even larger percentage of exports is purchased from small 

independent growers.169 Small growers tend to be more common in pineapple 

production compared to other tropical fruit production because the initial 

investment cost of establishing a farm is relatively low.170 Unlike bananas and 

 

161 Minot, “Are horticultural exports a replicable success story?” 38. 162 FAO, “The World Banana Economy 1985-2002.” 163 USAID, “Policies Affecting the Development of Ghana’s Banana-Export Sector,” 69. 164 Industry official, interview by Commission staff, Accra, Ghana, October 30, 2007. 165 Danielou, “The Rise of Ghana’s Pineapple Industry,” November 2005, 17. 166 The five largest exporters are Jei River, Farmapine, Koranco, Milani, and Prudent. Danielou 

“The Rise of Ghana’s Pineapple Industry,” November 2005, 17. 167 Minot, “Are horticultural exports a replicable success story?” 36. 168 Yeboah, Godfred, “The Farmapine Model,” January 16, 2005. 169 Minot, “Are horticultural exports a replicable success story?” 36. 170 Ibid. 
2-53

other tropical fruits, pineapples have a short crop cycle time and are generally 

harvested every 6 to 8 months. Because of this faster crop cycle time, the 

investment risk and the capital requirements per unit of production are 

reduced.171 However, poor roads in these countries penalize the small growers 

that tend to operate in more remote areas of the country. 

Partnerships between small growers and large exporters can provide the growers 

with access to necessary inputs that the growers may not be able to acquire on 

their own. Exporters will occasionally provide assistance, often in the form of 

chemicals, planting materials, or even cash advances, to independent growers 

with the understanding that the grower sell his produce to the exporter. In Ghana, 

the arrangements between small growers and larger exporters are rarely made 

with legal contracts. This creates an uncertain business environment for both the 

producers and traders, as the growers will often disregard their previous 

agreements to sell to other exporters who are offering higher prices.172

Sub-Saharan Africa Trade in the Global Context 

Bananas 

Global banana production totaled almost 70 million metric tons (mmt) in 2006. 

While bananas are produced in many tropical countries worldwide, the majority 

of production and trade is highly concentrated in a few countries. The 10 largest 

banana-producing countries accounted for about 75 percent of total banana 

production in 2006; Brazil, China, Ecuador, India, and the Philippines alone 

produced more than half of the total.173 In 2006, 35 SSA producers accounted for 

almost 4 mmt, or 6 percent, of worldwide production. During 2002–06, the 

largest SSA producers in order of production volume were Burundi, Cameroon, 

Uganda, Kenya, and South Africa. Global production of bananas increased by 

3 percent volume between 2002 and 2006, while global exports have increased 

by 13 and 42 percent, in terms of volume and value, respectively. SSA exports 

grew at a similar rate to global exports by volume, increasing by approximately 

11 percent during 2002–06. However, in terms of value SSA exports grew by 

69 percent (table 2.6).174

 

171 USAID, “Policies Affecting the Development of Ghana’s Banana-Export Sector,” 104. 172 Yeboah, Godfred, “The Farmapine Model,” January 16, 2005. 173 FAO, FAOSTAT Production Database. 174 GTIS, Global Trade Atlas. 
2-54

Pineapples 

Global pineapple production was approximately 18 million mt in 2006 and in 

recent years has been characterized by steady growth.175 Between 2002 and 2006, 

global production of pineapples increased by 15 percent by volume. In 2006, the 

largest producers were Thailand (2,705,179 mt), Brazil (2,487,116 mt), the 

Philippines (1,833,910 mt), China (1,400,000 mt), India (1,229,400 mt), and 

Costa Rica (1,200,000 mt).176 The 23 countries that produce pineapples in SSA 

produce about 14 percent of the world total each year, which in 2006 was 

2.6 million mt.177 During 2002–06, the largest SSA producers in order of 

production volume were Nigeria, Kenya, South Africa, Côte d’Ivoire, and the 

Democratic Republic of the Congo. 

 

Growth in global exports of fresh pineapples grew at an even faster rate than 

production during 2002–06: approximately 84 percent by volume.178 Although 

SSA countries have historically held a significant share of global pineapple trade, 

that share dropped during 2002–06 as total SSA pineapple exports fell 28 percent 

by volume (table 2.7). This decrease lowered SSA’s share of total world exports 

from approximately 21 percent in 2002 to only 11 percent in 2006.179

 

175 FAO, FAOSTAT Production Database. 176 Thailand and China are the first and fourth largest exporters of canned pineapples in the 

world. Brazil, India, and China are the world’s second, third, and fourth largest consumers of fresh 

pineapples only behind the United States. As a result, all four countries are not major exporters of 

fresh pineapples. FAO, FAOSTAT Consumption Database and GTIS, Global Trade Atlas. 177 FAO, FAOSTAT Production Database. 178 GTIS, Global Trade Atlas. 179 Ibid. 

Table 2.6 Sub-Saharan Africa exports of SSA bananas, by selected exporters and key markets, 2002–06

 Exports Change, 2002 to 2006 

Exporter Key markets 2002 2003 2004 2005 2006 Absolute Percent 

1,000 dollars 134,125 214,852 213,408 226,758 221,157 87,032 65 EU Metric tons 236,502 298,507 261,244 252,926 252,722 16,220 7 

1,000 dollars 1,731 1,134 665 216 510 -1,221 -71 All other Metric tons 4,542 2,838 788 74 627 -3,915 -86 

1,000 dollars 135,856 215,986 214,073 226,974 221,667 85,811 63 

Cameroon 

Total Metric tons 241,044 301,345 262,032 253,000 253,349 12,305 5 

1,000 dollars 112,992 158,929 183,402 164,034 180,441 67,449 60 EU Metric tons 216,742 210,952 210,776 183,850 221,791 5,049 2 

1,000 dollars 4,404 5,374 7,196 7,493 9,025 4,621 105 All other Metric tons 13,345 13,540 15,548 16,442 20,590 7,245 54 

1,000 dollars 117,396 164,303 190,598 171,527 189,466 72,070 61 

Côte d'Ivoire 

Total Metric tons 230,087 224,492 226,324 200,292 242,381 12,294 5 

1,000 dollars 2,647 1,245 2,500 3,763 16,852 14,205 537 EU Metric tons 3,536 1,238 2,003 4,331 22,615 19,079 540 

1,000 dollars 23 26 8 6 75 52 226 All other Metric tons 25 32 4 5 158 133 532 

1,000 dollars 2,670 1,271 2,508 3,769 16,927 14,257 534 

Ghana 

Total Metric tons 3,561 1,270 2,007 4,336 22,773 19,212 540 

1,000 dollars 250,342 375,430 399,877 395,807 421,040 170,698 68 EU Metric tons 457,434 510,935 474,274 441,907 498,400 40,966 9 

1,000 dollars 8,714 6,933 8,525 9,308 15,833 7,119 82 All other Metric tons 23,587 18,148 19,358 23,350 35,426 11,839 50 

1,000 dollars 259,056 382,363 408,402 405,115 436,873 177,817 69 

Sub-Saharan 

Africa 

Total Metric tons 481,021 529,083 493,632 465,257 533,826 52,805 11 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 
2-55

Leading Exporters 

Bananas 

The leading global exporter of bananas is Ecuador, followed by Colombia, Costa 

Rica, and the Philippines (figure 2.11). In 2006, these four countries accounted 

for 75 percent of total global banana exports. Banana exports from Latin America 

are shipped in large quantities to both the United States and the EU. Banana 

exports from the Philippines are destined almost entirely for Asian markets. 

The largest SSA banana exporters are Cameroon, Côte d’Ivoire, and Ghana. 

Cameroon and Côte d’Ivoire together accounted for approximately 93 percent of 

all SSA banana exports in terms of volume in 2006. Some of the largest SSA 

banana producers, including Burundi, Uganda, Kenya, and South Africa, export 

only minimal quantities of bananas as a result of high domestic consumption. 

During 2002–06, banana exports from Ecuador, the Philippines, and Costa Rica 

increased in terms of volume by 7, 44, and 12 percent, respectively. The increase 

in exports by all of SSA, 11 percent by volume, mirrored the worldwide growth 

of 13 percent. Exports from Côte d’Ivoire and Cameroon, each of which grew by 

approximately 12,000 mt, or 5 percent, accounted for approximately 47 percent 

of the SSA export growth. Banana exports from Ghana, which contribute a much 

smaller percentage of the total SSA banana exports, experienced the largest 

growth in both volume and value, as a new acreage entered production, and 

increased by more than 530 percent, albeit from a very small base.180 While the 

volume of exports from SSA increased to some extent, the increase of exports in 

 

180 Ibid. 

Table 2.7 Sub-Saharan Africa exports of SSA pineapples, by selected exporters and key markets, 2002–06 

 Exports Change, 2002 to 2006 

Exporter Key markets 2002 2003 2004 2005 2006 Absolute Percent 

1,000 dollars 104,152 119,295 120,887 77,275 72,059 -32,093 -31 EU Metric tons 165,305 141,347 137,528 99,889 94,761 -70,544 -43 

1,000 dollars 6,833 6,751 9,497 8,965 9,092 2,259 33 All other Metric tons 14,522 13,688 16,195 13,998 12,501 -2,021 -14 

1,000 dollars 110,985 126,046 130,384 86,240 81,151 -29,834 -27 

Côte d'Ivoire 

Total Metric tons 179,827 155,035 153,723 113,887 107,262 -72,565 -40 

1,000 dollars 40,265 60,001 70,275 57,393 51,268 11,003 27 EU Metric tons 36,467 44,316 51,726 45,066 40,102 3,635 10 

1,000 dollars 6,874 7,192 5,992 6,671 5,489 -1,385 -20 All other Metric tons 4,080 3,754 3,846 4,338 3,488 -592 -15 

1,000 dollars 47,139 67,193 76,267 64,064 56,757 9,618 20 

Ghana 

Total Metric tons 40,547 48,070 55,572 49,404 43,590 3,043 8 

1,000 dollars 1,451 3,019 3,807 4,164 7,050 5,599 386 EU Metric tons 2,005 3,484 3,963 4,411 8,493 6,488 324 

1,000 dollars 181 306 265 298 583 402 222 All other Metric tons 90 117 92 113 375 285 317 

1,000 dollars 1,632 3,325 4,072 4,462 7,633 6,001 368 

Cameroon 

Total Metric tons 2,095 3,601 4,055 4,524 8,868 6,773 323 

1,000 dollars 154,806 192,943 207,566 150,832 144,166 -10,640 -7 EU Metric tons 211,297 196,336 200,637 156,822 150,085 -61,212 -29 

1,000 dollars 15,593 16,200 17,804 17,613 17,367 1,774 11 All other Metric tons 19,914 18,517 21,231 19,335 17,510 -2,404 -12 

1,000 dollars 170,399 209,143 225,370 168,445 161,533 -8,866 -5 

Sub Saharan 

Africa 

Total Metric tons 231,211 214,853 221,868 176,157 167,595 -63,616 -28 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 
2-56

terms of value was much more significant as a result of increased prices of 

bananas exported to the EU. 

 

Pineapples 

The leading global exporter of fresh pineapples to the world is Costa Rica, 

followed by the Philippines, Côte d’Ivoire, Ghana, and Ecuador. Costa Rican 

exports are sent in large volumes to both the EU and the United States. In 2006, 

the EU and the United States received 46 and 43 percent of Costa Rican 

pineapple exports, respectively. The Philippines’ exports are almost entirely 

destined for Asian markets. Fresh pineapples from Côte d’Ivoire and Ghana are 

exported almost exclusively to the EU. 

The largest SSA pineapple exporters in order of volume are Côte d’Ivoire, 

Ghana, Cameroon, South Africa, and Benin. Côte d’Ivoire and Ghana accounted 

for 85 percent by value of all SSA exports in 2006 (figure 2.12). The two largest 

SSA producers, Nigeria and Kenya, export only minimal quantities due to high 

domestic consumption and a lack of export orientation by small-scale producers. 

Figure 2.11 Leading global and sub-Saharan Africa exporters of bananas, 2006

Global Exporters

Other

19%

Ecuador

30% Colombia

16%

Philippines

14%

Costa Rica

15%

SSA

6%

SSA Exporters 

Other

2%

Côte d'Ivoire

43%

Cameroon

51%

Ghana

4%

 $6,878 million $437 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.
2-57

As world pineapple trade expanded during 2002–06, Costa Rica and the 

Philippines increased their exports by 62 and 46 percent by volume, respectively, 

and maintained their large share of world exports. Côte d’Ivoire’s exports, 

however, decreased by 40 percent from 179,827 mt to 107,262 mt during 2002– 

06 due to political unrest and changing consumer preferences. As a result, 

Côte d’Ivoire’s share of world exports in terms of volume dropped from 

17 percent in 2002 to 5 percent in 2006. Despite a decreasing position as a global 

pineapple exporter, Côte d’Ivoire still accounted for 64 percent of total SSA 

exports by value in 2006. Ghana’s exports peaked in 2004 before decreasing but 

by the end of the period had increased by 8 percent overall. Cameroon’s 

pineapple exports increased consistently throughout the 5-year period and by the 

end of the period increased by 323 percent, albeit from a much smaller base.181 

Leading Export Markets 

The leading global importers of both pineapples and bananas are the EU and the 

United States. The EU is the destination for 47 percent of global exports of both 

pineapples and bananas, while the United States is the destination for 31 and 

17 percent by value of pineapples and bananas, respectively182 (figures 2.13 and 

2.14). The global export market outside of the United States and the EU for 

pineapples and bananas is fragmented among a large number of relatively small 

markets. 

 

181 The trends in pineapple exports mentioned above are similar when exports are measured 

either by value or by volume. GTIS, Global Trade Atlas. 182 GTIS, Global Trade Atlas. 

Figure 2.12 Leading global and sub-Saharan Africa exporters of pineapples, 2006 

Global Exporters

Other

15%

SSA

11%

Costa Rica

64%

Philippines

10%

SSA Exporters 

Other

5%

Ghana

35%

Côte d'Ivoire

50%

Cameroon

5%

South Africa

5%

 $1,414 million $162 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.
2-58

Figure 2.13 Leading markets for global and sub-Saharan Africa exports of pineapples, 2006

Global Export Markets

Other

10%

EU

47%

Japan

6%

United States

31% Canada

6%

SSA Export Markets

EU

89%

Russia

4%

Other

3%

Switzerland

4%

 $1,414 million $162 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.

Figure 2.14 Leading markets for global and sub-Saharan Africa exports of bananas, 2006

Global Export Markets

Other

21%

EU

47%

Japan

8%

United States

17%

Russia

7%

SSA Export Markets

EU

96%

Other

4%

 $6,878 million $437 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade.
2-59

Because the EU imports such large quantities of the global supply of both fruits, 

European consumer preferences and quality standards often set the market trends. 

SSA exports of both fresh pineapples and bananas are almost exclusively 

destined for EU markets, which received 89 and 96 percent of SSA pineapple and 

banana exports by value, respectively, in 2006. However, as global trade and EU 

imports of pineapples and bananas have increased, SSA pineapple exporters have 

struggled to maintain their market share in the EU. While SSA producers ship 

mainly to the EU, in 2006 SSA exports accounted for approximately 19 and 

11 percent of total EU imports of pineapples and bananas, respectively. This is a 

significant decrease from 2002, when SSA pineapple exports accounted for 

56 percent of EU imports. SSA banana exporters maintained their market share 

in the EU between 2002 and 2006.183 During 2002–06 SSA exports of bananas 

and pineapples entered the EU fee of duty below a quota as a result of the 

Cotonou Agreement, which provides tariff preferences for selected ACP 

countries (box 2.7).184 SSA exporters further benefited from a policy in place in 

the EU before January 2006, which restricted the quantity of bananas imported 

from non-ACP countries with a tariff-rate quota system. SSA exports of 

pineapples compete with exports from Costa Rica in the EU market, which also 

enter the EU duty-free under tariff preferences granted to South and Central 

American countries with programs to combat drug production. 

 

183 Ibid. 184 The Cotonou Agreement is a treaty between the EU member states and a group of African, 

Caribbean, and Pacific (ACP) states. Seventy-nine ACP countries are signatories of the Cotonou 

Agreement, which replaced the Lomé Convention when it was signed in 2000. It came into force in 

2002 and aims to reduce poverty and increase development through a number of methods, 

including trade preferences. Market access preferences under the Cotonou Agreement expired on 

December 31, 2007. Some ACP countries have since entered into “interim” agreements called 

Economic Partnership Agreements. 
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Factors Affecting Export Patterns 

Growth in consumer demand for bananas in major consuming markets, such as 

the EU, was the key factor contributing to SSA banana export growth. In order to 

take advantage of increased EU demand and the tariff preferences granted to SSA 

countries, multinational produce firms expanded existing banana plantations and 

invested in new operations. This increased investment by multinational produce 

firms was a key factor contributing to SSA banana export growth. 

 

The main factor contributing to shifts in pineapple exports was the entrance in 

the market of new, sweeter, consumer-preferred pineapple varieties. The 

resulting shift in demand to the new pineapple varieties forced the West African 

producers to convert their production to the new MD2 variety, which negativity 

impacted SSA export volumes during 2002–06. 

Box 2.7 EU tariff preferences for bananas from ACP countries 

EU preference conditions for bananas from ACP (African, Caribbean, and Pacific) countries have given SSA exporters an 

advantage in the EU market over the large producers and exporters in Latin America. Prior to January 1, 2006, the EU 

applied a complex system of tariff-rate quotas for bananas under which ACP bananas entered free of duty under a quota 

of 750,000 tons. A €75 (about $90) per ton tariff was applied to EU banana imports from all other countries up to the quota 

of 2,653,000 tons.1

 An additional 460,000 tons for all countries was added to the quota in 2004 as a result of the EU 

membership expansion.2

 For bananas that entered the EU above the quota limits, prohibitive out-of-quota tariffs of €380 

(about $440) and €680 (about $790) per ton were applied for bananas from ACP countries and all other countries, 

respectively.2

 

The EU banana regime has been the focus of ongoing negotiations, cases, and formal consultations in the WTO.4 The EU 

lost a case before the WTO Dispute Settlement Body in 1999, and after negotiations with the United States and Ecuador, 

agreed in 2001 to implement a new banana tariff-only regime by January 1, 2006. The new tariff regime implemented in 

2006 continued to be preferential for ACP bananas. The new regime applies a tariff of €176 (about $200) per ton to 

countries with WTO MFN status. Bananas supplied by ACP countries enter free of duty below a quota of 755,000 tons. 

The quota level for ACP countries is approximately equal to the average amount of ACP bananas that traditionally entered 

the EU on a yearly basis.5

 Non-ACP countries, such as Ecuador and Colombia, that do not receive the ACP preferences 

have continued to fight the tariff, arguing that the €176 (about $200) per ton tariff is too high and provides additional cost 

advantages to the ACP producers. 

____________ 

1

 FAO, “Agriculture, Trade Negotiations, and Gender,” 36. 

2

 The additional 460,000 tons was the total provided for all countries. EC, “Biennial Report on the Special Framework 

of Assistance for Traditional ACP Suppliers of Bananas,” December 12, 2004, 5. 3

 EC, Taric Consultation Database. 

4

 “In September 1995, the United States, Guatemala, Mexico, and Honduras requested formal consultations with the 

EU, challenging the European import regime that gave preferences to banana imports from its former colonies, and 

preferential licenses to European banana importers. Ecuador later joined the WTO dispute. The EU lost the case before 

the WTO Dispute Settlement Body, and in 1999 the US imposed 100 percent tariffs on a list of eight items representing 

$191.4 million in imports from the EU. In 2001, the EU reached an agreement with the US and Ecuador to implement a 

new tariff regime by January 1, 2006.” USDA, FAS, EU-25 Trade Policy Monitoring Second WTO Rejection of the Banana 

Dispute, 2005, March 14, 2007. 5

 EC, “Biennial Report on the Special Framework of Assistance for Traditional ACP Suppliers of Bananas,” 

December 12, 2004, 4. 
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Demand Growth for Bananas and Pineapples 

Bananas 

Demand for bananas in the EU grew significantly in 2003 and 2004, partly as a 

result of cool weather in parts of Europe that reduced competition from other 

summer fruits due to below-average harvests.185 Also, EU domestic production186

during 2002–06 decreased by more than 13 percent by volume.187 These 

conditions led to greater EU demand for banana imports, which, by volume, 

increased by 13 percent between 2002 and 2006.188 As a result, total EU 

consumption of bananas grew steadily between 2002 and 2005, increasing by 

12 percent by volume.189 This increased demand in the EU encouraged SSA 

growers to increase production and exports to the EU.190 

Pineapples 

Demand for fresh pineapples in major consuming markets has increased over the 

last decade as a result of increased consumer education, better quality control, a 

growing preference for fresh instead of processed fruit, and improved packing 

techniques and product movement. Increases in demand during the 2002–06 

period can be attributed to product innovations, such as the new MD2 variety, 

which have catered to changing consumer tastes, and new fresh pineapple 

product offerings by marketers, such as fresh cut pineapple in supermarket 

refrigerated sections. Pineapple consumption in the EU, SSA’s major export 

market, grew significantly during this period, by more then 30 percent by volume 

between 2002 and 2005.191 As there is virtually no pineapple production within 

the EU, the additional demand was supplied almost entirely by increased imports. 

Total EU imports of pineapples increased by 104 percent by value between 2002 

and 2006.192 Despite growing EU demand and consumption of pineapples, the 

increased demand was primarily for the new varieties and not the traditional SSA 

export varieties. 

Development of New Pineapple Variety 

During 2002–06, a new, consumer-preferred variety of pineapple entered the 

market in significant quantities, primarily from Costa Rica, and was an important 

factor that contributed to a decrease in exports from Côte d’Ivoire and Ghana and 

 

185 FAO, “Food Outlook April 2005,” April 2005, 20. 186 EU banana production is located in Spain (Canary Islands), France (Guadeloupe and 

Martinique), Greece, and Portugal (primarily Madeira). EU production has typically supplied 

slightly more than 10 percent of EU consumption. FAO, FAOSTAT Production and Consumption 

Database. 187 FAO, FAOSTAT Production Database. 188 GTIS, Global Trade Atlas. 189 2005 is the latest year for which consumption data is available. FAO, FAOSTAT 

Consumption Database. 190 Industry official, interview by Commission staff, Côte d’Ivoire, October 25, 2007. 191 FAO, FAOSTAT Consumption Database. 192 GTIS, Global Trade Atlas. 
2-62

a corresponding contraction in market share for SSA in the EU. The Smooth 

Cayenne pineapple was traditionally the most prevalent; however, a new variety, 

the MD2, is now preferred by European and U.S. consumers due to its sweeter, 

less acidic flavor.193 Increased demand for the MD2 variety increased the value 

of trade for pineapples, because the MD2 variety is often twice the price of the 

traditional Smooth Cayenne.194 In 2003 and 2004, Costa Rica began exporting 

large volumes of the MD2 variety, which provided Costa Rica with a first-tomarket advantage and allowed it to significantly increase its market share in the 

EU, to the detriment of the West African producers.195 The MD2 variety also 

drove down the price of the traditional Smooth Cayenne variety, which resulted 

in a significant drop in the value of SSA exports. 

The MD2 variety now accounts for more than 75 percent by volume of European 

pineapple imports.196 This change in consumer preference to the new variety 

forced the industries in Côte d’Ivoire, Ghana, and Cameroon to transition their 

production to the MD2 variety in order to counter their decreasing market shares 

in the EU. The transitions in each country occurred on different time schedules, 

used different methods, and had varying degrees of government assistance and 

success. 

Increased Foreign Investment 

Multinational produce companies, such as Dole, Chiquita, and Del Monte, 

expanded their plantings or established new large-scale production operations in 

the banana sector of West Africa in order to take advantage of the EU tariff 

preferences provided to ACP countries.197 For example, new investments in 

Ghana brought a large multinational firm, Compagnie Fruitière and Dole under 

the Golden Exotics name, into the banana industry and exponentially increased 

exports since the beginning of its operations. Investments in the region increased 

plantings, and as a result, the total area harvested for bananas in Côte d’Ivoire, 

Cameroon, and Ghana increased by more than 12 percent between 2002 and 

2006.198 Foreign investment also brought highly professional farm practices and 

state-of-the-art logistics to the West African tropical fruit producers. 

Price Increases for Bananas 

The price of imported bananas in the EU increased significantly between 2002 

and 2006 as a result of a number of factors. Refrigerated container rates increased 

 

193 The hybrid MD2 pineapple is also uniform in size and ripeness, has spineless leaves, and 

has a brighter gold color than the more traditional varieties, such as Smooth Cayenne. To the 

benefit of both producers and consumers, the MD2 variety is less resistant to internal browning, has 

a longer shelf life, and as a result demands a higher market price. 194 Fresh Plaza, “Ghana: Government fulfils promise to Pineapple exporters,” July 11, 2005. 195 Ghana Export Promotion Council, “Exports of MD2 Variety Rake in $20 million,” 

February 8, 2007. 196 Ghanaweb, “GEPC Orders Pineapple Plantlets,” October 11, 2004. 197 Dow Jones Newswires, “Ecuador Reignites Banana Wars,” February 27, 2007. 198 FAO, FAOSTAT Production Database. 
2-63

worldwide, causing the price of bananas to rise in all markets.199 Unfavorable 

weather in Central America during the 2005 hurricane season limited supply 

while demand remained high, causing prices to rise globally.200 In addition, 

changes to the EU tariff regime for bananas in 2006 may have contributed to a 

rise in banana prices (box 2.9). 

 

For SSA exporters, the price of bananas in the EU has a substantial impact on the 

total value of exports since almost all SSA banana exports are destined for EU 

markets. While the value of SSA exports to the EU rose significantly due to price 

increases, the quantity exported only rose by approximately 9 percent.201 While 

the average unit value of EU banana imports rose from all sources, the increase 

was much more significant from the large West Africa producers. Between 2002 

and 2006, the average price per ton of imported bananas from Cameroon and 

Côte d’Ivoire rose 54 percent, from $548 to $843.202 Over this same period the 

average import value increased for bananas from the large Latin American 

producers by only 26 percent, from $557 to $704.203 The average EU value 

increase per ton for all imported bananas in terms of the euro was less profound 

but still significant.204 The increase was 30 and 20 percent from Côte d’Ivoire and 

Cameroon, respectively, in terms of euros during 2002–2005.205 These higher 

prices encouraged producers to increase production and exports.206

The new EU banana tariff, which increased from €75 (about $90) under a TRQ to 

€176 (about $200) per ton for all non-ACP imports in January 2006, also may 

have contributed to an increase in prices of bananas that year.207 The new tariff 

reportedly added significant costs for large multinational firms exporting bananas 

into the EU from Latin America and other non-ACP countries such as Brazil. As 

a result, large multinational produce firms announced price increases in the EU 

market in 2006. For example, Chiquita announced that the tariff increased its cost 

per box of Latin American bananas in the EU by $2.20.208 The firm’s average 

price in the EU, as a result, also rose by 5 percent on a local currency basis.209 As 

the higher tariff reportedly increased costs and prices for the Latin American 

 

199 One factor contributing to the rise in import prices was the rise in the cost of sea 

transportation. This was caused partially by the doubling of fuel prices between 2002 and 2006. 

Reefer rates on average increased by approximately 10 percent between 2004 and 2005 alone. 

FAO, “Banana Market Situation in 2005 and Early 2006”; The Federal Reserve Board of San 

Francisco, “Oil Prices and the U.S. Trade Deficit,” September 22, 2006; and InflationData, 

“Historical Crude Oil Prices.” 200 FAO, “Banana Market Situation in 2005 and Early 2006,” May 2006 201 GTIS, Global Trade Atlas. 202 Prices are C.I.F. (Cost Insurance Freight) values. 203 Latin American producers referred to here includes Ecuador, Colombia, and Costa Rica. 204 SSA exports are generally traded in euros while Latin American exports are generally trade 

in U.S. dollars. 205 USAID, “Policies Affecting the Development of Ghana’s Banana-Export Sector,” 

December 2006, 26. 206 Industry official, interview by Commission staff, Côte d’Ivoire, October 25, 2007. 207 EC, “Biennial Report on the Special Framework of Assistance for Traditional ACP 

Suppliers of Bananas,” December 12, 2004, 4. 208 The standard box size is 40 lbs. 209 Heller, “Chiquita Raises Banana Prices in Response to Higher Tariffs,” Food Navigator 

Europe, March 24, 2006. 
2-64

product, the largest suppliers to the EU market—the SSA exporters—may have 

also been able to increase their average price per ton without losing market share.

Assistance to SSA from International Aid Programs 

During 2002–06, development aid from a number of international organizations 

and government donors funded projects that provided support to the pineapple 

and banana industries in SSA in order to improve their competitiveness in global 

markets. Although the specifics of these initiatives will be discussed below in 

specific country profiles, the support provided technical assistance to SSA 

growers in order to enhance productivity, improved the business environment, 

and upgraded export facilities and supporting infrastructure thereby improving 

speed to market and product quality. The assistance also supported the 

development of tropical fruit industry organizations and producer organizations. 

The Development of Industry Organizations and Government 

Support Institutions 

Private industry and tropical fruit producer organizations in Côte d’Ivoire, 

Ghana, and Cameroon increased their coordination and influence as their 

industries matured during 2002–06. As a result of their increased capabilities, 

these industry organizations, with the assistance of government support 

institutions, were able to provide strategic direction for their industries’ growth, 

as well as oversight of their industry operations. Industry organizations worked 

with individual private firms and were integral to the pineapple industries’ 

transition from the Smooth Cayenne variety to the consumer-preferred MD2 

variety. Because the EU is the destination for almost all SSA tropical fruit 

exports, it was essential for growers to adapt to and follow the EU’s sanitary and 

quality restrictions. Private industry organizations and institutions provided 

technical support and assistance as growers and traders increasingly tried to gain 

EU quality certifications. Industry organizations and government agencies also 

coordinated the growth in cold storage sea-freight shipping and began programs, 

which assisted product-and industry-specific efforts to increase the 

competitiveness of horticultural exports. The impact of specific industry 

organizations and institutions will be discussed in more detail in the following 

country profiles.210

 

210 Industry official, interview by Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007; 

and FAGE, “Ready for Take Off–Ghana Horticulture,” May 2007, 5. 
2-65

Country Profiles 

Côte d’Ivoire 

In Côte d’Ivoire, the principal factors that contributed to the decrease in 

pineapple exports between 2002 and 2006 were the political crisis211 and its 

transition to production of the new MD2 pineapple variety. Banana exports grew 

significantly by value as a result of increased prices in the EU market. Both the 

banana and pineapple industries benefited from assistance from international aid 

programs that improved infrastructure and productivity. 

The political crisis in Côte d’Ivoire that began in 2002 had a significant impact 

on the production of tropical fruit and was one of the primary causes of the 

significant decrease in pineapple exports. Unlike the production of bananas, 

which generally takes place on larger plantations, pineapple production is still 

largely generated by small independent growers. As a result of the political 

instability, most financial lending in the country became restricted, particularly 

for small farmers. Without access to credit, many small farmers were unable to 

produce pineapples.212 Ivorian producers are reliant on the EU export market, and 

there are significant hurdles to market diversification, giving EU importers 

significant buying power. As a result, most producers are not paid by the EU 

importers until the product is purchased by consumers in the European market.213

This arrangement significantly limits the smaller growers’ ability to utilize the 

limited capital they possess and adds to the capital limitations created by the 

political instability. There has also been concern that the transportation 

infrastructure is deteriorating as a result of the recent political crisis.214 Before the 

crisis began, small pineapple growers produced approximately 150,000 mt per 

year; after the start of the crisis, production dropped to 25,000 mt per year.215

Another factor that limited Côte d’Ivoire’s exports of pineapples was the new 

consumer preference for the MD2 pineapple variety. The industry transition to 

the new variety in Côte d’Ivoire was undertaken entirely by the private sector, 

with the direction and oversight of the Organisation Centrale des ProducteursExportateurs d’Ananas et de Bananes (OCAB).216 SCB, a venture in which Dole 

 

211 A failed coup attempt in 2002 quickly evolved into a rebellion. Rebel groups unified under 

the name, New Forces. In late January 2003, the country’s major political parties and the New 

Forces signed the French-brokered Linas-Marcoussis Accord (LMA), agreeing to a power-sharing 

national reconciliation government to include the rebel New Forces representatives. While on 

occasion there have been violent flare-ups, the country has maintained the east-west ceasefire line 

since the LMA with the help of peacekeeping troops. Due to political deadlock, the country 

remains divided. U.S. Department of State, “Background Note: Côte d’Ivoire,” November 2007. 212 The banana sector was less affected because production generally takes place on larger 

plantations operated by multinational produce firms, which lenders view as less risky and are less 

susceptible to domestic interruptions. 213 Industry official, interview by Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 214 U.S. Department of State, “Background Notes on Côte d’Ivoire,” November 2007. 215 Industry official, interview by Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 216 OCAB is the national association of producers and exports of bananas, pineapples, and 

mangoes in Côte d’Ivoire. It provides quality control, industry oversight, oversight of freight, and 

supervision of production. 
2-66

has a controlling interest, was the private firm that began MD2 production in 

Côte d’Ivoire.217 The transition in Côte d’Ivoire, despite OCAB’s oversight and 

assistance, was somewhat slower than in other West African countries. While 

measurable planting began in 2004, by the end of the 2006, production of the 

MD2 variety still made up less than one-half of all pineapple production.218 This 

factor limited demand for Ivorian pineapples in the EU. 

The EU Special Framework of Assistance for Traditional Suppliers of Bananas 

provides technical and financial support for specific projects proposed by the 

respective ACP banana-producing-country national governments. The EU 

allocated €21.73 (about $25) million for Côte d’Ivoire’s banana industry 

between 1999 and 2006.219 Projects between 2002 and 2006 were focused on 

technical assistance to increase productivity, rural development, and the social 

infrastructure. Investments were also made to improve quality and phytosanitary 

standards in order to: acquire or maintain EurepGAP/ISO14001 certifications;220

establish producer organizations; increase handling, packaging, and storage 

facilities; and develop marketing strategies. This program, along with the efforts 

made by industry organizations such as OCAB, has succeeded in getting 

producers to meet European quality standards. Today, all banana production is 

EurepGAP certified.221

International aid programs helped Côte d’Ivoire improve its infrastructure to the 

benefit of both pineapple and banana exporters. The World Bank operated an 

Export Promotion and Diversification Project that began operating in 1996 and 

was completed at the end of 2003. One of the program’s most beneficial aspects 

for banana and pineapple exporters was the rehabilitation and upgrading of 

export facilities. The fruit wharf at the port of Abidjan was refurbished and 

reopened for use for 2003. New facilities for cold storage, handling and 

packaging, and increased storage capacity were constructed at a cost of 

$27 million, which was financed primarily by the EU.222 This project increased 

the number of outlets on the dock for cold storage containers from 2 to 91, 

allowing for the storage of more fruit on the dock for longer periods while 

reducing spoilage.223 In 2004, the port’s logistical systems were improved to 

include a computerized tracking system, barcodes, and scanners. This tracking 

system allows traders and producers to coordinate and track shipments better, 

thus improving efficiency. The EU also funded this project. The port at Abidjan 

is now considered to be one of the most efficient ports in all of Africa and has 

contributed to the success of the country’s banana export sector.224 

 

217 Industry official, interview by Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 218 Ibid. 219 EC, “Biennial Report on the Special Framework of Assistance for Traditional ACP 

Suppliers of Bananas,” December 15, 2006, 10. 220 EurepGAP is an organization that sets standards for the certification of agricultural products 

in order to establish consistent standards and procedures for Good Agricultural Practices (GAP)

around the world. The certification is designed to enhance consumer confidence in food safety and 

quality. ISO14001 is a environmental management certification. 221 Industry official, interview by Commission Staff, Abidjan, Côte d’Ivoire, October 24, 2007. 222 World Bank, “Implementation Completion Report,” December 31, 2007, 6. 223 Industry official, interview by Commission staff, Abidjan, Côte d’Ivoire, October 26, 2007. 224 FITA, “Market Access – Ivory Coast,” 2006. 
2-67

Ghana 

In Ghana, the principal factors that contributed to the shift in exports of both 

pineapples and bananas between 2002 and 2006 were increased investments from 

a multinational firm and assistance from the Ghanaian government and 

international aid programs that improved infrastructure, increased productivity, 

and supported industry organizations in the transition to the new pineapple 

variety. The benefits of some of these factors did, however, have a much more 

limited impact on pineapple exports as a result of competition from the new 

variety. 

Investment from multinational produce firms helped to spur export growth for 

both bananas and pineapples in Ghana during 2002–06. Compagnie Fruitière of 

France, in which Dole has a 40 percent stake, was incorporated under the name 

Golden Exotics Ltd. in 2003 and began operations in Ghana in 2004. It acquired 

and expanded the previously existing pineapple operations of the Paradise Farm 

and banana operations of the Kasunya Farm. Golden Exotics made significant 

capital investments in these two projects in order to expand its operations in 

Ghana. By the end of 2006, investments in their Ghanaian banana operations 

alone totaled approximately €25 (about $30) million.225

 

Golden Exotics’ banana operations expanded significantly as a result of this large 

capital investment. Golden Exotics was the first, and is currently the only, major 

multinational firm producing bananas in Ghana. The banana operation was 

launched in 2005 and prior to its entrance banana production was primarily done 

on smaller plantations. By the end of 2006, Golden Exotics’ banana farm had 

grown to 800 hectares (1,976 acres) in size and had the potential to expand to 

2,000 hectares (4,942 acres). In 2006, the 800 hectares (1,976 acres) at the 

Paradise Farm yielded 35,000 tons of bananas for export, which according to 

representatives from Golden Exotics, accounted for more than 85 percent of 

Ghana’s total banana exports in 2006.226 As a result of this expansion, exports of 

bananas from Ghana grew by more than $13 million between 2005 and 2006.227

Golden Exotics pineapple operations expanded significantly as well. By the end 

of December 2004, 160 additional hectares were planted, and by the end of 2006, 

350 additional hectares (865 acres) were planted. In 2006, Golden Exotics’ farm 

yielded approximately 15,000 tons exclusively of the MD2 variety all for 

export.228 This production represented approximately 40 percent of the country’s 

total pineapple exports.229 The company is expected to expand its planted 

hecterage to the maximum of the purchased land, approximately 1,000 hectares 

 

225 Industry official, interview by Commission staff, Accra, Ghana, October 29, 2007. 226 Ibid. 227 GTIS, Global Trade Atlas. 228 Industry official, interview by Commission staff, Accra, Ghana, October 30, 2007. 229 Del Monte was able to establish a plant in 1994 for a particular new pineapple variety, 

which gave a head start in production. However, the legality and applicability of this patent to other 

newer pineapple varieties was challenged by both Dole and Maui Land and Pineapple. After 

numerous suits and counter suits were filed. The patent issue was finally settled out of court in 

2003. Fresh Del Monte then withdrew the patent. Frank, “Juices Details,” October 7, 2003. 1-4. 
2-68

(2,471 acres) at the Paradise pineapple farm, which would expand the total 

production capabilities significantly. To sustain its development, Golden Exotics 

started an MD2 pineapple nursery early in 2003, and, in addition its own needs, it 

developed enough production capabilities to supply third parties with MD2 

planting material.230

 

Ghanaian pineapple exports struggled to expand and actually experienced a 

decrease as a result of the presence of the new MD2 variety in the market. The 

growth in pineapple exports from Ghana occurred mainly between 2002 and 

2004. While the quantity of exports peaked in 2004, the price of the traditional 

Smooth Cayenne variety decreased. During the following year, 2005, the 

quantity and value of Ghana’s pineapple exports dropped significantly as a result 

of the European preference for the MD2 variety pineapple. The Ghanaian 

government responded with a $2 million budget allocation to establish 

Bioplantlet Ghana Limited for the multiplication of the MD2 variety through 

tissue culture techniques as well as other nursery methods. Bioplantlet was 

established as a joint venture among the Ministry of Agriculture, the Sea-Freight 

Pineapple Exporters of Ghana (SPEG), the Ghana Export Promotion Council 

(GEPC), the Biotechnology and Nuclear Agriculture Research Institute, and the 

Ghana Atomic Energy Commission, with support from the USAID.231 In 2002, 

all pineapple production in Ghana was of the Smooth Cayenne variety. By 2006, 

approximately 90 percent was of the MD2 variety.232 As a result of these 

programs, after more than a year of decreasing exports, exports of pineapples 

began growing again in July of 2006 as the new MD2 variety was successfully 

exported to European market.233 While this transition was successful, Ghanaian 

exports struggled to resume consistent growth due to poor post-harvesting and 

handling. Many small scale farmers still lack the capital needed to invest in new 

pack houses and to increase cold storage facilities.234

Assistance from international aid programs was a beneficial factor for both the 

pineapple and banana industries. The 9th European Development Fund (EDF) is 

an aid program that allocates funding to developing countries worldwide based 

on the framework and goals established by the Heavily Indebted Poor Countries 

initiative of the World Bank and by the Poverty Reduction Strategic Papers 

written by the domestic governments with assistance from the International 

Monetary Fund. The primary goal of the 9th EDF (from 2000 to 2007) is to 

allocate funding for projects with the goal of reducing poverty. Approximately 

€80 (about $90) million was allocated toward rural development in the 9th EDF. 

The enhancement of rural capital and economic growth through agricultural 

development was seen as crucial to decreasing poverty and was therefore one of 

the program’s priorities. €13 (about $15) million was allocated to the agricultural 

component of the rural development program between 2003 and 2006. 

Reportedly, this was accomplished through agricultural assistance and 

 

230 Danielou, “The Rise of Ghana’s Pineapple Industry. From Successful Takeoff to Sustainable 

Expansion,” November 2005, 22. 231 Ghana Export Promotion Council, “Exports of MD2 Variety Rake in $20 million,” 

February 8, 2007. 232 Industry official, interview by Commission staff, Accra, Ghana, October 29, 2007. 233 FAGE, “Lessons Learned from Others,” May 2007, 3. 234 Industry official, interview by Commission staff, Accra, Ghana, October 29, 2007. 
2-69

infrastructure development aimed at the promotion of export crops by growers.235

This funding increased the global competitiveness of both the pineapple and 

banana exports from Ghana. 

The poor condition of the road networks in Ghana has been a major hindrance to 

the growth of agricultural exports. The 9th EDF allocated funding to assist rural 

development and the development of the road networks. Approximately 

€70 (about $80) million was allocated toward the Ghanaian road transport sector 

in the 9th EDF.236 Between the second half of 2004 and the end of 2006, 

€36 (about $40) million was disbursed for construction and rehabilitation of 

major transport roads in Ghana. In 2005 and 2006, €28 (about $30) million was 

disbursed for the development of feeder roads that increase access for 

agricultural producers to markets and traders.237 According to government 

officials, the feeder roads in the more rural growing regions are crucial to the 

success of these industries. As a result of the funding, the feeder road networks 

were improved and allowed the smaller banana and pineapple growers to get 

their product to market more efficiently.238

During 2002–06, Ghanaian industry organizations and government institutions 

improved their operations and played an influential role in both the banana and 

pineapple industries’ growth and development. With assistance from USAID, 

these institutions increased their coordination with each other and their producing 

members in order to respond more effectively to market demands and to increase 

exports. The Ghanaian Ministry of Food and Agriculture’s Horticulture Export 

Industry Initiative (HEII) began in 2004 and was crucial to the pineapple and 

banana industries’ export growth. HEII was at the center of efforts that included 

developing and distributing the MD2 variety, coordinating the cold-storage 

chain, and providing technical support to improve quality and acquire 

international standards certifications.239

As result of these efforts the number of EurepGAP certifications increased 

tremendously. In 2002, very few producers were EurepGAP certified, but in 

2006, 75 percent of growers were certified.240 GEPC is a national export trade 

support institution facilitating the development and promotion of exports by 

organizing contract product/supply schemes, disseminating trade information, 

and providing technical support for product and market development.241 SPEG 

and the Federation of Associations of Ghanaian Exporters also played important 

roles in the successful transition to the MD2 variety, the coordination of industry 

resources, the increase in cold-storage shipping, and the industry-wide effort to 

increase EurepGAP certifications.242 SPEG consolidates cargo for vessel 

operators, coordinates shipping arrangements, oversees loading of cargo at the 

 

235 Republic of Ghana and the European Community, Country Strategic Paper and Indicative 

Program for 2002–07, 19. 236 Ibid., 26. 237 Ibid., 35. 238 Government officials, interview by Commission staff, Washington, DC, October 17, 2007. 239 FAGE, “Building Ghana’s Institutions,” May 2007, 7. 240 Industry official, interview with Commission staff, Accra, Ghana, October 29, 2007. 241 FAGE, “Ghana Fresh Produce Exporter’s Directory 2007,” 2007, 7. 242 FAGE, “Building Ghana’s Institutions,” May 2007, 6. 
2-70

port, and provides market information and technical support for better 

agricultural practices.243 Most important, SPEG coordinated sea-freight 

shipments for horticulture exports and increased the availability of cold-storage 

shipping. 

In addition to these larger organizations, hundreds of small farmer-based 

organizations disseminated new and better farming techniques and plant 

materials, which increased growers’ competitiveness.244 In addition to industry 

organizations and government institutions, other international organizations 

provided assistance and supported both the transition to the MD2 variety and the 

increase in quality certifications. USAID’s Ghana Specific Economic Growth 

Program and Trade and Investment Program for a Competitive Export Economy, 

and the EU’s Regional Pesticide Initiative all coordinated with each other and 

worked with the private sector to provide support to Ghana’s pineapple and 

banana industries.245

Cameroon 

In Cameroon, the principal factors that contributed to the shift in exports of 

pineapples and bananas between 2002 and 2006 were international aid programs 

and increased investment by multinational firms. 

To the benefit of both the pineapple and banana industries, the 9th EDF allocated 

approximately €82 (about $95) million toward the transport sector in 

Cameroon.246 The focus was to rehabilitate the major transport roads. Crucial 

transport roads, such as the Ngaoundéré - Touboro - Moundou regional road, that 

connect major growing regions of the country to axis roads that lead to the port 

of Douala and major rail terminals were constructed or rehabilitated.247 The fund 

has also restructured the Ministry of Public Works, set up and financed the Road 

Fund, and through other administrative measures, has promoted the care and 

upkeep of the road infrastructure. In coordination with other development 

projects from the International Fund for Agricultural Development and the 

African Development Bank, the 9th EDF funded €56 (about $65) million toward 

rural development projects, which have significantly improved the infrastructure 

and feeder roads. 

 

The EDF also provided an annual budget for technical assistance measures solely 

for the banana industry in Cameroon. The budget allocated more than 

€5 (about $6) million per year directly to the banana industry. EU technical 

assistance generally includes replanting, land clearing, inputs and drainage 

works, training for farmers and staff, and help through the input supply fund to 

offset income losses suffered by banana farmers.248

 

243 FAGE, “Ghana Fresh Produce Exporter’s Directory 2007,” 2007, 8. 244 FAGE, “Building Ghana’s Institutions,” May 2007, 6. 245 Ibid., 7. 246 EC, “EU Relations with Cameroun,” September 2007. 247 Delegation of the European Commission in Cameroon, “EU Cooperation with Cameroun, 

Infrastructure Sector,” September 2007. 248 EC, “EU and the Eastern Caribbean-Special Framework of Assistance.” 
2-71

The EU Special Framework of Assistance for Traditional Suppliers of Bananas 

also provided technical and financial support for specific projects proposed by 

the respective national governments. The total funding allocated for Cameroon 

between 1999 and 2006 for the program was €35 (about $40) million,249 or 

approximately €5 (about $6) million per year. Between 2002 and 2006, the 

projects focused on technical assistance to increase productivity, rural 

development, and the social infrastructure. Investments were also made to 

improve quality and phytosanitary standards in order to acquire or maintain 

EurepGAP certifications; establish producer organizations; increase handling, 

packaging, and storage facilities; and develop marketing strategies. 

The increase in banana exports also occurred as a result of plantation expansion 

made by multinational firms. The area harvested for banana production increased 

by approximately 10 percent between 2002 and 2006.250 Banana exports are 

produced primarily by two large companies that operate in the southwestern 

region, Compagnie Fruitière and the Cameroon Development Corporation 

(CDC). Compagnie Fruitière increased its production capabilities to 150,000 mt 

during 2002–06.251 Banana production efficiency also increased significantly due 

to improved farming methods developed as a result of technical assistance and 

the influx of plantation expertise brought through partnerships with multinational 

produce firms.252 The CDC has a working partnership with Fresh Del Monte. As 

a result of technical assistance, Cameroon’s banana yield per hectare increased 

from 2002 to 2006 by more than 13 percent from less than 9 mt/ha to more than 

10 mt/ha.253

 

249 Not all €35.2 million had been allocated by the end of 2007. 250 FAO, FAOSTAT Production Database. 251 Danielou, “The Rise of Ghana’s Pineapple Industry: From Successful Takeoff to 

Sustainable Expansion,” November 2005. 252 EC, “Biennial Report on the Special Framework of Assistance for Traditional ACP 

Suppliers of Bananas,” December 15, 2006, 12. 253 FAO, FAOSTAT Production Database. 
2-72

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Danielou, Morgane, and Christophe Ravry. “The Rise of Ghana’s Pineapple Industry. From 

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Del Monte, The History of the Pineapple, October, 2006. http://www.printegra.com/de/news/d_delmonte/en_Ananas_Geschichte.php?integracss=true&doklang=english. 

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——. Banana Market Situation in 2005 and Early 2006, May 2006. 

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——. Food Outlook April 2005, April 2005. 

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Frank, Robert. “Juicy Details: Going for “Gold’ Turns Pineapple World Upside Down – Rush is 

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Seven Seeds.” Wall Street Journal, October 7, 2003. 

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——. “Lessons Learned from Others: Ghana Scores Well,” In Ready For Take Off - Ghana 

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——. ”Building Ghana’s Institutions of Horticulture Success,” In Ready For Take Off - Ghana 

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Program for a Competitive Export Economy (TIPCEE), “Ghana Fresh Produce Exporters’ 

Directory 2007,” 2007. 

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Coast. 2006. http://www.fita.org/countries/cote.html?ma_rubrique=marche. 

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Europe, March 24, 2006. http://www.foodnavigator.com/news/ng.asp?id=66641-chiquita-bananatariffs-banana-prices. 

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Conference, Pretoria, December 1–2, 2003. 

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Program for 2002-2007. http://delgha.ec.europa.eu/en/publications/CSPNIP%20Ghana%202002-2007.pdf. 

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2002 conference in Dakar, Senegal, September 4–7 2002. 

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and Resource Issues, January 16, 2005. 
3-1

CHAPTER 3 

Mining and Manufacturing Industry 

Sector Profiles 

verall growth in mining and manufacturing exports from sub-Saharan 

Africa (SSA) was strong during 2002−06. Increased global demand and 

prices for energy and certain chemicals, minerals, and metal products 

drove increased exports. In many cases, multinational firms partnered with 

domestic entities to expand production capacity, resulting in increased raw 

material and natural resources use. In some cases, exports benefited from 

preferential tariff policies in key markets. The following tabulation summarizes 

factors that contributed to shifts in exports in the selected mining and 

manufacturing sectors. 

Factors Footwear 

Natural 

rubber 

Processed 

diamonds Textiles 

Wood 

furniture 

Factors contributing to increased exports 

Demand growth X X 

Price increases X X 

Policies to promote the industry – SSA 

 governments 

X X X X 

Policies/programs to promote the industry 

 – international organizations and 

 governments 

X X 

Increased investment X X X 

Growth of private enterprise and 

 emergence of key business

 relationships 

X 

Deeper regional integration X X 

Effects of tariff preferences X X 

Factors contributing to decreased exports 

Competition in key markets X 

Exchange rate effect X 

Reduced resource supply X 

Increased local demand X 

O 
3-2

Footwear 

Summary of Findings 

Although SSA countries export a very small amount of footwear, less than onehalf of one percent of total worldwide footwear exports in 2006, the value of 

SSA footwear exports increased 33 percent during 2002−06, to $42.5 million 

(table 3.1). The principal drivers of the increased exports from the SSA countries 

were footwear production training and support initiatives to promote the footwear 

sectors in these countries, the establishment of the East African Customs Union 

in 2005, the emergence of new business relationships between SSA countries and 

European footwear firms, and duty-free treatment for footwear established under 

the African Growth and Opportunity Act (AGOA). Although South Africa is by 

far the largest SSA footwear producer,1

 Kenya and Ethiopia experienced the 

largest increases in footwear exports (albeit from small bases) of 150 and 

4,937 percent, respectively, during this period.2

 

Industry Overview 

Leather and leather products (such as footwear) are among the most broadly 

traded and used commodities in the world (box 3.1). Although the SSA 

countries account for less than one percent of worldwide exports, the SSA 

footwear industry is not only important for creating manufacturing jobs, but 

also, according to some sources, is vital for generating foreign currency 

earnings.3

 Consequently, as discussed later, some SSA governments have 

focused increasingly on expanding the footwear sector in their countries by 

establishing training institutes and creating regional associations designed to 

strengthen footwear manufacturing.4

 SSA governments have also sought to 

attract foreign investment by offering incentives including abolishing export 

and import licensing, rationalizing and reducing import tariffs, allowing 

residents and non- residents to open foreign currency accounts with domestic 

 

1

 South Africa has historically been by far the SSA region’s leading footwear producer. South 

Africa’s footwear sector consists of an estimated 230 factories producing completed footwear and 

another 50 to 100 factories making components. Dennis Lind (executive director, Southern African 

Footwear and Leather Industries Association), e-mail message to Commission staff, 

November 1, 2007; South African Footwear and Leather Export Council Web site, 

http://www.saflec.co.za/ (accessed February 4, 2008); and International Trade Centre 

UNCTAD/WTO Web site, http://www.intracen.org/ (accessed February 4, 2008). 2

 From 2002 to 2006, Kenya’s global exports of footwear increased from $3.1 million to 

$7.7 million, while Ethiopia’s exports increased from $58,000 to $2.9 million. GTIS, Global Trade 

Atlas. 

3

 CDE/PRO&INVEST, “Targeted Support Programme,” September 2004. 4

 The Regional Africa Leather and Footwear Industry Scheme (RALFIS) has aimed at 

addressing some of the sector’s principal challenges and has assisted companies region-wide to 

adapt production operations to exploit market opportunities. In addition, national leather industry 

associations are operating in SSA countries and some are providing considerable assistance to their 

members. 
3-3

Table 3.1 Sub-Saharan Africa footwear exports, by selected exporters and key markets, 2002−06 

 Exports Change, 2002 to 2006 

Exporters Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

 Dollars 

United States 461,098 909,720 1,024,284 1,874,014 2,629,319 2,168,221 470 

Zambia 1,869,523 2,736,184 2,574,027 3,548,648 3,353,443 1,483,920 79 

Mozambique 598,623 966,439 906,870 1,446,818 1,633,936 1,035,313 173 

Malawi 468,465 806,267 934,251 977,443 1,047,210 578,745 124 

Australia 1,096,127 1,270,402 1,327,852 1,016,132 933,250 -162,877 -15 

All other 8,051,370 8,843,862 8,497,790 8,132,320 5,440,324 -2,611,046 -32 

South 

Africa 

Total 12,545,206 15,532,874 15,265,074 16,995,375 15,037,482 2,492,276 20 

Uganda 1,320,261 2,957,494 3,406,551 3,804,312 5,191,417 3,871,156 293 

Zambia 81,040 276,753 27,506 241,086 566,930 485,890 600 

United States 33,161 9,916 293,742 45,766 337,194 304,033 917 

Malawi 265,584 275,415 251,013 309,253 508,073 242,489 91 

EU 101,205 228,603 323,483 347,131 242,981 141,776 140 

All other 1,257,597 1,093,884 1,634,553 1,659,958 807,597 -450,000 -36 

Kenya 

Total 3,058,848 4,842,065 5,936,848 6,407,506 7,654,192 4,595,344 150 

Zambia 380,459 271,463 411,998 1,034,110 1,447,184 1,066,725 280 

South Africa 2,199,015 2,704,010 2,873,695 2,734,972 2,825,218 626,203 28 

Malawi 120,550 200,067 307,077 205,239 277,322 156,772 130 

United States 86,180 105,156 188,183 227,704 231,647 145,467 169 

EU27 104,374 29,083 80,309 113,131 121,061 16,687 16 

All other 12,890 84,498 29,600 30,861 2,207 -10,683 -83 

Zimbabwe 

Total 2,903,468 3,394,277 3,890,862 4,346,017 4,904,639 2,001,171 69 

EU 3,869,001 3,906,269 4,982,840 3,153,790 3,187,136 -681,865 -18 

All other 3,556 39,495 8,654 2,016 116,196 112,640 3,168 Cape 

Verde Total 3,872,557 3,945,764 4,991,494 3,155,806 3,303,332 -569,225 -15 

EU 55,111 8,171 26,038 592,363 2,847,183 2,792,072 5,066 

Canada 24 2,400 2,321 1,309 26,764 26,740 111,417 

United States 320 0 0 8,560 21,412 21,092 6,591 

Uganda 0 0 5,120 25,370 8,729 8,729 na 

All other 2,280 22,681 8,372 13,899 3,750 1,470 64 

Ethiopia 

Total 57,735 33,252 41,851 641,501 2,907,838 2,850,103 4,937 

EU 13,147,463 12,516,805 13,931,882 9,763,939 10,230,814 -2,916,649 -22 

Uganda 1,655,194 3,317,495 3,715,314 4,313,803 5,665,949 4,010,755 242 

Zambia 2,642,783 3,556,403 3,169,023 4,926,277 5,447,292 2,804,509 106 

United States 1,375,504 1,482,229 2,068,356 2,599,223 4,356,940 2,981,436 217 

South Africa 2,479,265 3,147,669 3,287,731 2,971,763 3,181,516 702,251 28 

All other 10,651,405 16,645,757 19,104,230 16,064,666 13,591,867 2,940,462 28 

SubSaharan 

Africa 

Total 31,951,614 40,666,358 45,276,536 40,639,671 42,474,378 10,522,764 33 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: na = not applicable.
3-4

banks, and removing restrictions on borrowing by foreign and domestic 

companies.5

 SSA footwear industries are located primarily in larger urban areas 

or in export processing or foreign trade zones (EPZs/FTZs). Most footwear 

produced in African countries consists of low-priced leather shoes with leather 

uppers and synthetic soles.6

 Some SSA footwear production, however, is targeted 

at higher-end niche export markets.7

The SSA region’s key competitive advantages include low-cost labor and 

ample supplies of required raw materials including livestock that supply 

tanneries that produce footwear leather.8

 

 

5

 World Bank Group, “Snapshot Africa: Benchmarking FDI Competitiveness in Sub-Saharan 

African Countries,” 

http://www.fdi.net/documents/WorldBank/databases/snapshot_africa/docs/snapshot_africa.pdf, 

January 2007, 22, 23, (accessed August 9, 2007). 6

 Cipriani, “Study of the Quality Control and Management,” 2002, 14. 7

 USITC hearing transcript, October 23, 2007, 34. 

8

 CDE/PRO&INVEST, “Targeted Support Programme,” September 2004. Industry sources 

report that South Africa has the raw materials needed to produce any type of footwear from low 

end to high end. Bovine, ostrich, Nile crocodile, game leather, textile, and PVC and other synthetic 

raw materials can be sourced locally. DTI, “The Footwear Sector/Industry – Overview of SA 

Industry in the Global Economy,” undated. 

http://www.dti.gov/za/downloads/ivnestfootwearsector.pdf (accessed July 31, 2007). 

Box 3.1 Product description for footwear 

Footwear products include a broad range of durable coverings that protect, support, and adorn the human foot. The leading 

materials used to manufacture footwear include leather, textiles, plastic, rubber, and wood. 

Footwear production processes are more labor intensive than the manufacturing operations required for most other articles. 

Consequently, production worldwide has shifted increasingly to countries with relatively lower labor costs. The basic 

production process for most footwear involves cutting, fitting, lasting, bottoming, finishing, packing, and warehousing. 

Cutting of shoe uppers and other parts is the first major machine operation, usually done with a die-cutting machine. In the 

fitting operation, the various parts of the upper are prepared, matched, and stitched together. This step is the most laborintensive operation and industry sources estimate that it accounts for at least 50 percent of total labor costs. These stitched

uppers are then secured to a specifically sized last (a rounded oblong block used to approximate the form of the human foot 

used by a cobbler to make or mend shoes) with the insole attached, which gives the shoe its final shape. During the next 

manufacturing process, bottoming, the outer sole is attached to the upper. 

The three major construction methods used are cementing, sewing, and molding. In cementing, either the sole alone, or the 

sole and heel as a unit, are attached by an adhesive, which is usually augmented by heat, pressure, or chemicals. This 

method is characterized by the absence of stitching or tacking on the finished shoe. Cementing is the most popular method 

used in conventional shoes. Sewing involves attaching a sole to the upper by means of a stitched seam using thread of 

cotton or manmade fibers. The Goodyear welt (a method of attaching the sole of a shoe to the upper that uses machinery 

that was invented by Charles Goodyear, Jr.) is the most popular type of sewn construction in footwear production. Welt 

construction is used predominantly in producing better-quality men's shoes. Molded construction in footwear production is a 

process by which the sole and heel are formed and simultaneously fused to an upper within a mold. In addition to the three 

major construction methods, vulcanizing is used for a small number of certain athletic and fashion shoes. In this process, 

the sole and the upper are put into an autoclave oven and the resulting heat and pressure bind the parts together without 

adhesive. 

Source: USITC, Footwear: Industry & Trade Summary, January 1993, USITC Publication 2572, and telephone interviews 

with footwear industry representatives in October 2007.
3-5

Principal challenges that have hampered growth of the footwear sector in the 

SSA region in the past include obsolete tanning, finishing, and production 

technologies; high cost of financing or lack of capital; inadequate infrastructure, 

such as poorly paved roads that slow the transport of goods; poor handling 

methods resulting in low-quality raw hides and skins; modest labor 

productivity;9

 political instability in certain countries; limited design 

capabilities; and limited managerial expertise in business operations.10 Trade 

liberalization in SSA countries has also allowed an influx of low-priced imports 

of Chinese footwear, leading to lower domestic production and capacity 

utilization as well as job losses.11

Sub-Saharan Africa Trade in the Global Context 

As the world population has risen, so has demand for footwear.12 Total global 

exports of footwear rose 43 percent, from $39.2 billion in 2002, to $56.1 billion 

in 2006. An estimated 11.6 billion pairs of shoes were produced worldwide in 

2006 with revenues of $106.7 billion.13 

Because footwear manufacturing is labor-intensive, developing countries with 

relatively lower wage rates, particularly China, dominated footwear production 

in 2006. China is projected to manufacture about 6.7 billion pairs of shoes, or 

an estimated 57 percent of total production in 2007.14 Vietnam, the next-leading 

and rapidly growing supplier, produced about 900 million pairs in 2007, or 

almost 8 percent of total world production.15 SSA footwear exports increased 

33 percent during 2002−06, to $42 million, but accounted for less than one-half 

of one percent of the total world exports, essentially unchanged from their share 

in 2002. Although labor costs are low in the SSA region, numerous challenges 

discussed later in this section prevent SSA footwear exporters from becoming 

leading players in the world marketplace. Most of the increase in SSA footwear 

exports was in regional trade and likely prompted by the establishment of the 

East African Customs Union (EAC), the strengthening of Common Market for 

Eastern and Southern Africa (COMESA) ties, growing privatization, and the 

emergence of business relationships between footwear producers in SSA 

countries with European manufacturers. 

 

9

 Cipriani, Simone, “Study of the Quality Control and Management on the African Leather 

Sector,” 2002. http://www.unido.org/file-storage/download/?file_id=10201, accessed 

August 30, 2007. Labor productivity is referred to here in terms of output per worker. Several 

industry sources have reported that labor productivity in manufacturing in SSA countries tends to 

be lower than in other developing regions such as the Caribbean/Central American region. 10 Calabro, “UNIDO at Work: Sub-Saharan Africa: Kenya, Ethiopia,” undated. 11 All Africa.com, “Textile ‘Tax Gap’ Costs Soars R20bn,” September 3, 2005. 12 IBISWorld, Global Footwear Manufacturing: C1321, July 4, 2007, 29. 13 Ibid., 4. 

14 Ibid., 31. 

15 IBISWorld, Global Footwear Manufacturing: C1321, July 4, 2007, 31;Vietnam’s exports 

could reach $6 billion by 2010, according to deputy chairman of the country’s Leather and 

Footwear Association, Nguyn Duc Thuan. World Footwear News, “Vietnam: Positive First Half 

Figures,” September/October 2007, 5. 
3-6

Leading Exporters 

China dominates exports of footwear to the world, accounting for close to twothirds ($35 billion) of total world exports in 2006 (figure 3.1). China has 

penetrated virtually all segments of the world footwear market, due to its price 

competitiveness, based on relatively low wages and an efficient production and 

shipping infrastructure. Vietnam’s footwear exports to the world rose almost 

80 percent from $2.7 billion to $4.8 billion during 2002−06. Manufacturers 

have shifted some footwear production to Vietnam to take advantage of the 

lower cost of labor in the face of rising wages in China.16 

The leading SSA exporters of footwear in 2006 included South Africa, Kenya, 

Zimbabwe, Cape Verde, and Ethiopia. Together, these countries accounted for 

80 percent of SSA footwear exports. Of SSA exporting countries, Kenya 

registered the largest absolute increase in footwear exports during 2002−06 

($4.6 million). Ethiopia followed with an increase of $2.9 million. 

Figure 3.1 Leading global and sub-Saharan Africa exporters of footwear, 2006

Global Exporters

SSA

0.1%

Other

22%

China

61%

Italy

5%

Vietnam

8%

Brazil

4%

SSA Exporters 

Nigeria

4%

Other

16%

Kenya

18%

Cape Verde

8%

Zimbabwe

12%

Ethiopia

7%

South Africa

35%

 $49,854 million $42 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade.

 

16 IBISWorld, Global Footwear Manufacturing: C1321, July 4, 2007, 13 and 31. 
3-7

Although South Africa is the dominant SSA footwear producer and exporter, its 

total footwear exports dipped sharply in 2002 from previous years and leveled 

off through 2006. Contributing to this decline was the increase in low-priced 

footwear imports from China in other markets, which also reportedly led to 

decreased domestic footwear production. The appreciation of the South African 

rand against the euro during this period contributed to the dip in exports to the 

United Kingdom, one of its principal export markets.17 Nevertheless, although 

the rand also appreciated against the U.S. dollar during the same period,18 South 

Africa’s footwear exports to the U.S. market rose substantially during the 

period (albeit from a small base) to $2.6 million, which likely can be attributed 

to duty-free treatment granted to footwear imports under AGOA. That 

treatment may have helped offset some of the appreciation of the rand against 

the U.S. dollar. 

Leading Export Markets 

Global markets for footwear exports reached $49.9 billion in 2006, up 44 percent 

from $34.7 billion in 2002. The world’s leading importers are the United States, 

the EU, Hong Kong, and Japan, which together accounted for just under 

80 percent, by value, of world imports of footwear in 2006 (figure 3.2). 

Figure 3.2 Leading markets for global and sub-Saharan Africa exports of footwear, 2006

Global Export Markets

Hong Kong

10%

Japan

6%

United States

36%

Other

22%

EU

26%

SSA Export Markets

Other

26%

EU

24%

Uganda

13%

South Africa

7%

United States

10%

Malawi

7%

Zambia

13%

 $49,854 million $42 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade.

 

17 Jed Diemond (South Africa specialist, U.S. Department of Commerce), telephone interview 

by Commission staff, October 10, 2007; and Dennis Linde (executive director, Southern African 

Footwear and Leather Industries Association (SAFLIA)), e-mail message to Commission staff, 

November 1, 2007. 18 The South African rand appreciated 43 percent against the U.S. dollar between 

January 2, 2002 and December 29, 2006, “Representative Exchange Rates for Selected Currencies 

for January 2002 and December 2006,” http://www.imf.org/externa/np/fin/data/, accessed 

January 31, 2008. 
3-8

SSA footwear exports reached $42.5 million in 2006, up 33 percent from 

$32.0 million in 2002. The leading markets for SSA footwear were the EU, 

Uganda, Zambia, the United States, Malawi, and South Africa, which together 

accounted for slightly over two-thirds of world imports by value from SSA 

suppliers. 

Factors Affecting Export Patterns 

The growth of SSA exports of footwear during 2002−06 was driven largely by 

the long-term impact of programs launched by international development 

organizations and national governments to enhance existing footwear industries, 

the establishment of the EAC, the strengthening of COMESA trade ties and 

COMESA initiatives to expand the leather products sector, the growth of private 

enterprises, and the emergence of business relationships between certain 

footwear producers in SSA countries and European manufacturers. To a lesser 

extent, preferential trade programs such as AGOA also contributed to increased 

footwear exports from South Africa to the United States. Although the 

percentage increases in footwear exports from the SSA countries during 2002−06 

were large, the value increases were more modest and the total values of exports 

from these countries were relatively small.19

Policies and Programs to Promote the Footwear Industry 

Kenya 

Kenya has one of the most established footwear sectors in East Africa. Kenya’s 

footwear industry has about 10 factories.20 Footwear accounted for 8 percent of 

Kenya’s manufactured export earnings in 2004.21 Leading Kenyan footwear 

producers that currently export include C & P Shoe Industries and Bata Kenya, 

both located in Nairobi. C & P Shoe Industries attributes its success to state-ofthe-art manufacturing technology and technical assistance arrangements with 

companies in the United Kingdom, India, and Taiwan.22 Bata Kenya receives 

technological and design support from its parent company in Canada. In addition, 

 

19 By contrast, during 2002−06 China’s footwear exports rose 97 percent to $21.8 billion. One 

U.S. footwear industry representative emphasized that footwear production for domestic versus 

export markets differs substantially. He stated that, in general, SSA suppliers lack the capability or 

capacity to manufacture footwear in the quantity and quality required for export markets such as 

the United States whose consumers seek branded or private label quality footwear at the lowest 

possible price. He stated that eliminating duties on footwear imports from SSA countries was 

therefore unlikely to boost SSA footwear exports substantially to the U.S. market. Peter Mangione 

(president, Footwear Distributors and Retailers of America), telephone interview by Commission 

staff, October 11, 2007. 20 George Aldridge (economics officer, U.S. Embassy, Nairobi), e-mail message to 

Commission staff, November 13, 2007. 21 Kenya Association of Manufacturers, “Leather Products and Footwear,” undated. 

http://www.kam.co.ke/sector_content.php?ID=Leather%20Products%20and%20Footwear&page_ti

tle=KAM%20SECTORS (accessed October 2, 2007). 22 C & P Shoe Industries Web site, undated. 

http://www.cpshoes.com/default2.php?active_page_id=382 (accessed October 2, 2007). 
3-9

Bata Kenya is able to be price-competitive because of its vertically integrated 

operations.23 

Industry sources attribute the export success of some Kenyan footwear producers 

not only to investments in upgrading manufacturing technology, but also to the 

availability of domestic raw materials and competitive labor costs.24 Bata Kenya 

is able to source all its leather supplies from local tanneries.25 In 2005, the 

government of Kenya imposed an export tax on hides, leading to more leather 

available at lower costs for footwear producers in Kenya.26 As a result, Bata 

Kenya was able to reduce its prices on shoes for both the domestic and export 

markets, making them more competitive with shoes from China. Uganda is Bata 

Kenya’s largest export market at $4 million.27 Kenya’s footwear exports to 

neighboring Uganda rose substantially in 2005 and 2006. 28

United Nations Industrial Development Organization (UNIDO) claims that 

Kenya’s footwear industry has also benefited substantially from a program it 

created in 1994 with the Industrial Development Decade for Africa (IDDA).29

These two organizations invested $900,000 to establish a Training and 

Production Centre for the Shoe Industry in Thika, a city northeast of Nairobi that 

has been a site for light manufacturing for many years.30 The project’s goal was 

to improve the quality and design of locally made footwear to make it 

internationally competitive. The center has focused on the needs of the footwear 

and leather product industries in eastern and southern Africa since its inception.31

Training courses provided by the center include shoe design and pattern cutting, 

shoe upper cutting and stitching, leather sole making, and business training. 

Although this project was completed in 2000, the resulting strengthening of 

Kenya’s footwear industry likely contributed to the expansion of Kenya’s 

footwear exports during 2002−06. 

Ethiopia 

Ethiopia established a similar leather products training institute in Addis Ababa, 

where students receive six months of training in various shoe-making skills. The 

institute has supplied workers to the three footwear factories that have opened in 

Addis Ababa in 2006−07, reducing the start-up training costs for these 

 

23 George Aldridge (economics officer, U.S. Embassy, Nairobi), e-mail message to 

Commission staff, November 13, 2007. 24 United Nations University, “Kenya: Leather and Footwear Industry,” undated, 

http://www.unu.edu/unupress/unupbooks/uu34ee/uu34e0t.htm (accessed August 13, 2007). 25 George Aldridge (economics officer, U.S. Embassy, Nairobi), e-mail message to 

Commission staff, November 13, 2007. 26 Barry Fisher (executive director, African Cotton & Textiles Industries Federation (ACTIF)), 

interview by Commission staff, Nairobi, Kenya, October 16, 2007. 27 George Aldridge (economics officer, U.S. Embassy, Nairobi), e-mail message to 

Commission staff, November 13, 2007. 28 Barry Fisher (executive director, African Cotton & Textiles Industries Federation (ACTIF)), 

interview by Commission staff, Nairobi, Kenya, October 16, 2007. 29 Aurelia Calabro (project manager, UNIDO), e-mail message to Commission staff, 

October 2, 2007. 30 “Kenya: Institutional Support.” UNCTAD/WTO 1994−2006, undated 

http://intracen.org/appli2/leather/AfricanPlatform/ (accessed August 23, 2007). 31 Ibid. 
3-10

companies. Footwear and apparel exporters also benefit from reduced freight 

rates when using government-owned trucking companies.32

Most of Ethiopia’s footwear establishments are located in Addis Ababa, with the 

remainder in Oromiya and Amhara.33 Estimates of the number of factories vary; a 

recent report stated that currently more than 30 new shoe-manufacturing 

industries are operational, employing more than 9,000 workers.34 Most factories 

employ only ten or fewer workers; a few factories employ hundreds of workers.35

Although Ethiopia has the largest livestock population in Africa and the tenth 

largest in the world,36 the competitiveness of Ethiopia’s footwear sector has been 

hampered by low-quality hides, skins, and finished leathers as a result of noncommercial slaughtering and handling conditions and obsolete tanning, finishing, 

and production technologies.37 Recently, Ethiopia’s footwear sector has launched 

initiatives to improve the harvesting of hides and skins through training programs 

and projects to reduce defects and to enhance and create linkages between 

tanners and footwear producers.38 

Deeper Regional Integration 

The establishment of the EAC39 among Kenya, Uganda, and Tanzania on 

January 1, 2005,40 also likely contributed to the increased level of intraregional 

footwear trade, particularly between Kenya and Uganda, in 2005 and 2006. The 

EAC established common duty rates to be applied uniformly on goods imported 

into the EAC, and also partly liberalized tariffs on intra-EAC trade; the EAC 

plans to fully eliminate tariffs on intra-regional trade by year-end 2009. Uganda’s 

reduction of tariffs on footwear imported from Kenya since the establishment of 

the EAC contributed to the subsequent growth in Uganda’s imports of footwear 

from Kenya in 2005 and 2006.41 The steady growth of Uganda’s GDP by an 

 

32 Tesfay Weldekiros (general manager, Peacock Shoe Factory), interview by Commission 

staff, Addis Ababa, Ethiopia, October 26, 2007. 33 Van der Loop, Clothing and Footwear in African Industrialization, January 2003, 13. 34 Economic Commission for Africa/Africa Union, Economic Report on Africa 2007, 

February 2007, 160. 35 Akoten, Otsuka, and Sonobe, “The Development of the Footwear Industry in Ethiopia,” 

January 2007. 36 Van der Loop, Clothing and Footwear in African Industrialization, January 2003, 12. 37 Slaughtering of animals in Ethiopia primarily occurs in private back yards rather than 

commercial abattoirs. Haile Kibret (economic specialist, U.S. Embassy, Addis Ababa), e-mail 

message to Commission staff, November 20, 2007; and Calabro, “UNIDO at Work: Sub-Saharan 

Africa: Kenya, Ethiopia – For Export.” 38 USAID, “Hides, Skins and Leather Sector Activities Briefing,” September, 2007. 39 Burundi and Rwanda have since joined the EAC, becoming full members on July 1, 2007. 

East African Community, “About EAC,” www.eac.int/about_eac.htm (accessed March 11, 2008). 40 “Uganda,” African Economic Outlook 2005-2006, AFDB/OECD 2006, 

http://www.oecd.org/dev/publications/africanoutlook, 513, (accessed September 12, 2007). 41 Tariffs decreased from 10 percent to a current 6 percent for Ugandan importers that are not 

officially registered with the Government of Uganda and became duty free for companies that are 

registered with the government. George Aldridge (economics officer, U.S. Embassy, Kampala), email message to Commission staff, November 23, 2007. 
3-11

average of 5.8 percent or more per year since 200442 and the country’s limited 

footwear production43 also likely contributed to the growth in Uganda’s footwear 

imports from Kenya. 

The regional footwear industry also likely benefited from strengthened trade 

ties among COMESA members and COMESA initiatives to support the 

manufacturing of leather products.44 USAID contractors at the East and Central 

Africa Trade Hub in Nairobi have worked with the COMESA Secretariat to 

lower tariffs among COMESA members and incorporate measures to speed 

customs processing, reducing costs for traders. Leading COMESA markets for 

sub-Saharan Africa exports include Uganda, South Africa, Malawi, and 

Tanzania.45 COMESA also established a leather products institute to provide 

training in leather-making and technology,46 which may have contributed to 

growth in footwear trade among certain COMESA members during 

2002−2006. 

Growth of Private Enterprise in Ethiopia and the Development of 

Partnerships with the European Footwear Industry 

The Ethiopian Government launched a program to privatize state-owned 

enterprises and the Ethiopian Privatization Agency (EPA) was established to 

implement the program in 1995.47 Although state-owned footwear facilities still 

account for a significant share of Ethiopia’s footwear sector, the number of 

privately-owned operations has grown. The entry of high-performing, 

innovative private enterprises since 2001 has reportedly led to improvements in 

the quality of products and increased efficiency of marketing and 

management.48 Such private enterprise activities have likely helped to 

strengthen and expand Ethiopia’s footwear sector and exports. Private 

Ethiopian firms have been building new large factories in industrial parks 

developed by the government, and plans are underway to establish additional 

 

42 “Uganda,” African Economic Outlook 2005–2006, AFDB/OECD 2006, 

http://www.oecd.org/dev/publications/africanoutlook, 507 (accessed September 12, 2007); and The 

Economist, “Africa’s Economy: A Glimmer of Light at Last?” June 24, 2006, 51. 43 Stella Kasansula (economic/commercial assistant, U.S. Embassy, Kampala), e-mail to 

Commission staff, November 16, 2007. Uganda’s footwear business is dominated by one large 

manufacturer, Uganda Bata Shoe Co. which employs over 100 people and produces 5 million pairs 

of assorted footwear. Uganda’s population in 2007 was an estimated 30.9 million. 44 Industry sources report, “at the regional level it is especially the trade arrangements made 

within the Common Market of Eastern and Southern Africa (COMESA) that are likely to promote 

exports. . . . In the leather sector there are several regional associations.” Theo van der Loop, 

“RLDS Policy Brief No. 1: The Importance of the Leather Footwear Sector for Development in 

Ethiopia,” June 2003, 4. 45 Ronald Black (chief of party, East and Central Africa Trade Hub), interview by Commission 

staff, Nairobi, Kenya, October 17, 2007. 46 USITC hearing transcript, October 23, 2007, 30. 

47 “Ethiopian Business Development Services Network: Investment Opportunities,” 

http://www.bds-ethiopia.net/investment-opportunities.html (accessed August 17, 2007). 48 Akoten, Otsuka, and Sonobe, “The Development of the Footwear Industry in Ethiopia: How 

Different Is it from the East Asian Experience?” Prepared for the Global Development Network 

Annual Conference, January 2007, 1, 8. 
3-12

factories and to train employees to begin mass production of high-quality shoes 

for foreign markets.49

In addition, business relationships developed between Ethiopian footwear 

producers and companies in Europe, particularly Italy,50 which likely 

contributed to the surge in Ethiopia’s footwear exports to Italy during 2002−06 

(box 3.2). A leading Italian producer now sources footwear from three new 

companies in Ethiopia. Imports from Ethiopia complement the Italian 

company’s production in Italy and are sold under the company’s brand names 

throughout Europe. 

The Ethiopian industry has benefited from the guidance of Italian technicians 

dispatched by the company. There have been rapid improvements in Ethiopian 

productivity.51 Some Ethiopian footwear manufacturers import high-quality 

soles from Italy, Spain, and other European countries, while others use Italian 

machinery and technology to produce the high-quality soles in Ethiopia. Men’s 

dress shoes account for the bulk of Ethiopia’s footwear exports; production of 

casual men’s and women’s shoes is also being developed, however, and is 

expected to account for a significant share of footwear exports soon.52 

Impact of AGOA Preferences on South African Exports 

Signed into law in May 2000, AGOA granted duty-free treatment under the 

Generalized System of Preferences (GSP) program to U.S. footwear imports 

from eligible SSA countries until 2015, as long as they are a growth product, or 

manufactured in an AGOA-eligible country and are imported directly from an 

 

49 Ibid., 2, 12. 

50 Ibid., 13. 

51 Ibid., 12. 

52 Haile Kibret (economic specialist, U.S. Embassy, Addis Ababa), e-mail message to 

Commission staff, November 20, 2007. 

Box 3.2 Peacock: An example of the Italian connection 

Peacock, a vertically-integrated Ethiopian footwear producer, has two tanneries outside Addis and a footwear 

production complex in the city.1

 Soles are currently produced in another facility on the outskirts of Addis. All workers at 

the Addis complex graduated from Ethiopia’s leather goods training institute. Peacock’s vertically integrated operations 

allow it to benefit from economies of scale and quality control, factors that are important for export success. Peacock 

exports 95 percent of its production to a single customer, Adeki, in Italy, which markets the shoes under its highlyrecognized brand names throughout Europe. Adeki supplies the programs generated by CAD-CAM machines in Italy 

for use in CAD-CAM machines in Peacock’s leather cutting room as well as adhesives and materials for soles. All 

upper leather is from Peacock’s own tanneries in Ethiopia. Peacock began producing footwear for Adeki in 2004 and 

Adeki has manufacturing contracts with two other footwear producers in Ethiopia. In addition, industry sources in 

Ethiopia note that the quality of Ethiopia’s raw materials and a favorable political climate, which has been promoting 

the development of Ethiopia’s footwear sector through government-initiated incentives, have encouraged Italian 

footwear investors that had been in South East Asia to move their operations to Ethiopia.2 

____________ 

1

 Tesfay Weldekiros (General Manager, Peacock Shoe Factory), interview by Commission staff, Addis Ababa, 

Ethiopia, October 26, 2007. Most of the information in this paragraph is from this interview. 2 Haile Kibret (economic specialist, U.S. Embassy, Addis Ababa), e-mail to Commission staff, 

November 20, 2007. 
3-13

eligible country; the rule-of-origin qualifications specify that U.S. content may 

be counted toward the 35 percent value contribution threshold (HTS general 

note 16 (b)). Such preferential treatment contributed to increased SSA 

(primarily from South Africa) footwear exports to the United States from 2002 

through 2006.53 One U.S. footwear distributor stated that it began importing 

hand-stitched footwear from South Africa shortly after AGOA went into 

effect.54 Before AGOA, importing footwear from South Africa for this U.S. 

footwear distributor was cost prohibitive because of tariffs and because South 

African production costs are higher than other footwear suppliers. South 

African workers are paid an average of four times as much as their counterparts 

in China.55 Another industry source stated that AGOA has given South African 

footwear exports “an edge over our competitors who have to pay duties of 

between 15 percent and 16 percent on synthetic products.”56

In 2002, U.S. imports of footwear from SSA countries under AGOA accounted 

for 35 percent of total U.S. imports of footwear from SSA countries; in 2006, 

U.S. imports entering duty-free from SSA countries under AGOA accounted 

for 61 percent of total U.S. footwear imports from SSA. Virtually all of U.S. 

imports of footwear entering duty-free under AGOA in 2006 were from South 

Africa. In general, however, SSA footwear producers as a group have taken 

limited advantage of AGOA to boost their exports of footwear to the United 

States. This may be, in part, because of existing contractual obligations to sell 

cowhides to be processed in China, or because of minimal interest in alternative 

sources of supply on the part of U.S. footwear importers who source more than 

90 percent of their products from China.57 According to one U.S. industry 

representative, the principal opportunity for SSA footwear producers in taking 

advantage of AGOA lies in “small orders and niches.”58 South African footwear 

producers tend to concentrate on producing higher-end shoes (box 3.3).59

 

53 Dennis Linde (executive director, Southern African Footwear and Leather Industries 

Association (SAFLIA)), e-mail message to Commission staff, November 1, 2007. 54 Russell Lindsay (president, TSONGA USA LLC), e-mail message to Commission staff, 

October 10, 2007. 55 Ibid. 

56 Njobeni, “Business Day (South Africa): SA Producers Push Quality Ahead of Price,” 

October 3, 2005. 57 USITC hearing transcript, October 23, 2007, 110−111, 139. 58 Ibid., 139. 

59 Dennis Linde (executive director, Southern African Footwear and Leather Industries 

Association (SAFLIA)), e-mail message to Commission staff, November 1, 2007. 
3-14

Box 3.3 TSONGA USA LLC: An example of export growth prompted by AGOA 

TSONGA USA LLC (TSONGA), based in Colorado Springs, CO, has been importing and distributing hand stitched 

footwear made in South Africa since 2001. Craftswomen of the Tsonga tribe, who live in the Drakenberg Mountains in the 

Zulu kingdom, stitch together pre-cut shoe and handbag components at the Thread of Hope farm. The farm, which 

currently employs 160 women who earn 25 percent over minimum wage, can produce over 2000 pairs of shoes daily. 

TSONGA is the first of six brands produced by TSONGA to be launched internationally. Made from high quality leather, 

the shoes offer comfort elements such as arch supports and removable footbeds, and retail for $85 to $190 in the U.S. 

market. 

Russell Lindsay, president of TSONGA, stated that before AGOA went into effect, it was cost prohibitive for his company 

to import footwear from South Africa. “South African footwear workers are paid an average of four times more than their 

counterparts in China, have far superior labor regulations and higher production costs. Thus, without duty-free entrance 

into the USA, footwear imports from South Africa would not have been financially viable. My understanding is that AGOA 

has been ratified until 2017 or 2018 and this no doubt bodes well for expansion of footwear products and accessories 

from Africa into the USA.” U.S. imports of footwear from South Africa rose 470 percent during 2002–2006 to $2.6 million 

which can likely be largely attributed to duty savings on footwear offered by AGOA. 

____________ 

1 Russell Lindsay (president, TSONGA USA LLC), e-mail message to Commission staff, October 10, 2007. 
3-15

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1154102136&PHPSE. 

United Nations University. “Kenya: Leather and Footwear Industry.” undated. 

http://www.unu.edu/unupress/unupbooks/uu34ee/uu34e0t.htm (accessed September 19, 2007). 

U.S. International Trade Commission (USITC) hearing transcript in connection with inv. No. 332-477, 

Sub-Saharan Africa: Factors Affecting Trade Patterns of Selected Industries, October 23, 2007. 
3-16

Van der Loop, Theo. Clothing and Footwear in African Industrialization: The Case of Ethiopia. The 

Netherlands: Institute of Social Studies, Clothing and Footwear Network in Africa, January 2003. 

——. “The Importance of the Leather Footwear Sector for Development in Ethiopia.” RLDS Policy Brief 

No. 1, Addis Ababa. June 2003. 

WorldWater Assesment Programme, “Regional African Leather and Footwear Industry Scheme.” 

http://wwap.unesco.org/ev.php?URL_ID=7505&URL_DO=DOTOPIC&URL_SECTION=201&reload=1154102136&PHPSE. 
3-17

Natural Rubber 

Summary of Findings 

Rising demand for motor vehicles, tires, and other rubber products grew faster than 

global natural rubber (NR) production and led to sharply rising NR prices and SSA 

export values during 2002–06. These higher prices were chiefly responsible for the 

262 percent increase in the value of SSA exports of NR during 2002−06, from 

$228 million in 2002 to $824 million in 2006. The price of NR in SSA more than tripled 

during 2002−06, from $668 per metric ton (mt) to $2,092 per mt in 2006. SSA price 

trends mirror global NR trends, which are driven by Asian exports. 

Supply constraints faced by SSA NR producers, however, dampened the increase in SSA 

export value, allowing for the relatively low volume growth of 15 percent over 2002 −06. 

Factors that limited export volumes and the development of value-added rubber 

processing in the region included infrastructure constraints, capital resource 

requirements, and political instability in several SSA countries. In response to the 

increasing global prices, officials in Côte d’Ivoire, Cameroon, and Ghana have 

announced plans to double production of NR during the 2010−20 period.60 The project 

will be funded by the Common Fund for Commodities and include the adoption of 

technologies used in Asia. 

Industry Overview 

NR is a large-volume commodity product produced and traded only in select countries 

situated near the equator; thus, most large consuming countries are dependent upon a 

limited number of suppliers. The industry is dominated by exports from Asia, and 

strategically augmented with supplies from SSA and Latin America. Major NR 

exchanges are in New York, London, Tokyo, Shanghai, Thailand, and Malaysia. NR is 

generally imported duty-free by non-producing countries (as such, AGOA preferences 

play no role).61

The NR industry in SSA consists of nine known producing countries, largely situated 

near the equatorial coastal regions of West Africa. SSA countries produce NR from 

rubber tree plantations; such plantations employ several thousand workers on roughly 

0.5 million hectares (1 million acres),62 and are operated by both large conglomerates and 

smaller farmers. Côte d’Ivoire, Liberia, Cameroon, and Nigeria are the leading producers 

and exporters, accounting for about 91 percent of total SSA production and exports 

(table 3.2). 

 

60 AFP, “Three African Nations Pledge to Double Rubber Production,” July 27, 2007. Yann R. Wadjas 

(factory manager, Sigal, Côte d’Ivoire), e-mail messages to Commission staff, September 18−19, 2007. 

http://www.aaalatex.com/content/comments.asp?id=113 (accessed September 1, 2007). 61 Dock No (International Rubber Study Group (IRSG)), e-mail message to Commission staff, 

September 18, 2007. 62 International Rubber Study Group (IRSG), Rubber Statistical Bulletin, July/August 2007, table 46. 
3-18

Table 3.2 Sub-Saharan Africa natural rubber exports, by selected exporters and key markets, 2002−06 

 Exports Change, 2002 to 2006 

Exporters Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

1,000 dollars 92,549 124,481 154,233 181,756 296,146 203,597 220 EU Metric tons 125,342 123,018 116,140 135,641 147,663 22,321 18 

1,000 dollars 2,281 5,440 15,522 21,086 37,854 35,573 1,560 All other Metric tons 3,294 5,898 12,145 14,896 19,615 16,321 495 

1,000 dollars 94,830 129,921 169,755 202,842 334,000 239,170 252 

Côte d’ Ivoire 

Total Metric tons 128,636 128,916 128,285 150,537 167,278 38,642 30 

1,000 dollars 43,396 55,688 83,639 89,276 129,109 85,713 198 United States Metric tons 70,094 68,160 54,086 66,568 36,710 -33,384 -48 

1,000 dollars 23,919 28,083 54,475 49,203 55,922 32,003 134 EU Metric tons 35,718 28,414 39,953 36,202 27,047 -8,671 -24 

1,000 dollars 727 532 4,994 9,142 15,209 14,482 1,992 Canada Metric tons 685 396 3,718 6,407 7,583 6,898 1,007 

1,000 dollars 3,082 1,923 7,287 12,038 23,932 20,850 677 All other Metric tons 13,785 3,748 11,913 16,487 18,263 4,478 32 

1,000 dollars 71,124 86,226 150,395 159,659 224,172 153,048 215 

Liberia 

Total Metric tons 120,282 100,718 109,670 125,664 89,603 -30,679 -26 

1,000 dollars 36,756 51,875 61,478 67,782 111,384 74,628 203 EU Metric tons 53,085 54,882 50,313 53,049 58,130 5,045 10 

1,000 dollars 2,798 4,694 5,822 7,042 8,365 5,567 199 United States Metric tons 3,436 4,593 4,259 4,721 4,898 1,462 43 

1,000 dollars 3,127 4,179 7,169 2,845 4,622 1,495 48 All other Metric tons 4,300 4,119 5,725 2,271 2,660 -1,640 -38 

1,000 dollars 42,681 60,748 74,469 77,669 124,371 81,690 191 

Cameroon 

Total Metric tons 60,821 63,594 60,297 60,041 65,688 4,867 8 

1,000 dollars 7,611 14,043 34,899 30,528 45,845 38,234 502 EU Metric tons 10,880 14,265 26,555 23,031 22,897 12,017 110 

1,000 dollars 0 434 4,766 3,193 9,467 9,467 na United States Metric tons 0 403 3,740 2,299 4,798 4,798 na 

1,000 dollars 1,011 361 2,639 3,340 11,699 10,688 1,057 All other Metric tons 1,320 383 2,038 7,341 6,156 4,836 366 

1,000 dollars 8,622 14,838 42,304 37,061 67,011 58,389 677 

Nigeria 

Total Metric tons 12,200 15,051 32,333 32,671 33,851 21,651 177 

Sub-Saharan 1,000 dollars 227,864 317,313 471,785 526,530 824,142 596,278 262 

Africa Total Metric tons 341,232 332,153 356,147 400,087 393,995 52,763 15 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: na = not applicable. 

NR is also produced and shipped from Ghana, Guinea, Democratic Republic of the 

Congo (DRC), Gabon, and Malawi.63

Société Internationale de Plantations d’Hévéas (SIPH) is reportedly SSA’s largest NR 

producer, with annual production in excess of 92,000 tons. SIPH is also reportedly SSA’s 

leading rubber exporter through its two majority-owned subsidiaries, Ghana Rubber 

Estates Ltd. (GREL) in Ghana and Société Africaine de Plantations d’Hévéas (SAPH) in 

Côte d’Ivoire, which is listed on the Abidjan Stock Exchange (BRVM). Additional 

plantations are located in Nigeria. SIPH is majority-owned by the SIFCA Group, a 

diversified agribusiness conglomerate with activities in Côte d’Ivoire, Benin, and Ghana. 

SIPH is also partially owned by Michelin, the world’s leading tire manufacturer and 

largest purchaser of NR. Michelin has been the manager of both SAPH and GREL since 

2003, and, in 2006, Michelin acquired a 20-percent stake in SIPH in exchange for SIPH’s 

acquisition of Michelin’s rubber plantations in Nigeria.64

There appears to be little or no domestic NR consumption in most SSA countries, with 

the exception of Nigeria, and to a lesser extent, Côte d’Ivoire and the DRC.65 South 

 

63 IRSG, Rubber Statistical Bulletin, July/August 2007, tables 7 and 8. 64 Emerging Capital Partners, “Emerging Capital Partners Sells Stake in African Natural Rubber 

Company for 3.4x Initial Investment (July 23),” 2007. 65 ISRG, Rubber Statistical Bulletin, July/August 2007, tables 7 and 8. 
3-19

Africa, the only industrially developed country in SSA, reportedly consumes some 

amount of SSA NR in tire production.66 Tire production facilities in other SSA countries 

also may consume some regionally-produced NR.67 Background information on the 

description and uses of NR is presented in box 3.4. 

 

66 Bridgestone, Continental, Dunlop, and Goodyear operate tire plants in South Africa that employ some 

5,500 workers. www.rubbernews.com, “Directory of Tire Manufacturers,” October 2007. Various suppliers 

in West Africa ship regular quantities of NR to South Africa. Certain supplies from Cameroon, Côte d’Ivoire, 

and Liberia are reportedly transshipped through Spain. Gary Soska (principal engineer, Goodyear Tire and 

Rubber Company), e-mail message to Commission staff, September 13, 2007. 67 Angola, Cameroon, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Mozambique, 

Nigeria, South Africa, Sudan, Tanzania, and Zimbabwe. Rubber News, www.rubbernews.com, July 5, 2007. 

Rubber gloves are produced to a limited extent in one factory in Côte d’Ivoire; condoms are not known to be 

manufactured in any of the NR producing countries. South Africa reportedly produces condoms from 

imported Malaysian latex; Namibia reportedly produces condoms from latex of unknown origin. 

Box 3.4 Product description for natural rubber 

Natural rubber (NR) is derived from the aqueous milky white latex sap of the rubber tree (Hevea brasiliensis), which flourishes in tropical 

regions near the equator where there are alternating periods of abundant rainfall. The rubber tree is native to the Amazon region. Rubber 

trees are a renewable resource cultivated under agro-forestry conditions from seeds, seedlings, and by grafting. It takes about six years 

for a rubber tree to reach harvest maturity and up to 15 years for maximum yields to occur; its productive lifetime is 26-30 years.1 NR 

harvesting is labor intensive typically involving the recovery of rubber by many workers from trees grown on large estates or plantations. 

Yields from a quality rubber plantation under ideal conditions may approach one short ton per acre on a 100 percent solids basis.2

 About 

80 percent of the world’s NR tonnage is supplied by plantations in Southeast Asia, followed by other Asian countries, and sub-Saharan 

Africa (4 percent), with minor amounts from Latin America.3

The latex tapped from the rubber tree contains about 30 percent by weight of natural rubber in aqueous colloidal suspension. Workers 

collect less than a cupful from each tree every four hours. Latex is transported to collection stations where a small amount of ammonia 

must be added to prevent it from coagulating if its end use is to be concentrated liquid latex, or for most solid forms. The ammoniated 

crude liquid latex is subsequently transported to a processing plant where it is purified and concentrated to about 60 percent solid content 

for latex use, which after aging is ready for shipping. Solid forms of natural rubber are produced from coagulated product transferred from 

the collection site, or by subsequent coagulation of the diluted latex with acid at the processing plant.4

 

Solid forms predominate and are produced in three types: ribbed smoked sheet (RSS) in several grades; technically specified natural 

rubber (TSR) in several grades; and smaller amounts of crepe rubber. RSS sheet forms are milled through ribbed roller drums to form a 

ribbed sheet and washed; the sheet is subsequently dried and smoked to cure and preserve the rubber, and the dark product sheets are 

pressed into bales and packaged for shipment. TSR rubber coagulum is washed to remove impurities, and passed through a mill to form a 

sheet which is compressed into bales and packaged. TSR rubber specifications quantify the dirt, ash, nitrogen, and volatile matter 

contents and color code the NR. Crepe is the purest form of NR (polyisoprene) but it is produced in limited amounts.5 

About 75 percent of total solid NR forms are reportedly consumed in tire manufacturing of all types;6

 NR solid items such as seals, hoses, 

drive belts, conveyor belts, and foam rubber, are also produced. In the United States, about 90 percent of NR consumption is as solid, and 

10 percent as latex. About 80 percent of the solid NR is of the TSR type.7

 Latex is an important commodity used in dipped goods such as 

surgical gloves, other medical products, and prophylactic items used for personal hygiene. Latex is also used for carpet backing, 

adhesives, and other products.8

 

____________ 

1 Technical Centre for Agricultural and Rural Cooperation ACP-EU, “Natural Rubber Springs Back,” April 2007; and Wikipedia, “Para 

Rubber Tree,” undated (accessed September 1, 2007). 2 Firestone Natural Rubber Company, LLC, Web site. http://www.firestonenaturalrubber.com (accessed May 23, 2007). 3 IRSG, Rubber Statistical Bulletin, July/August 2007. 4 Firestone Natural Rubber Company, LLC, Web site. http://www.firestonenaturalrubber.com (accessed May 23, 2007). 5 Transportation Information Service, “Natural Rubber, version 1.0.0.05,” undated (accessed September 10, 2007). 6 Technical Centre for Agricultural and Rural Cooperation ACP-EU, “Natural Rubber Springs Back,” April 2007. 7 USITC, Dataweb. 8

 Rob Blalock (U.S. sales representative, Firestone Natural Rubber, Co.), telephone interview by Commission staff, May 24, 2007.
3-20

Profiles of Leading SSA NR Producers 

Côte d’Ivoire 

The leading producer and exporter of NR in SSA demonstrated strong growth, with 

exports rising 30 percent by volume and 252 percent by value during 2002–06. Overall 

production volume also increased by 48 percent, from 120,000 tons to 178,000 tons, 

representing 42 percent of total SSA production in 2006.68 The area under cultivation in 

2006 was reported to be 122,000 hectares (300,000 acres).69 

The NR industry in Côte d’Ivoire is well organized and structured. The industry consists 

of two subsectors, manufacturers and growers, which coordinate their activities through 

the Association of Producers and Manufacturers of Natural Rubber (APROMAC). There 

is reportedly no government support for the NR industry.70 The NR industry was 

privatized during the early to mid-1990s. Historically, manufacturers of salable basic NR 

in bales and sheets relied primarily on their own plantations for a steady flow of raw 

materials. However, the sharp increase in the world price of rubber, as well as improving 

terms of trade following a 50 percent currency devaluation in 1994, resulted in a marked 

increase in areas planted by small growers. Although the share of producing areas 

cultivated by small growers averaged only about 16 percent during 1990–93, this share 

climbed to 43 percent by 1997. Following privatization, two large enterprises, SAPH and 

SOGB, which were originally set up under state control to run certain sectors of the NR 

industry, remained and commanded about 80 percent of the producing areas.71 There is 

very little domestic consumption of NR in Côte d’Ivoire other than a rubber glove 

factory, SIGAL, and possibly some production of rubber buckets and boots.72 

Liberia 

Export values during the 2002–06 period increased by 215 percent due mainly to rising 

prices. In 2006, about 64 percent of Liberia’s NR export shipments by value were 

exported to the United States and Canada.73 The remainder was shipped largely to France 

and other EU countries. Annual NR production of Liberia, the second-leading producer 

of NR in SSA, was relatively constant during 2002–06, ranging from a high of 115,000 

tons in 2004 to a low of 101,000 tons in 2006, and representing about 24 percent of the 

SSA total in that year.74 There is no known domestic consumption of NR in Liberia. 

 

68 IRSG, Rubber Statistical Bulletin, July/August 2007, table 7. 69 Ibid., table 46. 

70 Jean-Louis Billion (chairman, Ivorian chamber of commerce and industry (CCI)), interview by 

Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 71 Jones, Jammal, and Gokgur, Impact of Privatization, July 15, 2002, III-1-43. 72 Yann R. Wadjas (factory manager, SIGAL, Côte d’Ivoire), e-mail message to Commission staff, 

August 30, 2007. 73 GTIS, Global Trade Atlas. 

74 IRSG, Rubber Statistical Bulletin, July/August 2007, table 7. 
3-21

Approximately 270,000 acres of rubber trees were under cultivation in 1999, the last year 

of available data. 75 Firestone Natural Rubber Company, LLC, reportedly operates the 

world’s single largest NR estate in Liberia, encompassing approximately 120,000 acres. 

Firestone began production in Liberia in 1926. Approximately 8 million rubber trees are 

now planted, and about 6,000 workers are employed.76 Hydroelectric power has been 

developed for the estate. Firestone reportedly supplies solid block rubber to its sister 

company, Bridgestone Firestone North America Tire, LLC, and liquid latex to specialty 

compounders and manufacturers in the United States and Canada.77 Firestone indicated 

that it has contributed significantly to the redevelopment of Liberia’s NR production and 

infrastructure during the post-Civil War period (1995−96), including restoration of roads, 

bridges, and schools.78

Cameroon 

The third largest NR producing country in SSA accounted for 15 percent of total 

production volume in 2006. Export volumes were relatively stable during 2002–06, while 

the value of exports grew by 191 percent, due mainly to rising prices. In 2005, the total 

area of rubber trees under cultivation was reportedly 40,400 hectares (99,000 acres).79

Although the industry has reportedly been privatized, production remained relatively flat 

during 2002–06, hitting a high of 62,200 tons in 2006 and a low of 54,000 tons in 2004.80

No confirmed evidence exists of domestic NR consumption in Cameroon,81 although a 

tire facility may exist in Douala.82 However, a producer in Cameroon of technically 

specified rubber (TSR) is seeking a partner for a factory that would be built in Cameroon 

to process rubber into higher value-added articles, which would reduce transportation 

costs per unit volume, and create more jobs.83 

Nigeria 

NR is one of Nigeria’s traditional non-oil export products. Dynamic growth in global 

demand during 2002–06 resulted in an export increase of 677 percent by value and 

177 percent by volume. The largest market for Nigerian NR is the EU. Companies from 

Côte d’Ivoire and Cameroon are reportedly major stakeholders in the Nigerian industry.84

Nigeria also consumes significant quantities of NR—more than 35 percent of 

production—domestically,85 using it to make products such as tires, bathroom slippers, 

rubber bowls, and cups. Major export markets for Nigeria’s rubber products are other 

West African countries. In the past, both Michelin and Dunlop operated tire plants in 

 

75 IRSG, Rubber Statistical Bulletin, July/August 2007, table 46. Currently, about 550,000 acres of semideveloped arable land are potentially available for NR cultivation in Liberia. Juba, “Natural Rubber Industry 

of Liberia,” April 5, 2007. 76 Firestone Natural Rubber Company, LLC, Web site. http://www.firestonenaturalrubber.com (accessed 

various dates, 2007). 77 Ibid. 

78 Ibid. 

79 IRSG, Rubber Statistical Bulletin, July/August 2007, table 46. 80 Ibid., table 7. 

81 Ibid., tables 7 and 8. 

82 Rubber News. www.rubbernews.com (accessed various dates, 2007). 83 “Rubber Factory Project,” UNIDO Web site. 

http://www.ticadeexchange.unido.org/templatees/detailviews/detaiview_all.sap?lan=en&plan=en, (accessed 

December 3, 2007). 84 “Rubber and Rubber Products,” Nigeria Commerce, January 9, 2007. 85 IRSG, Rubber Statistical Bulletin, July/August 2007, tables 7 and 8. 
3-22

Nigeria; however Michelin ceased operations at the end of 2006. Six Nigerian firms were 

identified that trade in NR products other than tires.86

Nigeria is the fourth largest producing country of NR in SSA, representing about 

10 percent of total production by volume in 2006. Production volume ranged from a low 

of 38,000 tons in 2003 to a high of 45,000 tons in 2004.87 Risingson International, Inc., a 

Nigerian affiliate with a sales office in Chicago, IL, markets various solid grades of TSR. 

Risingson works with rubber plantation owners and producers near Benin City, which is 

located in the Edo State, about 200 miles east of Lagos. Benin City is at the center of 

Nigeria’s rubber industry and is home to the headquarters of the Nigerian Rubber Board 

(NRB) and the Rubber Research Institute of Nigeria.88 

Ghana 

In 2006, Ghana was the fifth largest SSA producer of NR, providing about 3 percent of 

total SSA production. Production and export volumes were relatively constant during the 

2002–06 period, averaging about 10,000 tons per year. Export values, however, increased 

238 percent during the period, owing to a dramatic rise in prices. The latest data available 

indicate acreage under cultivation of 17,000 hectares (42,000 acres) in 1999.89 There is 

no indication of domestic consumption of NR in Ghana, although an idle tire production 

facility formerly run by Firestone using Liberian NR feedstock is reportedly located in 

the country at Bonsasa.90 

Ghana Rubber Estates Ltd. (GREL), a formerly state-owned operation that was privatized 

in October 1996, currently encompasses 22,000 acres. GREL has received financial aid 

from the French Development Fund (CFD) to establish a processing plant, which 

reportedly is on stream.91 

Guinea 

Guinea is the most recent entrant into NR production in SSA. In 2006, NR production 

was 9,000 tons, representing about 2 percent of total SSA output. Production was 

relatively constant during 2002–06, averaging 9,000 tons annually, while export volumes 

averaged 8,400 tons-per-year. Both export values increased significantly during 2002–06 

due to increased prices. 

NR is produced by Société of guinéenne de palmiers à huile et d’hévéas (Soguipah), a 

wholly owned government company, at its Nzerekore estate in the south of the country, 

along the Liberian border. The plantation is managed by Société guinéenne de gestion 

agro-industrielle (Soggai). Rubber planted acreage in 2001–02 totaled 6,000 hectares 

 

86 Nigeria Commerce. “Rubber and Rubber Products.” 

http://www.commerce44ng.org/commerce/index.php?option=com_content&t, (accessed August 30, 2007); 

and “Michelin Annual Report 2006.” www.michelin.com, undated. 87 IRSG, Rubber Statistical Bulletin, July/August 2007, tables 7 and 8. 88 Retrieved from Risingson Web site, www.risingsoninternational.com/rubber.asp, September 1, 2007. 89 IRSG, Rubber Statistical Bulletin, July/August 2007, table 46. 90 USITC staff interview with a delegation of Ghanaian government and industry representatives, 

Washington, DC, October 17, 2007; and Rubber News. www.rubbernews.com, (accessed various dates, 

2007). 91 “The African Rubber Industry,” Secretariat Conference Paper 2002B, International Rubber Study 

Group (IRSG), September 2002, 10. 
3-23

(15,000 acres), including around 3,700 acres of smallholder rubber. A processing plant 

was scheduled to be on stream by early-2001. Plans were formulated to plant an 

estimated 17,000−20,000 acres, of which 6,000 acres were to be in smallholdings.92

USITC staff was not able to confirm whether these plans have reached fruition. 

Democratic Republic of the Congo (DRC) 

NR production in DRC averaged 2 percent of the SSA total during 2002–06, varying 

between 7,000 and 8,000 tons per year, while export volumes averaged only 1,700 tons 

annually. However, both export volumes and value increased significantly during 2002–

06. In 1972, Cobra Tire and Rubber Company opened a 1,000-unit-per-day tire plant at 

Kinshasa.93 

Production of NR in DRC reached 35,000 tons-per-year by the early 1960s, during which 

average planted acreage was 222,000 acres. Since the 1970s, production and planted 

acreage fell, however, averaging under 20,000 tons per year in the 1980s and less than 

15,000 annual tons in the 1990s. By 1990, total planted acreage was estimated at 99,000 

acres, of which only 25,000 acres were tapped by four companies.94 In the 1990s, 

production fell below 10,000 tons per year, disrupted by civil war, economic crises, high 

interest rates, and hyperinflation.95 Planted acreage in 1999 was reported at 35,000 

hectares (86,000 acres).96 

Gabon 

In 2006, Gabon’s exports of NR ($26 million) accounted for about 3 percent of total SSA 

exports. Export prices for NR from Gabon tracked global and SSA trends, increasing 

from $762 per ton in 2002 to $2,112 per ton in 2006. Hevegab, a government-owned 

company, was formed in 1981 to develop NR cultivation in Gabon with the assistance of 

the CFD. A total of 9,000 hectares (22,200 acres) were planted and production began in 

the early-1990s on three estates, Bitam, Kango, and Mitzic. Production reportedly 

reached 10,000−12,000 tons in 1997–98. A 10,000−20,000 ton processing plant was built 

at Mitzic to produce block rubber. In 2000, a privatization plan was initiated.97

Production fell thereafter, but export volumes increased from 1,000 tons in 2004 to 

12,500 tons in 2006. 

 

92 “The African Rubber Industry,” Secretariat Conference Paper 2002B, IRSG, September 2002, 10. 93 Rubber News. www.rubbernews.com, undated. 94 Of the four producing entities, three were foreign owned, and one, Cultures Zairoises (CZ), was 

locally-owned. In the late-1990s to early-2000s, only the foreign-owned entity, Groupe Agro-Pastorale 

(GAP), an American company, was believed to still be in production. The GAP plantations output was used 

for tire production. Production was all solid still rubber in several grades. TSR capacity was installed at the 

Busira estate in Equatorial Zaire around Ikele in 1995, and at the SCAM estate in the southwest of the 

country in early-1999. 95 “The African Rubber Industry,” Secretariat Conference Paper 2002B, IRSG, September 2002, 12−13. 96 IRSG, Rubber Statistical Bulletin, July/August 2007, table 46. 97 “The African Rubber Industry,” Secretariat Conference Paper 2002B, IRSG, September 2002, 9−10. 
3-24

Proposals to Promote the Industry and Increase Investment in the Future 

In order to encourage continued growth in NR production and trade, Côte d’Ivoire, 

Cameroon, and Ghana announced ambitious goals to double NR production during 2010–

20.98 Industry sources report that during a July 2007 meeting on how to increase revenues 

for small rubber farmers, plans were disclosed for implementation of a project involving 

the adoption of technologies used in Asia. The $3 million project, a figure representing 

the costs for all three countries combined, will be financed by the Common Fund for 

Commodities, a Netherlands-based financial institution.99 The project is designed to 

achieve production increases through: 

• Technology transfer for the implementation of good agricultural practices; 

• Productivity increases through the use of high-yielding clones; 

• Installation of breeding programs so that high-yielding clones are available in 

sufficient quantities; and, 

• Strengthening of professional and research organizations.100

Sub-Saharan Africa Trade in the Global Context 

Leading Exporters 

In 2006, global exports of NR were valued at $13.6 billion. Thailand, Indonesia, 

Malaysia, and Vietnam dominated global exports, accounting for 89 percent of the total 

value (figure 3.3). SSA countries, in contrast, accounted for 6 percent of the global total. 

Côte d’Ivoire and Liberia ranked fifth and sixth in terms of the world’s largest global 

exporters, while Cameroon ranked ninth. Côte d’Ivoire, Liberia, Cameroon, and Nigeria 

accounted for 91 percent of the total value of SSA exports, while Gabon, Ghana, and 

Guinea accounted for another 7 percent. 

Relatively minor differences between production and export statistics indicate very little 

apparent domestic consumption in any of the SSA producing countries except for Nigeria 

(36 percent of production) and a minor amount in Côte d’Ivoire (3 percent of production). 

There is also statistical evidence of domestic consumption in the DRC. Of the SSA 

countries identified, 94 percent of Côte d’Ivoire’s exports were in solid forms, while 

60 percent of Liberia’s exports were in latex forms.101 

 

98 AFP. “Three African Nations Pledge to Double Rubber Production,” July 27, 2007. 

http://www.aaalatex.com/content/comments.asp?id=113 (accessed September 1, 2007). 99 Ibid.; and Yann R. Wadjas (factory manager, SIGAL, Côte d’Ivoire), e-mail message to Commission 

staff, September 19, 2007. 100 Yann R. Wadjas (factory manager, SIGAL, Côte d’Ivoire), e-mail message to Commission staff, 

September 19, 2007. 101 IRSG, Rubber Statistical Bulletin, July/August 2007, tables 7 and 8. 
3-25

Figure 3.3 Leading global and sub-Saharan Africa exporters of natural rubber, 2006

Global Exporters

Other

5%

Thailand

34%

Indonesia

33%

SSA

6%

Malaysia

18%

Vietnam

4%

SSA Exporters 

Other

2%

Côte d'Ivoire

41%

Liberia

27%

Nigeria

8%

Guinea

2% Gabon

3%

Ghana

2%

Cameroon

15%

 $13,641 million $824 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU 

external trade.

Leading Export Markets 

In 2006, global imports of NR totaled $13.6 billion.102 China, the EU, the United States, 

Japan, and South Korea accounted for about 76 percent of global NR imports (figure 3.4). 

The EU accounted for 21 percent, led by Germany, France, Spain, Italy, and the UK. 

Other Asian countries accounted for about 10 percent of the total; Latin America, 

6 percent; and Canada, 2 percent. Approximately 56 percent of NR imports were 

consumed as technically specified NR (TSR); 17 percent as ribbed smoked sheet (RSS); 

12 percent as latex; and 15 percent in unspecified forms. 

The SSA industry is strongly influenced by its traditional affiliations with Europe and the 

United States, where 88 percent of its NR product was shipped in 2006. The EU 

accounted for 69 percent of total SSA exports of NR, led by France, Spain, Italy, 

Germany, and the UK; the United States accounted for 19 percent; and Canada accounted 

for 3 percent of the total (figure 3.4). Shipments to the United States and Canada were 

predominately from Liberia, where the Firestone Natural Rubber Company, LLC, a U.S.-

based firm, has a large presence. African export shipments, mostly intraregional trade to 

South Africa and Côte d’Ivoire, made up an additional 3 percent of total SSA exports, 

while Morocco accounted for 2 percent. The Ukraine also took 2 percent of the total, 

while China and Malaysia took a combined 2 percent of exports. 

 

102 Global exports and imports both equal $13.6 billion as derived from origin-destination data compiled 

from Global Trade Atlas data reported by importing countries. The volume, value, and price trends 

previously addressed apply to both exports and imports. 
3-26

Figure 3.4 Leading markets for global and sub-Saharan Africa exports of natural rubber, 2006

Global Export Markets

Other

20%

China

22%

EU

21%

United Stats

15%

Korea

5%

Japan

13% Malaysia

4%

SSA Export Markets

United States

19%

Other

9%

EU

69%

Canada

3%

 $13,641 million $824 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU 

external trade.

Factors Affecting Export Patterns 

Rising demand for motor vehicles, tires, and other rubber products grew faster than 

global NR production, leading to sharply rising NR prices during 2002–06. However, 

SSA export volume increased more slowly than exports from Asia. Factors that limited 

export volume growth and the development of value-added rubber processing in the 

region included infrastructure constraints, capital resource requirements, and political 

considerations. 

Export data compiled by the International Rubber Study Group (IRSG) in 2002 indicate 

that most high-quality NR shipped from SSA countries was sold directly to tire 

manufacturers, leaving little for other markets. Approximately 66 percent of total global 

NR exports was reportedly sold to the “big three” global tire manufacturers, Michelin, 

Bridgestone Firestone, and Goodyear. 

Demand Growth 

The tire and associated rubber products industries are the main drivers of NR demand. 103

Global economic growth and concomitant consumer demand for goods and services are 

major drivers of demand for vehicles and tires, the largest end uses for NR. Increasing 

purchases of motor vehicles in China and other developing or newly industrialized 

countries have boosted demand for tires, driving up rubber prices. In the first 10 months 

of 2006, China surpassed Japan to become the second-largest market after the United 

States for vehicles sales,104 contributing to increased demand for tires.105

 

103 Tires are produced from solid forms of NR, and dipped goods, such as surgical gloves and other 

prophylactics, are produced from liquid NR latex. 104 Leow, Claire. “Investing: A Bullish Case for Natural Rubber,” December 5, 2006. 105 IRSG, Rubber Statistical Bulletin, July/August 2007, table 44. 
3-27

In addition, global economic growth has created more demand for rubber products. A 

period of generally depressed NR prices in 2002 was followed by a period of growth, 

during which prices for ribbed smoked sheet (RSS) on the New York market rising from 

$907 per mt in 2002 to a record high of $2,904 per mt in June 2006, an increase of 

220 percent.106 Global NR production volume increased a more modest 31 percent, from 

7.4 million metric tons in 2002 to 9.7 million metric tons in 2006.107 However, because of 

supply and infrastructure constraints, limited domestic consumption, and political 

instability in Africa, NR production volume in SSA grew at about one-half of the global 

NR rate.108 

The increase in the price of synthetic rubber also fueled increased demand for NR during 

2002–06. Synthetic rubber uses petrochemical feedstocks derived from crude oil, and 

consumes 3.5 times more oil than is required to produce NR from a renewable resource 

rubber tree plantation. This dependence on oil has led to a dramatic increase in synthetic 

rubber prices over the last few years, fueling an increase in demand and prices for NR.109 

Prices for natural rubber often track crude oil benchmark prices, which soared to a record 

high of more than $90 per barrel in November 2007. Officials in Côte d’Ivoire reported 

that NR has benefited relative to synthetic rubber because of a demand shift created by 

the high oil prices.110 One industry source predicts that NR prices will continue to rise 

because economic growth in emerging countries, especially China, is so strong that 

global supply will lag behind demand.111

Inadequate Infrastructure and Political Instability in SSA Countries 

Supplying NR 

Inadequate infrastructure and other supply constraints have hampered SSA suppliers of 

NR from keeping pace with the growth in exports from other NR supplying regions. 

Roads, electricity supplies, and communication networks are viewed as inadequate to 

meet the needs of the NR rubber exporting industry in SSA. 

Political instability, particularly in Liberia and the DRC, has constrained some SSA 

suppliers from meeting growing demand for NR. Although a democratic government is 

now in place in Liberia, the damage to infrastructure and institutions that occurred during 

and immediately after the civil war (which ended in 2005−06) will likely take years to 

rebuild. Civil wars in the DRC and Côte d’Ivoire also disrupted NR production during 

2002–06. The civil war in the DRC is officially over, although armed conflict in the 

eastern part of the country has hampered investment. A cease fire in Côte d’Ivoire that 

began in 2003 offers hope that a more favorable climate for NR investment and 

production will return.112

 

106 Ibid., table 48. 107 Ibid., table 7. 108 Ibid. 109 Crawford, “Rubber is Critical, and Vulnerable,” April 16, 2005. 110 Jean-Louis Billon (chairman, Ivorian chamber of commerce and industry), interview by Commission 

staff, Abidjan, Côte d’Ivoire, October 24, 2007. 111 Leow, “Investing: A bullish case for natural rubber,” International Herald Tribune, Bloomberg Press,

Jakarta, Indonesia, December 5, 2006. www.iht.com/articles/2006/12/04/bloomberg/bxinvest.php (accessed 

September 1, 2007). 112 CIA, The World Factbook 2007, May 25, 2007. 
3-28

Natural Rubber Bibliography 

AFP. “Three African Nations Pledge to Double Rubber Production.” 

http://www.aaalatex.com/content/comments.asp?id=113. (accessed September 1, 2007). 

CountryWatchForecast. Real Economic Growth Rates: Key Countries: 2002−2006. 

http://forecast.countrywatch.com/macro/topic.aspx?vcountry=999&t..., (accessed November 28, 2007). 

Crawford, Dan. Energy Bulletin, “Rubber is Critical, and Vulnerable,” April 16, 2005. 

www.energybulletin.net/5408.html (accessed September 1, 2007). 

“Directory of Tire Manufacturers.” Rubber & Plastics News, May−October, 2007. 

http://www.rubbernews.com. 

Emerging Capital Partners, “Emerging Capital Partners Sells Stake in African Natural Rubber Company 

for 3.4x Initial Investment,” July 23, 2007. www.ecpinvestments.com/news/1512.xml (accessed 

August 24, 2007). 

Firestone Natural Rubber Company, LLC. www.firestonenaturalrubber.com (accessed various dates, 

2007). 

Global Trade Information Services, Inc. (GTIS), Global Trade Atlas. Annual data compiled from 

reporting countries’ official statistics, including EU27 external trade. http://www.gtis.com/gta/usitc

(accessed various dates). 

International Rubber Study Group (IRSG), Rubber Statistical Bulletin, July/August 2007. 

Jones, Leroy P., Yahya Jammal, and Nilgun Gokgur. “Impact of Privatization in Côte d’Ivoire.” Boston 

Institute for Developing Economies (BIDE), III-1-43, 2002. 

http://rru.worldbank.org/Documents/PapersLinks/privatization_Côte_d_ivoire.pdf, (accessed 

September 1, 2007). 

Jubah, K. “Natural Rubber Industry of Liberia.” April 5, 2007. 

http://www.africacncl.org/Events/downloads/Mr._Keith_Jubah.pdf. 

Leow, Claire. “Investing: A bullish case for natural rubber.” International Herald Tribune, Bloomberg 

Press, Jakarta, Indonesia, December 5, 2006. www.iht.com/articles/2006/12/04/bloomberg/bxinvest.php.

(accessed September 1, 2007). 

Michelin Annual Report 2006. www.michelin.com (accessed August 30, 2007). 

Nigeria Commerce. “Rubber and Rubber Products,” 

http://www.commerce44ng.org/commerce/index.php?option=com_content&t (accessed 

August 30, 2007). 
3-29

Technical Centre for Agricultural and Rural Cooperation ACP-EU, “Natural Rubber Springs Back,” 

April 2007. http://www.cta.int/ (accessed September 1, 2007). 

“The African Rubber Industry,” Secretariat Conference Paper 2002B, International Rubber Study Group 

(IRSG), September 2002. 

U.S. Central Intelligence Agency (CIA): The World Factbook 2007, May 25, 2007. 

https://www.cia.gov/library/publications/the-world-factbook/index.html. 

Wikipedia, “Para Rubber Tree,” http://en.wikipedia.org/wiki/Rubber_tree (accessed September 1, 2007). 
3-30

Processed Diamonds 

Summary of Findings 

Global price increases driven by strong consumer demand for polished diamonds was the 

key factor contributing to the export growth of processed diamonds (box 3.5) from SSA 

during 2002−06. Other contributing factors were investment in new diamond-processing 

facilities, and programs by some SSA governments and international organizations to 

promote beneficiation, or the downstream processing of rough diamonds. These principal 

factors led to increased production and exports by small but growing producers such as 

Botswana, Namibia, and Angola. The Kimberly Process Certification Scheme (KPCS) 

has helped to maintain consumer confidence in diamonds originating from the SSA 

diamond industry, thereby limiting any negative perception or impact on its exports of 

processed diamonds. 

The value of SSA exports of processed diamonds increased steadily during 2002–06. 

However, volume (as measured in carats) likely decreased during this period. Exports 

from South Africa, which make up the vast majority of SSA exports of processed 

diamonds, increased from $465 million in 2002 to $664 million in 2006, or by 43 percent. 

Botswana, Mauritius, and Namibia also showed gains during the period.113 

Industry Overview 

Over one-half of the world’s diamonds are mined in Africa, with four SSA countries—

Botswana, South Africa, Angola, and Namibia—contributing the bulk of the production 

and trade. However, with the exception of South Africa (and to a much lesser extent 

Mauritius), SSA countries have not been significantly engaged in diamond processing 

and other value-added activities (diamond cutting and polishing), which were principally 

 

113 GTIS, Global Trade Atlas. 

Box 3.5 Product description for processed diamonds 

As a mineral (rather than a rock) due to its isometric (cubic) crystal structure, diamond is a form of pure carbon characterized by 

extreme hardness. Rough diamonds are mined from both primary and secondary deposits. SSA is the world’s leading source of 

rough diamonds. 

The steps to transform a rough diamond into a processed one involve sawing or cleaving, grinding (bruting), and cutting and 

polishing, all steps requiring much experience. Initial shaping and sizing of the diamond is now generally done by sawing with a 

diamond-impregnated circular saw, rather than the older cleaving method of tapping a chisel held against the diamond. The 

diamond is further rough-shaped by grinding it against another diamond. To cut and polish the facets, the diamond is cemented to 

a holder and held against a high-speed horizontal wheel (rotating at about 1,800 to 3,000 r.p.m.) that is covered with a mixture of 

diamond dust and lubricating oil. Despite the high degree of mechanization, the cutting of angled facets is still ultimately guided by 

the cutter’s experienced eye. The loss of material throughout the grinding, cutting, and polishing processes can amount to about 

50 to 60 percent of the original rough diamond. Rough diamonds can have a greasy luster before processing, but cut diamonds 

are usually colorless, with some being tinged with various colors, most commonly yellow. 

Source: Schumann, Gemstones of the World, 1986.
3-31

done in overseas locales.114 Nonetheless, in recent years, some SSA countries in addition 

to South Africa (notably Angola, Botswana, Namibia, and Mauritius) have taken steps to 

add value to their rough diamonds and boost domestic revenue and employment. 

Processed diamonds are used primarily in jewelry manufacturing to make items such as 

rings, necklaces, bracelets, pins, and earrings (box 3.6).115

During 2002−06, shifts in the SSA diamond-processing industry and exports were 

differentiated between the more established industry in South Africa, which currently 

dominates SSA production, and the newer developing industries in Angola, Botswana, 

and Namibia. Although one company, De Beers,116 continues to control or influence 

virtually all aspects of SSA diamond operations, Angola and Namibia have become 

notable exceptions by also relying on other outside foreign investment in their diamondprocessing operations. 

South Africa, the oldest rough diamond producer in the region, was also the first to 

establish a diamond-cutting and polishing industry. Due to efforts by the government, 

De Beers, and many firms in the diamond cutting and diamond retail sectors, a slow but 

steady increase in South Africa’s production of processed diamonds has occurred since 

the mid-1990s. By 2005, in addition to the 13,000 employed in South Africa’s diamond 

mines, another 300 people were employed in sorting and valuing activities for De Beers 

in Kimberly, and some 2,100 people were employed in diamond cutting and polishing 

in about 20 major factories and over 100 small-scale cutting operations.117 Safdio RSA 

Diamond Cutting factory is one of the largest South African factories and is located in 

the heart of Johannesburg’s diamond district. It opened in 1985, and currently has a 

highly skilled workforce of more than 200 artisans. The operation includes the grading 

of rough diamonds, followed by sawing, cutting, and final polishing. The factory 

specializes in “perfect makes” and “fancy yellow”, many of which are prepared for the 

prestigious Graff collection.118 These South African polished exports compete favorably 

with products from Antwerp, New York City, and Tel Aviv. The Harry Oppenheimer 

Training School, a diamond-cutting school operated by De Beers and the Diamond 

Foundation of South Africa, is also located in Johannesburg. 

 

114 The cutting and polishing of rough diamonds is a specialized skill that is concentrated in a limited 

number of locations worldwide. Traditional diamond-processing (cutting/polishing) and trade centers are in 

Israel, India, Belgium, and the United States. Recently, China and Thailand have become established 

diamond-cutting centers. Cutting centers with lower costs of labor, notably Surat in Gujarat, India, handle a 

larger number of smaller carat diamonds. India has the largest cutting and polishing industry in the world, 

employing over a million people. It is the leading center in terms of value added, accounting for over 

50 percent of cutting and polishing by value; 80 percent by carat weight; and 95 percent in terms of pieces of 

global cut and polished diamond production. 115 The USTR requested coverage of the SSA industries engaged in jewelry production and downstream 

diamond processing. However, since SSA export values of processed diamonds are much greater than the 

exports of jewelry, this analysis focuses on processed diamonds. 116 For the past century, De Beers has dominated the global diamond trade. De Beers, with annual sales of 

more than $6 billion, accounts for around 40 percent of the world’s production of rough diamonds. De Beers 

S.A. is the holding company of the De Beers mining interests around the world. It oversees De Beers 

Consolidated Mines (DBCM, mining, South Africa) and The Diamond Trading Company (DTC), the 

marketing arm of De Beers. It also controls the De Beers diamond mining interests with the governments of 

Botswana and Namibia. 117 Mining Review Africa, “Diamond Beneficiation in South Africa,” 2005. 118 The House of Graff reportedly is synonymous with the most prestigious diamonds in the world, 

representing rarity, beauty, and the highest quality and craftsmanship. 
3-32

Although labor costs are reportedly never more than 10 percent of the final cost of the 

processed diamond,119 they do factor into the competitiveness of various countries and 

the types of diamonds processed in those countries. In South Africa, because skilled 

labor is in relatively short supply, the estimated labor cost of cutting and polishing 

diamonds is $55 to $75 a carat. This compares with $75 per carat in Belgium; $100 to 

 

119 Ernest Bloom (president, World Federation of Diamond Bourses), interview by Commission staff, 

Johannesburg, South Africa, October 30, 2007. 

Box 3.6 Precious-metal jewelry 

An established and growing processed-diamond industry in the SSA countries could also contribute to growth in the valueadded precious-metal jewelry industry by increasing the availability of diamonds to the domestic jewelry industry. 

Exports of precious-metal jewelry from the SSA countries totaled $163.7 million in 2006, representing a 38-percent gain over 

2002. Leading SSA exporters were South Africa, with $97.1 million (58 percent of SSA exports) and Mauritius, $56.7 million (35 

percent of SSA exports).1 The major factor affecting this trade pattern was the substantial annual increase in the global price of 

gold, as well as government programs to support the industry in South Africa. 

The United States accounted for half ($82.6 million) of total SSA exports in 2006, followed by France, which made up 28 percent

($45.1 million). Reflecting growing regional trade, two percent ($2.6 million) went to South Africa. The SSA countries represented 

roughly one percent of global exports of precious-metal jewelry in 2006.

South Africa is the leading producer of precious-metal jewelry in SSA. South Africa has a small but well-established jewelrymanufacturing sector, producing a wide variety of precious-metal jewelry items, ranging from mass production items to individual 

pieces. South Africa’s jewelry production is located primarily in the Gauteng and Western Cape provinces, although there are 

also important manufacturing centers in the Durban/Pietermaritzburg (Kwazulu Natal) and Bloemfontein (Free State) areas. The 

precious-metal jewelry industry in South Africa consists of about 350 manufacturing concerns, ranging from large manufacturers 

employing several hundred employees to smaller studios specializing in high value-added “designer” pieces. Total jewelry 

manufacturing employment is estimated at 3,000. A large portion of South Africa’s manufactured jewelry is sold locally; 

approximately 20 percent of production is exported.2 Gold chain is the largest export jewelry item. Reportedly, much of the gold is 

locally sourced.3 

As with the processed diamonds sector, the jewelry industry was targeted by the South African government as a priority sector to 

increase the country’s production of value-added products. The Precious Metals Act of 2005, for example, amended portions of 

the Mining Rights Act of 1967 to eliminate the barriers to local beneficiation of precious metals and to rationalize the regulation of 

matters pertaining to the downstream development of precious metals. The objectives of the Act include: (1) to allow for the 

acquisition and possession of precious metals for local beneficiation; (2) to regulate the precious metal industry; (3) to repeal 

earlier legislation that had created barriers to beneficiation; and (4) to amend the over-regulation of the industry by centralizing 

the issuing of jewelers’ permits within the Department of Minerals and Energy.4

 The continuing growth of the precious-metal 

industry will also depend on the success of the Mineral Policy and Promotion Branch’s numerous ministerial projects, two of 

which are the ATA Carnet System,5

 and the Industrial Development Zone (IDZ) Jewelry Manufacturing Precinct (JMP) at the 

Johannesburg International Airport.6

 Tariff preferences under the African Growth and Opportunity Act (AGOA)7 have been 

credited with drawing foreign investment to the South African jewelry industry.8 The MFN duties in the U.S. on gold jewelry range 

from five percent to seven percent. 

____________ 

1 GTIS, Global Trade Atlas. 

2 MBendi, “South Africa Manufacturing: Jewelry and Watch Manufacturing,” 2007. 3 Lorens Mare (The Jewelry Council of South Africa), interview by Commission staff, Pretoria, South Africa, October 31, 

2007. 4

 “Mineral policy development,” The Department of Minerals and Metals (DME), Republic of South Africa. 

http://www.dme.gov.za/minerals/min_pol_development.stm (accessed February, 7, 2008). 5 The ATA Carnet system is a means of facilitating international trade and streamlining customs procedures for local 

jewelers wishing to export their goods temporarily, e.g., to show their products in foreign markets. One benefit to the system is 

the ATA Carnet eliminates VAT payments and customs duties on their return. 6 The IDZ is specifically designed for the manufacture and export of jewelry products. 7 AGOA became effective May 18, 2000, and offers incentives for African countries to continue their efforts to open their 

economies and build free markets. The AGOA Acceleration Act of 2004 extended preferential access for imports from beneficiary 

SSA countries until 2015. 8 Lorens Mare (The Jewellery Council of South Africa), interview by Commission staff, Pretoria, South Africa, October 31, 

2007.
3-33

$110 in the United States; $18 to $25 in China; and $12 in India.120 South African (and 

generally SSA) diamond-processing producers tend to cut and polish larger/highervalue diamonds than those processed in India and China due to higher South African 

labor costs. 

There are two major diamond-processing factories in Mauritius. Mauriden Ltd, owned 

by a U.S. investor, was one of the first companies to operate in the country’s EPZ more 

than 30 years ago. It is involved in diamond cutting and polishing as well as jewelry 

production and sales. The other factory is Floreal Diamond Cutting Ltd, which was 

established in 2001, and is managed by a former employee of Mauriden. In 2006, 

Mauritius imported about $44 million worth of diamonds, mostly rough, primarily from 

Belgium and the United States. Once the diamonds are cut and polished, they are reexported to their principal markets (Belgium, United States, South Africa, and 

Australia).121

In contrast to the relatively large and established diamond-processing industry in South 

Africa and Mauritius, the industry in Angola, Botswana, and Namibia is small and 

developing. Namibia reportedly operates about eight factories that compete with lowcost cutting centers in India and China and with highly skilled ones in Antwerp, New 

York, and Tel Aviv. These factories employ approximately 800 workers.122 The 

Namibian industry nearly tripled in size during 2002−06. The Namibian factories are 

not primarily cutting diamonds mined in Namibia. Namdeb,123 Nambia’s diamond 

mining company, has a marketing agreement with the Diamond Trading Company 

(DTC), the marketing arm of De Beers’s, whereby 100 percent of its rough diamonds 

are exported to London. Some of the factories in Namibia are owned or supplied by De 

Beers’s clients. These clients buy parcels of rough diamonds from the DTC in London 

that are comprised of rough diamonds that also originate from Botswana, Russia, 

Tanzania, and South Africa. The rough diamonds that are shipped back to Namibia are 

unlikely to contain more than a small percent of Namibian stones.124

One of the most important developments for SSA governments and the diamond 

industry in general is the KPCS, which seeks to bring accountability to the global 

supply of rough diamonds. The KPCS has been credited for allowing SSA and the SSA 

diamond industry to portray a positive image, and to increase the value of their 

diamonds. The KPCS has helped to maintain consumer confidence in diamonds 

originating from the SSA diamond industry, thereby limiting any negative perception or 

impact on its exports of processed diamonds (box 3.7). 

 

120 Broadman, Africa’s Silk Road, 2007. 121 U.S. Department of State; U.S. Embassy, Port Louis. “USITC Study on sub-Saharan Africa; 

information on Mauritius and Seychelles (PORT L 000448),” August 23, 2007. 122 Boer, Managing Diamond Dependency, April 2004. 123 In 1994, De Beers operations in Namibia were renamed Namdeb Diamond Corporation (Namdeb), 

and it became a 50-50 joint venture with the Government of the Republic of Namibia. 124 Boer, Managing Diamond Dependency, April 2004. 
3-34

Sub-Saharan Africa Trade in the Global Context 

Leading Exporters 

Israel, India, and Belgium are the world’s major diamond-cutting and trading centers 

and the leading global exporters of processed diamonds. Reportedly, all three countries 

produce high-quality finished diamonds. India specializes in processing more laborintensive, small-carat diamonds used in less expensive gold jewelry inlaid with 

diamonds, jewelry which is typically produced in India and China. Higher-carat 

diamonds processed in Belgium and Israel are used in more expensive, higher-quality 

gold jewelry, which is typically produced in the EU and the United States. 

Traditionally, the leading producers and exporters of processed diamonds have not been 

countries with natural diamond deposits. Rather, they have imported the rough 

diamonds.125

Despite the abundant natural deposits of rough diamonds in certain SSA countries, 

these SSA countries remain small players in the global context of trade in processed 

diamonds. Unprocessed (rough) diamonds, which have lower prices on world markets, 

continue to make up the bulk of SSA diamond exports. SSA is estimated to produce 

over 75 percent (in value) of the world’s rough diamonds, worth about $15.8 billion.126

By comparison, processed diamonds from SSA make up an estimated 4 percent ($1 

billion) of the global market.127 Nevertheless, SSA exports of processed diamonds in 

recent years have grown steadily. South Africa, Botswana, Mauritius, and Namibia, 

were the four SSA countries that have made the greatest gains in increasing valueadded diamond processing operations (tables 3.3 and 3.4). South Africa accounted for 

most of the SSA exports, with 

 

125 Manduna, “Assessing the Causes of Sub-Saharan Africa’s Declining Exports,” May 2005. 126 MBendi, “Africa: Mining-Diamond Mining, Overview,” November 29, 2006. 127 Estimated by Commission staff from GTIS, Global Trade Information Services, Inc.

Box 3.7 The Kimberley Process Certification Scheme (KPCS) __

This process began in 2000 as an effort by diamond-producing countries in Africa to prevent “conflict diamonds” from entering 

the market. The initiative now includes 74 countries that are involved in the production and trade of diamonds. The members 

are obliged to provide each other with statistics on their diamond production, making it easier to trace and eliminate so-called 

“blood diamonds”1

 from legitimate trade. 

Reportedly, Botswana’s Diamond Cutting Act, in conjunction with the KPCS, requires every polishing factory in Botswana to 

keep records of its trade in rough and polished diamonds and submit them to the Mining Commissioner each month. 

Companies must record their imports of rough diamonds, details of the manufacture of cut and polished stones, and the 

remaining and residual rough diamonds for export. These figures are checked against agreed parameters on loss through the 

cutting and polish process. However, because the KPCS is essentially self-enforced, many factors can jeopardize certification, 

from lack of enforcement on the ground to the commercial secrecy in the diamond trading centers such as Antwerp. Industry 

sources indicate that the KPCS provides legitimacy to SSA diamonds and access to the global diamond market, and 

simultaneously makes a positive contribution toward the local economy and the curbing of illicit and conflict diamonds. 

Source: Kimberley Process Update, “Combating Conflict Diamonds,” November 2006. 

____________ 

1 Blood diamonds which are also called conflict diamonds, dirty diamonds, or war diamonds, refer to diamonds mined in a 

war zone and sold, usually clandestinely, in order to finance an insurgency or invading army’s war efforts. 
3-35

$664 million128 in 2006. Although South Africa experienced the largest absolute 

increase in exports, the other SSA exporting countries showed strong relative growth. 

Leading Export Markets 

The United States was by far the leading world export market for processed diamonds, 

accounting for 39 percent ($16.5 billion) of world imports in 2006 (figure 3.5).129 Since 

the United States has few natural diamond resources, imports supply almost all of U.S. 

demand. Following the United States, other major export markets were Hong Kong and 

the EU. Hong Kong accounted for 17 percent ($7.4 billion) of global imports of 

processed diamonds; the EU130 represented 15 percent ($6.6 billion). 

Europe (including Switzerland) is by far the largest SSA export market for processed 

diamonds, followed by the United States and Israel. The United States accounted for 

roughly one-fifth of South Africa’s exports in 2006. 

 

128 The South African Diamond Board reports in its 2007 annual report that total polished diamond 

exports from South Africa were valued at $511 million, 321,047 carats, in 2002, increasing to $701 million, 

280,965 carats, in 2006. 129 These data are believed to be overstated due to re-importations and/or transshipments of processed 

diamonds. However, the data should provide a reasonable illustration of the trends. 130 Belgium accounted for most of the trade. 

Table 3.3 South Africa processed diamonds exports, by selected exporters and key markets, 2002−06 

 Exports Change, 2002 to 2006 

Exporter Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

 1,000 dollars

Switzerland 118,253 168,151 205,460 222,691 171,530 53,277 45 

Belgium 78,558 59,323 75,051 122,082 150,002 71,444 91 

United 

States 

80,797 113,992 114,126 151,522 148,213 67,415 83 

Israel 130,730 89,917 55,217 163,791 131,156 425 0 

All other 56,462 49,385 60,273 59,176 63,046 6,585 12 

South 

Africa 

 

Total 464,800 480,768 510,127 719,261 663,946 199,147 43 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: Statistics are based on South African export data which are believed to be reliable. 

Table 3.4 Sub-Saharan Africa processed diamonds exports (other than those of South Africa), by selected exporters, 2002−06 

 Exports Change, 2002 to 2006 

Exporters 2002 2003 2004 2005 2006 Absolute Percentage 

 1,000 dollars 

Botswana 9,646 6,878 15,617 22,082 86,487 76,841 797 

Mauritius 23,417 26,221 34,180 53,544 45,094 21,677 93 

Namibia 2,424 1,801 11,483 20,358 15,500 13,076 539 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: Statistics are based on import data from other countries and are believed to be overstated. However, the data presented likely provide a 

reasonable portrayal of trends.
3-36

Figure 3.5 Leading markets for global and South African exports of processed diamonds, 2006

Global Export Markets

United States

39%

Hong Kong

17%

EU

15%

Israel

10%

India

4%

Switzerland

4%

Other

11%

South African Export Markets

Other

1%

Switzerland

26%

Hong Kong

United States 8%

22%

Israel

20%

Belgium

23%

 $42,660 million $664 million 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU 

external trade. 

Note: Data for global export markets are believed to be overstated, but market share is likely a reasonable 

representation. 

Factors Affecting Export Patterns 

Strong consumer demand for polished diamonds resulting in global price increases was 

the key factor contributing to the growth in exports of processed diamonds from SSA 

countries during 2002−06. Although they contributed less to the growth in exports from 

all SSA countries, investment in new diamond-processing facilities and programs by 

SSA governments and international organizations to promote the processing of rough 

diamonds were important factors leading to increased production and exports by 

Botswana and Namibia. 

Global Price Increases 

Increased global prices fueled the growth in processed-diamond export values from 

SSA during 2002−06.131 Although the value of South Africa’s processed diamond 

exports rose by 37 percent during the period, the quantity exported declined by 12 

percent. The unit value of South Africa’s exports, as measured in dollars per carat, rose 

from roughly $1,600 per carat in 2002 to nearly $2,500 per carat in 2006. 

 

131 Ernest Bloom (president, World Federation of Diamond Bourses), interview by Commission staff, 

Johannesburg, South Africa, October 30, 2007. 
3-37

Beneficiation Investment and Policy 

During 2002−06, SSA countries initiated or increased beneficiation activities (postmining, value-added activities such as diamond cutting and polishing) and entered 

global markets.132 SSA government officials have called on the global diamond industry 

to assist African countries in acquiring the technology and capability to process their 

own diamonds. Examples of actions include policies to promote the domestic 

industries, the development of new technology for diamond cutting and polishing, 

training and development of the industry work force, and retention of domestically 

produced rough diamonds to make them available for local processing. All SSA 

producers likely benefited from these activities, particularly Angola, Botswana, and 

Namibia. 

Angola 

Although Angola has a large and growing diamond-mining industry, its cutting and 

polishing operations have been very limited. However, a new state-of-the-art diamondcutting and polishing plant (one of the largest in Africa, currently employing 300 

Angolans, with the capacity to hire 300 more workers) opened in 2005 in the Talatona 

suburb of Southern Luanada, Angola’s capital.133 The factory is the result of a joint 

project between diamond merchant Lev Leviev and Angola’s state-owned diamond 

selling company Endiama, and is considered one of the most modern and sophisticated 

in the world. The plant is equipped with advanced sawing, cutting, and polishing 

machines supplied by the Leviev Group. Reportedly, the factory has the capability to 

process 25,000 carats of cut and polished diamonds per month.134 

Botswana 

In late 2004, Eurostar Diamond Traders,135 a Belgian-based company, began a 

diamond-cutting and polishing operation in Gaborone, Botswana, employing more than 

1,000 workers. The facility is one of the largest such factories in Africa.136 Reportedly, 

the opening of the Eurostar factory was an indication that the battle for access to 

Botswana’s rough diamonds had begun. Most previous diamond-cutting factories in the 

region were small. Now, major rough diamond buyers like Eurostar are investing large 

amounts in the region. 

Botswana sought local cutting as part of its diamond-mining agreement with De 

Beers.137 As a result, in 2006, De Beers Botswana and the government of Botswana 

took a major step toward creating a sustainable beneficiation industry by establishing 

DTC Botswana. DTC Botswana is a 50/50 partnership between the government of 

Botswana and De Beers (Debswana). The company will sort and value all Debswana’s 

rough diamond production and sell rough diamonds to the local cutting and polishing 

industry. 

 

132 In addition, beneficiation also can include marketing and jewelry manufacturing. 133 IRIN Africa, “Southern Africa: Adding Sparkle to the Region,” September 7, 2007. 134 Globes, Israel Business News, “LeViev, Angolan Government Dedicate Joint Diamond Venture,” 

November 8, 2005. 135 Eurostar is one of the major customers of De Beers for rough diamonds. 136 Mutume, “Africa Strives To Rebuild Its Domestic Industries,” October 2004. 137 Itano, “Looking to Africa to Polish Its Diamonds,” The New York Times, September 17, 2004. 
3-38

The opening and success of the planned $83 million DTC (Diamond Trade Center) 

Botswana in 2008 is likely to have a significant effect on SSA’s future global role in the 

diamond-processing industry. The DTC Botswana reportedly will create over 3,000 

jobs in downstream diamond-related activities alone, representing an increase of about 

30 percent in diamond-related employment levels in Botswana, and an increase of about 

10 percent in the manufacturing sector, including expansion of jewelry 

manufacturing.138 In addition, in 2007, a $3 million diamond-polishing factory was 

opened in Botswana.139

Namibia 

The Namibian government has been actively engaged in efforts to foster a diamond 

cutting and polishing manufacturing industry for export. The government has offered 

incentives in the form of Export Processing Zone status, whereby taxes and duties are 

waived, and training grants are provided. In an effort to break the South African market 

concentration, several diamond-trading companies have established polishing plants in 

Namibia. In June 2004, Israel-based Lev Leviev Diamonds (LLD Diamonds), the 

second-largest diamond trader in the world,140 opened a diamond-polishing factory in 

Namibia, employing 550 workers. LLD Diamonds can produce as many as 150,000 

carats of cut and polished diamonds annually. Lev Leviev141 has expressed a desire to 

help the economy in SSA and wants to continue to expand value-added processing 

where the diamonds are mined.142 

Namibia is the only SSA country where De Beers’s operations include cutting and 

polishing, through the Namdeb subsidiary of NamGem. With 129 workers, NamGem is 

a major source of employment for the town of Okahandja. In 2005, NamGem increased 

production by 42 percent over 2004. In 2005, NamGem diamonds were made available 

to a number of local retail and jewelry outlets, thereby further fostering value-added 

operations developing in Namibia.143 

Going forward, Namibia likely will see an upsurge in the opening of processing 

factories as the Ministry of Mines and Energy registered 20 licenses for cutting and 

polishing early in 2007; six of the approved licensees are already in operation. 

Beneficiation in Namibia may further benefit from De Beers’s announcement in 

September 2007 that it would supply up to $300 million worth of rough diamonds to 

Namibia by 2009.144 

 

138 The DTC Botswana will be the world’s largest and most modern individual diamond-processing 

facility. 139 De Beers, “Investing in the Future, Economics,” Supply Chain Value Creation: Case StudyEstablishment of DEC Botswana, 2007. 140 The Leviev Group, a major competitor to De Beers, has diamond-polishing plants in Russia, India, 

China, South Africa, Ukraine, and Armenia. 141 Lev Leviev, an Israeli born businessman now living in the United Kingdom, controls global 

operations that cut and polish more diamonds than anyone else in the world. And, according to the New York 

Times, since 1996 he has invested millions of dollars in the diamond concessions in Angola and Namibia. 142 Weildlich, “Africa Taking Its Diamond Cut,” November 6, 2005. 143 De Beers, “Investing in the Future, Economics,” Supply Chain Value Creation: Case StudyEstablishment of DEC Botswana, 2007. 144 The Norwegian Council in Africa, “Namibia: Diamond Rush,” October 6, 2007.
3-39

South Africa 

In August 2006, diamond cutting/polishing operations were established in Pelindaba in 

northwest South Africa. Production in Pelindaba is intended to reach 18,000 carats per 

month with custom-built facilities covering 30,000 square meters. The operation falls 

under the Calibrated Diamonds Project, which focuses on cutting and polishing of 

diamonds with leading technology developed in South Africa that reduces productionrelated product loss from 40 percent to less than 10 percent.145 The Calibrated 

Diamonds Project, valued at nearly $15 million, has the potential to create at least 400 

businesses in cutting and polishing operations.146

Other Efforts to Facilitate SSA Beneficiation 

In 2005, the Overseas Private Investment Corporation (OPIC)147 entered into a 

partnership with the South African government, Lazare Kaplan International Inc. (LKI), 

and Nozala Diamonds, a cutting factory in South Africa (a joint venture between Lazare 

Kaplon and a South African women’s empowerment group) to facilitate diamond 

beneficiation projects in Angola, Botswana, Namibia, and South Africa. LKI is engaged 

in the cutting, polishing, and sales of diamonds internationally. The joint venture is 

designed to make it possible for SSA to “go downstream.” 

Beginning in 2006, SSA countries have also begun to develop new organizations 

designed to expand beneficiation through investment in new processing facilities. The 

African Countries Diamond Producers Association (ADPA), formed in November 

2006, is an organization designed to strengthen Africa’s influence on the world 

diamond market as well as harmonize legislation and encourage foreign investment in 

the industry. A main concern is the continued illegal sale of blood diamonds. The 

Diamond Empowerment Fund (D.E.F.TM) was established in December 2006. The 

mission of the D.E.F.TM is to raise money for the development and empowerment of 

people and communities in African countries where diamonds are a natural resource. 

This non-profit organization is involved in the advancement of the processed-diamond 

sector. In addition, in 2006, Petra Diamonds, a pan-African diamond mining company 

began pursuing a strategy of acquiring facilities to cut and polish their own rough 

diamond production (box 3.8). 

 

145Calibrated Diamonds’ proprietary laser-cutting process has significant advantages over traditional 

cutting and polishing methodology, producing stones to a very high and consistent standard. Reportedly, 

Calibrated Diamonds’ cut and polished stones are a premium product producing the highly sought after 

“hearts and arrows” (style of cut used for round brilliant diamonds) quality, which is rarely achieved by 

conventional means. 146 Diamond Intelligence Brief, “Polishing Operations Established in Pelindaba Under the Calibrated 

Diamonds Project,” June 13, 2006, 3957(1). 147 OPIC is a U.S. government agency that supports economic development by promoting U.S. private 

investment in developing countries. 
3-40

Box 3.8 Petra Diamonds’ for SSA beneficiation 

Another factor that will contribute to the continuing growing capacity of the SSA diamond-cutting and polishing industry is 

the regional expansion of Petra Diamonds1

 from solely rough diamond mining into the beneficiation of diamonds in SSA 

countries. In November 2006, Petra made a strategic move into the diamond cutting and polishing industry with the 

acquisition of Calibrated Diamonds Investments Holding Limited (“Calibrated Diamonds”). This acquisition gives Petra the 

in-house capability to cut and polish its own rough diamond production, which in turn will directly affect Petra’s bottom line 

given the value added in a polished stone compared to the rough form. Construction of diamond cutting and polishing 

facilities is underway, and it is expected that an additional 2,500 carats per month of rough diamonds will be processed in 

the region by mid-2008.2 

____________ 

 1 Petra Diamonds is a pan-African diamond mining company with operations in South Africa, Angola, Botswana, and 

Sierra Leone. Petra has grown significantly over the last few years to be the largest diamond company quoted on London’s 

Alternative Investment Market (AIM) market. Petra is the second largest producer of diamonds after De Beers. 

 2

 Petra Diamonds Ltd, “Current Operations,” Calibrated Diamonds, 2007. 
3-41

Processed Diamonds Bibliography 

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Broadman, Harry G. Africa’s Silk Road, China and India’s New Economic Frontier. 

Washington, DC: The World Bank, 2007. 

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http://www.debeersgroup.com/debeersweb/Investing+in=the=Future/Economics/Supply+ 

chain=value=creation.htm (accessed October 10, 2007). 

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July 24, 2007). 

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(accessed various dates). 

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July 24, 2007). 

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http://www.miningweekly.co.za/article.php?a_id+118211 (accessed October 11, 2007). 

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November 2005. 

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August 2, 2007). 

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September 14, 2007). 

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http://www.nytimes.com/2004/-9/17/business/worldbusiness/17diamond.html?n=Top/ne (accessed 

November 11, 2007.) 

Kimberley Process Update. “Combating Conflict Diamonds,” November 2006. 

http://www.globalwitness.org/pages/en/the_kimberley_process.htm (accessed October 9, 2007). 
3-42

MBendi, “Africa: Mining-Diamond Mining, Overview,” November 29, 2006. 

http://www.mbendi.co.za/indy/ming/dmnd/af/p0005.htm (accessed August 2, 2007). 

MBendi, “South Africa Manufacturing: Jewelry and Watch Manufacturing,” 2007. 

http://www.mbendi.co.za/indy/mnfc/jewl/af/sa/p0005.htm (accessed August 2, 2007). 

Manduna, Calvin. “Assessing the Causes of Sub-Saharan Africa’s Declining Exports and Addressing 

Supply-Side Constraints.” Tralac Working Paper, 2/2005, May 2005. http://www.tralac.org (accessed 

October 11, 2007). 

Mining Review Africa, “Diamond Beneficiation in South Africa,” 2005. 

Mutume, Gumisai. “Africa Strives To Rebuild Its Domestic Industries.” Africa Renewal 18, no. 3, 

(October 2004): 19-21. http://www.un.org/ecosocdev/geninfo/afrec/vol18no3/18no3_eng.pdf (accessed 

October 11, 2007). 

Norwegian Council in Africa. “Namibia: Diamond Rush.” Africa News Update, October 6, 2007. 

Petra Diamonds Ltd. “Current Operations. Calibrated Diamonds,” 2007. 

http://www.minesite.com/companies/comp-single/company/petra-diamonds-ltd.html (accessed 

November 29, 2007). 

Schumann, W. Gemstones of the World. New York: Sterling Publishing Co. Inc., 1986. 

Singer, Saul. “Big Plans for the Diamond Industry in South Africa.” Tralac (Trade Law Center for 

Southern Africa), November 4, 2005. http://www.tralac.org/scripts/content.php?ld=3548 (accessed 

August 2, 2007). 

U.S. Department of State. U.S. Embassy, Port Louis. “USITC Study on Sub-Saharan Africa; Information 

on Mauritius and Seychelles (Port L 000448),” August 23, 2007. 

Weildlich, Brigitte. “Africa Taking Its Diamond Cut.” FIN24, Finweek, November 6, 2005. 

http://www.fin24.co/za/articles/default/display-article.aspz?Articleld=1518-1786-1820748 (accessed 

November 29, 2007). 
3-43

Textiles153 

Summary of Findings 

Textile exports from SSA increased 12 percent by value during 2002–06 to 

$467 million, reflecting increased global demand for textiles, deeper regional 

integration, and increased foreign investment (table 3.5). This growth occurred 

despite a decrease in textile exports of roughly $68 million during 2004–06, 

following the completion of staged elimination of global quotas under the 

Agreement on Textiles and Clothing (ATC) on January 1, 2005.154 

 

Patterns of exports of textiles from SSA are influenced by the historical 

relationships between SSA countries and former colonial powers. In certain 

cases, national export trends are the result of the activities of one or two firms.155

Regional trade increased over the period, in part, because of the combination of 

greater European demand for apparel and the rules of origin for EU preference 

programs, which require the use of regional fabrics in apparel exported free of 

duty to the EU. Regional agreements among SSA countries also encouraged SSA 

textile exports. Most textiles and textile product exports to the United States did 

not receive preferential treatment under AGOA during 2002–06; however, with 

the renewal of AGOA in December 2006, eligibility for duty-free treatment was 

expanded to certain textile articles.156

 

 

153 For the purposes of this study, textiles include products covered in the HS chapters 50 

through 60, and chapter 63. Finished apparel classified in HS chapters 61 and 62 is not included. 

The broader textile and apparel industry in SSA consists mostly of cut-make-trim apparel 

manufacturing, and is generally footloose since it requires little capital investment apart from 

cutting and sewing machines. Textiles, including yarns and fabrics, represented 16 percent of total 

textile and apparel exports from SSA in 2006. This section addresses primarily textiles and textile 

products, not finished apparel. For a discussion of apparel, see USITC, Sub-Saharan Africa: 

Factors Affecting Trade Patterns of Selected Industries, First Annual Report, USITC Publication 

3914. Washington, DC: USITC, 2007. 154 Phased elimination of textile quotas began on January 1, 1995, and was completed 

January 1, 2005. The elimination of quotas subjected SSA exporters to increased competition from 

previously restrained suppliers, especially China. 155 In the cases of Lesotho and Madagascar, there is only one reported exporter of textiles. 156 African Growth and Opportunity Act, 19 U.S.C. 3701, as amended. For further information 

on AGOA IV, see http://www.agoa.gov/agoa_legislation/agoa_legislation4.html. 
3-44

Exporter Key markets 2002 2003 2004 2005 2006 Absolute Percent

EU 100,220 129,709 149,758 128,872 122,681 22,461 22

USA 23,879 27,050 30,646 26,150 30,039 6,160 26

All Other 120,570 127,842 127,528 113,205 108,942 -11,628 -10

Total 244,669 284,601 307,932 268,227 261,662 16,993 7

Madagascar 1,395 3,217 1,636 22,605 23,326 21,931 1,572

EU 13,160 10,978 11,290 9,672 15,214 2,054 16

South Africa 2,173 2,790 5,309 3,593 4,507 2,334 107

All Other 6,914 6,274 26,281 13,761 5,998 -916 -13

Total 23,642 23,259 44,516 49,631 49,045 25,403 107

EU 2,235 2,007 7,242 4,781 5,364 3,129 140

Malawi 868 1,912 4,391 1,604 4,666 3,798 438

Zambia 614 1,716 2,258 2,615 3,005 2,391 389

All Other 4,171 8,351 10,537 6,724 8,074 3,903 94

Total 7,888 13,986 24,428 15,724 21,109 13,221 168

Uganda 3,722 8,660 7,218 7,213 8,196 4,474 120

EU 1,521 2,641 4,029 4,432 5,333 3,812 251

Zambia 641 551 710 935 1,592 951 148

All Other 3,164 5,102 5,157 4,293 3,978 814 26

Total 9,048 16,954 17,114 16,873 19,099 10,051 111

EU 4,619 4,743 8,786 8,042 8,501 3,882 84

Mauritius 3,533 4,299 2,916 3,264 2,598 -935 -26

All Other 472 462 1,277 1,197 1,601 1,129 239

Total 8,624 9,504 12,979 12,503 12,700 4,076 47

EU 5,052 6,344 7,864 8,868 9,554 4,502 89

USA 16 1 45 9 1,046 1,030 6,438

All Other 284 840 711 306 1,031 747 263

Total 5,352 7,185 8,620 9,183 11,631 6,279 117

Madagascar 0 0 0 4,073 3,965 3,965 na

Mauritius 0 0 469 779 2,085 2,085 na

China 0 0 0 322 1,280 1,280 na

USA 34 74 75 106 176 142 418

All Other 28 233 5 245 14 -14 -50

Total 62 307 549 5,525 7,520 7,458 12,029

EU 173,818 202,689 249,150 212,372 200,858 27,040 16

USA 26,440 29,886 33,527 28,484 34,262 7,822 30

Madagascar 1,526 3,638 4,287 31,056 30,189 28,663 1,878

South Africa 23,100 27,529 35,549 23,066 27,131 4,031 17

Zambia 9,623 20,347 18,920 14,253 17,349 7,726 80

China 13,583 11,056 15,821 14,178 16,153 2,570 19

Mauritius 41,385 35,852 25,062 12,746 13,659 -27,726 -67

All Other 127,586 130,802 153,164 147,452 127,887 301 0

Total 417,061 461,799 535,480 483,607 467,488 50,427 12

Note : na = not applicable.

Table 3.5 Sub-Saharan Africa textile exports, by selected exporters and key markets, 2002−06

Exports

South Africa

Change, 2002 to 2006

1,000 dollars

Ethiopia

Lesotho

Source : GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade.

Mauritius

Kenya

Madagascar

Tanzania

Sub-Saharan 

Africa
3-45

Industry Overview 

The textile industry is capital-intensive and highly globalized, with significant 

production in advanced economies and developing countries alike. The 

international system of quotas governing trade in textiles under the Multifiber 

Arrangement (later the ATC) from 1974 through 2004 led to the development of 

textile industries in many countries. As traditional producers such as Hong Kong, 

Taiwan, and Sri Lanka reached their quota limits, investment spread to lowercost countries with available quotas, such as those in SSA. The industry is highly 

diversified, covering products as varied as semi-processed raw materials (such as 

cotton or wool); yarns and fabrics of natural and manmade fibers; industrial 

nonwovens; and finished products such as towels, sheets, and other home linens. 

Textiles are also inputs into final products such as apparel (box 3.9). The industry 

is shaped by the concentration of buying power in advanced economies, which 

typically require large volume orders at low costs. Such requirements pose a 

challenge to small-scale suppliers.157

The textile industry in SSA is small in relation to global trade in textiles, yet 

important to regional economies and economic development, as the textile sector 

is often seen as the first step in developing a manufacturing base. SSA’s 

manufactured exports are heavily concentrated in the textile and apparel industry, 

mostly in cut-make-trim garments.158 The textile industry in SSA is focused on 

cotton products, such as yarns, knit and woven fabric, and made-ups such as 

towels and other home linens. In many SSA countries, the industry consumes 

cotton from local or regional growers. 

The SSA textile industry is at a disadvantage compared with other global 

suppliers when factors such as utility costs, specifically electricity and water, and 

supply-chain reliability are taken into consideration. While SSA has abundant 

low-cost labor, finding labor with appropriate technical and management skills 

has proven to be a challenge. Moreover, because textiles must be formed under 

optimal temperature and humidity conditions, access to reliable electricity is 

essential to establishing operations. Most textile facilities are located in cities or 

industrial zones, where electrical infrastructure exists. In addition, dyeing, 

washing, and finishing processes require reliable water sources, as well as water 

treatment and solid waste processing facilities to treat the by-products of such 

operations. 

 

157 Kaplinsky and Morris, Do the Asian Drivers Undermine Export-Oriented Industrialisation 

in SSA? 2007, 11. 158 Ibid., 6. 

Box 3.9 Product description for textiles 

The textile industry covers a wide range of products, including intermediate inputs (yarns and fabrics), as well as finished 

products of cotton, wool, other natural fibers, and manmade fibers (i.e., made-up textile articles, including carpeting, 

bedding sheets, and towels). Yarns and fabrics are the principal inputs to apparel production and other finished products 

such as home linens and industrial textiles (including cordage and nonwovens, such as filters and hygienic wipes). 
3-46

High demand for apparel inputs such as yarn and fabric in SSA is due to SSA 

apparel export successes to the United States under AGOA, as well as 

requirements for local or regional fabric use in apparel under the EU’s GSP and 

Cotonou159 preference programs. SSA’s leading exporters of textiles are also 

leading producers and exporters of apparel. However, industry sources indicate 

the current regional supply of yarn and fabric cannot fully meet the needs of 

apparel producers. For example, in Madagascar, apparel production capacity is 

estimated to be 20 to 30 times higher than that of Madagascar’s capacity to 

produce textile inputs.160 In Kenya, a shortage of Kenyan cotton restricts the 

production of yarns and fabrics for the local apparel industry.161 As a result, most 

of the fabric used in the production of apparel for the U.S. market is imported 

into SSA from third countries, mainly China and other Asian suppliers. Regional 

fabric output is used first in apparel manufactured for the EU market because the 

EU preferences require local inputs to receive duty-free treatment. Given the 

importance of the apparel sector exports to certain SSA countries, there appears 

to be demand to deepen the sector upstream to yarns and fabrics. However, this 

requires higher skill levels and greater capital investment, which are difficult to 

develop in SSA countries with inadequate transportation networks, electrical 

power, and water sources. The lack of vertical integration impedes the 

competitiveness of the apparel sector through increased lead times, as fabric must 

first be imported from Asian suppliers before garment assembly can begin. 

There are a few vertically integrated firms that spin fibers and knit or weave 

fabric to be used in-house for apparel manufacturing.162 Reportedly, some 

vertically integrated firms export their excess fabric production, such as those in 

Kenya and Lesotho. Developing vertical operations helps firms ensure reliable 

supplies of apparel inputs and also decreases production lead times. 

Sub-Saharan Africa Trade in the Global Context163

Global exports of textiles increased 22 percent by value between 2002 and 2006 

to $123.5 billion. China accounted for roughly one-third of global exports, 

 

159 The EU is currently negotiating bilateral free trade agreements with ACP countries (called 

Economic Partnership Agreements or EPAs) to replace the Cotonou Agreement, which expired at 

the end of 2007. Negotiations are generally taking place between the EU and four separate regional 

groupings, although in some instances individual countries are pursuing their own separate 

agreements. In addition to market access provisions for goods, the EPAs are intended to cover 

services as well as trade-related issues such as competition, investment, IPR, and the environment. 

The Everything-But-Arms preference program does not allow for regional cumulation amongst 

SSA countries. 160 Brian Neubert, (U.S. Embassy, Antananarivo, Madagascar), interview by Commission staff, 

Antananarivo, Madagascar, November 7, 2007. 161 Reportedly, there is reduced production of cotton in Kenya and Uganda because of higher 

returns on investment from alternative crops. Due to this shortage, Kenyan apparel producers use 

mostly nonregional fabric. Dr. Steve New, director, Kenya Horticultural Development Program, 

USAID, interview by Commission staff, Nairobi, Kenya, October 16, 2007; and Othieno Odoi, 

senior trade promotion officer, Uganda Export Promotion Board, interview by Commission staff, 

Kampala, Uganda, October 23, 2007. 162 Examples of vertically integrated textile companies include Nien Hsing (Lesotho), 

Cotona/Cottonline (Madagascar), and A to Z Textiles (Tanzania). 163 Unless otherwise indicated, data in this section are from GTIS, World Trade Atlas 

Database. 
3-47

having captured significant market share since the expiration of quotas under the 

ATC. SSA exports increased 12 percent during 2002–06 and represent a small 

share of global textile exports (about 0.4 percent). 

Leading Exporters 

China is the world’s largest exporter of textiles, accounting for 30 percent of 

global exports by value in 2006. China’s textile exports increased by 78 percent 

between 2002 and 2006 to $37.4 billion, largely benefiting from the quota 

liberalization that followed its WTO accession in late 2001. Reportedly, China is 

able to produce nearly any textile item in varying levels of quality at a 

competitive price.164 China invested significantly in spinning and weaving 

machinery during the past decade and benefits from access to abundant raw 

materials, technical expertise, and existing infrastructure.165 Other leading 

exporters of textiles include the EU, the United States, India, South Korea, 

Pakistan, Turkey, and Taiwan (figure 3.6). 

Figure 3.6 Leading global and sub-Saharan Africa exporters of textiles, 2006

Global Exporters

United States

8%

China

30%

India

6%

Korea

5%

Pakistan

5%

Turkey

5%

SSA

0.4%

Taiwan

5% Other

36%

SSA Exporters 

South Africa

56%

Mauritius

10%

Tanzania

5%

Madagascar

3%

Lesotho

2%

Ethiopia

2%

Other

18%

Kenya

4%

 $123,520 million $467 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, 

including EU external trade. 

South Africa was the largest SSA exporter of textiles in 2006, accounting for 

56 percent of total exports. While SSA textile exports increased modestly during 

2002−06, five countries experienced significant growth at rates of at least 

100 percent: Mauritius, Tanzania, Kenya, Lesotho, and Ethiopia. Mauritius 

realized the largest absolute increase during the period, with textile exports 

increasing by $25 million during 2002−06. Due to the relatively small size of the 

SSA textile industry, single-firm investments often drove trends within a country. 

 

164 USITC, Textiles and Apparel, 2004, 3-25. 165 Ibid., 3-22. 
3-48

For example, Lesotho’s export growth in textiles stemmed from investment by 

one Taiwanese firm in a denim facility.166 Exports from Lesotho include cotton 

yarns and woven cotton fabric.167 Mauritius specializes in knit fabrics, while 

Ethiopia, Kenya, and Tanzania export mainly cotton yarns and made-up home 

linens. Madagascar also increased textile exports by 47 percent during the period; 

however, the increase is most likely due to recovery from the political crisis in 

2002 that severely constricted exports.168

Leading Export Markets 

The EU and the United States were the largest markets for textiles in 2006, 

accounting for roughly 18 and 17 percent, respectively, of total world imports. 

Other significant global export markets for textiles included China, Hong Kong, 

Japan, Mexico, and Canada (figure 3.7). 

Figure 3.7 Leading markets for global and sub-Saharan Africa exports of textiles, 2006

Global Export Markets

EU

18%

United States

17%

China

12%

Japan

5%

Hong Kong

11%

Other

37%

SSA Export Markets

Other SSA

30%

United States

7% China

3%

EU

43%

Japan

2%

Other

12%

Australia

3%

 $123,520 million $467 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade. 

The EU is SSA’s largest export market, accounting for 43 percent of total SSA 

textile exports in 2006 (roughly $201 million). The EU is a key market because 

of strong historical linkages. Many SSA countries are former European colonies, 

and thus share common languages and long-established trade patterns. Delivery 

 

166 Nien Hsing opened a denim facility in Lesotho to serve domestic and regional apparel 

producers in 2002, and began exporting in 2005. Prior to 2005, Lesotho had virtually no textile 

exports. For further information on their operations in Lesotho see 

http://www.nht.com.tw/en/about-3.htm. 167 Mark Bennett (ComMark Trust) telephone interview by Commission staff, 

November 16, 2007. 168 In 2001, Madagascar exported $13.3 million in textiles, roughly $0.5 million more than in 

2006. 
3-49

times to the EU are also shorter than to the United States and, reportedly, 

exporters can earn higher prices in the EU market than in the U.S. market.169 U.S. 

buyers typically require larger-quantity orders, leaving smaller operations, such 

as those in SSA, at a disadvantage. Furthermore, SSA and EU countries are 

located in similar time zones, so there are fewer delays in communication. 

In addition to finished home, kitchen, and bed linens; carpets; and special woven 

fabric, SSA firms also export unfinished or greige goods to partners in Europe. 

Often, SSA firms lack special washing or finishing capabilities needed to make 

the final product.170 Within the EU, Italy and the United Kingdom are the largest 

export markets, accounting for 12 and 11 percent of total SSA textile exports, 

respectively. There are also significant exports to Germany, Belgium, and 

France. SSA textile exports to the EU accounted for 54 percent of total SSA 

textile export increases during 2002−06. Total EU textile imports increased 

51 percent during 2002–06; however, imports from SSA partners only increased 

by 16 percent. 

Thirty percent ($137.9 million) of SSA textile exports in 2006 went to other SSA 

countries (intra-SSA trade), namely Madagascar, South Africa, Zambia, 

Mauritius,171 Uganda, and Malawi. Regional fabric exports are often used in 

apparel destined for local African and export markets, particularly the EU.172 In 

2006, 7 percent of SSA textile exports went to the U.S. market. SSA exports to 

the United States increased by 30 percent during 2002–06 to $34.3 million. South 

Africa is the largest SSA exporter to the U.S. market, representing 88 percent of 

total SSA textile exports to that market in 2006. SSA textile articles exported to 

the United States include special woven fabric; handwoven rugs; and made-up 

articles such as labels, cords, and wall banners. Other markets for SSA textile 

exports included China, Australia, and Japan. 

Factors Affecting Export Patterns 

Factors contributing to increased textiles exports from SSA during 2002−06 

include increased global demand, deeper regional integration and cooperation, 

and foreign investment in SSA. Increased global demand for textiles buoyed SSA 

exports, specifically in the EU and U.S. markets where SSA textile exports 

realized significant increases. Total textile imports increased 51 and 39 percent in 

the EU and in U.S. markets, respectively, during 2002−06. Additionally, 

 

169 Industry representative, interview by Commission staff, Antananarivo, Madagascar, 

November 7, 2007. 170 Industry representative, interview by Commission staff, Antsirabe, Madagascar, 

November 5, 2007. 171 While Mauritius is a leading market for SSA textile exports, total imports from other SSA 

countries actually declined 67 percent during 2002−06. As Mauritius increased its textile capacity 

and wages rose, Mauritian firms invested in Madagascar’s apparel industry, creating an export 

market for Mauritian fabrics. 172 Regional exports of textiles are linked to the use of EU preference programs, which grant 

duty-free treatment to apparel imports but require a double transformation under the rules of origin 

for the Cotonou Agreement program. This means that fabric must be knit or woven locally, the cut 

and sewn regionally for the apparel to qualify for preferential treatment. 
3-50

increased European demand for apparel,173 combined with strict rules of origin 

for EU preference programs that require the use of regional inputs in apparel, and 

the implementation of regional economic partnerships help explain the 10 percent 

increase in intra-SSA trade during 2002−06. However, the industry faces 

significant challenges to compete in the global market, specifically 

underdeveloped infrastructure, a lack of skilled technical and managerial labor, 

and scarcity of capital. 

Deeper Regional Integration 

During 2002−06, several agreements to promote intra-African economic 

cooperation were strengthened and trading partners took advantage of regional 

preferences. The Common Market for Eastern and Southern Africa (COMESA), 

East African Community (EAC), and Southern African Development 

Community (SADC) all extended trade benefits that encouraged trade in textiles. 

Particularly, all SADC members, including textile exporters Lesotho, Mauritius, 

and Tanzania, can export their products to South Africa free of duty.174 This 

development is significant because South Africa is the fourth-largest export 

market for total SSA textile exports. COMESA and EAC are also working 

toward free trade areas. For example, Kenya can export fabric to Tanzania at a 

reduced duty under the EAC agreement and will gain duty-free access in 2009.175

At least two vertically integrated textile and apparel producers in Kenya import 

cotton duty-free from Tanzania and Uganda for their yarn-spinning operations.176

Foreign Investment 

Foreign investment has encouraged SSA exports of textiles, fabric, and made-up 

articles. In certain cases foreign investment has encouraged new production in 

higher-technology products. Investment generally comes from SSA, Asian, and 

European countries, and several SSA countries have established successful 

international joint ventures, as described below. Where infrastructure exists, such 

as in government-established export processing zones, SSA is an attractive 

investment location due to preferential access to the U.S., EU, and regional 

markets. For example, through a partnership with a U.S. firm, Fine Spinners of 

Kenya produces patented, coated threads (see Kenya discussion below). 

 

173 European consumption of clothing during 2002−06 increased steadily. This increased 

demand has been met with rising imports, rather than with additional domestic production. Werner 

International Strategic Consultants, “Strategic Overview,” 2007. The EU is SSA’s second-largest 

apparel market after the United States, accounting for 40 percent of total SSA exports of apparel in 

2006. GTIS, World Trade Atlas Database. 174 Paul Theron, (Department of Trade and Industry, Republic of South Africa), interview by 

Commission staff, Pretoria, South Africa, October 29, 2007. 175 Jas Bedi, (African Cotton and Textiles Federation), interview by Commission staff, Nairobi, 

Kenya, October 16, 2007. 176 Ibid. 
3-51

Ethiopia 

Italian and Turkish firms have invested in Ethiopia’s textile industry. Ethiopia 

produces home linens such as sheets and tablecloths for the European-based 

retailer, IKEA.177

Kenya178

A Kenyan firm, Fine Spinners, partnered with an American textile company, 

American & Efird, in order to secure the technology necessary to produce special 

coated threads that pass through sewing machines more efficiently. This product 

is sold regionally for use in apparel production and marketed at the retail level for 

household use in Kenya.179 The success of this partnership has allowed Fine 

Spinners to expand its operations to include apparel production as well as yarns, 

fabrics, and finished textile articles. 

Lesotho 

In 2002, Nien Hsing, a Taiwanese firm that exports fabric regionally for use in 

apparel, built a denim fabric mill in Lesotho. Reportedly, this investment in 

textile capacity was made in anticipation of the expiration of the AGOA thirdcountry fabric provision, which was set to expire in September 2007.180 The 

provision was ultimately extended to 2012 with AGOA renewal legislation in 

December 2006.181 Nien Hsing exports denim fabric regionally for use in apparel. 

Mauritius 

Mauritius received Chinese, Indian, and Pakistan investment in spinning capacity 

to provide domestic production of yarn for downstream fabric production in the 

local market.182 Investment is encouraged by Mauritius’ established textile and 

apparel sector, preferential market access to the EU and U.S. markets, as well as 

government incentives (see the following discussion). Tianli Spinning Ltd., 

Arvind Overseas Ltd., and CMT Ltd. began production of cotton yarns in 

Mauritius during 2003−04.183

 

177 Addis Alemayehou, (USAID), interview by Commission staff, Addis Ababa, Ethiopia, 

October 24, 2007. 178 Despite the preceding example, Kenya has reportedly received little foreign investment in 

textile mills due to high energy and transportation costs, as well as because of concerns about 

corruption. Domestic textile fabric producers interviewed in Nairobi, Kenya, indicated that it is 

difficult to get a loan from a bank in Kenya to finance improvements in manufacturing equipment 

or to expand production capacity. Bedi, interview by Commission staff, Nairobi, Kenya, 

October 16, 2007. 179 Ibid. 180 Bennett, telephone interview by Commission staff, November 16, 2007. 181 African Growth and Opportunity Act, 19 U.S.C. 3701, as amended. For further information, 

see USITC, Commercial Availability of Fabric & Yarns in AGOA Countries: Certain Denim, 

USITC Publication 3950, Washington, DC USITC, 2007. 182 Joomun, “The Textile and Clothing Industry in Mauritius,” 2006, 199. 183 U.S. Department of State, “Textile and Apparel Production Capabilities in AGOA-Eligible 

Countries,” August 2006. 
3-52

Tanzania 

In 2004, A to Z Textile Mills Ltd. (A to Z) in Arusha, Tanzania, received a 

license from the Japanese firm Sumitomo to produce its patented mosquito nets 

treated with insecticide for SSA markets. A to Z’s success led Sumitomo to form 

a joint venture with A to Z (Vector Health International) and build a new factory 

completed in late 2006 dedicated to mosquito net production. A to Z received 

contracts from international non-governmental organizations, such as the World 

Bank and UNICEF, to produce malaria nets for the African market.184 The 

success of its joint venture with Sumitomo has allowed A to Z to upgrade some 

of its equipment used in the manufacture of cotton and cotton-polyester blended 

knit shirts sold in regional markets. Raw cotton is purchased from Tanzania but 

polyester must be imported.185

Policies to Promote the Industry and Other Country-Specific Factors 

Mauritius 

The Mauritian government encourages growth and investment in the textiles 

sector through investment incentives, the maintenance of a competitive exportprocessing zone, and business counseling. The Mauritius Industrial Development 

Authority (MIDA), established in 2000, and the Export Processing Zone 

Development Authority (EPZDA), established in 1992, work together to 

encourage exports and develop industrial sites. EPZDA, for example, encourages 

product diversification and technology transfer to promote a viable textile 

industry. In 2003−04, the government granted a tax holiday and investment credit 

to investors establishing a spinning mill.186 This incentive was extended to help 

producers meet the rules-of-origin criteria for exporting to the United States and 

the EU. This encouraged the establishment of three new spinning facilities.187

With the establishment of new textile capacity, Mauritius increased regional 

exports, particularly to Madagascar. Due to historical and cultural linkages, as 

well as rising wage rates within Mauritius, many investors have set up apparel 

assembly operations in Madagascar. Such operations created a market for 

Mauritian textiles, mostly for apparel exported to the EU. It is important to note, 

however, that a political crisis in Madagascar in early 2002 adversely affected the 

textiles and apparel industries in that country. Thus the large increases in exports 

to Madagascar during 2002−06 reflect the recovery of the industry to 2001 levels 

rather than a longer term growth trend. 

 

184 International Herald Tribune, “Bush, in Tanzania, Highlights Anti-malaria Effort.” 

February 18, 2008. 185 Industry representative, interview by Commission staff, Arusha, Tanzania, 

October 19, 2007. 186 Joomun, “The Textile and Clothing Industry in Mauritius,” 2006, 205–6. 187 U.S. Department of State, “Textile and Apparel Production Capabilities in AGOA-Eligible 

Countries,” August 2006. 
3-53

Kenya 

The textiles and apparel industry is important to the Kenyan economy and has 

been targeted for employment creation and poverty reduction. In particular, two 

programs, the Economic Recovery for Wealth and Employment Creation and the 

Investment Programme for the Economic Recovery Strategy, aim to promote 

growth within the textiles sector by helping manufacturers identify new export 

markets, representing firms at trade shows, and assisting with quality 

improvements. 

Lesotho 

The government-sponsored Lesotho National Development Corporation 

encourages investment within the textiles sector. Additionally, the government of 

Lesotho promotes the textiles and apparel sector by bringing in U.S. buyers and 

promoting investment and exports.188 Though a landlocked country, Lesotho 

benefits from access to South Africa’s developed infrastructure to get finished 

goods to international markets.189 

However, Lesotho faces specific challenges that adversely affect textiles exports. 

Lesotho’s currency, the loti, is pegged to the South African rand. From 2002 to 

2006 the rand appreciated significantly and continues to be volatile, thus posing a 

disadvantage to Lesotho exporters.190 Despite Lesotho’s successes in textile 

exports, the country currently lacks industrial infrastructure for greenfield 

investment to expand the sector further, despite interest from investors.191

Ethiopia 

The government of Ethiopia provided export incentives throughout the period 

under consideration, and recognizes the textile and clothing industry as key to 

development and industrialization.192 The Ethiopian Investment Agency assists 

foreign investors with feasibility studies and location selection.193 Additionally, 

all capital goods used to establish operations and raw materials used in the 

production of exports may be imported duty-free. Although the large textile mills 

in Ethiopia are government-operated, there are a number of small knitting 

operations using traditional (non-electric) methods to produce handcrafted textile 

articles for export markets.194 Such articles are eligible to enter the United States 

free of duty under AGOA. 

 

188 USITC hearing transcript, October 23, 2007, 90. 189 Theron, interview by Commission staff, Pretoria, South Africa, October 29, 2007. 190 Bennett, telephone interview by Commission staff, November 16, 2007. 191 Ibid. 192 Tait, The Potential for Ethiopia’s textile and garment industry, 2007, 14. 193 Ibid. 194 Industry representative, interview by Commission staff, Addis Ababa, Ethiopia, 

October 24, 2007. 
3-54

Textiles Bibliography 

Brenton, Paul and Mombert Hoppe. “Life after Quotas? Early Signs of the New Era in Trade of 

Textiles and Clothing.” In Trade, Doha, and Development: A Window into the Issues, edited by 

Richard Newfarmer, 155–164. Washington, DC: The World Bank, 2006. 

Global Trade Information Services, Inc. (GTIS). World Trade Atlas Database. Annual data 

compiled from reporting countries’ official statistics, including EU27 external trade. 

http://www.gtis.com/wta/usitc/ (accessed various dates). 

International Herald Tribune. “Bush, in Tanzania, Highlights Anti-malaria Effort.” 

February 18, 2008. http://www.iht.com/articles/2008/02/18/africa/prexy.php (accessed 

February 21, 2008). 

Joomun, Gilles. “The Textile and Clothing Industry in Mauritius.” In The Future of the Textile 

and Clothing Industry in Sub-Saharan Africa, edited by Herbert Jauch and Rudolf Traub-Merz, 

193–211. Bonn, Germany: Friedrich-Ebert-Stiftung, 2006. 

Kaplinsky, Raphael, and Mike Morris. Do the Asian Drivers Undermine Export-Oriented 

Industrialisation in SSA? Department of Policy and Practice, The Open University, April 2007. 

Kenya Export Processing Zones Authority. “Kenya’s Apparel & Textile Industry.” Nairobi, 

Kenya: 2005. http://www.epzakenya.com/UserFiles/File/ApparelTextile.pdf (accessed various 

dates). 

Naumann, Eckart. “Textiles and clothing: Reflections on the sector’s integration into the postquota environment,” Trade Law Centre for Southern Africa Working Paper No 1/2005, 

March 2005. 

Omolo, Jacob. “The Textile and Clothing Sector in Kenya.” In The Future of the Textile and 

Clothing Industry in Sub-Saharan Africa, edited by Herbert Jauch and Rudolf Traub-Merz, 

147−164. Bonn, Germany: Friedrich-Ebert-Stiftung, 2006. 

Subramanian, Uma, and Matthijs, Matthias. “Can Sub-Saharan Africa Leap into Global Network 

Trade?” World Bank Policy Research Group Working Paper 4112, January 2007. 

Tait, Niki. The Potential for Ethiopia’s Textile and Garment Industry, March 2007. Management 

Briefings. Aroq Limited. http://just-style-com (accessed various dates). 

Traub-Merz, Rudolf, with assistance from Herbert Jauch. “The African Textile and Clothing 

Industry: From Import Substitution to Export Orientation.” In The Future of the Textile and 

Clothing Industry in Sub-Saharan Africa, edited by Herbert Jauch and Rudolf Traub-Merz, 9−35. 

Bonn, Germany: Friedrich-Ebert-Stiftung, 2006. 

United Nations Conference on Trade and Development (UNCTAD), Investment Policy Review: 

Lesotho (UNCTAD/ITE/IPC/2003/4), Geneva, July 2003. 
3-55

USAID/The Zambian Trade and Investment Enhancement (ZAMTIE) Project, “Third Party Yarn 

and Fabric Capacity in Southern/Eastern Africa and Garment Production,” April 2004. 

U.S. Department of State. “Textile and Apparel Production Capabilities in AGOA-Eligible 

Countries,” August 2006. 

U.S. International Trade Commission (USITC) hearing transcript in connection with inv. No. 

332-477, Sub-Saharan Africa: Factors Affecting Trade Patterns of Selected Industries, 

October 23, 2007. 

——. Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to 

the U.S. Market, USITC Publication 3671. Washington, DC: USITC, 2004. 

Werner International Strategic Consultants. “Strategic Overview on Global Textile & Apparel 

Supply Chain Dynamics,” New Twist Newsletter 4 (2007). http://www.wernernewtwist.com/en/newsl-vol-004/index.htm (accessed December 18, 2007.) 

World Bank Group/MIGA, Snapshot Africa: Benchmarking FDI Competitiveness in Sub-Saharan 

Africa, www.fdi.net/snapshot_africa, Washington, DC, November 2006. 
3-56

Wood Furniture 

Summary of Findings 

Wood furniture exports from SSA countries fell by 46 percent during 2002−06 

(table 3.6). Most of this decline occurred over the final two years of the period, as 

exports of wood furniture fell by $55.1 million (44 percent) during 2004−06, to 

$68.7 million. Decreased exports from South Africa accounted for 99 percent 

($54.4 million) of the total net decline during 2004–06, and falling exports from 

Ghana accounted for 9 percent ($4.7 million). By contrast, exports of wood 

furniture from all other SSA suppliers grew by 18 percent ($4.1 million) during 

2004–06, led by increases from Mali ($1.6 million) and Gabon ($1.2 million). 

Intensified competition with imports from China in key EU and U.S. markets was 

the leading factor responsible for the decline in SSA exports of wood furniture 

during 2002–06, especially for exports from South Africa and Ghana. Other 

factors contributing to the decrease were the relative strength of the South 

African rand against the euro and the U.S. dollar, deforestation in both South 

Africa and Ghana, and difficulty obtaining “sustainable forestry” certification for 

wood furniture produced in Ghana. 

SSA producers supply less than 1 percent of the world market for wood furniture. 

Some West African countries have adopted regulations to promote furniture 

production and exports by restricting the export of logs or by conditioning the 

harvesting of timber on commitments to develop downstream processing of the 

logs prior to export. However, increased exports from these new furnitureproducing countries were more than offset by sharp decreases from established 

supplier countries. 
3-57

Table 3.6 Sub-Saharan Africa wood furniture exports, by selected exporters and key markets, 2002−06 

 Exports Change, 2002 to 2006 

Exporters Key markets 2002 2003 2004 2005 2006 Absolute Percentage 

 Dollars 

EU 71,177,426 72,667,515 67,030,725 43,827,112 18,413,015 -52,764,411 -74 

Mozambique 3,917,805 4,431,269 4,264,339 4,698,235 5,831,136 1,913,331 49 

Zambia 3,614,620 2,474,933 3,510,666 3,425,613 3,783,789 169,169 5 

United States 8,577,580 6,559,304 6,395,012 3,840,063 3,012,361 -5,565,219 -65 

All other 8,344,407 11,213,555 11,718,448 6,903,687 7,450,186 -894,230 -11 

South Africa 

Total 95,631,838 97,346,576 92,919,190 62,694,710 38,490,487 -57,141,360 -60 

South Africa 5,117,940 7,468,522 8,302,574 11,559,949 7,869,991 2,752,051 54 

Zambia 1,538,793 3,750,295 1,505,773 2,918,111 3,239,715 1,700,922 111 

EU 3,373,917 3,055,314 3,386,817 2,072,809 1,110,047 -2,263,870 -67 

All other 1,400,711 1,672,854 622,539 2,761,308 1,102,113 -298,598 -21 

Zimbabwe 

Total 11,431,361 15,946,985 13,817,703 19,312,177 13,321,866 1,890,505 17 

EU 7,360,209 6,019,854 8,246,541 4,739,744 3,907,253 -3,452,956 -47 

Côte d'Ivoire 0 0 0 19 74,125 74,125 na 

United States 383,269 515,435 353,151 201,028 70,366 -312,903 -82 

All other 76,872 260,593 168,640 111,840 24,682 -52,190 -68 

Ghana 

Total 7,820,350 6,795,882 8,768,332 5,052,631 4,076,426 -3,743,924 -48 

Australia 0 0 458 1,547,006 1,695,324 1,695,324 na 

EU 35,832 14,707 68,215 206,363 58,786 22,954 64 

India 0 0 0 24,532 25,048 25,048 na 

All other 128,449 60,628 52,342 74,862 17,989 -110,460 -86 

Mali 

Total 164,281 75,335 121,015 1,852,763 1,797,147 1,632,866 994 

EU 141,070 109,129 22,667 94,714 1,251,851 1,110,781 787 

Ghana 0 0 0 261 310 310 na 

Senegal 0 138 1514 0 143 143 na 

All other 4,471 17,163 6,251 2,081 40 -4,431 -99 

Gabon 

Total 145,541 126,430 30,432 97,056 1,252,344 1,106,803 760 

Uganda 266,426 372,099 467,355 231,395 805,128 538,702 202 

EU 274,726 163,055 241,239 150,383 221,315 -53,411 -19 

United States 12,835 55,318 59,639 58,575 76,040 63,205 492 

All other 111,827 227,269 246,946 323,551 127,888 16,061 14 

Kenya 

Total 665,814 817,741 1,015,179 763,904 1,230,371 564,557 85 

Sub-Saharan 

Africa Total 127,426,672 131,641,385 123,734,615 96,268,945 68,682,602 -58,744,070 -46 

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including EU external trade. 

Note: na = not applicable.

Industry Overview 

Wood furniture tends to be manufactured near urban centers, close to the final 

customer, rather than near sawmills and timber resources. It is less expensive to 

ship lumber from sawmills to urban centers than it is to ship fully assembled 

furniture. The shortening of shipping distances to final customers for fully 

assembled furniture also reduces the risk of damage to the furniture during 

transport. 

Several SSA countries have an abundance of high-value tropical hardwood195

forests suitable for furniture manufacture. However, regions near most urban 

centers have been deforested as land has been cleared for agricultural production 

and timber has been used for construction and fuel,196 requiring the harvesting of 

timber farther away from urban centers. Poor road networks increase the cost of 

transporting lumber from sawmills near the timber resources, or logs from the 

forests, to furniture factories or sawmills near the urban centers. According to the 

 

195 So-called “valuable” hardwood species are those whose technical properties (e.g., strength, 

natural durability, and machining properties) and appearance (e.g., grain, figure, texture, and color) 

make them suitable for high-value end uses such as furniture manufacturing and flooring. FAO, 

“Promotion of Valuable Hardwood Plantations in the Tropics,” 2001, 4. 196 FAO, “Promotion of Valuable Hardwood Plantations in the Tropics,” 2001, 4f. 
3-58

European Commission for the Promotion of Investment, rapid deforestation in 

West Africa in areas of relatively high population density, particularly in Nigeria, 

Côte d’Ivoire, and Ghana, limits the potential of the emergence of wood furniture 

as a significant export industry.197

SSA furniture production and exports are concentrated in southern and West 

Africa (box 3.10). Compared with other regions in SSA, southern Africa (South 

Africa and Zimbabwe) has a superior road network for transporting lumber and 

furniture,198 a well-developed electricity network for operating sawmills and 

furniture factories, a highly skilled workforce, and (in South Africa) a growing 

middle class providing a domestic market for regionally produced furniture. In 

contrast, according to the African Timber Organization, West Africa has the 

more abundant tropical hardwood resources for the production of furniture but 

lacks sufficient road networks and electrical grid capacity. The development of 

export-quality manufacturing capability in West Africa is in its initial stage.199 

A large multinational company, Steinhoff International, dominates the South 

African furniture industry and is the leading SSA exporter as well as the leading 

supplier of furniture to South Africa’s domestic market. Locally owned smalland medium-sized producers also supply the South African market. Foreign 

investors have helped establish medium-sized companies in Cameroon, Gabon, 

and Ghana that are the furniture export “champions” in their respective countries, 

with production limited to garden furniture. The domestic markets in SSA 

(except South Africa) are supplied principally by small producers (fewer than 10 

employees) making custom-ordered furniture by hand. The lumber available to 

these producers is usually of low quality because, according to the Africa Timber 

Organization, with few exceptions, the SSA wood processing industry is 

characterized by obsolete, often ill-maintained equipment.200

 197 European Commission for the Promotion of Investment (Pro-invest), Sector Orientation 

Report, February 2004, Annex A 07, 3. 198 Matthee and Naude, The Significance of Transportation Costs in Africa, 2007, 4. 199 The development of value-added timber processing in West Africa is most developed in 

Ghana, Côte d’Ivoire, and Nigeria. ATO, Promoting the Further Processing of Tropical Timber in 

Africa, 2004, 13. 200 ATO, Promoting the Further Processing of Tropical Timber in Africa, 2004, 8. 
3-59

Box 3.10 Product description for wood furniture 

Wood furniture accounts for about one-half of global production and trade in furniture, with furniture of metal and plastics 

accounting for most of the remainder. Upholstered furniture built on wood frames is classified as wood furniture. For the 

purposes of this report, furniture made from wicker, rattan, bamboo, or similar fibers is considered to be of wood. Chairs 

and other furniture made from such fibers accounted for 6 percent of total SSA exports of wood furniture in 2006. Solid 

wood furniture accounted for 74 percent of SSA exports, and upholstered chairs and sofas built on wood frames, 

20 percent. 

The primary input for wood furniture is lumber. Some furniture producers in SSA are vertically integrated, with sawmills 

that supply the lumber and forest products companies that supply the mills with logs. Lumber used in furniture production 

must be kiln or air dried. After drying, the lumber is sawn into shapes approximating the dimensions of the final furniture 

parts. Modern furniture operations employed by the leading producers in South Africa use electrically powered saws, 

whereas operations in locations without reliable supplies of electricity will hand carve furniture pieces from solid wood. 

Wood surfaces that will be flat in the final furniture pieces are planed. Rounded surfaces, such as table and chair legs, are 

lathed. Furniture parts can be finished prior to assembly or the finish can be applied to the furniture after assembly. The 

assembly process usually employs a combination of chemical adhesives and hardware, such as nails and screws. A 

veneer, usually of hardwood, may be glued to the surface of the furniture part or assembly. The furniture part is sanded 

after the veneer application and/or furniture assembly. Flat surfaces can be roll-coated with a finish, but curved surfaces 

must be spray-finished. 

Five types of furniture made in SSA countries compete in international markets: 

• Contemporary household furniture produced in South Africa using tropical hardwood logs or sawn lumber 

 from West Africa (chiefly Côte d’Ivoire) is sold both domestically and in Europe. 

• Low-end furniture (such as bunk beds and other children’s furniture) made from indigenous South African pine is 

 sold both domestically and in Europe. 

• Garden furniture made from teak and similar tropical hardwoods that are resistant to water damage and 

 insects is produced in West Africa for export. Most garden furniture produced in Ghana is exported to the 

 United Kingdom, whereas garden furniture produced in Gabon and Cameroon is marketed through distributors 

 in France or, in the case of Cameroon, exported to the United States. 

• Sturdy, handmade furniture of tropical hardwoods is finding increased sales in regional markets, particularly in 

 the East Africa Community (Burundi, Kenya, Rwanda, Tanzania, and Uganda) and among COMESA members. 

• High-quality, solid tropical hardwood nursery furniture produced in Mali is distributed in Australia and New Zealand. 

 This is upper-end furniture for a niche market. 

Sources: EPA, Profile of the Wood Furniture and Fixtures Industry, September 1995, 13−18, and the Global Trade Atlas.

 Sub-Saharan Africa Trade in the Global Context 

Despite the abundant timber resources in West Africa and the Congo Basin, total 

exports of wood furniture from SSA fell by 46 percent during 2002–06, to 

$68.7 million. During the same period, world exports grew by 66 percent to 

$34.2 billion. SSA exports accounted for 0.2 percent of world exports of wood 

furniture in 2006. 

Leading Exporters 

China is the leading supplier of wood furniture to world markets, accounting for 

42 percent of global exports in 2006, followed by Canada (7 percent). Vietnam, 

Indonesia, Italy, and Malaysia each supplied between 5 and 6 percent of world 

exports (figure 3.8). China became an exporter of wood furniture when suppliers 

of ready-to-assemble (RTA) furniture in Taiwan shifted their production 

operations to China in the 1980s as labor costs rose in Taiwan. U.S. furniture 

producers then contracted the production of labor-intensive parts, such as table 

and chair legs, to manufacturers in China. Chinese furniture producers eventually 
3-60

Figure 3.8 Leading global and sub-Saharan Africa exporters of wood furniture, 2006

Global Exporters

China

42%

Canada

7%

Vietnam

6%

Indonesia

6%

Italy

5%

SSA

0.2%

Malaysia

5%

Other

29%

SSA Exporters 

South Africa

56%

Zimbabwe

19%

Ghana

6%

Gabon

2%

Kenya

2%

Mauritius

2%

Other

10%

Mali

3%

 $34,211 million $68.7 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade.

upgraded their product offerings to include entire bedroom and dining room 

suites and upholstered furniture.201

China’s competitive advantages relative to producers in SSA consist of lower 

costs for electricity and transportation, economies of scale, and a well-developed 

supply chain for chemical and hardware inputs.202 China also benefits from 

design and manufacturing expertise shared by affiliated furniture companies in 

Taiwan.203 However, China’s furniture industry relies on imported logs,204 chiefly 

from Siberia, Borneo, Burma, Indonesia, Papua New Guinea, Gabon, and 

 

201 For a brief discussion of the shift of production of wood furniture from Taiwan and the 

United States to China, see Watkins, “The China Challenge to Manufacturing in Mexico,” 

June 2007, 66; and Spalding, Industry Trade Summary: Furniture and Motor Vehicle Seats, 

January 2001. 202 Watkins, “The China Challenge to Manufacturing in Mexico,” June 2007, 69. 203 It is estimated that Chinese producers affiliated with Taiwanese furniture companies 

accounted for 75 percent of China’s furniture exports in 2002. Kaplinsky and Morris, Dangling by 

a Thread, January 2006, 58. 204 Logs enter China free of duty. 
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Cameroon.205 China also imports logs from the Republic of the Congo, 

Equatorial Guinea, and Liberia.206

South Africa, Zimbabwe, and Ghana were the leading SSA exporters of wood 

furniture in 2006, collectively accounting for 81 percent of total SSA exports. 

Despite a 60 percent decline in its exports of wood furniture during 2002–06, 

South Africa continued to supply over one-half of SSA’s total exports to the 

world in 2006. South Africa and Ghana were the only SSA countries with 

significant exports to industrialized markets in 2002, with the United Kingdom 

(UK) accounting for 31 percent ($12.0 million) of South Africa’s total exports 

that year and 85 percent ($3.5 million) of Ghana’s. During 2002–06, wood 

furniture from China made a significant push into the UK market, with exports 

from China growing by 369 percent ($922.5 million), and China’s share of the 

UK import market expanding from 11 percent to 29 percent (including 

competition from internal EU suppliers).207 During 2002–06, South Africa’s 

exports to the UK plunged by 81 percent ($44.5 million) and Ghana’s fell by 49 

percent ($3.4 million) under increasing competition from China.208

In contrast to developments in South Africa and Ghana, investments by French 

and Turkish timber companies have led to recent increases in exports of wood 

furniture from Gabon209 to France and from Cameroon210 to the United States. In 

2006 alone, exports of wood furniture from Gabon to France rose from $95,000 

to $1.3 million. During 2002–06, the United States replaced France as 

Cameroon’s leading market for exports of wood furniture. Whereas exports to 

France from Cameroon were fairly consistent, averaging $154,000 during the 

period, exports to the United States jumped from $7,000 to $384,000.211 

Leading Export Markets 

The United States and the EU are the leading markets for wood furniture, with 

the United States importing 44 percent of world exports in 2006, and the EU 

importing 20 percent (figure 3.9). Despite the aforementioned sharp decline in 

 

205 Global Timber Organization, China – Illegal Imports and Exports of Wood-Based Products 

(2006), 2007. 206 According to a report by the Global Timber Organization, over one-half of the logs exported 

to China from Cameroon are harvested illegally; 70 percent from Gabon; 90 percent from the 

Republic of the Congo and Equatorial Guinea; and 100 percent from Liberia. Global Timber 

Organization, China – Illegal Imports and Exports of Wood-Based Products (2006), 2007; and 

Taylor, “China’s Environmental Footprint in Africa,” February 2, 2007. Exports of wood furniture 

from the Democratic Republic of the Congo (DRC), Equatorial Guinea, and Liberia totaled $75,578 

in 2006. Exports of wood furniture from DRC to France totaled $60,623 in 2006, compared with 

zero in 2005. 207 This measure of China’s share of the UK import market includes imports from other EU 

countries. If imports from other EU countries were not included, China’s share of the U.K. import 

market in 2006 would have been greater than 40 percent. 208 GTIS, Global Trade Atlas. 209 Business Africa, “Agribusiness Gabon,” August 1, 2005. 210 Bofor Cameroon S.A. Web site. http://www.boforcameroon.com/EN_2_2.htm (accessed 

October 2, 2007). Based in Turkey, Bofor Bodrum established outdoor furniture manufacturing 

operations in Cameroon in 2005. Most production is exported to France for distribution 

internationally. 211 GTIS, Global Trade Atlas. 
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Figure 3.9 Leading markets for global and sub-Saharan Africa exports of wood furniture, 2006

Global Export Markets

United States

44%

EU

20%

Japan

6% Canada

5%

Australia

3% Switzerland

4%

Other

18%

SSA Export Markets

South Africa

12%

EU

42%

Zambia

10%

Mozambique

9%

United States

7%

Other

9%

Tanzania

3%

Australia

3%

Malawi

5%

 $34,211 million $68.2 million

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries’ official statistics, including 

EU external trade.

the UK’s imports from South Africa and Ghana during 2002–06, the UK 

remained the largest market for SSA exports in 2006, accounting for 24 percent 

of total SSA exports. France and the United States each accounted for 7 percent 

of SSA exports in 2006. Reflecting the growing importance of regional trade, 

12 percent of total SSA exports went to South Africa in 2006, 10 percent to 

Zambia, 9 percent to Mozambique, 5 percent to Malawi, and 3 percent to 

Tanzania. 

In traditional SSA export markets in the UK and elsewhere in Europe, SSA 

furniture exporters have proven to be vulnerable to competition from low-cost 

alternative suppliers in China and Vietnam. 212 During 2002–06, China increased 

its share of total world exports of wood furniture from 28 percent to 42 percent; 

and Vietnam, from 2 percent to 6 percent. High-quality, handmade, solid wood 

household furniture from SSA suppliers made from tropical hardwoods is 

particularly vulnerable to competing Chinese and Vietnamese furniture that tends 

to be of lower-quality, less expensive particle board, and covered with a 

hardwood veneer that gives the furniture the appearance of being made of solid 

 

212 Most industrialized nations reduced import duties on furniture to zero under the Uruguay 

Round of Multilateral Tariff Negotiations, affording furniture from SSA countries no tariff 

preferences relative to other foreign suppliers. 
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hardwood.213 Garden furniture made from teak and similar water- and insectresistant woods, and pine children’s furniture also face stiff competition from 

East Asian suppliers in the EU market. 

According to a southern Africa forest products industry publication, aspects of 

competition that need improvement for SSA furniture to be competitive in 

European markets are design, quality of pine lumber used to make the furniture, 

manufacturing technology, finishes, and worker training. To make these 

improvements, furniture producers need improved access to credit. Europeanbased marketing agents are also needed to close the deal when competing in EU 

markets.214 

Reduced customs barriers among countries in the SSA region and growth in 

disposable income in several SSA countries have led to the expansion in crossborder furniture trade among SSA partners.215 Nevertheless, SSA imports from 

China have taken away market share from local suppliers in selected SSA 

markets.216

Factors Affecting Export Patterns 

The principal factors responsible for the 46 percent ($58.7 million) decrease in 

SSA export of wood furniture during 2002–06 were (1) intensified competition 

with imports from China and other East Asian suppliers in the United States, UK, 

and other EU markets; (2) the appreciation of the South African rand; (3) forest 

fires in South Africa and Zimbabwe that reduced the supply of timber for the 

regional pine furniture industry;217 and (4) increased local demand in South 

Africa.218 The strong domestic market reduced the incentive for South African 

 

213 Amalgamated Appliance Holdings (AMAP), based in Booysens, South Africa, is an 

exception. Some furniture produced by AMAP uses particle board manufactured in South Africa by 

PG Bison Holdings, a subsidiary of Steinhoff Africa. South Africa-based Steinhoff International 

Holdings owns Steinfhoff Africa and 26 percent of AMAP. Steinhoff International Holdings is one 

of the five largest furniture companies in Europe and Austral-Asia. AMAP became the largest 

furniture manufacturer in Africa when it purchased Steinhoff Africa’s furniture factories in 2006. 

Steinhoff International Holdings Web site. http://www.steinhoffinternational.com (accessed 

September 17, 2007). 214 Dunne, “Snapshot of a Successful Furniture Industry,” March 2006. 215 Exports of wood furniture from SSA countries to South Africa increased from $5.5 million 

to $8.3 million (by 53 percent) during 2002–06, and SSA exports to other SSA markets rose from 

$15.3 million to $21.5 million (by 41 percent). By contrast, SSA exports to the EU fell sharply, 

from $87.2 million to $28.5 million (by 67 percent). GTIS, Global Trade Atlas. 216 Imports of wood furniture from China into South Africa, for example, jumped from 

$4.2 million to $85.2 million during 2002–06. GTIS, Global Trade Atlas. SSA customers have 

reportedly been surprised and disappointed by the lack of durability of Chinese-made furniture 

compared with more expensive, handmade, solid wood furniture produced by local suppliers. 

Micheni, “Fragile Imported Furniture Chokes Kenyan Market,” August 7, 2007. 217 Lee Raath-Brown and Maryke Naude (Wood Southern Africa & Timber Times), interview 

by Commission staff, Johannesburg, South Africa, October 30, 2007. 218 A combination of relatively low interest rates and increased per capita disposable income in 

South Africa contributed to the expansion of the domestic market in South Africa. Africa Report, 

“South Africa: South Africa’s Booming Furniture Retail Sector,” March 30, 2006. 
3-64

producers to pursue increasingly difficult export markets in the EU and United 

States.219 

In addition, deforestation in Ghana raised input costs for the production of 

furniture there, making it more difficult for garden furniture produced in Ghana 

to compete with UK imports from China. By contrast, vertical integration of 

furniture manufacturing (including timber harvesting, sawmilling, and 

distribution) helped control costs of making garden furniture in Cameroon and 

Gabon. 

In addition to increased competition in the UK market from furniture imported 

from China and appreciation of the rand, other factors contributing to the 

declining competitive position of the South African wood furniture industry were 

rising labor costs in South Africa,220 insufficient replanting of pine trees 

following forest fires, and inadequate investment in upgrading machinery used in 

South African sawmills and furniture factories.221 

Zimbabwe, the second leading SSA exporter of wood furniture, was able to grow 

its exports of wood furniture by 69 percent (to $19.3 million) during 2002–05 

following the 2004 purchase of its largest producer (Tedco) by South Africa’s 

leading manufacturer (Steinhoff). Steinhoff expanded Tedco’s production 

capacity and made quality improvements as well. The investments led to 

increased exports from Zimbabwe to South Africa and Zambia. Forest fires, 

electricity shortages, and political instability took its toll on Zimbabwe 

production in 2006, with exports falling by 31 percent to $13.3 million. 

Competition from China in the EU and U.S. Markets 

Intensified competition with imports from China was the leading factor 

responsible for decreased exports of wood furniture from SSA to the EU and 

U.S. markets during 2002–06. Producers in many SSA countries are also losing 

domestic market shares to imports from China.222

Ghana 

Scanstyle, Ghana’s top exporter of wood furniture, lost market share in the UK in 

2005 and 2006 because garden furniture from China and elsewhere in East Asia 

was offered at prices considerably lower than Scanstyle’s prices. Scanstyle 

indicates that its efforts to compete with imports from China were hampered in 

2004 after environmental groups convinced furniture retailers in the UK that the 

retailers should require wood furniture sold in their stores be certified by the 

Forestry Stewardship Council (FSC) as being made from wood from sustainable 

 

219 Lee Raath-Browne and Maryke Naud (Wood Southern Africa & Timber Times), interview 

by Commission staff, Johannesburg, South Africa, October 30, 2007. 220 Cape Argus, “Strike Adds to Woes of Furniture Industry,” Africa News, August 22, 2005. 221 Dunne, “Snapshot of a Successful Furniture Industry,” March 2006. The declining 

competitive position of South African wood furniture in the UK market was exacerbated by the 

inferior quality of South African pine compared with Nordic pine. 222 Subramanian and Matthijs, “Can Sub-Saharan Africa Leap into Global Trade Network?” 

January 2007, 6. 
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sources.223 FSC certification reportedly added to Scanstyle’s costs and to the 

prices charged by Alexander Rose, Scanstyle’s distributor in the UK.224

Reflecting Scanstyle’s lost sales, Ghana’s exports of wood furniture to the UK 

fell by 54 percent during 2004–06, from $7.5 million to $3.5 million. 

Although Alexander Rose, a UK-based distributor of garden furniture, is a 

minority owner in Scanstyle and supplies Scanstyle with furniture designs, 

Alexander Rose began substituting purchases of garden furniture from China 

and, to a lesser extent, Vietnam for a significant portion of its furniture imports 

from Ghana in 2005. Prices for similar pieces of garden furniture were 40 percent 

lower for imports from China compared with imports from Ghana, and 

24 percent lower for imports from Vietnam.225

In 2007, however, Scanstyle states that they regained some of its lost customers 

as their customers came to realize that despite the relatively superior finishes of 

the garden furniture from China, the quality of the hardwood used in this 

furniture was inferior, making Scanstyle furniture imported from Ghana more 

durable.226

South Africa 

A South African wood products industry journal attributed competition from 

lower-priced imports from China and appreciation of the rand as the two leading 

factors responsible for both declining exports of wood furniture from South 

Africa and the loss of domestic market share in South Africa to imports 

(box 3.11).227 South African exporters remain most competitive in the European 

markets for RTA furniture and children’s bunk beds.228 Imports from South 

Africa supply the low end of that market because the Nordic pine used by 

European furniture producers for most of the market is of a higher quality than 

South African pine. Consequently, pine furniture from South Africa is 

particularly vulnerable to competition from low-cost imports of similar furniture 

from China in the European market.229

 

 

223 In 2004, environmental NGOs began putting pressure on furniture retailers in the UK to 

certify that furniture sold by them is the product of sustainable forestry. Obtaining certification 

from the Forestry Stewardship Council is time-consuming and costly. Samuel Nick Ayison 

(operations manager, Scanstyle), interview by Commission staff, Accra, Ghana, October 31, 2007. 224 Samuel Nick Ayison (operations manager, Scanstyle), interview by Commission staff, 

Accra, Ghana, October 31, 2007. 225 Kaplinsky and Morris, Dangling by a Thread, January 2006, 60. 226 Samuel Nick Ayison (operations manager, Scanstyle), interview by Commission staff, 

Accra, Ghana, October 31, 2007. 227 Wood Southern Africa & Timber Times, “The South African Market for Timber Products,” 

January 2005. 228 Dunne, “Snapshot of a Successful Furniture Industry,” March 2006. 229 Ibid.; and Mwega, “China, India, and Africa: Prospects and Challenges,” January 2007. 
3-66

Box 3.11 Shift in sourcing of wood furniture from SSA to China: One company’s story 

In 2002, Steinhoff Africa, the largest furniture producer in Africa, purchased 34.9 percent of PG Bison Holdings (Pty.) Ltd., 

the leading particle board manufacturer in South Africa. Steinhoff Africa made significant investments in PG Bison’s 

sawmilling capacity in 2002, with much of the particle board supplying Steinhoff Africa’s furniture factories, permitting 

expansion of furniture exports from South Africa.1

 In 2004, however, Steinhoff International Holdings, the parent company 

of Steinhoff Africa, opened its Imports and Sourcing Division in Shenzhen, China, and began supplying markets in the EU, 

Australia, and New Zealand with furniture sourced in China.2

 In 2006, Steinhoff Africa, sold its furniture manufacturing 

operations to Amalgamated Appliances Holdings Ltd. (AMAP), a South Africa-based distributor of consumer electronics 

equipment and appliances. Steinhoff International Holdings had purchased a 26 percent share of AMAP in 2005.3 The 

opening of Steinhoff International’s sourcing division in China in 2004 and the sale of its furniture factories in South Africa

in 2006 coincided with the sharp (73 percent) decline in South Africa’s exports to the EU during 2004−06. 

____________ 

1

 Steinhoff International Holdings Ltd., “Company History,” http://www.steinhoffinternational.com/bus_history.htm

(accessed September 17, 2007). 2

 Steinhoff International Holdings, with headquarters in Bramley, South Africa, owns over 70 factories in 25 countries, 

led by plants in Australia, Germany, Hungary, India, the Netherlands, New Zealand, Poland, South Africa, Ukraine, and 

the UK, with production focused on bedding, case goods, and lounge furniture. Steinhoff also produces auto parts in 

South Africa. “Business Centre,” Steinhoff International Holdings, Ltd., http://www.steinhoffinternational.com.htm

(accessed September 17,2007). Steinhoff employes a staff 50,000, with 17,000 at its nine foreign affiliates, with foreign 

assets totaling $2.7 billion in 2004, and foreign sales amounting to $1.6 billion that year. UNCTAD, “South Africa Fact 

Sheet,” World Investment Report 2006; and Robbins, “Steinhoff Blazes a Bumpy Acquisition Trail,” Business Report 2007. 3

 Steinhoff International Holdings Ltd., “Company History,” http://www.steinhoffinternational.com/bus_history.htm

(accessed September 17, 2007). 

Appreciation of the South African Rand 

The appreciation of the rand relative to other currencies contributed to the 

declining competitiveness in South Africa’s exports of wood furniture to U.S. 

and European markets during 2002–06.230 The value of the rand against the U.S. 

dollar rose by about 40 percent between 2002 and 2006.231

In 2005, the Alexander Rose Company indicated that it stopped importing 

furniture from South Africa in 2005 because of the rising value of the rand. 

Instead, Alexander Rose imported garden furniture from China. Reflecting both 

lower production and transport costs for Chinese suppliers and appreciation of 

the rand, Chinese suppliers offered garden furniture for about one-half the price 

quoted by suppliers in South Africa.232

Reduced Supplies of Timber 

Several countries in West and East Africa have restricted the harvesting of timber 

in response to deforestation, driving up costs of tropical hardwood logs and 

 

230 Cape Argus, “Strike Adds to Woes of Furniture Industry,” August 22, 2005; and Lee RaathBrowne and Maryke Naude (Wood Southern Africa & Timber Times), interview by Commission 

staff, Johannesburg, South Africa, October 30, 2007. By establishing a purchasing division in 

China in 2004, Steinhoff International, Africa’s largest producer of wood furniture at that time, 

gained additional flexibility. 231 Reflecting the importance of South Africa as a global supplier of gold and the role of gold in 

the South African economy, the rising price of gold during 2002−06 was a major determinant of the 

real effective exchange rate of the rand during the period. UNECA, Economic Report on Africa 

2007, 43. 

232 Kaplinsky and Morris, Dangling by a Thread, January 2006, 60. 
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lumber for furniture producers in those countries. In addition, forest fires in 

South Africa and Zimbabwe in recent years have reduced supplies of timber 

available for the furniture industry, forcing producers to pay higher prices for 

furniture-grade pine lumber.233 Whereas SSA furniture producers purchase 

lumber from local sawmills or import logs from other SSA countries, Chinese 

sawmills and furniture producers have global supply chains and are less 

vulnerable to local supply shortages. 

Ghana 

Restricted supplies of timber threaten the ability of wood products companies in 

Ghana to export furniture234 and may have contributed to the decrease in Ghana’s 

furniture exports to the UK during 2004–06.235 In 2004, the African Timber 

Organization listed serious supply difficulties for log-pressing units as a main 

constraint to further processing of timber in Ghana.236 According to the Ghana 

Furniture Association, deforestation is forcing furniture producers to compete 

with the home building industry for scarce timber resources, bidding up the price 

of lumber. Also, loggers are forced to go deeper into forests to find timber, 

adding to production costs.237 Scanstyle, Ghana’s leading exporter of wood 

furniture, stated that it was forced to use “less attractive” wood from Cameroon 

for some of its production because of supply shortages of Ghanaian timber.238

Kenya 

The price of wood in Kenya rose sharply in 2005 after the government of Kenya 

banned logging in an effort to combat deforestation and periodic flooding 

(Forestry Act No. 7 of 2005).239 Furniture producers in Kenya were forced to 

import logs and lumber from West and Central Africa, driving up production 

costs and the prices of locally made furniture.240

Kenyan exports did not, however, suffer a decline due to these increased input 

costs as the increase in exports was concentrated in a single company facing a 

unique situation. A relatively small producer in Nairobi (20 employees) received 

a long-term contract in 2003 to supply top-of-the-line Eastern-style mahogany 

furniture to the Serena Hotel in Kampala, Uganda. Company officials indicate 

that the contract is responsible for virtually all of Kenya’s three-fold increase in 

exports of wood furniture to Uganda during 2002–06, from $266,000 to 

 

233 Spadavecchia, “Bold Forestry-Products Thrust Rooted in Rural Development, 

Manufacturing Aspiration,” August 24, 2007; and Wood Southern Africa & Timber Times, 

“Zimbabwe in 2005,” February 1, 2006. 234 USTR, Africa Growth and Opportunity Act Competitiveness Report, July 2005, 16. 235 Despite the sharp decline in exports to the UK during 2004−06, the UK accounted for 85 

percent of Ghana’s total exports of wood furniture in 2006. 236 ATO, Promoting the Further Processing of Tropical Timber in Africa, 2004, 19. 237 Mr. Sackyi (president, Ghana Furniture Association), interview by Commission staff, 

October 31, 2007. 238 Samuel Nick Ayison (operations manager, Scanstyle), interview by Commission staff, 

Accra, Ghana, October 31, 2007. 239 Geteria, “A Break With the Past,” August 28, 2007. 240 Mwenda wa Micheni, “Fragile Imported Furniture Chokes Kenyan Market,” 

August 27, 2007. 
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$805,000.241 Consequently, the company’s exports have not been affected by the 

higher prices for imported mahogany logs. 

South Africa 

According to the U.S. Department of Commerce, “the amount of timber available 

to produce furniture in South Africa is drastically declining,” in part because of 

forest fires in recent years and inadequate reforestation programs. The supply of 

lumber available for furniture production also is exacerbated by the commitment 

of 80 percent of sawmill production to the mining, structural support, and export 

markets. As a result, some furniture producers have had to import lumber cut to 

their specifications in other countries to supplement the shortfall in local pine 

lumber available for furniture production.242 

Zimbabwe 

Numerous forest fires during 2000–04 destroyed a significant share of 

Zimbabwe’s timber resources. In addition to the shortage of quality sawlogs, the 

Zimbabwe furniture industry frequently faces disruptions in the supply of 

electricity, sawmill breakdowns, industrial unrest, increased costs for imported 

inputs, and weak domestic demand.243

Increased Demand in South Africa 

Prior to the sharp rise in interest rates by the Central Bank in June 2007, the 

furniture industry in South Africa had experienced a rapidly growing domestic 

market in recent years.244 Factors responsible for the increase in furniture sales in 

South Africa in 2005 and 2006 included: 

$ Higher wages throughout the country; 

$ Record low interest rates leading to increased new construction; 

 home ownership, and purchases of consumer durables; 

$ Rapid expansion of the middle class; 

$ Increased government spending on housing; and 

$ Greater disposable income.245

 

241 M.S. Panesar (Panesar’s Kenya Ltd.), Nairobi, Kenya, interview by Commission staff, 

October 16, 2007. 242 U.S. Department of Commerce Web site, 

http://www.commercecan.ic.gc.ca/scdt/bizmap/interface2.nsf/vDownload/IMI_3115/$file/X_30848

6.DOC (accessed August 23, 2007). The impact of forest fires on the availability of lumber for use 

in the production of wood furniture was confirmed in a USITC staff interview with Lee RaathBrowne and Maryke Naude, Wood Southern Africa & Timber Times, Johannesburg, South Africa, 

October 30, 2007. 243 Wood Southern Africa & Timber Times, “Zimbabwe in 2005,” February 1, 2006. 244 Lee Raath-Browne and Maryke Naude (Wood Southern Africa & Timber Times),

Johannesburg, South Africa, interview by Commission staff, October 30, 2007. 245 Africa Report, “South Africa: South Africa’s Booming Furniture Retail Sector,” 

March 30, 2006. 
3-69

South African furniture producers also indicated that appreciation of the rand and 

stiff competition with imports from China and Vietnam reduced the profitability 

of exporting to Europe. As a result, the companies are focusing their marketing 

efforts on the local market where they receive a better return.246 Even in the 

domestic market, however, local furniture producers are losing market share to 

imports from China and are struggling to maintain sales volumes.247 

Foreign Investment Has Developed New Exporters 

As locally sourced credit for start-up companies is often difficult to obtain, 

foreign investment has been critical for the establishment of export-oriented 

furniture manufacturing operations in a number of countries. Examples of 

investments in SSA furniture production are provided below. 

Cameroon 

Bofor Bodrum, a company based in Turkey, founded Bofor Cameroon S.A. in 

Yaounde in 2005. The company produces furniture and other wood products, 

using hardwoods such as Iroko, Sapelli, Acajou, and Sipo. Bofor’s emphasis is 

on exports of outdoor furniture to France. 248 

Gabon 

The French timber company, Rougier Gabon, has operated in Gabon for over 

50 years and is the country’s principal producer and exporter of logs and 

laminated wood.249 In 2005, Rougier Gabon built a timber processing complex at 

Mobouma-Oyali, Gabon. The investment, valued at $7.3 million, led to increased 

exports of wood furniture to France. 

Ghana 

One firm, Scanstyle, accounted for 95 percent of Ghana’s total exports of wood 

furniture in 2006.250 All of Scanstyle’s exports consisted of garden furniture, with 

95 percent going to the UK-based Alexander Rose Company.251 Alexander Rose 

provides Scanstyle with technical advice regarding the selection of trees for use 

in furniture manufacture, design of the furniture, and manufacturing methods.252

 

246 Kaplinsky and Morris, Dangling by a Thread, January 2006, 65. 247 Imports of wood furniture from China into South Africa, for example, jumped from 

$4.2 million to $85.2 million during 2002–06. GTIS, Global Trade Atlas. 248 Bofor Cameroon Web site, http://www.boforcameroon.com/en_2_2.htm (accessed 

October 2, 2007). 249 Business Africa, “Agribusiness: Gabon,” August 1, 2005. 250 Ghanaian Export Promotion Council data provided in interview by Commission staff, 

Accra, Ghana, October 31, 2007. According to a 2007 Ghana Investment Promotion Centre report, 

only 6 of the 53 furniture manufacturers in Ghana in 2007 had the capacity to manufacture exportquality furniture and joinery. 251 Samuel Nick Ayison (operations manager, Scanstyle), interview by Commission staff, 

Accra, Ghana, October 31, 2007. 252 Alexander Rose company brochure. 
3-70

A smaller exporter, Semak Ghana Ltd., relies on a consortium of 15 small 

producers in Ghana employing approximately 200 workers (box 3.12). The 

company received assistance from a Ghanaian expatriate in Germany during 

2001–03 to develop handmade modern furniture with an African accent. The 

Swiss Import-Export Programme (SIPPO) currently assists the company in 

marketing its products in Europe. The target markets are the UK, Germany, and 

the Netherlands.253

Box 3.12 Visions of a wood furniture city in Ghana 

Production of wood products in Ghana is concentrated in the Accra-Tema metropolis, Kumasi, and Takoradi.1 Producers 

there have joined to form the Furniture and Wood Products Association of Ghana. According to the African Timber 

Organization (ATO), producers in Ghana hope to transition from exports of garden furniture to exports of higher-valueadded interior furniture.2

To assist in this transition, the World Bank has proposed the establishment of an “Accra Wood Furniture City” to be 

located in the Tema Free Zone. Small-scale furniture manufacturers and related carpenters, joiners, and craftsmen would 

be relocated from their currently widely-dispersed locations in the Accra region to a site that would encourage 

collaboration in the development of a furniture manufacturing cluster. It is anticipated that the clustering would lead to 

improvements in productivity and quality that would make furniture produced in Ghana more competitive in both local and 

export markets. The clustering would also reduce environmental risks associated with current production of furniture in 

residential areas. The World Bank plan also would establish a wood technology institute located in the furniture city and 

has specific proposals for the construction of infrastructure to support the city (buildings, roads, walkways, and sewers).3

In keeping with the vision of the 1994 Forest Policy, Ghana banned log exports in an effort to encourage processing of its 

timber resources. It is the only West and Central African nation to institute an outright ban, whereas other countries have 

imposed export tax on logs.4 Illegal logging, however, is undermining the Forest Policy. The EU is working with the 

Forestry Commission of Ghana to stop illegal logging and provide technical assistance regarding sustainable forestry 

practices. These efforts are intended to increase the availability of logs for use in the manufacture of wood furniture for 

both domestic and export markets. First Counselor Dirk Naezer, head of the EU delegation on Economic and Micro Trade 

in Ghana, recommended to the Tema Wood Manufacturers Association of Ghana that greater emphasis should be placed 

on exporting wood products to ECOWAS partners.5 Establishment of the Accra Wood Furniture City may be a step in that 

direction. 

____________ 

1

 Ghana Investment Promotion Centre, “Ghana Investment Profile: Furniture and Wood Processing.” 

2

 ATO, Promoting the Further Processing of Tropical Timber in Africa, 2004, 14. 3

 George Kobina Fynn (deputy chief commercial officer, Ministry of Trade, Industry, and Private Sector 

Development), interview by Commission staff, Accra, Ghana, October 31, 2007. 4

 European Commission for the Promotion of Investment (Pro-invest), Sector Orientation Report: West and Central 

Africa, February 2004, Annex A 07, 1. 

5 International Log & Sawnwood Prices, “EU to Assist Ghanaian Communities in Combating Illegal Logging,” 

September 16–30, 2007. ECOWAS members include Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, 

Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. 

Mali 

Mali (Australia) Pty Ltd. established a manufacturing subsidiary in Mali, Mali 

Furniture, in 2004. The company manufactures nursery furniture that is sold in 

Australia. The furniture competes on the basis of safety, durability, and styling.254

Mali began exporting wood furniture to Australia in 2004 and exports reached 

 

253 SIPPO Web site, http://www.sippo.ch/files/catalogues/imm06.pdf. 254 Mali Furniture Web site, http://www.malifurniture.com (accessed August 8, 2007). 
3-71

$1.5 million the following year. Australia accounted for 94 percent of Mali’s 

exports of wood furniture in 2006. 

Namibia 

The U.S.-African Development Foundation provided $222,857 to help six 

employees purchase a high-end furniture manufacturer in Namibia in 2006. 

Foundation funds were also used to purchase new machinery, equipment, and 

fittings to enable the expansion of furniture production to market to tourists.255

Zimbabwe 

Steinhoff Africa Ltd., a subsidiary of South Africa-based Steinhoff International 

Holdings, purchased controlling interest in Tedco Industries in 2004. Tedco is the 

largest furniture manufacturer in Zimbabwe. The South African investment 

increased Tedco’s production capacity from 15 to 150 lounge suites per day256

and enabled Tedco to start exporting wood furniture to Mozambique and Malawi 

by January 2005.257 By 2007, Tedco began exporting furniture and bedding to 

South Africa and juvenile furniture to Europe.258

Policies to Promote the Industry and Increased Investment 

To compete with Chinese and other East Asian suppliers in European markets for 

wood furniture, African suppliers are focusing on the “green” niche.259 To supply 

that niche, however, the independent international non-governmental 

organization Forestry Stewardship Council (FSC)260 must certify that furniture 

produced by the SSA exporters is produced from timber that has been harvested 

using sustainable practices. Several governments have instituted regulations to 

improve their industries’ chances of obtaining FSC certification.261 These 

 

255 U.S. African Development Foundation, “Namibia Investment Summary,” April 4, 2007. 256 Dube, “Shot in the Arm for Furniture Manufacturer Tedco Industries,” The Financial 

Gazette, September 16, 2004. 257 Dube, “Tedco Spreads its Wings Regionally,” The Financial Gazette, January 6, 2005. 258 Harald (Harare), “Tedco to Spread Tentacles Regionally,” September 14, 2007. 259 In order to compete with lower-cost suppliers, producers of articles in developing countries 

are increasingly turning to products and marketing strategies that will permit them to appeal to 

consumers who are willing to pay a premium for the articles they are offering. Some 

environmentally and socially conscious consumers are will to pay a premium for “green” or “fairtrade” articles, such as “organic” (fertilizer and pesticide free), shade-grown, or fair-trade coffee; 

apparel made from organic cotton; and “sustainable” furniture (made from trees that were harvested 

by companies that use sustainable forestry practices). For information on sustainable furniture, see, 

for example, Holt-Johnstone, “The Marketing of Sustainable Furniture,” May/June, 2007, 47; 

Hasek, “Interest in Sustainable Furniture Increases As Talk Indoor Air And Deforestation Pick 

Up,” August 17, 2007; and John, “How Do You Know That Wood Is Sustainable?” 

December 3, 2007. 260 The Forestry Stewardship Council, based in Bonn, Germany, was established in 1990. It sets 

international standards for responsible forest management and accredits independent organizations 

that can certify forest product producers to FSC standards. To market a product as FSC certified, 

the forest products operation must obtain a Forest Management Certificate and a Chain of Custody 

Certificate. FSC Web site, http://fsc.org/en/about. 261 However, some research has determined that some of these policies such as export quotas 

and taxes on log exports have a negative impact on sustainable forestry. See, for example, Malcolm 

Gillis and Robert Repetto, eds., Public Policies and the Misuse of Forest Resources, 1988. 
3-72

regulations are often part of a forestry industry program that also encourages or 

requires that processing of harvested logs be performed in the country prior to 

exportation. 

Cameroon 

The government of Cameroon has encouraged processing of the country’s timber 

resources as part of its overall strategy to adopt policies that will improve the 

productivity of the forestry sector. According to the Global Timber Organization, 

contrary to government policies, about 80 percent of Cameroon’s exports of logs 

to China are harvested illegally and exported without being processed.262 Among 

other objectives, government policies try to reduce illegal logging and promote 

further processing of timber resources. Specific policies and measures adopted by 

the government of Cameroon include:263

 $ Forest concessions granted with the obligation to establish 

 industrial processing units; 

 $ Establishment of a Directorate for the Promotion and 

 Processing of Forest Products in 1998 with the following 

 mandate: develop and implement a timber marketing policy, 

 promote modern timber processing crafts and techniques, 

 and pursue export opportunities; 

$ Establishment of a standardization and quality unit responsible for 

 drafting national standards (Decree no. 98/313 of December 9, 1998); 

 $ Adoption of an investment charter (2000); 

 $ Introduction of an industrial free zone scheme as a major industrial 

 incentive instrument (out of 44 companies registered in the scheme 

 in 2000, 33 were in the forest products sector); and 

 $ Export quotas and a progressive surtax on log exports (2000). 

Gabon 

Government officials in Gabon see the production of furniture, rather than the 

export of logs, as an important mechanism to diversify away from petroleum and 

other raw material exports.264

The government of Gabon’s timber strategy “focuses on increasing the 

percentage of timber processed domestically in order to increase value added.” 

According to estimates from the French economic mission, the percentage of 

timber processed domestically “has increased from 7 [percent] in 1995 to 

33 [percent] in 2004.”265 The government of Gabon has encouraged processing of 

the country’s timber resources as part of its overall strategy to adopt policies that 

will lead to sustainable forest management in the country. According to the 

 

262 Global Timber Organization, China - Illegal Imports and Exports of Wood-Based Products 

(2006), 2007. 263 ATO, Promoting the Further Processing of Tropical Timber in Africa, 2004, 22. 264 Business Africa, “Gabon.” 265 Business Africa, “Agribusiness: Gabon,” August 1, 2005. 
3-73

Global Timber Organization, about 80 percent of Gabon’s exports of logs to 

China are harvested illegally.266 

Specific policies and measures adopted by the government of Gabon to reduce 

illegal logging and promote further processing of timber resources include:267

 $ Export tax exemption on processed products; 

 $ Tax on log exports and restrictions on log exports; 

 $ Establishment of the Interministerial Commission on 

 Industrialization (1995); 

 $ Revision of the Forestry Law; 

 $ Introduction of tax incentives: no value-added tax on specific 

 wood-processing equipment; 

 $ Granting of large logging concessions conditional on an 

 industrialization plan; and

 $ Establishment of a Forest Industry Active Support Fund. 

In January 2007, Gabon became the first African member of Programme for the 

Endorsement of Forest Certification (PEFC). “PEFC is a global scheme, 

launched in 1999, that provides buyers of timber with guarantees that they are 

purchasing wood only from sustainably managed forests. . . . The scheme could 

potentially provide additional revenues to Gabon by providing premium prices 

for timber under the scheme from environmentally conscious buyers in Europe 

and North America. . . . Libreville is also at the forefront of efforts to create a 

Pan-African Forest Certification System.”268

Ghana 

Specific policies and measures adopted by the government of Ghana to promote 

further processing of timber resources include (box 3.13):269

Box 3.13 Ghana to help Liberia salvage rubber trees to make furniture 

The USAID-funded West Africa Trade Hub, based in Accra, Ghana, is coordinating a cooperative effort of the government 

of Liberia and the Timber Industry Development Division of the Forestry Commission of Ghana to provide advice to 

owners of rubber tree plantations in Liberia regarding the harvesting of over-age rubber trees. Currently, old rubber trees 

are cut down, then burned to produce charcoal. The new program will instruct plantation owners how to chemically treat 

the fallen tree so the rubber wood can be used to produce lumber and downstream products such as furniture.1 

_________ 

1

 White, “Rubber Wood Lumber May Help Liberia Bounce Back,” September 2007. 

 

266 Global Timber Organization, China - Illegal Imports and Exports of Wood-Based Products 

(2006),” 2007. 267 ATO, Promoting the Further Processing of Tropical Timber in Africa, 22. 268 Business Africa, “Regulatory Watch: Gabon,” February 1, 2007. 269 ATO, Promoting the Further Processing of Tropical Timber in Africa, 2004, 23. 
3-74

 A focus in the 1994 Forest Policy on further processing 

with the objectives of restructuring the forest industry 

for the efficient utilization of timber from sustainably 

managed forests, promoting secondary and tertiary 

processing, improving processing efficiency, and 

improving plantation timber processing capacity; and 

 Establishing export processing zones aimed at promoting 

investment in the production of articles that would 

further process and re-export African Timber 

Organization member-country timber products and make 

better use of current excess production capacity. 

South Africa 

During 2002−06, the government of South Africa limited its assistance to the 

forest products industry to a program to upgrade the skill levels of workers in the 

forest products sector. The Forest Industries Education and Training Authority 

initiated a project in July 2003 to deliver skills development programs for the 

manufacture of compact, affordable, multipurpose furniture for use in smaller, 

affordable housing. The program was funded by the Department of Labor’s 

National Skills Fund.270 In August 2007, the government took a decidedly more 

proactive role in addressing the problems of the forest products industry 

(box 3.14). 

 

270 Wood Southern Africa & Timber Times, “The Furniture Manufacturing Skills Development 

Project,” May 2003. 
3-75

Box 3.14 The government of South Africa intervenes in forest products sector in 2007 

Until August 2007, the government of South Africa had taken a relatively “hands-off” approach toward the forest products 

industry, allowing the market to guide industry decision makers. This position led to a critique in South Africa’s leading 

forest products trade journal that the government was not doing enough to promote the industry, particularly with regard to 

manpower training and reforestation.1 

In August 2007, South Africa’s Department of Trade and Industry announced an industrial promotion program. The 

program included tax concessions in four industrial sectors, including furniture. One objective of the new policy was to 

lower the cost of capital for the furniture industry and improve the industry’s export competitiveness.2 In the domestic 

market, however, the government’s decision to raise interest rates in response to inflationary pressures decreased 

demand for interest rate-sensitive goods, including furniture, in the third quarter of 2007.3 

Also in August 2007, South Africa’s Department of Water Affairs and Forestry (DWAF) announced a National Industrial 

Policy Framework (NIPF) and an associated Industrial Policy Action Plan. Under the NIPF, 100,000 hectares of land in the 

Eastern Cape and KwaZulu-Natal regions will be reforested, providing timber resources for downstream production of 

furniture and other wood products. The plan includes a cooperative effort with PG Bison to replant forests that will feed the 

company’s nearly completed particle board plant located outside the town of Ugie, which will supply the furniture and 

building materials industries. The project is expected to create 2,700 jobs in forestry and at the plant.4 

According to Masizake Zimela, the Department of Trade and Industry’s (DTI’s) Chief Director of Resource-Based 

Industries, demand for timber has exceeded supply because of (1) the high rate of economic growth, (2) a decrease in 

public and private sector funding for reforestation, and (3) forest fires. The shortage of timber has led to the substitution of 

imported furniture for locally produced furniture, reducing employment in the sector. To counter the increase in furniture 

imports, the DTI will collaborate with the Small Enterprise Development Agency (SEDA) Technology Programme, the 

district municipality, the Eastern Cape Development Corporation, and the provincial government to set up a furniture 

technology incubator. Its aim is to facilitate activities requiring more advanced technology and higher skill levels, 

specifically high-end furniture design.5 The incubator, which will be located in Mthatha, is expected to be in operation by 

April 2008. The DTI’s long-term goal for the sector is to upgrade the skill levels of the workers and to develop products 

that are of high enough quality to penetrate international markets.6 

____________ 

1

 See Dunne, “Snapshot of a Successful Furniture Industry,” March 1, 2006. 

2

 Mafu, “DTI’s Tax Incentives Plan Draws Mixed Response,” August 7, 2007. 3 Business Day, “Manufacturing Confidence Down,” September 17, 2007. 4 Spadavecchia, “Bold Forestry-Products Thrust Rooted in Rural Development, Manufacturing Aspiration,” 

August 24, 2007. 5 Ibid. 

6 Ibid. 
3-76

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3-78

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3-79

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4-1

CHAPTER 4 

Services Sector Profiles 

he value of commercial services exports from sub-Saharan Africa (SSA) 

grew steadily during 2001−05. Exports totaled $28.0 billion in 2005 and 

represented about 15 percent of the total value of SSA exports from 2002 

through 2005.1

 Travel or tourism services accounted for 47 percent of the total, 

up from 39 percent in 2001.2

 This demand growth, as well as increased demand 

in freight transport services, boosted aviation services exports. Increased 

investment in infrastructure and airplanes helped SSA meet the growing demand 

for aviation services. The popularity of mobile telephony was a major factor 

contributing to increased exports of communication services during the period. 

Exports also benefited from government reforms in many SSA countries to 

liberalize their communication sectors and open them up to competition. The 

following tabulation summarizes factors that contributed to shifts in exports in 

the selected services sectors. 

Factors Aviation services Communication services 

Factors contributing to increased exports 

Demand growth X X 

Policies to promote the industry – SSA governments X X 

Increased investment X X 

Growth of private enterprise and emergence of key 

 business relationships 

X X 

Infrastructure improvement X X 

Deeper regional integration X 

Effects of market regulations X 

Aviation Services 

Summary of Findings 

SSA aviation services exports increased in all but one year during 2001–05, and 

were almost 39 percent higher, at $1.2 billion in 2005 than in 2001. By 

comparison, global aviation services providers’ exports were 36 percent higher in 

2005 than in 2001. Five countries in SSA saw significant increases in aviation 

services exports during 2001–05. According to reported trade data, South 

 

1

 Commercial services consist of transportation, travel and tourism, and other services 

including communications, construction, insurance, financial, computer and information, royalties 

and license feeds, and other business services. 2

 Travel services will hereafter be referred to as tourism. Based on data compiled from the 

IMF’s International Financial Statistics Yearbook. 

T 
4-2

Exporter 2001 2002 2003 2004 2005 Absolute Percentage

Angola na 13.9 13.7 16.0 16.1 na na

Benin na na 0.1 0.5 2.2 na na

Botswana na na 1.8 1.0 0.8 na na

Burkina Faso 4.5 na na na na na na

Burundi 0.4 0.5 0.5 0.6 0.4 0.0 0

Cameroon 125.5 67.8 58.5 na na na na

Cape Verde 23.5 34.7 47.8 53.6 55.3 31.7 137

Congo, Republic of 0.6 0.6 na na na na na

Côte d'Ivoire 1.9 2.2 3.6 4.2 4.4 2.6 135

Ethiopia 194.1 214.5 255.3 325.1 410.3 216.2 111

Gabon 30.5 1.5 69.4 63.7 na na na

Gambia, The na na 2.4 3.5 0.6 na na

Ghana 23.2 25.3 26.9 29.1 31.4 8.2 35

Guinea 8.1 na 0.6 na na na na

Kenya 240.7 253.2 288.9 332.5 414.7 174.0 72

Madagascar 33.9 45.0 42.6 83.8 106.9 73.1 216

Malawi 16.0 13.1 na na na na na

Mali 1.8 na 6.4 2.1 na na na

Mozambique 0.2 0.0 0.0 0.5 7.9 7.7 3,850

Namibia 28.3 32.8 49.6 20.8 14.1 -14.3 -50

Senegal 1.6 12.7 52.5 65.7 na na na

Seychelles 74.6 83.0 87.5 84.3 77.3 2.6 4

Sierra Leone 0.0 na na 0.2 na na na

Sudan na na na 9.5 na na na

Swaziland 2.1 6.2 11.9 0.2 0.2 -1.9 -90

Tanzania 11.3 3.6 6.7 16.4 11.5 0.2 2

Togo na na 7.1 20.3 21.3 na na

Uganda 21.2 22.4 na na na na na

Total 844.3 833.1 1,033.7 1,133.7 1,175.4 331.1 39

Source: IMF, Balance of Payments Statistics Database. 

Note: na = not available. Totals may not add due to rounding. Data for South Africa and Nigeria are not reported.

Table 4.1 Sub-Saharan Africa aviation exports, by reporting exporters, 2001–05

Million dollars

Exports Change, 2001 to 2005

Africa, 3 Kenya, and Ethiopia were the three largest providers of aviation services 

among all SSA countries, accounting for approximately 70 percent of all the 

region’s exports of aviation services in 2005. Other large SSA exporters included 

Madagascar, Seychelles, and Cape Verde (table 4.1). 

Although accounting for less than 3 percent of world air traffic,4

 a handful of 

SSA countries have experienced sustained growth in the provision of 

international aviation services (as defined in box 4.1). Common factors among 

these countries include steady growth in international passenger and/or air freight 

traffic, the expansion of cooperative agreements among national airlines or 

governments, and continued investment in both capital equipment (airplanes) and 

infrastructure (airports). 

 

 

3

 Although official trade data are not reported for South Africa, data for South African 

Airways’ international business operations are available. In 2001, South African Airways (SAA) 

carried 2,458,177 international passengers and 79,147 metric tons of international freight. By 

comparison, in 2006, SAA carried 3,154,503 international passengers and 130,861 metric tons of 

international freight, see table 4.2. IATA, World Air Transport Statistics 2007, 73; and industry 

official, interview by Commission staff, Johannesburg, South Africa, October 30, 2007. 4

 Air traffic refers to the carriage of passengers, freight, and mail. Essenbert, The Future of 

Civil Aviation in Africa, 2005, 16. 
4-3

 Industry Overview 

A handful of large transnational carriers based in North America, Europe, and 

Asia account for the bulk of global aviation services.5

 Generally, for air transport 

firms, the ability to renew aircraft fleets, promote product differentiation, 

incorporate the newest technologies, and secure greater market access through 

consolidation and international agreements are some of the key factors in 

maintaining global competitiveness. In addition, external factors such as fuel 

costs, global macroeconomic conditions, and, more recently, terrorism also play 

critical roles in determining the industry’s health.6

In general, SSA aviation services firms face competitive pressures similar to 

those of their larger global counterparts, but on a much smaller and more 

regionalized scale. Given the capital-intensive nature of the air transport industry, 

the majority of SSA aviation services providers are relatively small parastatal 

enterprises (table 4.2).7

 With few exceptions, most of these national carriers (flag 

carriers) operate with small aircraft fleets (1 to 20 aircraft) that are, on average, 

 

5

 USITC, Recent Trends in U.S. Services Trade, 2006, 3–4. 

6

 Standard & Poor’s, Industry Surveys: Airlines, May 24, 2007, 10–14. 7

 Most of these airlines also tend to be undercapitalized. Essenbert, The Future of Civil Aviation 

in Africa, 2005, 10. 

Box 4.1 Product description for aviation services 

Aviation services, for the purpose of this discussion, consist of both passenger and freight transportation services. 

Passenger transport comprises both leisure and business travel. Generally, major passenger airlines (or national carriers) 

generate more than $1 billion in annual revenue and focus on long-haul flights between and beyond their main alliance 

hubs. Other regional and low-cost airlines, which serve particular regions or niche markets that major airlines may 

overlook, are growing in popularity, particularly in Europe and Asia.1

Freight transport providers carry goods on both freighter and passenger aircrafts. Major cargo airlines are generally 

divisions or subsidiaries of national passenger airlines and tend to use new or recently converted aircraft to carry their 

cargo. Other airlines tend to use older planes, usually converted from passenger aircraft that have been sold by first-tier 

carriers. Typical air cargo products include fresh produce or other perishable goods, dangerous/hazardous goods, and 

livestock. Most air freight transport firms do not provide door-to-door service, but rather transport goods from an airport 

near the cargo’s origin to an airport near the cargo’s destination.2 

Exports of air transportation services occur when an air carrier collects fares to transport foreign residents to and from the 

resident air carrier’s country or between foreign countries. Similarly, freight transportation exports occur when foreign 

citizens pay air carriers to transport goods abroad or for transporting goods between two foreign points.3 

____________

1 IBIS World, Global Passenger Airlines, May 11, 2007, 7–8. 2

 Express delivery services are excluded from this discussion. IBISWorld, Global Logistics –– Air Freight, 

May 17, 2007, 8–9. 3

 According to balance-of-payments accounting convention, the importer is said to assume ownership of the goods 

when they cross the border of the exporting country and, as a consequence, bears all subsequent transportation costs. 

USITC, Recent Trends in U.S. Services Trade, 2006, 3-1.
4-4

Table 4.2 Leading sub-Saharan African airlines, by international passengers and freight metric tons carried, 2006 

International Passengers Carried International Freight Carried 

Airline 

Number of 

Passengers Airline Metric Tons 

South African Airways 3,154,503 South African Airways 130,861 

Kenya Airways 2,003,301 Kenya Airways 58,441 

Ethiopian Airlines 1,642,136 Ethiopian Airlines 48,527 

Air Mauritius 1,066,987 Air Mauritius 35,025 

Air Senegal International 462,962 Interair (South Africa) 7,121 

Air Namibia 355,318 Air Namibia 5,326 

Virgin Nigeria 234,647 Air Seychelles 3,740 

Air Madagascar 215,451 Air Madagascar 2,932 

Air Seychelles 202,413 Air Zimbabwe 1,803 

Comair Limited (South Africa) 183,418 Air Malawi 1,122 

Air Zimbabwe 171,334 LAM (Mozambique) 691 

Air Botswana 152,604 Air Tanzania 450 

LAM (Mozambique) 122,532 Comair Limited (South Africa) 420 

Air Malawi 97,099 Air Botswana na 

Air Tanzania 67,317 Air Senegal International na 

Interair (South Africa) 52,631 Virgin Nigeria na 

Zambian Airways 46,385 Zambian Airways na 

 Total 10,231,038 Total 296,459 

By comparison: 

Lufthansa (Germany) 38,235,904 Lufthansa (Germany) 1,162,779 

Air France 30,417,311 Air France 802,604 

American Airlines 21,227,994 American Airlines 364,868 

Source: IATA, World Air Transport Statistics 2007. 

Note: na = not available. 

20 years old or more.8 By comparison, major international carriers such as Air 

France, Lufthansa (Germany), and American Airlines maintain much larger and 

newer aircraft fleets.9

Overall, SSA air traffic is compartmentalized in or between isolated zones in the 

eastern, western, northern, and southern parts of the African continent. Only a 

handful of airlines in SSA countries, in particular, Ethiopia, Kenya, Mauritius, 

and South Africa, fly transcontinental routes.10 For the majority of SSA 

countries, air transport services tend to be very costly, due primarily to 

 

8

 Essenbert, The Future of Civil Aviation in Africa, 2005, 17; and Airfleets.net Web site. 

http://www.airfleets.net/home/ (accessed September 10, 2007). 9

 Air France maintains a global air fleet with an average age of 9 years (255 aircraft); 

Lufthansa, 13 years (263 aircraft); and American Airlines, 14 years old (664 aircraft). Airfleets.net 

Web site. http://www.airfleets.net/home/ (accessed September 10, 2007). 10 Essenbert, The Future of Civil Aviation in Africa, 2005, 22. 
4-5

infrastructure inefficiencies and a general lack of cooperation between airlines 

and air space regulatory authorities.11 

Sub-Saharan Africa Trade in the Global Context 

It is difficult to determine how the SSA aviation services markets compare with 

the global aviation services market, because reliable statistics on SSA services 

trade are generally not available. However, in 2005, reported SSA exports of 

aviation services totaled $1.2 billion, or just over 1 percent of the $95 billion 

world total.12 

Leading Exporters 

In 2005, the United States exported aviation services valued at $26.7 billion, 

making it the world leader. It was followed by Germany ($10.6 billion), the 

United Kingdom ($8.1 billion), Japan ($6.1 billion), and Spain ($5.3 billion) 

(figure 4.1). These five countries combined to account for close to 60 percent of 

world aviation services exports. In 2005, the five largest SSA exporters (where 

data were available) were Kenya, Ethiopia, Madagascar, Seychelles, and Cape 

Verde.13 As noted, Kenya and Ethiopia combined to account for approximately 

70 percent of SSA’s total reported aviation services exports. SSA’s overall 

aviation services exports grew by about 39 percent from $844 million in 2001 to 

about $1.2 billion in 2005. By comparison, global aviation services receipts grew 

36 percent from $69.7 billion in 2001 to $95.1 billion in 2005. The strongest 

growth among SSA countries with prominent aviation services exports was in 

Cape Verde, Ethiopia, Kenya, and Madagascar. In all four of these countries, 

aviation services exports grew by at least 100 percent from 2001 through 2005.14

 

11 Specifically, operational inefficiencies and protectionist policies adopted by SSA air space 

regulatory authorities contribute to the high cost of aviation services on the continent. Moreover, 

due to the small number of viable domestic airlines, prices for air transport services tend to be high. 

Essenbert, The Future of Civil Aviation in Africa, 2005, 12. 12 The period 200105 was chosen due to considerations of data availability and consistency. 

USITC staff calculations used IMF Balance of Payments data. Totals were calculated based on 

statistics from reporting countries only. The IMF provides the most detailed breakdown of services 

export data, although the list of reporting countries is limited and trade data are aggregated (no 

bilateral trade figures are presented). 13 IMF, Balance of Payments Statistics Database and USITC staff calculations. Totals are 

calculated based on statistics from reporting countries only. Though no trade data are available, 

South Africa is considered a major SSA aviation services exporter. 14 IMF, Balance of Payments Statistics Database and USITC staff calculations. 
4-6

Figure 4.1 Leading globala and sub-Saharan Africab exporters of aviation services, 2005

Global Exporters

Spain

6%

Japan

6%

SSA

1%

Other

39%

Germany

11% United States

United 28%

Kingdom

9%

SSA Exporters 

Seychelles

7%

Other

9%

Ethiopia

35%

Kenya

35%

Madagascar

9%

Cape Verde

5%

 $95,141 million $1,175 million

Source: IMF, Balance of Payments Statistics Database. 

 a World totals are calculated as the summation of all countries that reported Balance of Payments data to 

the IMF. 

 b Sub-Saharan Africa totals are composed of the 27 countries that report Balance of Payment data to the 

IMF. South Africa is omitted, although it is the largest aviation services market in sub-Saharan Africa, 

because it did not report aviation services data. 

Leading Export Markets 

In 2005, the United States, Japan, the United Kingdom, Germany, and Canada 

were the leading importers of aviation services (figure 4.2). Imports of these five 

countries accounted for about 64 percent of total reported aviation services 

imports.15 As in the case of the leading exporting countries, the largest markets 

for aviation services imports tend to be in larger, more developed economies. 

These markets tend to have both the wealth and infrastructure necessary to attract 

and handle large-scale aviation services industries. 

 

15 Ibid. 
4-7

Figure 4.2 Leading markets for globala exports of aviation services, 2005 

Global Export Markets

United States

27%

United 

Kingdom

12%

Japan

11%

Germany

7%

SSA

1%

Canada

6% Other

36%

$114,639 million

Source: IMF, Balance of Payments Statistics Database. 

a World totals are calculated as the summation of all countries that reported Balance of Payments data to 

the IMF. 

Specific data on leading importers of SSA aviation services are not available. 

However, developed countries, such as those of the European Union, are major 

trading partners for SSA countries.16 This suggests that these developed countries 

are also importers of SSA air transportation exports. Further, due to the 

regionalized nature of the SSA market, it is also very likely that SSA economies 

import aviation services from neighboring SSA countries.17 SSA countries 

accounted for less than one percent of the $114.6 billion in world aviation 

services imports in 2005. Côte d’Ivoire, Ghana, and Mali were the leading SSA 

importers of aviation services from the world, accounting for 57 percent of the 

region’s total.18

Factors Affecting Export Patterns 

In recent years, exports of aviation services have grown significantly in selected 

SSA countries due to several factors. Demand factors include increased business 

and leisure travel to and from SSA countries and increased exports of high-value 

or perishable goods to foreign markets. Supply factors include increased 

cooperation among airlines and nations through the establishment of code-

 

16 With regard to past colonial ties, emigrants from Europe returning to visit their homelands 

may also contribute to the importation of SSA aviation services by EU countries. 17 Essenbert, The Future of Civil Aviation in Africa, 2005, 16. 18 IMF, Balance of Payments Statistics Database and USITC staff calculations. 
4-8

sharing agreements,19 capital investments by national (flag) airlines, and the 

upgrade and expansion of international hub airports by governments and foreign 

investors. 

Increased Tourist and Business Travel 

By nature, air transport and tourism are closely interconnected. This link is 

particularly true for SSA countries because the majority of visitors are from 

outside the continent. Consequently, as leisure and business travel have increased 

in several SSA countries,20 in particular Kenya and Seychelles, the need to 

facilitate access to and from tourist destinations and city centers has increased as 

well.21 Moreover, in countries such as Ethiopia and Madagascar, where road and 

rail networks are deteriorating or remain underdeveloped, air travel may be the 

only viable transport option for international travelers.22

Growth in Time-Sensitive Exports 

Similarly, increased SSA exports of high-value or perishable products, such as 

cut flowers, have increased demand for air freight transport services. For 

example, both Kenya and Ethiopia have become leading exporters of cut flowers 

to Europe. As a result, both Kenya Airways and Ethiopian Airlines have 

expanded their air freight shipping capabilities by acquiring additional aircraft or 

upgrading cargo facilities at their shipping hubs to accommodate growth.23

Additionally, South Africa and Cape Verde have benefited from their geographic 

locations as regional cross-roads for the shipment of goods.24

Alliances and Route Expansion 

Among the largest and most successful SSA aviation services industries (Kenya, 

Ethiopia, and South Africa), the use of code-sharing and other cooperative 

agreements such as frequent flyer and open skies agreements25 between airlines 

and nations have been vital to their sustained export growth. Code sharing is a 

commercial arrangement between two airlines that allows the coordination of 

schedules to minimize connection times, as well as providing additional customer 

 

19 For example, if airline X has a code-share agreement with airline Y, this enables customers 

of airline X to have the benefits of a single airline ticket to destinations in Y’s network, as well. 

However, a code-share agreement does not mean joint pricing; pricing decisions are made 

independently by each airline. Chingosho, African Airlines in the Era of Liberalization, 2005, 

71−72. 

20 For a more in-depth examination of SSA export growth in the tourism sector, See USITC, 

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

April 2007, 4−18. 21 EIU, Business Africa, June 16, 2006; and EIU, “The Domestic Economy,” 

December 1, 2006. 22 EIU, “Resources and Infrastructure,” February 9, 2007. 

23 Air Cargo World, “Africa: Shipping Looks Beyond the Savannah,” July 2007, 38−41. 24 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 2. 25 Open skies refers to the most liberal type of bilateral air transportation agreement between 

(but not within) two countries. These agreements allow airlines from both countries to choose 

routes and destinations. The air carriers of the two countries are free to serve any points they wish 

in each other’s country, setting fares and service standards based on commercial considerations, not 

government regulation. Chingosho, African Airlines in the Era of Liberalization, 2005, 157. 
4-9

services such as one stop check-in. Historically, alliances and cooperation among 

SSA airlines and countries have been limited because most African carriers are 

small, provide service on limited domestic or regional routes, and are generally 

undercapitalized.26 In the past, established SSA airlines such as Kenya Airways, 

South African Airways, and Ethiopian Airlines have forged alliances with larger 

foreign airlines such as Lufthansa (Germany) and Air France because they offer 

more extensive international route networks.27 Notably, South African Airways 

became a member of the Star Alliance28 in 2006 and Kenya Airways became an 

associate member of the Sky Team Airline Alliance29 in 2007.30

Increased Capital Investment 

The use of aging aircraft is a major constraint to the operations of SSA airlines. 

As noted previously, the average age of a typical SSA fleet is 20 years. As a 

result, SSA airlines tend to be burdened with higher fuel, maintenance, and 

insurance premium costs.31 The reliability of these fleets is adversely affected as 

technical breakdowns are relatively more frequent compared to those of their 

competitors from outside the continent. However, in an effort to reverse this 

trend, airlines such as Kenya Airways and Ethiopian Airlines have made it a 

priority to consistently renew their air fleets in order to remain competitive with 

their European and Asian rivals with regard to safety, convenience, comfort, 

technology, and overall capacity. For example, in January 2004, Ethiopian 

Airways signed an agreement for five of Boeing’s new 787 Dreamliners and an 

option for five more. The deal, which is valued at $1.3 billion, makes Ethiopian 

Airlines the first African carrier to be a launch customer for these jets.32 These 

jets are set for delivery in 2008. 

 

26 The Yamoussoukro Decision of 1999, which was preceded by the Yamoussoukro 

Declaration of 1988, is a pan-African treaty that attempts to liberalize air transport services within 

the continent (among African nations only). The treaty came into force in August 2000 and was set 

to become fully operational by August 2002. However, it has yet to be fully implemented by many 

SSA countries with underdeveloped air transport industries. Nonetheless, countries with more 

established airlines such as Ethiopia, Kenya, and South Africa have been fully committed to its 

implementation. Chingosho, African Airlines in the Era of Liberalization, 2005, 78−79. 27 Fatokun, “African Air Transport in the 21st Century,” 2005, 46. 28 Star Alliance members include Air Canada, Air New Zealand, ANA All Nippon Airways 

(Japan), Asiana Airlines (Korea), Austrian Airlines, bmi (UK), LOT Polish Airlines, Lufthansa 

(Germany), SAS Scandinavian Airlines, Singapore Airlines, Spanair, Swiss International Air Lines, 

TAP Portugal, Thai Airways International, United Airlines (U.S.), and U.S. Airways. Airline 

Business, “Airline Alliance Survey,” September 2007. 29 Sky Team members include Aeroflot (Russia), Aeroméxico, Air France, Alitalia, China 

Southern Airlines, Continental Airlines (U.S.), Czech Airlines, Delta Air Lines (U.S.), KLM 

(Netherlands), Korean Air, and Northwest Airlines (U.S.). Airline Business, “Airline Alliance 

Survey,” September 2007. 30 An airline alliance is an agreement between two or more airlines to cooperate for the 

foreseeable future on a substantial basis. The alliances go beyond code sharing as they seek to 

harmonize the route systems of several international airlines into a single worldwide network. 

Chingosho, African Airlines in the Era of Liberalization, 2005, 153; and Airline Business, “Airline 

Alliance Survey,” September 2007. 31 Chingosho, African Airlines in the Era of Liberalization, 2005, 11. 32 African Business, “The Top 200 Companies in Africa,” April 2005, 31. 
4-10

Infrastructure Development 

Investment in airports and air traffic management is essential to the growth and 

functioning of air transport industries in SSA. Airport upgrades and expansions 

allow for increases in passenger and cargo capacity, which, in turn, increase 

exports.33 Examples of recent airport upgrades and expansions (which are 

described in more detail in the individual country profiles below) include Jomo 

Kenyatta International Airport in Nairobi, Kenya and Bole International Airport 

in Addis Ababa, Ethiopia. 

Country Profiles 

Kenya, Ethiopia, South Africa, Madagascar, Seychelles, and Cape Verde are 

among the largest SSA exporters of aviation services and also among the 

countries that have demonstrated significant growth in recent years. The country 

profiles below will primarily describe the activities of each country’s major 

national (flag) airline since they account for the majority of aviation services 

exports in their respective markets. 

Kenya 

Aviation services exports from Kenya increased from approximately 

$241 million in 2001 to $415 million in 2005.34 Kenya Airways, the region’s 

largest aviation carrier and Kenya’s national airline, has grown significantly 

since its partial privatization in 1996.35 Factors such as a revitalized tourist 

industry, greater demand for time-sensitive exports such as cut flowers, 

expansion of international routes, and recent fleet and airport modernizations 

have all contributed to Kenya Airways’ rapid growth. Moreover, Kenya’s 

geographic location has made it a natural stopover point for aircraft flying 

between Europe and eastern, central, and southern Africa and between West 

Africa, Asia, and the Middle East.36 Consequently, Nairobi, Kenya’s capital city, 

has become a regional aviation hub for all of eastern and central Africa.37

Tourism, a vital component of the Kenyan economy, stagnated in the late 1990s 

and early 2000s due to deteriorating infrastructure, increased competition from 

other African destinations, and terrorist attacks such as the U.S. embassy 

bombing in 1998 and the Paradise Hotel bombing in 2002.38 However, since 

2003, overseas leisure travel to Kenya’s beach coast and inland game parks, and 

business and conference travelers to Nairobi has steadily increased, with total 

arrivals reaching 833,224 in 2005, a 25 percent increase from the previous year.39

These gains in tourism have contributed to Kenya Airways’ sustained 

 

33 Air Transport Action Group, “The Contribution of Air Transport to Sustainable Development 

in Africa,” October 2003, 28. 34 IMF, Balance of Payments Statistics Database. 35 KLM Royal Dutch, part of Air France KLM, owns 26 percent of Kenya Airways. African 

Business, “The Top 200 Companies in Africa,” April 2005, 30. 36 Otieno, “Aircraft and Aircraft Parts and Service in Kenya,” May 26, 2005. 37 Ibid. 

38 EIU, “Resources and Infrastructure,” December 1, 2006. 

39 Ibid. 
4-11

profitability by increasing air traffic volume on the most popular international 

routes.40 

Moreover, increased tourism flights can reduce the cost of air freight exports, as 

fresh products may be carried in the freight compartments of passenger aircraft.41

Kenya’s airborne exports of agricultural products, e.g., cut flowers, largely to 

Europe, already constitute one of the largest industries in the country.42 Over 

time, Kenya has become the EU’s biggest source of fresh flower imports, with 

two-thirds of Kenyan blooms going to the Netherlands, where Dutch wholesalers 

buy flowers for re-export.43 Kenya Airways and Kenya Airfreight Handling 

Limited, a wholly owned subsidiary of Kenya Airways, handle over 80 percent of 

the total cargo volume at Jomo Kenyatta International Airport in Nairobi and Moi 

International Airport in Mombasa.44

Other factors contributing to Kenya Airways’ growth have been the introduction 

of new routes to foreign destinations such as Hong Kong and Bangkok and the 

addition of higher-capacity jets, such as the Boeing 777 that was introduced in 

May 2004. The use of larger aircraft contributed to an increase in passengers 

carried for Kenya Airways, as the airline announced that it carried 518,844 

passengers in its fiscal third quarter ending December 31, 2004, an increase of 

15 percent from the same period the previous year.45 The airline has also added 

frequent flights in and out of Cameroon, Malawi, Nigeria, Uganda, Zambia, and 

other countries, using Nairobi as a hub.46

Kenya is served by three international airports, Jomo Kenyatta International 

Airport (JKIA) (Nairobi), Moi International Airport (Mombasa), and Eldoret 

International Airport (Eldoret).47 JKIA is the largest and busiest airport in eastern 

and central Africa and serves as a hub for several major airlines as well as a 

gateway airport for the majority of international tourist and business travelers to 

Kenya.48 JKIA also serves as a major cargo center for inbound and outbound 

goods. In March 2006, an airport expansion plan was announced, unveiling a 5-

year strategic plan to increase capacity at JKIA from 2.5 million passengers to 

5.5 million passengers per year and also to secure “category one” status for JKIA 

with the U.S Federal Aviation Authority, which would allow for direct flights to 

U.S. airports.49

 

40 Kenya Airways’ profits rose to $18 million in 2004, a roughly three-fold increase from the 

previous year. African Business, “The Top 200 Companies in Africa,” April 2005, 30. 41 Industry official, interview by Commission staff, Nairobi, Kenya, October 19, 2007; 

Subramanian and Matthijs, “Can Sub-Saharan Africa Leap into Global Network Trade,” 

January 2007, 14; and Goldstein, “Infrastructure Development and Regulatory Reform in SubSaharan Africa,” October 1999, 38. 42 Air Transport Action Group, “The Contribution of Air Transport to Sustainable Development 

in Africa,” October 2003, 31. 43 Subramanian and Matthijs, “Can Sub-Saharan Africa Leap into Global Network Trade,” 

January 2007, 14. 44 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 6. 45 African Business, “The Top 200 Companies in Africa,” April 2005, 30. 46 United Nations, Investment Policy Review – Kenya, February 2005, 12. 47 EIU, “Resources and Infrastructure,” December 1, 2006. 

48 Otieno, “Aircraft and Aircraft Parts and Service in Kenya,” May 26, 2005. 49 Industry official, interview by Commission staff, Nairobi, Kenya, October 19, 2007; and 

EIU, “Resources and Infrastructure,” December 1, 2006. 
4-12

Ethiopia 

Aviation services exports from Ethiopia increased from approximately 

$194 million in 2001 to $410 million in 2005.50 Ethiopian Airlines (EAL), a 

100 percent government-owned entity and the country’s national carrier, operates 

a fleet of more than 25 aircraft that service 49 international destinations across 

Africa, Europe, North America, the Middle East, and Asia from its hub in Addis 

Ababa.51 EAL flies to more destinations in Africa than any other airline and is 

one of the few air carriers in SSA to fly directly to the United States.52 EAL also 

maintains an excellent reputation among travelers and shippers because of its 

outstanding service and safety record.53

Driven by demand from Ethiopia’s cut flower producers, EAL has significantly 

expanded its freight transport operations in recent years.54 Ethiopia’s horticulture 

sector, consisting primarily of cut flower exports, has grown significantly, 

reaching $23 million in 2005, an increase of over 76 percent from the previous 

year.55 According to the Ethiopian Horticultural Producers and Exporters’ 

Association, it is estimated that cut flower exports could earn up to $100 million 

a year within the next few years.56 To accommodate this growth, EAL has 

invested $35 million in a modern maintenance hangar and cargo terminal at Bole 

International Airport in Addis Ababa.57 The new facilities include the latest 

cargo-handling equipment, including equipment for large perishables, and space 

for brokers, customs, and freight forwarders.58 The new terminal has a cargo 

capacity of 250,000 metric tons per year.59 In addition, EAL moved its European 

cargo operations from Amsterdam to a major cargo hub in Brussels, better 

linking African freight destinations with international cargo networks.60 EAL 

also, as mentioned above, renewed its air fleet by purchasing 12 new Boeing 

 

50 IMF, Balance of Payments Statistics Database. 51 EIU, “Resources and Infrastructure,” February 9, 2007. 

52 Bole International Airport in Addis Ababa, EAL’s hub, maintains “category one” status, 

which allows for direct flights to the United States. Ethiopia has also signed an open skies aviation 

agreement with the United States in May 2005 facilitating connections and traffic between the two 

countries. Industry official, interview by Commission staff, Addis Ababa, Ethiopia, 

October 25, 2007; and EIU, “Resources and Infrastructure,” February 9, 2007. Among SSA 

nations, South Africa, Ethiopia, and Cape Verde possess “category one” certifications. FAA, IASA 

Web site. http://www.faa.gov/safety/programs%5Finitiatives/oversight/iasa/ (accessed 

March 24, 2008). 53 Goldstein, “Infrastructure Development and Regulatory Reform in Sub-Saharan Africa;” 

October 1999, 29. EAL was awarded African Airline of the Year 2006 by the African Aviation 

Journal for its “sound financial performance, overall profitability, passenger growth, route network 

expansion, fleet modernization, in-flight services, and overall customer care.” East African 

Business Week, “Ethiopian Airlines Wins 2006 Award,” October 16, 2006. 54 EIU, “Resources and Infrastructure,” February 9, 2007. 

55 Industry official, interview by Commission staff, Addis Ababa, Ethiopia, October 25, 2007 

and EIU, “Resources and Infrastructure,” February 9, 2007. 56 EIU, “Resources and Infrastructure,” February 9, 2007. 

57 Ibid. 

58 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 6. 59 EIU, “Resources and Infrastructure,” February 9, 2007. 

60 African Business, “The Top 200 Companies in Africa,” April 2005, 31. 
4-13

airplanes from 2003 to 2005 using a $350 million commercial loan from Barclays 

Capital.61

Infrastructure improvements at Bole International Airport have also allowed EAL 

to expand its passenger business. In early 2003, a $135 million expansion 

program at Bole was completed, an expansion which included the construction of 

a new runway, five taxiways, a new terminal building, parking garage, shopping 

complex, and restaurant. This expansion has increased Bole’s annual passenger 

capacity from 500,000 to 6−7 million per year.62 

South Africa 

Although no official trade data on air transportation are available for South 

Africa, the South African air transport industry is considered by far the largest 

and most developed on the continent (table 4.2).63 South Africa’s geographic 

position offers access to markets, not only throughout Africa, but also to the 

entire southern hemisphere. In addition, as a member state of the Southern 

African Development Community (SADC), South Africa plays an important role 

in developing regional trade and cooperation.64

South African Airways (SAA), the country’s national airline and the continent’s 

largest, is wholly owned by the South African transport parastatal, Transnet. For 

the fiscal year that ended March 2005, the company generated sales of 

$2.7 billion, an increase of approximately 7 percent from the previous year. The 

company recorded net income of $150 million in 2005.65 

In an effort to spur growth, SAA has negotiated code-sharing agreements with 

several major international airlines, including Air France, Delta Airlines (United 

States), El Al (Israel), Emirates (UAE), Japan Airlines, and Qantas Airways 

(Australia).66 Moreover, SAA has expanded its services to other markets within 

the continent, particularly in the underserved regions of central and West 

Africa.67 SAA is also the country’s predominant air freight carrier, shipping 

export goods such as strategic metals, medicine, and data-processing parts in the 

cargo areas of international passenger flights.68 Overall, SAA operates 61 planes 

that travel to more than 60 destinations throughout Africa, Asia, Australia, 

Europe, South America, and the United States.69

 

61 EIU, “Resources and Infrastructure,” February 9, 2007. 

62 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 4. 63 Goldstein, “Infrastructure Development and Regulatory Reform in Sub-Saharan Africa,” 

October 1999, 29. 64 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 3. 65 Datamonitor, Airlines in South Africa: Industry Profile, October 2005, 13. 66 Industry official, interview by Commission staff, Johannesburg, South Africa, 

October 30, 2007; and Chingosho, African Airlines in the Era of Liberalization, 2005, 168. 67 Countries include Côte d’Ivoire, Ghana, Nigeria, and Senegal. Peel, “Big Airlines Explore 

West Africa,” December 9, 2002. 68 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 6. 69 Heydenrych, “Another Perk for Frequent Flyers,” April 2007, 38−39. 
4-14

South Africa is serviced by three international airports located in Johannesburg, 

Durban, and Cape Town. Johannesburg International Airport, with transit of 

more than 11 million passengers (up to one-half are internationals from Europe 

and other African countries) and movement of 280 metric tons of freight per year 

(most of which are destined for Europe), is the leading airport in Africa for both 

passenger and freight traffic.70

Madagascar 

Aviation services exports from Madagascar increased over 215 percent from 

approximately $34 million in 2001 to $107 million in 2005.71 Air Madagascar, 

the national carrier, is partly owned by Air France (33 percent stake) and is under 

the management of Lufthansa Consulting of Germany.72 In recent years, through 

the management of Lufthansa Consulting, the support of government investments 

reaching $17 million, and debt reduction arrangements with private creditors, Air 

Madagascar has been actively restructuring its operations to improve services and 

increase efficiency.73 Moreover, Air Madagascar has expanded air services to 

more locations in France, including Marseille, which has a large Malagasy 

expatriate population, and in Southeast Asia.74

Seychelles 

Air Seychelles, the state-owned national airline, with a fleet of two Boeing 767 

planes, offers international flights to several destinations including Paris, 

London, Rome, Singapore, and Johannesburg.75 Although Seychelles adopted a 

more open air access policy in 2004, which led to the entry of several 

international airlines, including Emirates (UAE) and Qatar Airlines, domestic air 

transport services export growth remained steady from 2001 through 2005 (from 

$75 million to $77 million).76 Air Seychelles, the country’s sole domestic air 

transport provider, has been able to maintain consistent export growth in recent 

years despite increased foreign competition. Propelled by strong demand from 

leisure travelers on European routes, and by restructuring its business operations, 

Air Seychelles was able to expand its flight options and lower costs—the 

company returned one of its three leased Boeing aircraft; cut routes; trimmed 

workforce; and sought alliances with Air Mauritius, Kenya Airways, and Air 

France (with which it has a code-sharing arrangement).77 Moreover, in an effort 

to attract high-end tourists, Air Seychelles is planning to replace its two existing 

Boeing airplanes with two new Boeing 787 Dreamliner aircraft by 2010.78 

 

70 Air Transport Action Group, “The Contribution of Air Transport to Sustainable Development 

in Africa,” October 2003, 23. 71 IMF, Balance of Payments Statistics Database. 72 EIU, “Resources and Infrastructure,” June 15, 2007. 73 Ibid. 

74 EIU, “The Domestic Economy,” September 5, 2007. 75 U.S. Department of State, U.S. Embassy, Port Louis, “USITC Study on Sub-Saharan Africa,” 

August 23, 2007 76 EIU, “Tourism and Travel,” June 16, 2006; and IMF, Balance of Payments Statistics 

Database. 77 Ibid. 

78 U.S. Department of State, U.S. Embassy, Port Louis, “USITC Study on Sub-Saharan Africa,” 

August 23, 2007. 
4-15

Cape Verde 

Aviation services exports from Cape Verde increased from approximately 

$24 million in 2001 to $55 million in 2005, representing growth of over 

135 percent.79 One of Cape Verde’s most important assets is its location as a 

crossroads for goods and passengers to and from North and South America and 

Europe.80 Consequently, the government of Cape Verde has been active in 

turning the islands into a regional air transport hub by upgrading the country’s 

airports and air safety infrastructure. Notably, in 2004, Cape Verde’s main 

international airport, Aeroporto Internacional Amílcar Cabral, on Sal Island, 

installed a $24 million, state-of-the art air traffic control system; and in 2005, a 

new international airport near the capital, Praia, was put into operation. The new 

airport, in addition to significantly increasing air traffic capacity, allows business 

and leisure travelers to fly directly to the capital instead of having to transfer 

from Sal Island.81 Cape Verde’s state-owned national airline, Transportes Aéreos 

de Cabo Verde (TACV), maintains several international routes throughout 

Europe, West Africa, Brazil, and the United States. Cape Verde became the first 

Safe Skies for Africa nation to meet international civil aviation safety and 

security requirements, which allowed TACV to operate direct flights to and from 

the United States.82 

 

79 IMF, Balance of Payments Statistics Database. 80 University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo 

Transport Roundtable, November 2002, 2. 81 EIU, “Resources and Infrastructure,” February 5, 2007. 

82 The Safe Skies for Africa program, funded by the U.S. Departments of Transportation and 

State, promotes sustainable improvements in African aviation safety and security in order to foster 

growth in air transportation between Africa and the United States. Specifically, the program aims to 

improve security at multiple airports and to upgrade air navigation systems throughout Africa. U.S. 

Department of Transportation, “Remarks for the Honorable Maria Cino,” November 1, 2005. 
4-16

Aviation Services Bibliography 

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EBSCOhost (accessed September 25, 2007). 

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Premier, EBSCOhost (accessed September 25, 2007). 

Air Transport Action Group. “The Contribution of Air Transport to Sustainable Development in 

Africa,” October 2003. 

Air Transport World, “Africa/Middle East,” July 2005. Business Source Premier, EBSCOhost 

(accessed September 25, 2007). 

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EBSCOhost (accessed September 25, 2007). 

——. “Mister Fix-It,” January 2007. Business Source Premier, EBSCOhost (accessed 

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Chingosho, Elijah. African Airlines in the Era of Liberalization. Nairobi: African Airlines 

Association (AFRAA), 2005. 

Datamonitor. Airlines in South Africa: Industry Profile, October 2005. Business Source Premier, 

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——. “Economic Sectors: Other Services.” Country Profile Ethiopia. February 9, 2007. 

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——. “Resources and Infrastructure: Transport, Communications, and the Internet.” Country 

Profile Madagascar. June 15, 2007. 
4-17

——. “Resources and Infrastructure: Transport, Communications, and the Internet.” Country 

Profile Seychelles. October 20, 2006. 

——. “Resources and Infrastructure: Transport, Communications, and the Internet.” Country 

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——. “The Domestic Economy: Air Madagascar Reports A Profitable 2005.” Country Report 

Madagascar. September 7, 2006. 

——. “The Domestic Economy: Air Madagascar Suffering From High Fuel Prices.” Country 

Report Madagascar. September 5, 2007. 

——. “The Domestic Economy: Air Seychelles Plans to Acquire Next Generation Aircraft.” 

Country Report Seychelles. June 6, 2006. 

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——. “The Domestic Economy: Foreign Private-Sector Investment is Lively.” Country Report 

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——. “The Domestic Economy: Kenya Plans to Invest in Airport Improvement.” Country Report 

Kenya. May 8, 2006. 

——. “The Domestic Economy: Tourism Grows Rapidly for the Second Year in Succession.” 

Country Report Kenya. February 8, 2006. 

——. “Tourism & Travel: Seychelles” Business Africa. June 16, 2006. 

Essenbert, Bert. The Future of Civil Aviation in Africa: Restructuring and Social Dialogue. 

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Fatokun, Oladele Samson. “African Air Transport in the 21st Century: A Case Study of the 

Contrasting Experience of Nigeria and Kenya.” M.Sc. thesis, Cranfield University, 2005. 

Goldstein, Andrea E. “Infrastructure Development and Regulatory Reform in Sub-Saharan 

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——. Global Passenger Airlines, May 11, 2007. 

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http://www.imfstatistics.org/BOP/ (accessed various dates). 
4-18 

Otieno, Tobias. “Aircraft and Aircraft Parts and Service in Kenya,” Industry Subsector Analysis 

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http://www.ft.com/ (accessed October 27, 2007). 

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Subramanian, Uma and Matthias Matthijs. “Can Sub-Saharan Africa Leap into Global Network 

Trade?” World Bank Policy Research Working Paper 4112, January 2007.

U.S. Department of State. U.S. Embassy, Port Louis. “USITC Study on Sub-Saharan Africa: 

Information on Mauritius and Seychelles (PORT LOUIS 000448),” August 23, 2007. 

U.S. Department of Transportation. “Remarks for the Honorable Maria Cino, Deputy Secretary of 

Transportation – U.S.-Africa Air Transport Summit (Miami, FL),” November 1, 2005. 

U.S. International Trade Commission (USITC). Recent Trends in U.S. Services Trade, 2006 

Annual Report, USITC Publication 3857. Washington, DC: USITC, 2006. 

http://hotdocs.usitc.gov/docs/pubs/332/pub3857.pdf 

——. Sub-Saharan Africa: Factors Affecting Trade Patterns of Selected Industries, First Annual 

Report, USITC Publication 3914. Washington, DC: USITC, 2007. 

http://hotdocs.usitc.gov/docs/Pubs/332/Pub3914.pdf

 

United Nations. Investment Policy Review — Kenya. New York: United Nations, February 2005. 

University of Minnesota ATRIP Project, Project Briefing Book for Africa Air Cargo Transport 

Roundtable. Minneapolis: University of Minnesota, November 2002. 
4-19

Communication Services 

Summary of Findings 

Although representing a relatively small share of total world communications 

trade,83 SSA has experienced explosive growth in international 

telecommunications services, making it the fastest growing telecommunications 

market in the world, with an average annual growth rate of 23 percent over the 

period 2001–05.84 Telecommunications exports involve payments from 

telecommunications firms in a country placing international calls to 

telecommunications firms in countries terminating the calls (box 4.2). Therefore 

SSA countries export telecommunication services when they receive calls 

originating abroad. 

Increased SSA telecommunication exports are driven by a number of factors, all 

of which either increase access to telecommunications networks, a necessary 

prerequisite for receiving international calls, or decrease the price of international 

calls. Improved regulatory practices in many African countries, especially those 

facilitating market-driven competition in the mobile phone sector, have resulted 

in ever-greater numbers of African citizens obtaining crucial telecommunications 

access. Technological developments and deployment of new telecommunications 

infrastructure have also increased availability of modern communication services 

and drastically reduced prices. Finally, demand growth based on rising incomes, 

increased global business links, and international migration have all played a role 

in increasing African telecommunications trade. 

 

83 IMF communications data include both telecommunication and postal trade statistics. This 

section uses the term “communications” when referring to IMF data and the term 

“telecommunications” when referring to other data sources that do not include postal 

communications. 84 TeleGeography, Traffic Analysis, 2007, 21; IMF, Balance of Payments Statistics Database 

(accessed September 5, 2007). SSA totals include countries that reported communications export 

data. 

Box 4.2 Product description for communication services 

Communication services, an infrastructure industry which significantly affects and underpins the entire economy, are 

made up of two primary components, telecommunication services and postal and courier services. Telecommunication 

services encompass the transmission of sound, images, or other information by telephone, cable, broadcasting, and 

satellite, among other things. Postal and courier services encompass the pickup, transportation, and delivery of letters, 

printed materials, and packages among other things.1

 IMF statistics disaggregate postal and courier services for a limited 

portion of SSA African countries for which they report communications data. For these countries, postal and courier 

services exports data represent an average of 7 percent of the total value of communications exports.2

 This section, 

therefore, focuses primarily on telecommunications services. Cross-border telecommunications exports involve receiving 

a call that originates abroad. Since international calls are typically billed in the originating country, carriers whose 

outbound calling minutes exceed inbound calling minutes make a net settlement payment to their counterparts abroad. 

Therefore exports of telecommunication services represent receipts of net settlement payments. Cross-border trade data 

may also include payments for leased channel services, online access services, and telecommunication support 

services.3

 

____________ 

1

 IMF, Balance of Payments Manual, September 1993, 66. 

2 IMF, Balance of Payments Statistics (accessed September 5, 2007); and Commission staff calculations. 3

 USITC, Recent Trends in U.S. Services Trade, June 2007, 10-1–2.
4-20

Industry Overview 

The voice telecommunications market is primarily composed of wireline and 

mobile voice telephony services. Wireline telecommunications, which involves 

high capital costs related to infrastructure deployment, has traditionally been 

viewed as a natural monopoly. Consequently, monopoly providers (in many 

cases state-owned) were established in many countries. However, beginning in 

the 1980s, countries throughout the world began to privatize state-owned 

monopolies and to introduce competition into the wireline market due, in part, to 

emerging technologies such as wireless telecommunications, which undermined 

traditional natural monopoly considerations by bypassing large segments of the 

fixed network.85 

Compared to their global counterparts, SSA countries have relatively 

underdeveloped wireline telecommunication markets. In 2005, SSA countries 

had an average of just 3 wireline phones per 100 people compared to an average 

20 wireline phones per 100 people for the 181 countries for which the 

International Telecommunications Union (ITU) reports data. Furthermore, the 

total number of wireline subscribers in SSA has grown at a slower rate in recent 

years than the rest of the world, with an average annual growth rate of 3 percent 

during 2001–05, compared with a global annual average growth rate of 5 percent 

over the same period.86 

Wireless telecommunications services, on the other hand, continue to experience 

explosive growth in SSA countries, whereas developed countries’ growth in 

wireless services has slowed dramatically in recent years as their mobile markets 

have matured.87 SSA countries, where wireless services were generally 

introduced several years later than in the rest of the world, are still catching up in 

terms of mobile penetration, becoming the fastest growing region for mobile 

services in the world over the past 5 years.88 The total number of mobile phone 

subscribers in SSA countries increased from 17 million to 92 million in the 

period during 2001–05, representing an average annual growth rate of 52 percent. 

As of 2005, SSA countries had an average of 14 mobile phone subscribers per 

100 people compared to an average of 46 subscribers per 100 people in countries 

for which the International Monetary Fund (IMF) reports data. 89 

Sub-Saharan Africa Trade in the Global Context 

Developed countries tend to have large and well-developed telecommunications 

markets, especially in Western Europe and the United States, which also led in 

the amount of international communications trade. SSA, on the other hand, has a 

 

85 Boylaud and Nicoletti, “Regulation, Market Structure and Performance in 

Telecommunications,” 2000, 8–9. 86 ITU, World Telecommunication Indicators 2006, (accessed August 23, 2007); 

TeleGeography, GlobalComms 3.0 (accessed August 23, 2007); and Commission staff calculations. 87 S&P, “Telecommunications: Wireless Europe,” April 2007, 1. 88 EIU, “Africa Telcoms: Wired,” July 17, 2007. 89 ITU, World Telecommunication Indicators 2006, (accessed August 23, 2007); 

TeleGeography, GlobalComms 3.0 (accessed August 23, 2007); and Commission staff calculations. 
4-21

relatively underdeveloped, but rapidly expanding, telecommunications market. 

SSA accounts for roughly 1 percent of global communications trade.90

Leading Exporters 

Global exports of communication services vary widely among countries. Since 

every country has telecommunication links with foreign countries, every country 

has communications exports. Among the countries for which the IMF reports 

communications data, the United Kingdom recorded the largest communications 

exports, representing 12 percent of the total value of world exports. No other 

country registered more than 10 percent of global communications exports, 

including the United States, the second largest exporter, which accounted for 

9 percent of exports in 2005. On a regional basis, Europe was by far the largest 

exporter of communication services,91 accounting for over 60 percent of world 

exports. Additionally, four out of the five largest exporters in 2005 were 

European (figure 4.3). SSA, on the other hand, accounted for just over 1 percent 

of world communications exports.92

Figure 4.3 Leading globala and sub-Saharan Africab exporters of communication services, 2005 

Global Exporters

SSA

1%

Other

12%

Other Europe

30% Asia

17%

United 

Kingdom

12%

United States

9%

Germany

6%

Netherlands

7%

France

6%

SSA Exporters 

South Africa

30%

Ethiopia

5%

Côte d'Ivoire

11%

Mali

6%

Kenya

23%

Other

20%

Tanzania

4%

 $55,800 million $765 million 

Source: IMF, Balance of Payments Yearbook of Statistics. 

 a World totals are calculated as the summation of all countries that reported Balance of Payments data 

to the IMF. 

 b Sub-Saharan Africa totals are composed of the 27 countries that report Balance of Payment data to 

the IMF.

 

90 IMF, Balance of Payments Statistics (accessed September 5, 2007). 

91 Including intra-European trade. 

92 IMF, Balance of Payments Statistics. 
4-22

Commensurate with the relatively large size of its economy, South Africa was 

the largest SSA communications exporter, representing 30 percent of exports that 

SSA countries reported to the IMF for 2005.93 Kenya accounted for 23 percent of 

the SSA total and Côte d’Ivoire accounted for 11 percent. All other SSA 

countries accounted for less than 10 percent of the SSA total. The largest export 

growth rates during 2001–05 were seen in Mali, Botswana, Kenya, Tanzania, 

Ethiopia, South Africa, and Côte d’Ivoire, respectively (table 4.3). The average 

annual growth rate in these seven countries ranged from 19 percent in 

Côte d’ Ivoire to 60 percent in Mali (albeit from a very low base).94

Table 4.3 Sub-Saharan Africa communications exports, by selected exporters, 2001–05 

 Exports Change, 2001 to 2005 

Exporter 2001 2002 2003 2004 2005 Absolute Percentage 

Million dollars 

Angola na na na na 14.04 na na 

Benin 3.74 5.60 4.23 5.18 na na na 

Botswana 5.39 9.71 8.35 7.93 21.77 16 304 

Burkina Faso 3.28 na na na na na na 

Cameroon 3.97 25.33 9.97 na na na na 

Cape Verde 10.81 12.75 14.59 17.05 18.83 8 74 

Republic of the Congo 2.89 3.74 5.33 9.47 na na na 

Côte d’Ivoire 42.57 56.24 70.89 81.81 86.03 43 102 

Djibouti 3.31 3.98 5.57 5.60 5.82 3 76 

Ethiopia 15.74 24.35 21.42 41.58 41.25 26 162 

Gambia, The na na 4.79 7.00 7.49 na na 

Guinea 2.17 0.43 0.05 0.32 na na na 

Guinea-Bissau na 2.28 0.07 0.08 na na na 

Kenya 45.50 15.49 15.24 18.21 177.66 132 290 

Madagascar 8.38 0.39 6.08 7.01 2.12 -6 -75 

Mail 6.81 10.32 12.19 37.79 44.24 37 550 

Mauritius 31.71 30.77 20.52 19.94 19.94 -12 -37 

Mozambique 10.32 11.01 7.45 8.48 10.56 0 2 

Namibia 4.79 3.96 8.53 15.45 na na na 

Niger 11.33 22.79 16.16 29.23 na na na 

Rwanda na na na na 4.26 na na 

São Tomé & Príncipe 1.59 1.66 na na na na na 

Senegal 58.26 56.55 78.39 93.29 na na na 

Seychelles 9.36 10.23 10.41 12.14 11.72 2 25 

Sierre Leone na na 2.96 0.14 0.08 na na 

South Africa 92.14 93.17 136.21 188.54 230.78 139 150 

Sudan 3.20 4.09 2.50 2.40 3.84 1 20 

Swaziland 1.31 1.27 2.00 1.27 0.38 -1 -71 

Tanzania 10.45 14.00 20.26 27.39 34.71 24 232 

Togo 8.90 7.13 8.54 10.85 11.75 3 32 

Uganda 12.14 9.13 16.61 18.67 17.86 6 47 

Total 410.05 436.37 509.29 761.79 765.12 355 87 

Source: IMF, Balance of Payments Statistics. 

Note: na=not applicable. Nigeria and Ghana are not included. 

Leading Export Markets 

Like exports, global communications imports are quite dispersed geographically. 

The largest import markets largely mirror the largest export markets. The United 

Kingdom was the largest communications importer in 2005, representing 

13 percent of world imports. The United States and Germany were the secondand third-largest importers, each accounting for 10 percent of total world 

 

93 The IMF reported communications data for 21 SSA countries. These countries do not include 

Ghana and Nigeria, among others, which, based on the relatively large number of mobile and 

wireline subscribers in these countries, may represent a significant share of SSA communications 

exports. 94 IMF, Balance of Payments Statistics (accessed September 5, 2007). 
4-23

imports. As with the export market, Europe is by far the largest importing 

region,95 accounting for 66 percent of the world market (figure 4.4). 

Figure 4.4 Leading markets for globala exports of communication services, 2005 

Global Export Markets

Other

9%

SSA

1%

Other Europe

31%

Asia

13%

United 

Kingdom

13%

United States

10%

Italy

6%

Germany

10% Netherlands

6%

$49,434 million

Source: IMF, Balance of Payments Yearbook of Statistics. 

Note: May not equal 100 percent due to rounding. 

 a World totals are calculated as the summation of all countries that reported Balance of Payments data 

to the IMF. 

SSA accounted for 1 percent of the world imports of communication services in 

2005. The leading SSA importers in 2005 were South Africa, Kenya, and 

Côte d’Ivoire, which accounted for 35 percent, 19 percent, and 11 percent of SSA 

communications imports, respectively. No other country accounted for more than 

10 percent of the total.96 Although bilateral trade data for communication 

services are generally not available for SSA countries, the multilateral data 

provided by the IMF indicate that non-African countries are a major consumer of 

SSA communication services. In total, SSA exports exceeded imports of 

communication services by $216 million dollars in 2005.97 The profile of 

international telecommunications trade for SSA countries varies by technology. 

In Kenya, for example, the wireline service provider reports that the vast majority 

of their international revenues come from links with countries outside of Africa. 

One of the wireless service providers in Kenya, on the other hand, reports that 

60–70 percent of its international revenue is derived from intra-African links.98

 

95 Including intra-European trade. 

96 IMF, Balance of Payments Statistics (accessed September 5, 2007). 

97 Ibid. 

98 Kenyan industry representatives, interviews by Commission staff, Nairobi, Kenya, 

October 18, 2007. 
4-24

Factors Affecting Export Patterns 

Domestic and international telecommunications markets in SSA countries have 

grown in recent years due to a number of factors. Supply-side factors include the 

expansion of telecommunications infrastructure and the introduction of 

competition via new licensing policies. These factors greatly increase the number 

of individuals with access to telecommunications networks, a vital prerequisite 

for expanding telecommunications exports. Demand-side factors include 

increased international migration and trade links. Government policies play a 

direct role on the supply side of telecommunications and an indirect role in 

determining most demand factors for African telecommunication services. This 

section will touch upon major factors affecting export growth patterns continentwide before providing specific details on how these factors have played out in 

several important SSA markets in the country profiles section which follows. 

Introduction of Competition and New Licensing Policies 

Governments play a key role in the development of telecommunications markets 

through competition and licensing policies. Traditionally, in many SSA 

countries, the state maintained complete control over the sector through stateowned monopoly providers. Over the past decade, however, many African 

governments have moved steadily toward a more market-based system.99 Central 

to this new market-based system are government policies regarding the issuance 

of licenses for new entrants, the degree of continued state ownership, and 

effective regulation of the industry to ensure that the practices of industry players 

are not anti-competitive. 

Liberalization of International Gateway Competition 

Of particular importance to international trade in telecommunication services is 

international gateway competition. International gateways are the facilities 

through which international calls are received and sent. Approximately one-half 

of the countries in SSA have fully or partly liberalized their international 

gateways.100 In these countries, multiple telecommunication services providers 

are able to obtain international gateway licenses, allowing them to connect 

directly to the international network. In the countries that have not liberalized, 

only one monopoly provider is licensed to provide a direct connection to the 

international network. Other telecommunications service providers, if indeed 

they are permitted in the country, must access the international network via the 

monopoly provider’s network. 

Countries that have liberalized international gateways have seen dramatic 

reductions in the cost of international calls and substantial increases in call 

volumes. For instance, Nigeria reduced the price of international calls by 

90 percent by liberalizing its international gateways, effectively replacing a 

monopoly with a competitive international calling market.101 In Kenya, following 

 

99 Keck and Djiofack-Zebaze, “Telecommunications Services in Africa,” November 2006, 7. 100 GSM Association, Gateway Liberalisation, 2007, 11. 101 Ibid., 89. 
4-25

the issuance of international gateway licenses to the country’s mobile providers 

in 2006, these firms reduced prices for international calls by 70 percent and 

increased the share of international calls from 5 percent to 10−15 percent of the 

total number of calls. 102

Introduction of VoIP Technology 

Other important factors in international telecommunications trade are 

technological advances, such as Voice over Internet Protocol (VoIP), which 

involves routing calls over the internet, and related government policies. The 

costs of international calls placed using VoIP are often substantially lower than 

calls placed using traditional telecommunications networks. African governments 

have responded to VoIP in a variety of ways. Certain countries, such as Kenya, 

South Africa, Uganda, Tanzania, and Mauritius, have legalized VoIP, allowing 

many new entrants to establish themselves in the telecommunications market, 

resulting in a substantial reduction in the price of international calls. The majority 

of SSA countries, however, have proscribed the use of VoIP in order to protect 

incumbent revenues. Nevertheless, VoIP services are being provided in many of 

these countries due to the difficulty of enforcing VoIP bans, resulting in 

dramatically lowered prices for international calls. 103 

Liberalization of Competition Policies 

Aside from the licensing of international gateways and the use of technologies 

such as VoIP, the market for international telecommunications services is heavily 

dependent on competition policy, particularly regarding domestic wireline and 

wireless firms. Greater domestic competition drives down prices in all 

telecommunications segments, including international.104 Despite increased 

licensing of new operators in both the wireline and wireless segments, SSA 

wireless markets in general have more licensed firms and featured less direct 

government involvement than found in wireline markets. 

Wireline telecommunications service remains a state-owned monopoly in many 

African countries. SSA, on the whole, has been relatively slow to privatize the 

wireline market compared to other regions of the world. Although a number of 

SSA countries have proposed full or partial privatization, virtually all African 

governments retain some level of ownership in the wireline telecommunications 

industry in their country (table 4.4). Out of 37 SSA countries shown in 

table 4.4,105 25 countries report one monopoly firm controlling all wireline 

telecommunications services. Of these, 80 percent are wholly government 

owned. Even for those countries that allow competition in the provision of 

wireline services, all countries in this sample, except Somalia, report at least 

some state ownership in the sector.106

 

102 Ibid., 54; Kenyan industry representative, interview by Commission staff, Nairobi, Kenya, 

October 18, 2007. 103 EIU, “Africa Telecoms: Tariff Tumble; VoIP Rises,” March 8, 2007; Ethiopian government 

representative, interview by Commission staff, Addis Ababa, Ethiopia, October 25, 2007. 104 Guislain, et al., “Connecting Sub-Saharan Africa,” 2005, 8. 105 Countries for which TeleGeography reported data. 106 TeleGeography, GlobalComms 3.0 (accessed August 23, 2007). 
4-26

Table 4.4 Competition and state ownership in SSA telecommunications sector 

Wireline Wireless 

Country 

Number of 

Operational 

Firms 

State Equity 

Ownership in 

Incumbent 

(Percent) 

Number of 

Operational 

Firms1 

State Equity 

Ownership in 

Incumbent 

(Percent) 

Benin 1 100 4 100 

Botswana 1 100 2 0 

Burundi 1 100 4 100 

Cameroon 1 100 2 0 

Chad 1 100 2 0 

Comoros 1 100 1 100 

Democratic Republic of the Congo 1 100 4 0 

Côte d'Ivoire 1 54.1 3 0 

Djibouti 1 100 1 100 

Equatorial Guinea 1 60 1 60 

Eritrea 1 100 1 100 

Ethiopia 1 100 1 100 

Gabon 1 49 3 49 

Gambia 1 50 3 50 

Ghana 2 100 4 100 

Guinea 1 40 4 40 

Guinea-Bissau 1 100 3 100 

Kenya 1 49 3 60 

Lesotho 1 30 2 15 

Liberia 1 100 4 40 

Madagascar 1 32 4 32 

Malawi 1 20 2 20 

Mali 2 100 2 100 

Mauritius 2 34.45 4 34.45 

Mozambique 1 100 2 100 

Namibia 1 100 2 66 

Nigeria 4 25 4 25 

Republic of the Congo 2 100 2 0 

Senegal 1 27.67 2 27.67 

Seychelles 3 Minority 2 Minority 

Sierra Leone 1 100 4 0 

Somalia 5 0 6 0 

South Africa 2 53.7 3 26.85 

Sudan 2 26 3 26 

Tanzania 3 65 4 40 

Uganda 2 31 5 31 

Zimbabwe 1 100 3 100 

Source: TeleGeography, GlobalComms 3.0. 

 1 In some countries one or more of wireless firms also provide wireline services, therefore the total number of wireline 

and wireless firms are not additive in all cases. 

Motivated by best practices observed worldwide and model telecommunications 

regulatory principles set out by the World Trade Organization, many African 

governments introduced competition to their wireless markets in the late 1990s 

and early 2000s.107 In the same group of 37 countries noted above, only five have 

monopoly mobile providers. Although the majority of countries have some 

degree of state ownership in the mobile sector, it is most often limited to partial 

ownership of one of several firms providing mobile service in the country. 

 

107 Keck and Djiofack-Zebaze, “Telecommunications Services in Africa,” November 2006, 7. 
4-27

The impact of increased competition is often apparent almost immediately. In 

Côte d’Ivoire, for instance, the annual growth rate of mobile phone subscribers 

increased from an average of 34 percent over the period 2001–05 to 119 percent 

during June 2006−June 2007 following the licensing of a third mobile operator in 

July 2006. The new mobile operator was able to attract 300,000 subscribers in a 

single month, helping to increase the mobile penetration rate to 25 percent.108

Although recent data is not available, incoming international calls to 

Côte d’Ivoire (exports) increased by an average annual rate of 32 percent over 

the period 2001–04.109 

Expanded Infrastructure Development 

The cost and quality of telecommunications services are based primarily on the 

underlying telecommunications infrastructure. By global standards, SSA’s 

telecommunications infrastructure is relatively underdeveloped. The role of SSA 

governments in supporting infrastructure development varies, based on the nature 

and location of the infrastructure being developed. For wireless infrastructure, 

especially in urban areas, direct government involvement is often not necessary. 

Indeed, an average of two-thirds of the SSA population in each of the countries 

for which the ITU reports data now live within range of a wireless network.110 

In other cases, however, such as the construction of wireless networks in sparsely 

populated areas and the construction of national backbone infrastructure,111

private sector funding is typically inadequate. In the case of wireless service for 

rural areas, several SSA countries have proposed developing universal service 

funds, in which telecommunications firms contribute a portion of their revenues 

to a fund dedicated to building rural infrastructure. For example, Uganda has 

established a fund administered by the Ugandan Communication Commission 

that collects one percent of the gross revenue of all telecommunications operators 

and establishes internet and public phone access points in underserved areas of 

the country.112 

National backbone networks and inter-country connections are especially 

important for international telecommunications. Currently, most calls between 

African countries must be routed through Europe, thus hampering intra-African 

trade and telecommunications. 113 In order to rectify this situation, several major 

privately funded fiberoptic submarine cables connecting countries on the east 

coast of Africa are currently under consideration. Although there is some 

contention between governments and private sector participants regarding the 

terms under which these cables would be operated, it is likely that at least one of 

these proposals will come to fruition, reducing the costs of international calls in 

 

108 TeleGeography, GlobalComms 3.0 (accessed August 23, 2007); Ivorian industry 

representatives, interviews by Commission staff, Abidjan, Côte d’Ivoire, October 24, 2007. 109 ITU, World Telecommunication Indicators 2006, (accessed January 28, 2008). 110 Ibid. 111 High capacity networks that connect major towns and cities within a country as well as 

international connections. 112 Ugandan government representative, interview with Commission Staff, Kampala, Uganda, 

October 23, 2007. 113 Guislain, et al., “Connecting Sub-Saharan Africa,” 2005, 31. 
4-28

the region.114 National fiberoptic backbone networks are also being built within 

many SSA countries, linking cities and towns within country as well as providing 

direct fiberoptic connections between SSA countries, which should within 

several years eliminate the need for many intra-African calls to be routed through 

Europe.115 

Expanded telecommunication infrastructure, however, is dependent on the 

provision of reliable electricity. Many rural areas in SSA lack electricity, posing 

a challenge for the development of telecommunications infrastructure. 

Telecommunication providers are able, in most cases, to develop certain basic 

infrastructure such as base stations, which allow nearby subscribers to connect to 

the network, using technologies such as solar or diesel generators where a local 

electric grid is unavailable. Power generated from these alternatives sources, 

however, is typically much more expensive than power provided from an electric 

grid.116

SSA Telecommunications Demand Growth 

Aside from supply-side factors such as government licensing and infrastructure 

development, a number of demand-side factors contributed to increased exports 

of telecommunications services from SSA countries. Two important factors, 

which are largely outside the scope of government policies, are geography and 

migration. 

Greater Role of Geographic Links 

Countries tend to have greater telecommunications links with neighboring, rather 

than distant countries. This may be slightly less true in SSA, where many 

telecommunication links are routed through former colonial powers in Europe 

rather than directly linking neighboring countries due to historical reasons.117 As 

African countries upgrade telecommunications infrastructure linking them to 

neighboring countries, however, close geographic links will play a greater role in 

determining demand for international telecommunications services. 

Increased African Migration 

Migration also plays a critical role in the demand for international 

telecommunication services an increasing number of Africans have emmigrated 

to foreign countries, especially in North America and Europe. These migrants 

often maintain strong communication links with friends and relatives in their 

 

114 Economist, “Not so EASSy,” August 13, 2007. 115 Kenyan, Ugandan, and Ethiopian industry representatives, interviews by Commission staff, 

Nairobi, Kenya, October 18, 2007, Kampala, Uganda, October 22, 2007, and Addis Ababa, 

Ethiopia, October 25, 2007. 116 USITC hearing transcript, October 23, 2007, 37; Kenyan industry representative, interview 

by Commission staff, Nairobi, Kenya, October 18, 2007. 117 Maliti, “Firms Race to Update E. Africa Telecom,” June 5, 2007. 
4-29

home countries, which increases telecommunications exports of SSA 

countries.118 

Higher GDP per Capita 

GDP per capita growth in SSA countries has also substantially increased demand 

for international telecommunication services. Higher GDP per capita encourages 

increased telecommunications penetration as more people are able to afford 

telecommunications services, including international telecommunications 

services.119 Simultaneously, increased telecommunication penetration increases 

GDP growth (by facilitating business transactions, for example).120 Developing 

countries, therefore may experience a positive feedback cycle in regard to 

telecommunications markets, where increased penetration results in increased 

GDP per capita, which in turn further increases penetration. 

Increased International Trade and Investment 

Increased trade and investment may also be somewhat interrelated with increased 

international communications trade. During 2001−05, for example, foreign direct 

investment in SSA countries more than doubled while communications exports 

from SSA countries increased by 86 percent.121 As developing countries attract 

non-communications-related trade and investment, communications trade 

increases along with it as these transactions often require extensive 

communications between the parties, which encourages local 

telecommunications firms to compete for this international telecommunications 

traffic. At the same time, investors and traders are more attracted to markets 

which have extensive international telecommunications links. Thus a positive 

feedback cycle exists in this regard as well, where increased trade and investment 

encourage stronger international telecommunications links, which in turn 

encourages more trade and investment.122 

Innovative Applications of Telecommunications 

Demand for telecommunications services in many African countries is also 

increasing as consumers, firms, governments, NGOs, and international 

organizations develop an increasing number of applications for 

telecommunication services. For example, private and donor-funded efforts are 

underway in a number of SSA countries to provide farmers and other commodity 

producers with real-time information regarding prices of inputs and outputs at 

various market centers via text messages on mobile networks.123 Governments 

are also exploring offering extension services providing farmers with agricultural 

advice for various crops via telecommunications networks in order to boost 

 

118 Terrazas, “Beyond Regional Circularity,” June 2007. 119 TeleGeography, Traffic Analysis, 2007, 23. 120 Nabyama, “High Tax Regime Hurting Telecoms, Says Survey,” August 20, 2007. 121 UNCTAD, World Investment Report; IMF, Balance of Payments Statistics (accessed 

September 5, 2007. 122 UN, Investment Promotion and Enterprise Development Bulletin, 2003, 99. 123 Economic and Social Commission for Asia and Pacific, Economist, “Buy, Cell, Hold,” 

January 27, 2007. 
4-30

agricultural productivity and farm incomes, although rural applications of 

telecommunications often require increased investment in expensive rural 

infrastructure.124 Firms in several SSA countries have also begun to establish 

virtual banking systems based on mobile phone networks, which would extend 

financial services to low-income individuals previously excluded from the formal 

banking system.125 Additional new applications of telecommunication services 

include e-health and e-education, which use the telecommunications network to 

provide essential social services.126

Country Profiles 

Ethiopia 

Ethiopia is one of the few countries in Africa to maintain a state-owned 

monopoly responsible for providing all telecommunication services, including 

wireline, wireless, domestic, and international. The country has the secondlowest mobile penetration in SSA, with just 1.4 percent of its population 

subscribing to mobile services, exceeding only Eritrea, which also maintains a 

state-owned telecommunications monopoly. Although the lower penetration rate 

in Ethiopia may be explained in part by Ethiopia’s extremely low per capita 

GDP, a number of countries in SSA with lower GDP per capita, including 

Burundi, the Democratic Republic of Congo, Guinea-Bissau, and Liberia, have 

higher penetration of wireless services. 127

Nevertheless, the Ethiopian market has the potential for extremely rapid growth 

if competition is introduced. The country has the second-largest population in 

SSA, after Nigeria, which, as discussed below, experienced dramatic subscriber 

growth after liberalizing its telecommunications market. The government of 

Ethiopia has an ambitious infrastructure deployment program, which already 

deployed over 2,500 miles of fiberoptic cables connecting all outlying cities and 

is in the process of connecting more rural areas to the network, which it hopes 

will increase the number of mobile subscribers substantially.128 Additionally, 

there is a relatively large Ethiopian population living abroad, increasing the 

potential demand for international telephony services in Ethiopia.129

Kenya 

The Kenyan telecommunications market has a relatively low level of competition 

in terms of number of firms, although recent actions by the government of Kenya 

promise to increase the level of competition in the country and provide lower 

prices and greater public access to telecommunications services.130 Kenya is 

 

124 Ugandan government representative, interview by Commission staff, Kampala, Uganda, 

October 23, 2007. 125 EIU, “South Africa Telecoms,” July 12, 2007. 126 Guislain, et al., “Connecting Sub-Saharan Africa,” 2005, 23. 127 TeleGeography, GlobalComms 3.0, (accessed August 23, 2007). 128 Ethiopian industry representative, interview by Commission staff, Addis Ababa, Ethiopia, 

October 25, 2007. 129 Terrazas, Beyond Regional Circularity, June 2007. 130 EIU, “Africa Telecoms: Ghana and Kenya's Contrasting Fortunes,” March 27, 2007. 
4-31

currently served by a single monopoly provider of wireline telecommunications 

services, Telkom Kenya. The government has attempted to introduce more 

competition into the wireline market over the past several years by privatizing 

Telkom Kenya and proposing to license a second national operator to compete 

with it on a national basis. In order to compete as a private operator, Telkom 

Kenya has in recent months undertaken a massive restructuring, laying off over 

80 percent of its workforce in order to reduce wage expenses, which had 

consumed 49 percent of revenues. Telkom Kenya is also shifting its strategic 

focus to its recently launched mobile network and upgrading its wireline 

network, which will primarily service corporate customers in urban areas.131 

Kenya’s wireless service providers, on the other hand, have been on the forefront 

of innovation in several areas. Safaricom, the country’s largest provider, has 

introduced a mobile money transfer system that allows subscribers, many of 

whom have no access to the formal banking system, to make and receive 

payments on their cellular phones.132 Safaricom’s chief rival in the country, 

Celtel, established the world’s first borderless mobile phone network in 

September 2006, allowing their customers in Kenya, Tanzania, and Uganda to 

use their phones anywhere in the region with no roaming charges.133 Since then, 

Celtel has added the Republic of the Congo, the Democratic Republic of the 

Congo, and Gabon to the program. Additionally, Safaricom has established its 

own borderless mobile network by forging agreements with wireless service 

providers in nearby countries Tanzania, Uganda, and Rwanda, and has ongoing 

negotiations with several other African countries.134 These borderless networks 

have reduced costs and increased volumes of international calls within the region, 

facilitating non-communications trade. Industry players in other regions such as 

Europe, have indicated interest in establishing similar borderless networks 

modeled on those in East Africa.135

Kenya is also attempting to develop an outsourcing and call center industry. 

Although the industry is still in its infancy, it is more developed than in most 

SSA countries.136 Currently, the cost of bandwidth is much higher in Kenya than 

in Asian countries with more established call center industries due to the lack of 

fiberoptic cable linking Kenya to the global network. In order to counteract this 

competitive disadvantage, the World Bank is assisting with financing that would 

offset the higher bandwidth costs in order to make the industry more competitive. 

Kenya is well placed to compete internationally in the call center industry 

because of its highly educated workforce and the clarity of the English spoken by 

the population.137 

 

131 Kenyan industry representative, interview by Commission staff, Nairobi, Kenya, 

October 18, 2007. 132 EIU, “Kenya Telecoms: Safaricom Aims for the Big Game,” August 2, 2007. 133 Celtel Kenya, “Celtel launches One Network,” September 27, 2006. 134 Mark, “Safaricom to Expand Seamless Mobile Network,” October 2, 2007. 135 Kenyan industry representative, interview by Commission staff, Nairobi, Kenya, 

October 18, 2007. 136 World Bank, Snapshot Africa, January 2007, 76. 137 Kenyan industry representative, interview by Commission staff, Nairobi, Kenya, 

October 18, 2007. 
4-32

Nigeria 

Nigeria became the largest telecommunication services market in SSA during 

2007 in terms of the number of phone subscribers, overtaking South Africa. 

Since the licensing of four firms to provide wireless services in February 2001, 

the number of wireline and wireless subscribers in the country has increased from 

fewer than 1 million to over 49 million as of October 2007. The vast majority of 

this growth has come from increases in mobile rather than wireline services. In 

2001, wireline subscribers outnumbered wireless subscribers by more than a twoto-one ratio. Within a year, this situation reversed, with wireless subscribers 

outnumbering wireline subscribers by more than two to one as newly licensed 

mobile providers rapidly deployed their networks. As of October 2007, there 

were over 20 wireless subscribers for every wireline subscriber.138 Increased 

wireless penetration was also reflected in international services, which the newly 

licensed wireless service providers were authorized to provide using their own 

international gateways, with Nigeria experiencing the fastest growth rate in 

outbound international calls of any country in the world.139

Phenomenal growth has led to some quality concerns, however. For instance, 

MTEL, the mobile subsidiary of the incumbent wireline operator, was initially 

quite successful in attracting subscribers due to comparatively lower domestic 

and international prices. However, due to insufficient network capacity, quality 

deteriorated, ultimately reducing its market share.140 According to officials at the 

Nigerian Communications Commission, greater investment in infrastructure is 

necessary to improve the poor quality of service common in Nigeria.141 A 

number of firms are attempting to improve quality and expand penetration by 

investing in infrastructure projects, including satellite, fiberoptic, and thirdgeneration142 mobile networks which are capable of handling a greater number of 

subscribers, as well as offering more advanced telecommunication services, such 

as mobile internet service.143

 

138 Nigerian Communications Commission, “Subscriber Data,” (accessed January 28, 2008). 139 TeleGeography, Traffic Analysis, 2007, 21. 140 Oyewola, “MTELThe Embattled Network,” September 11, 2007. 141 Ashamu, “Telecom Service Providers Require 40,000 Base StationsNdukwe,” 

September 11, 2007. 142 Third-generation (3G) systems, the most advanced mobile technology, enable value-added 

services such as voice mail, call waiting, text messaging, and online connections; 3G technologies 

also offer data transfer speeds that are much faster than previous technologies and increase the 

capacity for a greater number of subscribers. Telecommunications firms are investing heavily in 3G 

technologies in numerous countries around the world, including several in SSA. 143 The Daily Trust, “GLO, Alcatel Sign 3G Expansion Deal,” May 7, 2007; Iboma, “Telkom to 

Invest $1bn Over Five Years,” August 24, 2007; and Ayobolu, “NCC: Stalling Nigeria's 

Advancement,” September 13, 2007. 
4-33

South Africa 

South Africa had long been SSA’s largest telecommunications market, until 

being overtaken by Nigeria in 2007, in terms of the total number of wireline and 

wireless subscribers, which total over 40 million. South Africa remains the 

largest SSA market in terms of the value of international telecommunications 

transactions.144 Furthermore, South Africa has the region’s highest wireless 

penetration, with 78 percent of the population subscribing to a mobile network, 

and the second-highest wireline penetration, with 8 percent of the population 

subscribing to wireline services, surpassed only by the Seychelles.145

Wireless telephony services were available relatively early in South Africa, with 

car phones first deployed in 1990, followed by the creation of Vodacom, which 

offered mobile services beginning in 1993, and Mobile Telephone Networks 

(MTN), which began offering mobile services in 1994.146 Based on their early 

experience in deploying wireless networks domestically, South African 

companies have aggressively expanded abroad (table 4.5). South African firms 

are a key source of investment in telecommunications services and infrastructure 

for many SSA countries. MTN, in particular, has gained a large market share in a 

number of SSA and Middle Eastern countries.147 Telkom South Africa recently 

announced it is investing $1 billion in Nigerian telecommunications 

infrastructure.148 As the South African mobile market nears saturation, this 

outward investment by South African firms seems likely to continue. 

Uganda 

The telecommunications reforms undertaken in Uganda are reported to be among 

the most successful in SSA.149 Uganda issues technology neutral licenses, which 

means that firms receiving licenses are free to provide telecommunications 

services over wireline or wireless networks using any technology they choose, 

including VoIP, fixed, cellular, or satellite technologies. Currently, Uganda is 

served by a large number of telecommunications firms, including firms offering 

fixed, wireless, VoIP, and international gateway services. Intense competition 

may explain how in 2004 (latest available data), Ugandans enjoyed lower per 

minute local call prices (both wireline and wireless) than the SSA average150

despite paying the second-highest telephone tax rate in the world.151 

As of 2005, 70 percent of the Ugandan population lived within range of a 

telecommunications network. However, only 14 percent of the Ugandan 

population were mobile phone subscribers, slightly lower than the SSA average 

of 18 percent in 2006. Telecommunications operators, drawn by these relatively 

 

144 TeleGeography, GlobalComms 3.0 (accessed August 23, 2007); IMF, Balance of Payments 

Statistics (accessed September 5, 2007). 145 Ibid. 146 Gibbs, 10 Years of Cellular Freedom, 2004, 18–19. 147 EIU, “World Telecom,” August 16, 2007. 148 Iboma, “Telkom to Invest $1bn Over Five Years,” August 24, 2007. 149 Guislain, et al., “Connecting Sub-Saharan Africa,” 2005, 26. 150 ITU, World Telecommunications Indicators 2006 (accessed August 24, 2007). 151 Nabyama, “High Tax Regime Hurting Telecoms, Says Survey,” August 20, 2007. 
4-34

low penetration rates and liberalized regulatory environment have shown a 

substantial interest in the country, investing $145 million in 2006 in the sector, 

including capital expenditure by newly licensed providers.152 

Table 4.5 Largest wireless providers in SSA by total number of mobile subscribers as of June 2007 

Rank Parent name 

Number of 

mobile 

subscribers in 

SSA (millions) Parent name Parent country 

SSA countries in which 

provider operates 

1 MTN 41.2 MTN Group South Africa Botswana, Benin, 

Cameroon, Republic of 

the. Congo, Côte d'Ivoire, 

Ghana Guinea, GuineaBissau, Liberia, Nigeria, 

South, Africa, Sudan, 

Swaziland, Uganda, 

Zambia 

2 Vodacom 32.4 50/50 Joint Venture 

between Telkom South 

Africa and Vodafone 

South 

Africa/United 

Kingdom 

Democratic Republic of 

the Congo, Lesotho, 

Mozambique, South 

Africa, Tanzania 

3 Celtel 24.2 Zain Group Kuwait Burkina Faso, Chad, 

Republic of the Congo, 

Democratic Republic of 

the Congo, Gabon, 

Kenya, Madagascar, 

Malawi, Niger, Nigeria, 

Sierra Leone, Tanzania, 

Uganda, Zambia, Sudan 

4 Globacom 9.5 Conpetro Nigeria Nigeria 

5 Orange 9.0 France Telecom France Botswana, Cameroon, 

Côte d'Ivoire, 

Madagascar, Mali, 

Guinea-Bissau, Guinea, 

Senegal 

6 Safaricom 6.9 Government of Kenya 

(Pending privatization in 

2008) 

Kenya Kenya 

7 Millicom 3.6 Millicom International 

Cellular 

Luxembourg Tanzania, Ghana, Chad, 

Sierra Leone, Democratic 

Republic of the Congo 

Senegal 

8 Cell C 3.3 Oger Telecom United Arab 

Emirates 

South Africa 

9 Atlantique 

Telecom 

2.6 Emirates 

Telecommunications 

Corporation 

United Arab 

Emirates 

Benin, Tanzania, Côte 

d'Ivoire, Gabon 

10 Unitel 2.5 Government of Angola Angola Angola 

Source: TeleGeography, GlobalComms 3.0, and ITC staff calculations. 

 

152 East African, “Booming Mobile Sector Attracts $75 Million in New Investment,” 

September 4, 2007; Ugandan government representatives, interview by Commission staff, 

Kampala, Uganda, October 22, 2007. 
4-35

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September 4, 2007. 

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——. “Not So EASSy,” August 13, 2007. 

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March 27, 2007. 

——. “Africa Telecoms: Tariff Tumble; VoIP Rises.” Industry Briefing, March 8, 2007. 

——. “Africa Telecoms: Wired.” Business Africa, July 17, 2007. 

——. “Kenya Telecoms: Safaricom Aims for the Big Game.” Industry Briefing, August 2, 2007. 

——. “Kenya Telecoms: Second Time Lucky?” Industry Briefing, July 18, 2007 

——. “South Africa Telecoms: From Mattress to Mobile Banking.” Industry Briefing,

July 12, 2007. 

——. “World Telecoms: Key Player––MTN Group.” Industry Briefing, August 16, 2007. 

Daily Trust. “GLO, Alcatel sign 3G expansion deal,” May 7, 2007. 

Gibbs, Caroline. 10 Years of Cellular Freedom, MTN, 2004, Sandton, South Africa. 

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“Connecting Sub-Saharan Africa.” World Bank Working Paper No. 51, 2005. 

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September 5, 2007). 

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October 2, 2007. 

——. “Search for Second Telecom Operator put on Hold.” Business Daily, August 9, 2007. 

Nabyama, Phillip. “High Tax Regime Hurting Telecoms, Says Survey.” East African Business 

Week, August 20, 2007. 

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APPENDIX A 

REQUEST LETTER 

A-3
A-4
APPENDIX B 

FEDERAL REGISTER NOTICE 

B-3 

Federal Register / Vol. 72, No. 137 / Wednesday, July 18, 2007 / Notices 39445 

INTERNATIONAL TRADE 

COMMISSION 

[Investigation No. 332–477] 

Sub-Saharan Africa: 

Factors Affecting 

Trade Patterns of Selected 

Industries— 

Second Annual Report 

AGENCY: United States 

International Trade Commission. 

ACTION: Scheduling of second 

annual report and public hearing; 

industry coverage of second 

report. 

SUMMARY: In a letter dated July 

26, 2006, the United States 

Trade Representative (USTR) 

requested, under section 332(g) 

of the Tariff Act of 1930 (19 

U.S.C. 1332(g)), that the U.S. 

International Trade Commission 

(Commission) prepare three 

annual reports relating to factors 

that affect trade patterns of 

selected industries in subSaharan African (SSA) 

countries. In response, the 

Commission instituted 

investigation No. 332–477, SubSaharan Africa: Factors 

Affecting Trade Patterns of 

Selected Industries, and 

delivered its first report on April 

3, 2007. This notice announces 

the scheduling of the second 

report in this series, the 

industries to be covered, and the 

scheduling of a public hearing. 

DATES: October 1, 2007: 

Deadline for filing requests to 

appear at the public hearing. 

October 3, 2007: Deadline for 

filing prehearing briefs and 

statements. 

October 23, 2007: Public 

hearing. November 2, 2007: 

Deadline for filing post-hearing 

briefs and statements. April 3, 

2008: Transmittal of 

Commission report to USTR. 

ADDRESSES: All Commission 

offices, including the 

Commission’s hearing 

rooms, are located in the United 

States International Trade 

Commission Building, 500 E 

Street, SW., Washington, DC. 

All written submissions should 

be addressed to the Secretary, 

United States International 

Trade Commission, 500 E Street, 

SW., Washington, DC 20436. 

The public record for this 

investigation may be viewed on 

the Commission’s electronic 

docket (EDIS) at: 

http://www.usitc.gov/secretary/e

dis.htm. 

FOR FURTHER INFORMATION 

CONTACT: 

Project leader Falan Yinug (202–

205–2160 or 

(falan.yinug@usitc.gov) or 

deputy project leader James 

Fetzer (202–708–5403 or 

(james.fetzer@usitc.gov) for 

information specific to this 

investigation (the second report). 

For information on 

the legal aspects of this 

investigation, contact William 

Gearhart of the Commission’s 

Office of the General 

Counsel (202–205–3091 or 

(william.gearhart@usitc.gov). 

The media should contact 

Margaret O’Laughlin, 

Office of External Relations 

(202–205–1819 or 

margaret.olaughlin@usitc.gov). 

Hearing-impaired individuals 

may obtain information on this 

matter by contacting the 

Commission’s TDD 

terminal at 202–205–1810. 

General information concerning 

the Commission may also be 

obtained by accessing its 

Internet server 

(http://www.usitc.gov). 

Persons with mobility 

impairments who will need 

special assistance in gaining 

access to the Commission should 

contact the Office of the 

Secretary at 202–205–2000. 

Background: As indicated 

above, this notice concerns the 

second of three annual reports 

that the USTR requested 

the Commission to provide 

concerning factors affecting 

trade patterns of selected 

industries in SSA countries. In 

her July 26, 2006, letter, the 

USTR described the type of 

information that the Commission 

should provide in its reports with 

respect to each industry and 

identified the industries and 

products produced to be covered 

in the first annual report. The 

USTR indicated that she would 

provide additional lists of 

industries and products produced 

for each of the second and third 

annual reports. She requested 

that the Commission deliver its 

first annual report by April 3, 

2007, and its second and third 

annual reports by April 3, 2008, 

and April 3, 2009, respectively. 

The Commission published 

notice of institution of this 

investigation in the Federal 

Register on August 29, 2006 (71 

F.R. 51212), and delivered its 

first report to USTR on April 3, 

2007. On June 19, 2007, the 

Commission received a 

memorandum from the Office 

of the United States Trade 

Representative listing the 

industries and products to be 

covered in the second annual 

report. In its second annual 

report the Commission will 

provide profiles of SSA 

industries that produce the 

following products: (1) In the
B-4 

39446 Federal Register / Vol. 72, No. 137 / Wednesday, July 18, 2007 / Notices 

agriculture sector, coffee, certain 

spices (including ginger), shea 

butter and downstream products 

thereof, and tropical fruits (e.g. 

bananas, pineapples, 

and guavas) and processed 

products thereof; (2) in the 

mining and manufacturing 

sector, natural rubber 

and downstream products 

thereof, footwear, textiles, 

jewelry and downstream 

diamond processing (e.g., 

polishing and cutting), and wood 

furniture; and (3) in the services 

sector, aviation services and 

communications services. 

Each industry profile will 

include the following 

information, to the extent data 

are available, for the most 

recently available 5-year period: 

• A description of the leading 

industries within the SSA that 

export the subject products, 

including their position 

relative to global competitors; 

• identification of the leading 

SSA exporting countries and 

their key markets; and 

• analysis of the competitive 

factors, by country, that have 

contributed to the shift in 

exports. (Such factors may 

include access to inputs, labor, 

technology, investment, trade 

policies, e.g., tariffs and trade 

preference programs such as 

AGOA, privatization, and 

liberalization.) 

Public Hearing: A public 

hearing in connection with this 

investigation will be held 

beginning at 9:30 a.m. on 

October 23, 2007, at the United 

States International Trade 

Commission Building, 500 E 

Street, SW., Washington 

DC. Requests to appear at the 

public hearing should be filed 

with the Secretary, no later than 

5:15 p.m. October 1, 2007, in 

accordance with the 

requirements in the ‘‘Written 

Submissions’’ section below. In 

the event that, as of the close of 

business on October 1, 2007, no 

witnesses are scheduled to 

appear at the hearing, the 

hearing will be canceled. Any 

person interested in attending the 

hearing as an observer or 

nonparticipant may call the 

Secretary to the Commission 

(202–205–2000) after October 1, 

2007, for information concerning 

whether the hearing will be held. 

Written Submissions: In lieu of 

or in addition to participating in 

the hearing, interested parties are 

invited to submit written 

statements or briefs concerning 

this investigation. All written 

submissions, including requests 

to appear at the hearing, 

statements, and briefs, should be 

addressed to the Secretary. Any 

pre-hearing statements or briefs 

should be filed not later than 

5:15 p.m., October 3, 2007; and 

posthearing statements and 

briefs and all other written 

submissions should be filed not 

later than 5:15 p.m. November 

2, 2007. All written submissions 

must conform with the 

provisions of section 201.8 of 

the Commission’s Rules of 

Practice and Procedure (19 CFR 

201.8). Section 201.8 of the rules 

requires that a signed original (or 

a copy designated as an original) 

and fourteen (14) copies of each 

document be filed. In the event 

that confidential treatment of the 

document is requested, at least 

four (4) additional copies must 

be filed, in which the 

confidential information must be 

deleted (see the following 

paragraph for further 

information regarding 

confidential business 

information). The Commission’s 

rules do not authorize filing 

submissions with the Secretary 

by facsimile or electronic 

means, except to the extent 

permitted by section 201.8 of the 

rules (see Handbook for 

Electronic Filing Procedures, 

http://www.usitc.gov/secretary/ 

fed_reg_notices/rules/documents

/handbook_on_electronic_filing.

pdf; persons with questions 

regarding electronic filing 

should contact the Office of the 

Secretary at 202–205–2000. 

Any submissions that contain 

confidential business 

information must also conform 

with the requirements of 

section 201.6 of the 

Commission’s Rules of Practice 

and Procedure (19 CFR 201.6). 

Section 201.6 of the rules 

requires that the cover of the 

document and the individual 

pages be clearly marked as to 

whether they are the 

‘‘confidential’’ or ‘‘nonconfidential’’ version, and that 

the confidential business 

information be clearly identified 

by means of brackets. All written 

submissions, except for 

confidential business 

information, will be made 

available in the Office of the 

Secretary to the Commission for 

inspection by interested parties. 

In her request letter, the USTR 

stated that her office intends to 

make the Commission’s reports 

in this investigation available to 

the public in their entirety, and 

asked that the Commission not 

include any confidential business 

or national security information 

in its reports. Consequently, the 

reports that the Commission 

sends to the USTR will not 

contain any such information. 

Any confidential business 

information received by the 

Commission in this investigation 

and used in preparing its 

reports will not be published in a 

manner that would reveal the 

operations of the firm supplying 

the information. 

By order of the Commission. 

Issued: July 12, 2007. 

Marilyn R. Abbott, 

Secretary to the Commission. 

[FR Doc. E7–13828 Filed 7–17–07; 

8:45 am] 

BILLING CODE 7020–02–P
APPENDIX C 

HEARING LIST OF PARTICPANTS 

C-3

CALENDAR OF PUBLIC HEARING

 Those listed below are scheduled to appear as witnesses at the United States International Trade 

Commission’s hearing: 

 Subject: Sub-Saharan Africa: Factors Affecting Trade Patterns of 

Selected Industries - Second Annual Report 

 

 Inv. No.: 332-477 

 Date and Time: October 23, 2007 - 9:30 a.m. 

 

 Sessions were held in connection with this investigation in the Main Hearing Room (room 101), 

500 E Street, S.W., Washington, D.C. 

MULTINATIONAL ORGANIZATION APPEARANCE:

Common Market for Eastern and Southern Africa (COMESA) 

Zambia, Africa 

 The Honorable Erastus Mwencha, Secretary General 

ORGANIZATION AND WITNESS: 

African Coalition for Trade, Inc. 

Washington, D.C. 

 Paul Ryberg, President 

Manchester Trade Ltd. 

Washington, D.C. 

 Stephen Lande, President 

-END-

APPENDIX D 

SUMMARY OF VIEWS OF INTERESTED 

PARTIES 

D-3 

Africa Coalition for Trade, Inc. 

The Africa Coalition for Trade, Inc. (ACT) states that it is a non-profit 

association representing private sector African companies who export to the 

United States under the African Growth and Opportunity Act (AGOA). ACT 

indicates that it has been involved in the development, implementation, and 

amendment of AGOA, and acts as one of the main spokespersons for the African 

private sector. 

In its submission, ACT credits AGOA’s quota free access and duty preferences 

for SSA increases in apparel exports during 2001–04. ACT states that AGOA 

preferences were more effective before the Multifiber Agreement (MFA) import 

restraints were removed in 2005, as U.S. apparel imports from SSA decreased 26 

percent during 2005–06. ACT claims that U.S. apparel imports from SSA 

declined due to increased competition from China. ACT concludes that AGOA 

preferences alone cannot sustain current levels of apparel trade that have 

developed in SSA since 2001. 

Erastus Mwencha Secretary General, Common Market 

for Eastern and Southern Africa (COMESA) 

In his statement, Erastus Mwencha, Secretary General, Common Market for 

Eastern and Southern Africa (COMESA) indicated that since the implementation 

of AGOA there have been remarkable changes in trade patterns between the 

United States and Africa. Ambassador Mwencha indicated that the Trade and 

Investment Framework Agreement has also proved a very good avenue for the 

various government entities that deal with trade to exchange ideas and provide 

services that support trade. Ambassador Mwencha indicated that since AGOA 

took effect in 2001, there has been an increase in trade flows between Africa and 

the United States, with African exports to the United States increasing from 

$15 billion in 2000 to $59 billion in 2006, and U.S. exports to Africa increasing 

from $6 billion to $12 billion. 

However, he indicated that exports from COMESA member countries declined 

from $3.5 billion in 2005 to $2.2 billion in 2006, likely because of the end of the 

MFA and competition in the textile and apparel sectors from producers in 

Bangladesh and China. Ambassador Mwencha indicated that despite the market 

access provided by AGOA and the comparative advantage that Africa enjoys in 

agriculture relative to the United States, exports to the United States have been 

limited because of supply issues such as the high cost of transportation, the 

limited coverage of agricultural products under AGOA, and pest risk assessment 

(PRA) and sanitary and phytosanitary (SPS) issues. He indicated that only six 

products from COMESA member states qualify to enter the U.S. market that 

have met PRAs—three for Zambia and three for Kenya—and that additional 

support for trade capacity is needed given the potential for increased exports. 
D-4 

He indicated that COMESA has developed a comprehensive agriculture 

development framework that seeks to expand investment and to address the 

millennium development goals. The ambassador indicated that this framework 

would also help Africa expand its own markets and help small scale farmers 

access the U.S. market. 

Manchester Trade, Ltd. 

As indicated by its website, Manchester Trade, Ltd. (Manchester) provides 

strategic trade and business advisory services to domestic and international 

clients in areas such as trade negotiations, export development, investment 

promotion, and legislative advocacy.1

 In its submission to the Commission, 

Manchester highlights trade policy and infrastructure as factors affecting the shift 

in textile and apparel exports from SSA countries.2

 

According to Manchester, there are three existing threats to the “viability” of 

AGOA exports: the end of Chinese safeguards in the end of 2008, potential 

legislation proposing duty-free quota-free preferences for other developing 

countries, and preferences for other countries from other trade agreements. It 

claims that in order for AGOA countries to continue to take advantage of trade 

liberalization and global trade, countries must carry out internal reforms and that 

the international community must offer resources towards Aid for Trade. 

Manchester added that poor infrastructure puts SSA countries at a disadvantage 

against their competitors, especially when considering factors such as power 

costs and availability, telecommunication networks, and overcrowded and 

outdated port facilities. Manchester concludes by recommending that USTR 

maintain special preferences for SSA countries for the next 8 to 10 years, while 

the international community works to improve SSA infrastructure. 

The Trade Law Center for Southern Africa (Tralac) 

The Trade Law Center for Southern Africa (Tralac), a not-for-profit organization 

that focuses on building trade law capacity in sub-Saharan African countries so 

that they can participate effectively in the global economy, identifies key factors 

that reportedly affect the trade patterns of the textiles and apparel industries in 

these countries. Tralac notes the Southern African region’s fabric and garment 

manufacturing has a long history based on an abundant supply of cotton and its 

countries enjoyed protection in key exports markets under the MFA and the 

WTO’s Agreement on Textiles and Clothing (ATC). 

 

1 http://www.manchestertrade.com/about.cfm (accessed December 17, 2007). 2

 Manchester also noted in its submission that it attached excerpts from a report entitled, Impact 

of the End of the MFA Quotas on COMESA’s Textile and Apparel Exports under AGOA, for 

additional information on factors including inputs, labor, technology, and investment. USAID East 

and Central Africa Trade Hub, Impact of the End of the MFA Quotas on COMESA’s Textile and 

Apparel Exports under AGOA, January 2005. 
D-5 

Tralac states that during the past three decades, however, Southern Africa’s 

textile and apparel sector has contracted and production has declined in the face 

of “unsuitable” economic policies, loss of comparative advantage, cheap imports, 

and difficulties accessing foreign markets. Tralac states that AGOA is widely 

credited as the single most important positive factor driving the region’s garment 

exports and attracting investment in new manufacturing capacity in Southern 

African countries. Tralac notes that the garment sector is an important employer 

in every country of the Southern African Customs Union (SACU): Botswana, 

Namibia, Lesotho, Swaziland, and South Africa. Tralac also notes that the 

garment sector is generally considered a key entry point to “economic 

upgrading” and diversification of agriculture- and minerals-based economies, and 

is known to offer one of the lowest investment costs for the creation of 

employment. 

Tralac emphasizes that favorable rules of origin for garment exports from AGOA 

less developed country (LDC) beneficiaries are the single most important driver 

of the garment sector in these countries. Tralac states that exports using the thirdcountry fabric provision comprise 99.9 percent of apparel exports in the SACU 

countries (except South Africa). However, the elimination of quotas under the 

MFA and lower U.S. tariffs have reduced preference margins for these countries 

relative to Asian competitors. Tralac notes that global value chain dynamics now 

require garment and textile exporters to supply products at a competitive price, 

on time, and within stringent product requirements. To be competitive, producers 

must be able to source their inputs from the most competitive suppliers 

worldwide. 

Tralac asserts that AGOA’s apparel provisions largely take into account the 

current global value chain dynamics and provide producers with the necessary 

flexibility to remain competitive. Tralac notes that AGOA distinctions between 

LDCs and non-LDCs in the rules of origin, and subsequent eligibility for dutyfree status, subject South Africa and Mauritius to much more stringent rules of 

origin. The “triple transformation requirement” has undermined South Africa’s 

exports to the United States and the differentiated rules of origin requirements 

under AGOA create confusion and make sourcing from the region less attractive 

for U.S. apparel buyers. 

Consequently, the textile and apparel sector in these four countries has expanded 

since 2000. In contrast, during the same period, South Africa’s textile and 

apparel production has contracted. In a final table, tralac summarizes and 

compares the key barriers to competitiveness and the principal factors driving 

apparel competitiveness in the apparel export sectors of the countries of BNLS 

with those of South Africa. 

The Whitaker Group 

The Whitaker Group, a private consultancy dedicated to supporting Africa’s 

development in the global economy and ensuring that AGOA helps grow African 

economies and markets, states that AGOA has led to a doubling of total exports 

from Africa over the life of the legislation and is credited with adding 150,000 
D-6 

textile, apparel, and related industry jobs. In 2006, the largest non-oil exports 

under AGOA came from Africa’s nascent apparel industry. Also, AGOA 

footwear exports increased by 6,000 percent during 2000-2005, albeit from a low 

base. 

The Whitaker Group cautions, however, that despite the growth in AGOA’s 

exports, AGOA countries face several important trade development challenges: 

1) weak private sector capacity; 2) insufficient access to credit and financing; 3) 

weak infrastructure; and 4) high transportation costs and long lead times to 

markets. These factors alone are enough to divert trade and investment from 

Africa to other regions. Furthermore, Africa’s textile and apparel industries face 

additional challenges; competition has intensified from other apparel suppliers 

since the 2005 expiration of the MFA. During 2004–06, apparel exports from 

China doubled and exports from other LDCs such as Bangladesh and Cambodia 

continued to grow at a double digit pace. 

The Whitaker Group also indicates that recent legislative changes also pose 

constraints, noting that the abundant supply provision in AGOA IV provides 

special rules for fabric or yarns that are produced in commercial quantities in 

designated sub-Saharan African countries for use in qualifying apparel with a 

special legislative determination for certain denim fabrics. The Whitaker Group 

states that subject to this rule certain apparel goods may be excluded from 

AGOA’s third country benefits and that the rule reduces the incentive for U.S. 

retailers and apparel manufacturers to source from AGOA beneficiary countries. 

The Whitaker group recommends that this provision be repealed. 

SSA apparel exports under AGOA will also face increased competition after 

December 2008 when the U.S. and EU safeguards on Chinese textiles expire, 

possibly leading to reduced SSA apparel export volumes and export prices in 

2008 and 2009. The Whitaker Group recommends renewing and further 

restricting the U.S. bilateral apparel and textile agreement with China. The 

Whitaker Group also voices concerns about the possible dilution of AGOA and 

potential of capital flight from Africa that could result from new preferential 

trade arrangements such as the new Partnership for Development Act, which 

would grant substantial trade preferences to all LDCs, including Bangladesh and 

Cambodia, if implemented. The Whitaker Group concludes that despite several 

daunting realities, U.S. efforts to promote trade and investment in Africa have 

supported some significant gains in recent years. However, the Whitaker Group 

states that the economic growth of sub-Saharan Africa hinges on efforts to create 

more robust trade initiatives; to enhance AGOA legislation that would eliminate 

the abundant supply provision; to include tax incentives for U.S. businesses that 

invest in value-added, labor intensive manufacturing in Africa; to expand AGOA 

to include additional products; and to encourage all OECD nations plus China to 

offer AGOA benefits. 

 
APPENDIX E 

HARMONIZED TARIFF SCHEDULE 

CATEGORIES 

E-3 

Table E.1 Harmonized tariff schedule categories included in selected industries 

Industry sector 

HTS headings or 

subheadings 

included Description 

Coffee 0901 Coffee, whether or not roasted or decaffeinated; coffee husks 

and skins; coffee substitutes containing coffee in any proportion 

0904 Pepper of the genus Piper; dried or crushed or ground fruits of 

the genus Capsicum (peppers) or of the genus Pimenta (e.g., 

allspice) 

0905 Vanilla beans 

0906 Cinnamon and cinnamon-tree flowers 

0907 Cloves (whole fruit, cloves and stems) 

0908 Nutmeg, mace and cardamoms 

0909 Seeds of anise, badian, fennel, coriander, cumin or 

caraway; juniper berries 

Spices 

0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry 

and other spices 

Tropical fruit 0803 Bananas and plantains, fresh or dried 

0804.30 Pineapples 

6401 Waterproof footwear with outer soles and uppers of rubber or 

plastics, the uppers of which are neither fixed to the sole nor 

assembled by stitching, riveting, nailing, screwing, plugging or 

similar processes 

6402 Other footwear with outer soles and uppers of rubber or plastics 

6403 Footwear with outer soles of rubber, plastics, leather or 

composition leather and uppers of leather 

6404 Footwear with outer soles of rubber, plastics, leather or 

composition leather and uppers of textile materials 

6405 Other footwear 

Footwear 

6406 Parts of footwear (including uppers whether or not 

attached to soles other than outer soles); removable 

insoles, heel cushions and similar articles; gaiters, 

leggings and similar articles, and parts thereof 

Natural rubber 4001 Natural rubber, balata, gutta-percha, guayule, chicle and similar 

natural gums, in primary forms or in plates, sheets or strip 

Processed 

diamonds 

7102.29 Diamonds, not mounted or set: Other than unworked or simply 

sawn, cleaved or bruted 

Textiles For this study, the U.S. International Trade Commission includes in the definition of 

textiles the following headings: 5004, 5005, 5006, 5007, 5105, 5106, 5107, 5108, 5109, 

5110, 5111, 5112, 5113, 5203, 5204, 5205, 5206, 5207, 5208, 5209, 5210, 5211, 5212, 

5306, 5307, 5308, 5309, 5310, 5311, 5407, 5408, 5507, 5508, 5509, 5521, 5511, 5512, 

5513, 5514, 5515, 5516, 56, 57, 58, 59, 60, and 63. 

9401.50 Seats of cane, osier, bamboo or similar materials 

9401.61 Other seats, with wooden frames, upholstered 

9401.69 Other seats, with wooden frames, other 

9403.30 Wooden furniture of a kind used in offices 

9403.40 Wooden furniture of a kind used in the kitchen 

9403.50 Wooden furniture of a kind used in the bedroom 

9403.60 Other wooden furniture 

Wood furniture 

9403.80 Furniture of other materials, including cane, osier, 

bamboo or similar materials 

Source: Compiled by Commission staff from U.S. International Trade Commission, Harmonized Tariff 

Schedule of the United States (2006). Use of the 2006 Harmonized Tariff Schedule corresponds with the 

last year of data analyzed in the study. 

APPENDIX F 

LEADING EXPORT SHIFTS FOR ALL 

SSA COUNTRIES 

F‐3

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($) 

HTS6 Description 2002 2003 2004 2005 2

ANGOLA 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 7,018,603,201 8,571,436,142 12,090,578,670 20,620,836,002 30,303,569

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 103,908,199 125,858,610 150,384,317 182,270,661 238,579

2711.12. Propane, liquefied 0 0 6,739,113 33,941,268 131,6012711.13. Butanes, liquefied 0 0 0 11,653,969 61,6202710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. from petro. Oils or bitum. Min. 12,315,565 15,238,900 22,715,245 45,592,491 72,794

7102.31. Diamonds, nonindustrial, unworked, or simply 

sawn, cleaved or bruted 496,268,666 274,438,777 137,592,187 670,423,536 554,921

2711.19. 

Petroleum gases and other gaseous hydrocarbons, liquified, nesoi 11,629,226 7,492,811 3,519,375 33,986,078 42,782

2516.11. Granite, crude or roughly trimmed 5,034,959 7,412,424 11,562,831 20,232,560 18,5822901.10. Acyclic hydrocarbons, saturated 0 0 0 0 10,6560307.49. 

Cuttle fish and squid, frozen, dried, salted or in brine 10,498,547 4,130,272 6,169,767 3,347,814 521

BENIN 

7404.00. Copper waste and scrap 164,608 12,964 2,728,260 18,075,019 60,3352710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 2,226 6,069,087 0 0 27,518

0801.31. Cashew nuts, fresh or dried, in shell 21,292,197 30,419,320 34,913,013 49,740,966 46,9245201.00. Cotton, not carded or combed 93,537,034 145,913,102 167,323,066 166,066,199 115,3314106.21. 

Hides and skins of goats or kids, without hair on, tanned but not further prepared, in the wet state (including wet-blue) 12,955,551 2,793,720 76,188 0 

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squred, not treated, nesoi 3,671,205 5,046,107 14,479,463 14,226,689 15,174

12SS.S9. [unspecified HS chapter 12 product] 0 0 7,509,683 590,368 10,997
F‐4

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 2402.20. Cigarettes containing tobacco 72,834 50 0 281,467 102844.30. 

Uranium and its compounds depleted in u235; thorium and its compounds; alloys and other products containing uranium depleted in u235 or thorium 6,454,289 0 7,031,598 0 

7204.49. Ferrous waste and scrap, nesoi 129,238 409,736 7,582,085 16,924,160 6

BOTSWANA 

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 246,379,858 1,758,604,416 2,415,945,400 3,443,862,360 2,618

7501.10. Nickel mattes 74,179,772 167,521,236 181,413,580 319,725,950 3797102.21. 

Diamonds, industrial, unworked or simply sawn, cleaved or bruted 1,487,182 5,231,503 12,670,032 28,898,764 142

7102.39. 

Diamonds, nonindustrial, worked, including polished or drilled 8,859,794 6,673,655 15,032,230 21,814,759 86

8544.30. 

Insulated ignition wiring sets and other wiring sets for vehicles, aircraft and ships 24,714,521 23,374,364 11,824,493 7,327,384 3

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 187,544 713,256 3,678,653 7,811,880 8

6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 647,422 1,043,605 2,193,889 6,870,962 4

8525.20. 

Transmission apparatus incorporating reception apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television 13,703 39,542 9,941 3,666,850 2

0511.99. 

Animal products, nesoi; dead horses and other equine animals, bovine animals, sheep, goats and poultry, unfit for human consumption, nesoi 0 0 0 3,618 2

6105.10. Men's or boys' shirts of cotton, knitted or crocheted 546 0 580,515 340,427 2

BURKINA FASO 

5201.00. Cotton, not carded or combed 84,476,738 119,908,761 204,199,497 234,165,226 254
F‐5

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 2402.90. 

Cigars, cheroots, cigarillos and cigarettes of tobacco substitutes, not containing tobacco 11,408,691 0 0 0 

0804.50. 

Guavas, mangoes and mangosteens, fresh or dried 913,805 2,687,009 2,911,464 3,511,619 5

0303.74. 

Mackerel (scomber scombrus, scomber australasicus, scomber japonicus), excluding 

fillets, livers and roes, frozen 5,025,829 26,641 0 0 

7108.13. 

Gold, nonmonetary, semimanufactured forms nesoi (other than powder) 0 0 0 1,567,241 4

8703.23. 

Passenger motor vehicles with spark-ignition internal combustion reciprocating piston engine, cylinder capacity over 1,500 cc but not over 3,000 cc 4,373,130 32,928 8,019 0 

8704.22. 

Motor vehicles for goods transport nesoi, with compression-ignition internal combustion piston engine (diesel), gvw over 5 but not over 20 metric tons 3,643,618 68,072 0 0 

4106.21. 

Hides and skins of goats or kids, without hair on, tanned but not further prepared, in the wet state (including wet-blue) 5,025,712 3,229,302 2,114,001 2,237,514 1

8506.11. 

Primary cells and primary batteries having an external volume not exceeding 300 cm3, manganese dioxide 2,839,572 0 0 0 

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 0 0 0 842,651 2

BURUNDI 

0901.11. Coffee, not roasted, not decaffeinated 18,324,917 30,755,078 20,327,376 69,553,777 318421.29. 

Filtering or purifying machinery and apparatus for liquids, nesoi 0 0 0 0 2

7102.39. 

Diamonds, nonindustrial, worked, including polished or drilled 0 1,782,255 4,867,328 3,267,301 2
F‐6

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 5201.00. Cotton, not carded or combed 270,167 359,109 0 237,185 29018.90. 

Instruments and appliances for medical, surgical or veterinary sciences, nesoi, and parts and accessories thereof 0 0 60 0 1

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 794,204 0 0 0 

0902.40. 

Black tea (fermented) and other partly fermented tea, nesoi 643,437 396,691 295,918 92,797 

2615.90. 

Niobium, tantalum and vanadium ores and concentrates 484,320 1,733,736 318,687 327,082 

8702.10. 

Motor vehicles for the transport of ten or more persons, with a compression-ignition internal combustion piston engine (diesel or semi-diesel) 0 0 0 0 

4403.20. 

Coniferous wood in the rough, whether or not stripped of bark or sapwood or roughly squared, not treated 117,483 0 0 0 

CAMEROON 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 840,716,779 1,085,469,882 1,504,993,983 1,593,738,790 2,666

7601.10. Aluminum, not alloyed, unwrought 52,845,526 73,774,418 112,136,692 118,085,948 2004407.29. 

Other tropical wood specified in subheading note 1 to this chapter, wood sawn or chipped lengthwise, sliced or peeled whether or not planed, sanded etc 209,705,029 265,744,402 331,157,788 365,150,865 345

1801.00. Cocoa beans, whole or broken, raw or roasted 120,821,370 257,442,348 202,666,163 259,318,914 2352710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 31,331,579 33,530,556 98,273,200 82,259,224 123

0803.00. Bananas and plantains, fresh or dried 135,855,961 215,985,328 214,072,629 226,974,467 2215201.00. Cotton, not carded or combed 72,311,464 82,536,763 122,564,602 84,608,831 118
F‐7

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4001.29. 

Natural rubber in primary forms or in plates, sheets or strip, nesoi 6,010,265 12,449,064 19,372,345 23,985,429 48

4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 22,815,431 24,254,214 20,549,142 14,968,271 53

0901.11. Coffee, not roasted, not decaffeinated 34,446,398 41,249,846 49,854,151 52,358,671 63

CAPE VERDE 

0303.42. 

Yellowfin tunas, (thunnus albacares), excluding fillets, livers and roes, frozen 7,030 0 0 7,910,701 11

0303.43. 

Skipjack or stripe-bellied bonito tunas, excluding fillets, livers and roes, frozen 0 0 0 2,827,296 6

9009.12. 

Electrostatic photocopying apparatus operating by reproducing the original image via an intermediate onto the copy (indirect process) 0 0 2,356 0 4

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 4,654,018 0 0 0 

8802.30. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 4,415,400 7,707,186 511,728 144,983 

8411.22. Turbopropellers of a power exceeding 1,100 kw 3,009,988 2,232,900 756,836 754,077 6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 808,205 955,745 2,064,718 1,334,766 2

8501.64. 

AC generators (alternators), of an output exceeding 750 kva 10,169 0 0 0 1

6205.20. 

Men's or boys' shirts of cotton, not knitted or crocheted 1,250,074 1,067,640 1,186,936 125,528 

6406.10. 

Footwear uppers and upper parts, except stiffeners 3,756,588 3,697,665 4,689,641 3,151,986 3
F‐8

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 

CENTRAL AFRICAN REPUBLIC 

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 125,156,899 31,799,430 22,243,779 4,012,483 2

7102.10. Diamonds, unsorted 2,798,430 21,911,252 32,723,621 40,679,528 364403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 21,492,994 36,721,063 39,228,410 37,444,562 39

4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 5,674,208 3,328,191 5,333,948 4,446,657 2

4407.29. 

Other tropical wood specified in subheading note 1 to this chapter, wood sawn or chipped lengthwise, sliced or peeled whether or not planed, sanded etc 7,744,794 7,334,717 5,397,182 6,011,804 9

5201.00. Cotton, not carded or combed 11,425,646 15,488,715 11,035,387 9,385,398 90901.11. Coffee, not roasted, not decaffeinated 2,516,206 2,673,237 708,705 1,202,010 14907.00. 

Unused postage, stamp-impressed paper, check forms, bank notes, stock, share or bond certificates and similar documents of title, etc. 0 0 0 0 

7102.39. 

Diamonds, nonindustrial, worked, including polished or drilled 0 0 5,647,337 2,679,380 

7204.49. Ferrous waste and scrap, nesoi 0 35,245 240,723 202,994 

CHAD 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 19,358 14,438,044 1,087,829,269 1,532,080,086 2,178

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 0 3,432,305 88,959,338 409,584,354 93

1301.20. Gum arabic 8,973,560 8,774,055 13,978,119 31,792,279 39
F‐9

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 5201.00. Cotton, not carded or combed 49,393,151 61,699,292 71,111,351 54,859,521 678802.40. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 15,000 kg 3,538,657 0 35,524,746 40,464,985 5

8471.70. Automatic data processing storage units, nesoi 3,810 2,602 13,045 876,187 13304.99. 

Beauty or make-up preparations and preparations for care of the skin (excluding medicaments) nesoi, including sunscreens and suntan preparations 0 0 0 0 

8471.41. 

Adp machines comprising in same housing at least a central processing unit and an input and output unit, whether or not combined, nesoi 22,385 4,288 380 17,468 

1301.90. 

Natural gums, gum resins, resins and balsams, nesoi 285,667 0 91,800 0 

9014.20. 

Instruments and appliances for aeronautical or space navigation (other than compasses) 295,497 0 97,204 0 

COMOROS 

0905.00. Vanilla beans 14,697,556 23,676,248 20,999,865 4,259,588 29009.12. 

Electrostatic photocopying apparatus operating by reproducing the original image via an intermediate onto the copy (indirect process) 0 0 0 0 11

8903.92. Motorboats, other than outboard motorboats 15,052 7,367 348,000 0 43301.29. Essential oils, nesoi 3,207,939 3,125,633 2,991,155 3,897,710 48542.21. Electronic monolithic digital integrated circuits 0 0 38,617 0 8908.00. 

Vessels and floating structures for breaking up (scrapping) 0 0 1,778,095 602,940 

8901.20. Tankers for the transport of goods 663,747 279,639 0 0 
F‐10

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 0 0 0 0 

2901.29. Acyclic hydrocarbons, unsaturated, nesoi 6,853 8,575 2,198 2,903 0603.90. 

Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, dried, dyed, bleached, impregnated or otherwise prepared 98,949 0 50 0 

REPUBLIC OF THE CONGO 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 1,625,189,250 2,114,043,899 3,268,857,551 4,965,944,458 7,905

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 57,694,946 138,044,465 143,358,035 169,205,455 229

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squred, not treated, nesoi 96,253,943 149,552,407 218,851,933 190,942,797 166

2605.00. Cobalt ores and concentrates 7,996,555 21,995,940 99,120,075 72,816,804 727402.00. 

Unrefined copper; copper anodes for electrolytic refining 1,540,913 447,804 849,408 10,820,712 61

2603.00. Copper ores and concentrates 24,717 8,046,227 13,816,354 23,886,030 578105.20. 

Cobalt mattes and other intermediate products of cobalt metallurgy; unwrought cobalt; powders 9,790,746 14,236,392 35,907,417 34,454,897 59

7403.11. Refined copper cathodes and sections of cathodes 7,460,357 4,490,369 914,473 9,828,748 337102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 28,529,768 42,378,708 34,401,424 5,736,358 5

2609.00. Tin ores and concentrates 918,267 2,754,524 7,380,271 23,230,393 22
F‐11

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 

CÔTE d'IVOIRE 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 89,073,116 163,160,838 337,784,706 557,754,997 956

4001.22. 

Technically specified natural rubber (tsnr) in primary forms or in plates, sheets or strip 60,128,066 79,498,326 105,702,132 124,923,215 214

8802.40. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 15,000 kg 137,432,792 0 0 0 

1801.00. Cocoa beans, whole or broken, raw or roasted 1,435,635,076 2,002,246,406 1,731,307,054 1,677,701,382 1,5601804.00. Cocoa butter, fat and oil 143,052,489 223,635,736 227,383,218 271,393,997 2642710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 41,921,747 18,956,857 34,858,918 151,591,395 154

1803.10. Cocoa paste, not defatted 232,183,514 280,465,386 299,496,361 317,934,200 3190801.31. Cashew nuts, fresh or dried, in shell 49,410,188 46,061,764 80,449,867 114,334,110 1260803.00. Bananas and plantains, fresh or dried 117,396,239 164,304,082 190,598,546 171,527,101 1897102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 53,918,091 1,270,683 0 0 

DJIBOUTI 

0901.11. Coffee, not roasted, not decaffeinated 57,139 158,620 394,766 1,077,552 24102.21. 

Sheep or lamb skins, without wool on, pickled, whether or not split 14,369 211,623 0 919,020 1

7404.00. Copper waste and scrap 168,082 0 537,753 316,390 13004.90. 

Medicaments, in measured doses, etc. (excluding vaccines, etc., coated bandages etc. And pharmaceutical goods), nesoi 813,177 0 9,702 0 

7204.49. Ferrous waste and scrap, nesoi 0 147,404 1,280,696 1,874,557 
F‐12

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 0 0 0 0 

2501.00. 

Salt (incl table & denatured salt) & pure sodium chloride, wheth/nt in aqueous solution or containg added anticaking or free flowing agts; sea water 4,578 0 1,601 0 

0307.99. 

Molluscs and other aquatic invertebrates nesoi, frozen, dried, salted or in brine 527,058 691,750 142,198 0 

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 603,000 0 0 0 1

1207.40. Sesame seeds, whether or not broken 73,811 31,963 0 518,904 

EQUATORIAL GUINEA 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 1,714,412,601 2,407,646,526 3,927,542,920 6,095,877,904 7,637

2905.11. Methanol (methyl alcohol) 79,639,648 160,771,451 129,634,895 220,288,902 2032711.12. Propane, liquefied 0 5,390,356 0 34,374,688 1712711.13. Butanes, liquefied 3,216,489 2,172,745 432,478 40,934,763 794403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squred, not treated, nesoi 44,241,259 96,892,433 81,197,859 72,211,281 75

2711.19. 

Petroleum gases and other gaseous hydrocarbons, liquified, nesoi 4,714,738 0 0 4,969,647 20

4408.39. 

Veneer sheets and sheets for plywood and other wood sawn lengthwise, sliced or peeled, thickness not over 6 mm, other tropical wood, nesoi 9,310,283 10,703,044 19,075,943 20,511,883 20

2710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 4,048 7,679,951 10 1,056,097 8
F‐13

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 29,942,620 17,622,759 7,719,114 21,260,020 36

29SS.S5. [Unspecified HS chapter 29 product] 4,490,536 2,877,702 11,139,253 0 

ERITREA 

8431.43. Parts for boring or sinking machinery, nesoi 70 0 0 0 10307.99. 

Molluscs and other aquatic invertebrates nesoi, frozen, dried, salted or in brine 0 0 194,591 1,027,219 

6205.20. 

Men's or boys' shirts of cotton, not knitted or crocheted 0 0 0 475,184 

8541.90. 

Parts for diodes, transistors and similar semiconductor devices; parts for photosensitive semiconductor devices and mounted piezoelectric crystals 581,423 5,484,560 2,396,002 0 

8436.10. Machinery for preparing animal feeds 0 0 0 279,687 8532.29. Fixed capacitors, nesoi 559,945 619,786 0 0 0201.30. Meat of bovine animals, boneless, fresh or chilled 515,967 0 0 0 8473.30. 

Parts and accessories for automatic data processing machines and units thereof, magnetic or optical readers, transcribing machines, etc., nesoi 643,341 54,896 8,588 3,192 

7404.00. Copper waste and scrap 0 0 0 0 0306.13. 

Shrimps and prawns, including in shell, cooked by steaming or by boiling in water, frozen 402,259 439,045 371,459 0 

ETHIOPIA 

0901.11. Coffee, not roasted, not decaffeinated 136,609,708 162,890,718 213,003,846 313,786,616 3431207.40. Sesame seeds, whether or not broken 27,112,146 44,765,277 63,589,856 141,277,131 169
F‐14

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 0603.10. 

Cut flowers and flower buds, fresh, of a kind suitable for bouquets or for ornamental purposes 1,930,025 5,183,590 7,010,983 12,948,639 31

4105.30. 

Sheep or lamb skins, without wool on, tanned but not further prepared, in the dry state (crust) 2,737,702 1,854,903 3,357,938 7,366,624 18

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 12,100,902 0 0 0 

0708.20. 

Beans (vigna spp., phaseolus spp.), fresh or 

chilled 3,412,197 4,653,423 6,472,077 9,122,071 15

0602.10. Live plant cuttings and slips, unrooted 0 0 0 3,093,334 97601.10. Aluminum, not alloyed, unwrought 0 0 0 0 94102.21. 

Sheep or lamb skins, without wool on, pickled, whether or not split 30,929,828 28,613,180 27,442,490 27,122,655 22

1806.10. 

Cocoa powder, containing added sugar or other sweetening matter 0 0 4,536,455 0 8

GABON 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 1,971,073,085 2,407,357,335 2,843,389,676 3,397,505,963 2,867

2602.00. 

Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, based on dry weight 133,883,621 138,610,198 268,447,407 318,257,958 339

8802.30. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 183,061,941 133,215,320 112,308,140 51,217,277 

4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 100,838,173 75,589,724 92,892,692 157,414,184 197

4408.39. 

Veneer sheets and sheets for plywood and other wood sawn lengthwise, sliced or peeled, thickness not over 6 mm, other tropical wood, nesoi 49,319,384 67,879,208 87,367,168 93,357,876 98
F‐15

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4407.29. 

Other tropical wood specified in subheading note 1 to this chapter, wood sawn or chiped lengthwise, sliced or peeled whether or not planed, sanded etc 21,511,051 33,227,926 50,470,262 57,735,448 61

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squred, not treated, nesoi 297,092,904 354,472,434 368,742,077 361,875,329 326

4001.22. 

Technically specified natural rubber (tsnr) in primary forms or in plates, sheets or strip 701,515 1,175,169 234,208 977,638 18

4412.13. 

Plywood With At Least One Outer Ply Of Tropical Wood Specified In Subheading Note 1 To This Chapter, Consisting Solely Of Sheets Of Wood <6mm In Thick 12,584,025 16,513,446 18,134,789 19,682,156 23

2710.29. 

Petroleum oils and oils from bituminous minerals (other than crude) and products thereof, nesoi, containing 70% (by weight) or more of these oils, unspecified 10,081,214 0 0 0 

THE GAMBIA 

0801.31. Cashew nuts, fresh or dried, in shell 4,112,627 3,803,525 7,130,872 11,396,246 151508.10. 

Peanut (ground-nut) oil and its fractions, crude, not chemically modified 9,910,528 1,591,630 8,573,754 0 4

2305.00. 

Peanut (ground-nut) oilcake and other solid residues resulting from the extraction of peanut (ground-nut) oil, whether or not ground or in pellets 2,345,475 0 490,583 0 

2933.61. Melamine 0 0 0 0 10804.50. 

Guavas, mangoes and mangosteens, fresh or dried 435,959 987,175 1,063,057 1,148,681 1

1804.00. Cocoa butter, fat and oil 916,329 0 0 0 7204.49. Ferrous waste and scrap, nesoi 42,540 0 463,449 877,565 0304.20. Fish fillets, frozen 1,312,133 740,594 603,558 583,604 
F‐16

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 1207.40. Sesame seeds, whether or not broken 24,692 351,195 838,416 850,843 1202.20. 

Peanuts (ground-nuts), not roasted or otherwise cooked, shelled, whether or not broken 2,580,309 1,075,418 1,049,827 1,880,777 3

GHANA 

1801.00. Cocoa beans, whole or broken, raw or roasted 535,384,900 777,122,806 908,055,106 933,356,728 1,1017102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 331,898,486 104,942,212 106,079,134 147,014,587 54

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 141,754,636 112,502,984 39,413,175 4,780,177 1

7601.10. Aluminum, not alloyed, unwrought 141,436,041 106,952,141 12,877,890 11,022,320 727601.20. Aluminum alloys, unwrought 24,503,688 4,603,438 225,550 2,216,453 871803.10. Cocoa paste, not defatted 21,666,604 28,061,862 46,613,900 46,290,305 662602.00. 

Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, based on dry weight 74,115,058 101,802,837 124,440,893 140,054,685 110

0801.31. Cashew nuts, fresh or dried, in shell 2,950,096 20,042,099 21,657,574 28,274,602 312710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 23,067,628 31,543,318 47,735,964 62,531,076 48

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 6,058,180 4,462,079 5,706,114 20,486,518 22

GUINEA 

2606.00. Aluminum ores and concentrates 398,258,829 369,059,156 439,641,820 579,401,918 5462709.00. 

Petroleum oils and oils from bituminous minerals, crude 123,027,940 74,129,636 41,887,766 82,689,763 215
F‐17

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 2603.00. Copper ores and concentrates 61,723,737 58,999,790 101,003,952 95,546,315 1292818.20. Aluminum oxide, except artificial corundum, nesoi 111,395,052 135,782,925 168,650,276 211,897,709 1767102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 104,880,461 60,118,102 59,169,123 59,711,629 54

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 35,026,950 42,202,123 40,204,535 2,674,297 

0901.11. Coffee, not roasted, not decaffeinated 5,225,671 16,770,549 13,968,662 15,289,258 358802.40. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 15,000 kg 0 0 0 0 25

1801.00. Cocoa beans, whole or broken, raw or roasted 2,246,695 28,578,252 9,804,059 27,801,368 242616.90. 

Precious metal ores and concentrates, other than silver 255,627 2,292,066 577,993 7,802,439 9

GUINEA-BISSAU 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 24,503,429 0 26,131,159 0 

0801.31. Cashew nuts, fresh or dried, in shell 47,070,625 51,535,910 68,388,203 93,065,535 428802.12. 

Helicopters of an unladen weight exceeding 2,000 kg 3,143,137 0 0 0 

5201.00. Cotton, not carded or combed 2,981,520 1,567,375 267,584 0 0303.79. 

Fish, nesoi, excluding fillets, livers and roes, frozen 2,530,390 1,973,169 1,401,506 1,341,027 1

0307.49. 

Cuttle fish and squid, frozen, dried, salted or in brine 1,208,144 1,802,195 1,920,605 946,647 

0303.39. 

Flat fish, nesoi, excluding fillets, livers and roes, frozen 797,029 0 5,106,907 1,285,347 1

0306.13. 

Shrimps and prawns, including in shell, cooked by steaming or by boiling in water, frozen 610,652 884,185 424,669 534,826 
F‐18

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 356,385 188,502 135,223 0 

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 317,377 196,396 605,318 665,437 

KENYA 

0603.10. 

Cut flowers and flower buds, fresh, of a kind suitable for bouquets or for ornamental purposes 191,674,741 246,684,981 308,308,221 357,048,667 419

0708.20. 

Beans (vigna spp., phaseolus spp.), fresh or 

chilled 57,252,088 75,257,337 98,454,896 106,099,324 132

6204.62. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 51,100,545 80,960,908 125,085,286 138,208,071 122

6908.90. 

Glazed ceramic flags and paving, hearth or wall tiles nesoi 298,351 253,850 48,588 578,544 58

0901.11. Coffee, not roasted, not decaffeinated 95,208,421 104,669,104 110,823,851 141,388,615 1510902.40. 

Black tea (fermented) and other partly fermented tea, nesoi 178,056,122 166,778,067 192,044,715 192,569,484 225

0708.10. Peas (pisum sativum), fresh or chilled 15,643,314 20,206,329 38,201,032 50,724,074 562710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 65,044,632 65,167,776 74,280,959 104,274,654 30

8802.40. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 15,000 kg 10,437,080 5,000 16,187,909 59,375,535 41

0709.90. Vegetables, nesoi, fresh or chilled 55,715,822 56,096,570 37,012,591 26,609,230 25

LESOTHO 

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 5,463,998 4,519,698 36,296,789 73,333,675 95
F‐19

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 63,443,738 74,103,269 98,249,861 105,279,668 91

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 91,963,146 108,666,781 134,013,883 115,187,400 111

6104.63. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibers, knitted or crocheted 7,977,883 10,331,547 18,248,925 14,183,286 17

6103.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, knitted or crocheted 5,547,421 15,584,935 12,098,054 8,273,683 14

6106.10. 

Women's or girls' blouses and shirts of cotton, knitted or crocheted 18,105,257 10,215,878 7,160,539 7,480,618 10

6109.10. 

T-shirts, singlets, tank tops and similar garments of cotton, knitted or crocheted 7,817,387 13,270,197 24,504,700 18,334,209 15

6104.62. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, knitted or crocheted 18,164,618 23,285,422 24,702,060 21,745,681 24

6110.30. 

Sweaters, pullovers, sweatshirts, vests and similar articles of manmade fibers, knitted or crocheted 23,481,870 25,727,726 31,067,565 25,803,082 18

6105.20. 

Men's or boys' shirts of manmade fibers, knitted or crocheted 5,023,926 5,004,021 1,025,287 391,217 

LIBERIA 

8901.20. Tankers for the transport of goods 128,354,471 22,337,555 348,923,296 457,880,243 3672709.00. 

Petroleum oils and oils from bituminous minerals, crude 0 13,550,819 0 0 236

8901.30. Refrigerated vessels, other than tankers 0 0 776,100 6,813,515 1054001.10. Natural rubber latex, whether or not prevulcanized 47,199,308 57,063,763 84,465,856 92,649,672 1308901.10. 

Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry boats of all kinds 87,891,873 147,072,166 22,477,732 5,332,740 13
F‐20

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 71,971,209 42,950,048 0 0 

4403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 63,726,357 51,129,160 0 0 

8905.20. 

Floating or submersible drilling or production 

platforms 0 0 0 106,895,177 51

4001.22. 

Technically specified natural rubber (tsnr) in primary forms or in plates, sheets or strip 14,187,210 18,243,257 36,929,624 38,453,550 57

8901.90. 

Vessels nesoi, for the transport of goods, and other vessels nesoi, for the transport of both persons and goods 260,950,741 899,452,499 974,030,099 594,678,504 229

MADAGASCAR 

0905.00. Vanilla beans 190,305,875 274,413,662 195,903,464 65,163,584 666204.62. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 20,769,165 63,904,634 92,628,209 85,993,299 84

6110.12. 

Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of kashmir (cashmere) goats 21,613,505 40,611,535 61,794,323 61,793,584 84

6110.11. 

Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of wool 11,243,076 22,113,070 24,767,147 32,385,997 50

6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 29,042,813 32,676,953 60,506,971 65,441,574 52

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 38,277,386 49,230,774 98,635,844 79,773,772 55

6105.10. 

Men's or boys' shirts of cotton, knitted or crocheted 7,055,092 6,850,577 3,430,742 7,171,545 20
F‐21

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 0901.11. Coffee, not roasted, not decaffeinated 3,367,684 5,342,788 6,376,747 5,390,448 161604.14. 

Tunas, skipjack and bonito (sarda spp), prepared or preserved, whole or in pieces, but not minced 35,124,442 54,132,732 53,484,784 49,713,284 46

6110.30. 

Sweaters, pullovers, sweatshirts, vests and similar articles of manmade fibers, knitted or crocheted 3,221,521 13,234,482 19,678,481 16,457,603 11

MALAWI 

2401.20. Tobacco, partly or wholly stemmed/stripped 262,648,034 275,224,083 235,310,770 340,572,897 3031701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 26,437,382 56,739,285 49,245,334 45,662,683 43

5201.00. Cotton, not carded or combed 4,457,588 4,874,056 14,938,852 11,017,551 160902.40. 

Black tea (fermented) and other partly fermented tea, nesoi 47,091,004 47,881,418 40,165,425 41,674,201 37

1005.10. Corn (maize) seed, certified, excluding sweet corn 281,301 572,076 587,008 643,603 66203.19. 

Men's or boys' suits of textile materials nesoi, not knitted or crocheted 0 713,847 1,720,187 5,057,986 5

6203.43. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibers, not knitted or crocheted 4,943,501 1,356,026 1,095,582 382,702 

2401.10. Tobacco, not stemmed/stripped 10,617,470 12,479,024 9,397,505 12,399,266 66109.10. 

T-shirts, singlets, tank tops and similar garments of cotton, knitted or crocheted 685 70,505 285,835 1,079,498 4

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 723,369 620,821 4,872,873 4,723,321 4

MALI 

5201.00. Cotton, not carded or combed 124,610,932 156,958,037 229,042,395 181,278,008 204
F‐22

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 1207.40. Sesame seeds, whether or not broken 118,771 111,088 209,657 758,158 88003.00. Tin bars, rods, profiles and wire 0 0 0 0 40804.50. 

Guavas, mangoes and mangosteens, fresh or dried 1,136,457 2,577,044 3,825,648 4,334,248 5

1006.40. Rice, broken 3,842,101 0 0 0 1701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 3,168,123 302 0 0 

8473.30. 

Parts and accessories for automatic data processing machines and units thereof, magnetic or optical readers, transcribing machines, etc., nesoi 5,253,926 516,992 1,673,255 1,317,650 2

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 267,505 216,333 0 77,611 2

9705.00. 

Collections and collectors' pieces of zoological, botanical, mineralogical, historical, archaelogical, numismatic or other interest 575,855 160,525 185,968 164,505 2

7112.91. 

Gold waste and scrap, including metal clad with gold but excluding sweepings containing other 

precious metals 328,033 363,154 0 0 2

MAURITANIA 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 300 0 1,047 7,921 564

2601.11. 

Iron ore concentrates (other than roasted iron pyrites) and non-agglomerated iron ores 221,071,918 221,079,140 333,776,175 399,522,495 505

0307.59. Octopus, frozen, dried, salted or in brine 88,228,137 135,372,623 149,694,513 173,063,605 1530303.74. 

Mackerel (scomber scombrus, scomber australasicus, scomber japonicus), excluding 

fillets, livers and roes, frozen 20,073,868 19,213,659 44,793,039 87,235,653 71

2601.12. Agglomerated iron ores 16,976,556 23,642,686 43,577,131 66,491,973 48
F‐23

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 0303.71. 

Sardines (sardina pilchardus, sardinops spp.) Sardinella (sardinella spp.), brisling or sprats (sprattus sprattus) no fillets, livers or roes, frozen 22,827,502 24,692,091 24,638,692 62,262,876 52

0303.79. 

Fish, nesoi, excluding fillets, livers and roes, frozen 30,571,473 37,145,807 49,437,979 67,930,807 50

8479.90. 

Parts of machines and mechanical appliances having individual functions, nesoi 4,371 141,885 12,145 432,369 6

0307.49. 

Cuttle fish and squid, frozen, dried, salted or in brine 23,217,022 14,618,849 23,516,551 23,056,623 16

9015.90. 

Parts etc. For rangefinders and surveying, hydrographic, ocean ographic, hydrological, meteorological or geophysical instruments and appliances nesoi 1,569 748,163 265,054 5,278,183 4

MAURITIUS 

1604.14. 

Tunas, skipjack and bonito (sarda spp), prepared or preserved, whole or in pieces, but not minced 66,583,211 68,069,149 82,157,449 92,688,938 179

8802.40. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 15,000 kg 103,027,765 358,935,000 87,549,000 0 

6109.10. 

T-shirts, singlets, tank tops and similar garments of cotton, knitted or crocheted 199,816,655 252,160,968 310,349,230 278,278,072 294

6204.62. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 93,086,066 103,062,266 62,677,446 21,957,711 8

6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 107,301,572 95,079,945 59,414,980 36,828,396 44

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 51,202,517 14,678,442 2,057,273 466,931 

6110.11. 

Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of wool 78,801,559 67,289,292 46,291,787 34,063,422 32
F‐24

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 1701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 297,514,581 298,199,070 361,321,067 378,576,929 333

6205.20. 

Men's or boys' shirts of cotton, not knitted or crocheted 87,320,023 90,486,231 112,418,511 123,257,571 119

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 87,941,672 100,573,088 89,350,298 69,438,487 64

MOZAMBIQUE 

7601.10. Aluminum, not alloyed, unwrought 406,481,238 527,003,564 861,632,133 1,036,884,540 1,3502710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 670,205 2,161,470 66,718,276 88,825,495 97

2401.20. Tobacco, partly or wholly stemmed/stripped 21,837,795 38,143,787 41,382,996 67,167,967 1047601.20. Aluminum alloys, unwrought 29,505,706 25,172,095 51,649,383 59,990,879 571005.90. Corn (maize), other than seed corn 30,433,111 4,826,473 2,437,996 1,207,320 24403.99. 

Nonconiferous wood in the rough, nesoi, whether or not stripped of bark or sapwood or roughly squared, not treated 20,813,256 28,351,219 30,088,932 41,971,659 47

1001.90. Wheat (other than durum wheat), and meslin 0 96,888 0 2,123,725 171701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 24,707,558 16,214,050 20,300,557 33,610,984 39

5201.00. Cotton, not carded or combed 18,090,252 29,263,396 23,186,668 23,526,118 332716.00. Electrical energy 14,050,396 0 0 0 

NAMIBIA 

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 4,298,689 132,566,508 435,461,380 662,593,703 1,014

7901.11. 

Zinc, not alloyed, containing 99.9% or more by weight of zinc, unwrought 0 25,341,816 107,647,121 133,419,999 385
F‐25

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 2844.10. 

Natural uranium and its compounds; uranium alloys, dispersions, ceramic products and mixtures containing natural uranium or natural uranium compounds 91,015,990 84,250,463 129,011,937 167,626,972 251

7402.00. 

Unrefined copper; copper anodes for electrolytic refining 37,451,912 55,727,652 57,207,193 66,226,522 154

7901.12. 

Zinc, not alloyed, containing under 99.99% zinc by weight. Unwrought 0 0 13,305,004 12,140,378 55

0304.20. Fish fillets, frozen 106,541,333 179,157,279 171,723,259 159,307,415 1538802.30. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 42,729,733 50,361,358 149,185,480 57,928,560 1

0806.10. Grapes, fresh 12,460,050 12,889,143 16,059,214 28,322,715 372607.00. Lead ores and concentrates 6,182,518 6,645,277 9,677,068 9,586,937 300303.74. 

Mackerel (scomber scombrus, scomber australasicus, scomber japonicus), excluding 

fillets, livers and roes, frozen 1,160,900 4,608,732 1,531,087 41,606,608 19

NIGER 

2844.10. 

Natural uranium and its compounds; uranium alloys, dispersions, ceramic products and mixtures containing natural uranium or natural uranium compounds 58,230,545 74,386,572 134,597,437 140,514,806 163

2710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 9,035,465 839,505 22,826,340 59,711,543 81

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 219 18,864 0 4,695 30

2711.11. Natural gas, liquefied 9,735,337 0 0 0 9701.10. 

Paintings, drawings and pastels, hand executed works of art, framed or not framed 111,830 59,931 0 274,110 5
F‐26

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 7204.30. Tinned iron or steel waste and scrap 4,992,447 0 0 0 26SS.S2. [Unspecified HS chapter 26 product] 3,602,691 1,883,541 0 0 8479.89. 

Machines and mechanical appliances having individual functions, nesoi 0 58,904 2,635 0 3

1006.40. Rice, broken 2,908,251 0 0 0 1006.30. 

Rice, semi-milled or wholly milled, whether or not polished or glazed 2,507,977 0 0 0 

NIGERIA 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 14,543,061,652 21,230,850,359 30,415,238,089 40,030,570,453 53,355

2711.11. Natural gas, liquefied 421,206,686 1,021,939,569 1,159,383,523 1,414,456,170 3,0962710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 99,656,588 167,601,201 206,025,482 505,712,645 535

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 343,548,471 281,235,622 339,390,717 763,801,973 660

2711.13. Butanes, liquefied 104,211,355 91,847,589 280,894,398 353,282,250 3812700.00. 

Mineral fuels, mineral oils and products of their 

distillation; bituminous substances; mineral waxes, 

unspecified 154,223,034 215,699,641 161,178,861 201,938,580 

2711.19. 

Petroleum gases and other gaseous hydrocarbons, liquified, nesoi 38,250,255 72,546,947 62,779,433 80,432,735 190

2711.12. Propane, liquefied 127,619,788 95,720,170 182,020,906 262,482,868 2398802.30. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 40,769,476 30,648,149 88,692,036 3,402,518 3

1801.00. Cocoa beans, whole or broken, raw or roasted 274,062,224 479,963,837 346,319,189 440,802,480 307
F‐27

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 

RWANDA 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 58,821,864 65,659,162 251,194,668 0 

0901.11. Coffee, not roasted, not decaffeinated 19,346,371 15,703,805 31,695,272 44,198,627 532611.00. Tungsten ores and concentrates 1,123,878 1,156,992 1,709,074 4,521,219 112615.90. 

Niobium, tantalum and vanadium ores and concentrates 16,890,264 11,153,182 20,254,927 16,557,283 23

2609.00. Tin ores and concentrates 1,456,710 1,844,205 9,577,068 8,524,822 47102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 920,430 119,944 0 0 

5513.11. 

Woven fabrics of polyester staple fibers, under 85% (wt.) Of such fibers, unbleached or bleached, plain weave, mixed with cotton, not over 170 g/m2 806,900 201,684 495,214 241,447 

7902.00. Zinc waste and scrap 0 0 0 0 0902.40. 

Black tea (fermented) and other partly fermented tea, nesoi 1,997,987 844,616 1,346,834 1,584,617 1

4106.21. 

Hides and skins of goats or kids, without hair on, tanned but not further prepared, in the wet state (including wet-blue) 141,835 0 133,483 235,871 

SÃO TOMÉ & PRINCIPE 

8471.70. Automatic data processing storage units, nesoi 23,520 316 5,022 0 18470.50. Cash registers 0 0 0 5,337,896 1801.00. Cocoa beans, whole or broken, raw or roasted 5,192,058 8,663,265 4,589,953 4,473,242 50307.99. 

Molluscs and other aquatic invertebrates nesoi, frozen, dried, salted or in brine 401,954 3,026 0 0 

8482.30. Spherical roller bearings 0 0 0 0 
F‐28

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4407.10. 

Coniferous wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, etc., over 6 mm (.236 in.) thick 272,440 0 0 0 

0000.00. [Unspecified product] 240,489 4,019 0 0 1210.10. 

Hop cones, neither ground nor powdered nor in the form of pellets, fresh or dried 197,077 0 0 0 

8521.10. 

Video recording or reproducing apparatus (whether or not incorporating a video tuner), magnetic tape-type 0 0 0 0 

8541.40. 

Photosensitive semiconductor devices, including 

photovoltaic cells; light-emitting diodes 10 23 111,721 356,861 

SENEGAL 

2809.20. Phosphoric acid and polyphosphoric acids 163,663,121 121,378,328 146,068,884 259,355,472 857310.29. 

Tanks, casks, drums, cans, boxes and similar plain, unfitted containers nesoi, of a capacity of 

less than 50 liters (13.21 gal.), of iron or steel 45,204,635 1,691 20,387 0 

0307.59. Octopus, frozen, dried, salted or in brine 62,212,337 71,039,519 56,146,756 44,072,092 310303.79. 

Fish, nesoi, excluding fillets, livers and roes, frozen 15,033,536 20,231,059 27,746,797 28,486,824 34

5201.00. Cotton, not carded or combed 8,730,085 20,223,601 24,016,427 19,247,757 238004.00. Tin plates, sheets and strip over 0.2 mm thick 14,947,002 0 0 0 7404.00. Copper waste and scrap 1,808,358 2,028,684 3,805,838 4,004,926 142510.20. 

Natural calcium phosphates, natural aluminum calcium phosphates and phosphatic chalk, ground 10,617,810 3,838,705 2,213 1,307 

7204.49. Ferrous waste and scrap, nesoi 951,461 3,381,557 6,448,371 8,515,701 91604.14. 

Tunas, skipjack and bonito (sarda spp), prepared or preserved, whole or in pieces, but not minced 21,351,308 27,385,760 24,117,873 26,043,158 13
F‐29

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 

SEYCHELLES 

0303.79. 

Fish, nesoi, excluding fillets, livers and roes, frozen 44,891,080 13,648,679 7,628,986 5,762,283 3

0303.42. 

Yellowfin tunas, (thunnus albacares), excluding fillets, livers and roes, frozen 23,516,966 36,443,703 54,113,412 68,946,445 56

1604.14. 

Tunas, skipjack and bonito (sarda spp), prepared or preserved, whole or in pieces, but not minced 173,834,263 189,180,520 176,783,549 183,512,653 204

2710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 13,855,349 11,623,368 10,048,208 31,320,824 40

0304.20. Fish fillets, frozen 16,298,018 557,837 144,339 34,720 9021.10. 

Orthopedic or fracture appliances, and parts and accessories thereof 0 2,126 2,710 334,096 11

0303.44. 

Bigeye tunas (thunnas obesus), frozen, excluding 

fillets, other meat portions, livers and roes 9,868,422 13,759,852 23,849,839 23,822,108 20

9018.90. 

Instruments and appliances for medical, surgical or veterinary sciences, nesoi, and parts and accessories thereof 11,347,678 11,610,782 16,272,812 20,558,896 3

2710.11. 

Light oils and preparations from petroleum oils & oils from bituminous min. Or preps 70%+ by wt. From petro. Oils or bitum. Min. 0 5,088,968 3,588,669 6,550,555 7

9018.39. 

Medical etc. Needles nesoi, catheters, cannulae and the like; parts and accessories therof 2,440,827 4,646,323 4,361,936 5,278,160 8

SIERRE LEONE 

7102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 39,731,969 90,529,973 123,744,320 134,020,443 121

2606.00. Aluminum ores and concentrates 0 0 0 1,103,613 242614.00. Titanium ores and concentrates 0 0 0 0 21
F‐30

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 1801.00. Cocoa beans, whole or broken, raw or roasted 4,151,113 9,067,790 11,701,717 15,738,002 152710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. Min. 3,751 0 0 0 3

1701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 0 0 0 0 3

7102.21. 

Diamonds, industrial, unworked or simply sawn, cleaved or bruted 4,222,833 5,110,749 1,752,580 1,411,914 1

3206.11. 

Pigments and preparations containing 80% or more by weight of titanium dioxide cllculated on the dry weight 2,785,082 0 0 0 

7404.00. Copper waste and scrap 312,360 405,740 405,333 717,242 28450.11. 

Household- or laundry-type washing machines, fully automatic, with a dry linen capacity not exceeding 10 kg 2,686,472 113,420 202,022 127,975 

SOMALIA 

4702.00. Chemical woodpulp, dissolving grades 13,584,758 13,375,175 1,449,395 0 7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 4,802,583 0 0 0 9

7204.49. Ferrous waste and scrap, nesoi 0 724,402 2,546,310 7,291,485 40102.90. Bovine animals, live, nesoi 5,280,580 3,805,179 3,809,921 490,026 10303.79. 

Fish, nesoi, excluding fillets, livers and roes, frozen 2,162,898 1,248,142 8,021,191 9,154,221 4

4103.10. 

Goat or kid skins, fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared 1,930,467 2,335,238 907,849 1,390,366 

0104.10. Sheep, live 1,553,988 1,254,864 862,631 265,558 0307.49. 

Cuttle fish and squid, frozen, dried, salted or in brine 1,389,228 6,590,448 7,059,668 2,079,758 2
F‐31

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4102.29. 

Sheep or lamb skins, without wool on, fresh, salted, dried, limed or otherwise preserved, not tanned, parchment-dressed or further prepared 1,020,440 221,506 138,076 256,879 

1207.40. Sesame seeds, whether or not broken 70,187 1,469,101 1,788,476 2,241,261 1

SOUTH AFRICA 

7110.11. Platinum, unwrought or in powder form 2,460,390,174 3,393,995,926 4,619,365,482 4,734,618,061 6,0357102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 1,639,619,033 2,756,634,924 2,903,480,435 3,161,832,167 3,656

7110.31. Rhodium, unwrought or in powder form 351,906,244 266,004,390 470,770,611 1,087,275,780 2,3312601.11. 

Iron ore concentrates (other than roasted iron pyrites) and non-agglomerated iron ores 537,818,091 613,437,542 1,142,050,342 1,373,946,578 1,645

8421.39. 

Filtering or purifying machinery and apparatus for gases, nesoi 872,604,746 1,045,731,627 1,234,897,448 1,400,279,098 1,962

7202.41. 

Ferrochromium, containing more than 4% (wt.) Carbon 658,392,931 1,018,892,960 1,725,799,894 1,775,115,045 1,735

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 4,045,374,328 3,746,341,564 3,291,879,822 3,303,737,342 3,012

7102.39. 

Diamonds, nonindustrial, worked, including polished or drilled 379,285,405 412,527,102 687,614,068 900,570,230 1,358

2701.12. 

Bituminous coal, whether or not pulverized, but not agglomerated 1,133,032,471 1,293,712,907 1,845,799,986 1,848,217,724 1,934

8703.23. 

Passenger motor vehicles with spark-ignition internal combustion reciprocating piston engine, cylinder capacity over 1,500 cc but not over 3,000 cc 1,447,876,828 1,600,984,325 1,657,005,333 1,913,268,254 2,178

SUDAN 

2709.00. 

Petroleum oils and oils from bituminous minerals, crude 1,564,785,105 2,037,279,616 3,134,005,097 4,523,723,724 5,241
F‐32

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 1207.40. Sesame seeds, whether or not broken 37,916,361 49,052,380 95,707,871 42,491,658 818802.30. 

Airplanes and other aircraft nesoi, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 27,120,831 24,691,254 69,092,438 43,534,616 

1301.20. Gum arabic 30,570,512 36,344,708 66,269,010 131,944,202 531703.10. 

Cane molasses resulting from the extraction or refining of sugar 11,270,226 14,456,731 16,246,928 18,330,272 23

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 51,519,258 61,536,754 55,256,274 66,055,901 62

2711.19. 

Petroleum gases and other gaseous hydrocarbons, liquified, nesoi 9,990,345 0 1,020,955 0 

7204.49. Ferrous waste and scrap, nesoi 606,236 1,534,540 5,782,280 8,970,578 84105.10. 

Sheep or lamb skins, without wool on, tanned but not further prepared, in the wet state (including wet-blue) 8,916,387 8,412,330 3,665,065 1,472,197 1

2610.00. Chromium ores and concentrates 0 0 2,302,361 4,729,408 6

SWAZILAND 

8411.82. 

Gas turbines, except turbojets and turbopropellers, of a power exceeding 5,000 kw 0 0 0 37,338,846 76

3302.10. 

Mixtures of odoriferous substances and mixtures 

(including alcoholic solutions) with a basis of these substances used in the food or drink industries 22,447,888 23,885,300 50,924,669 70,856,626 65

1701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 84,568,584 87,212,511 121,945,980 125,522,908 119

7108.13. 

Gold, nonmonetary, semimanufactured forms nesoi (other than powder) 3,004,923 0 57,690 3,491,223 31

6110.20. 

Sweaters, pullovers, sweatshirts, vests and similar articles of cotton, knitted or crocheted 42,717,433 40,595,591 39,182,004 20,110,775 18
F‐33

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 4703.11. 

Chemical woodpulp, soda or sulfate, other than dissolving grade, unbleached, coniferous 31,411,869 33,878,348 36,528,519 42,721,080 54

8501.64. 

Ac generators (alternators), of an output exceeding 750 kva 1,539 0 0 12,145,285 20

6203.42. 

Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 8,091,814 13,942,872 18,821,438 27,911,268 27

8503.00. 

Parts of electric motors, generators, generating sets and rotaary converters 194,738 1,427,772 2,291,195 87,548 12

6204.62. 

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, not knitted or crocheted 8,222,583 15,068,031 19,605,338 17,958,536 19

TANZANIA 

7108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 104,965,438 373,102,293 390,758,437 131,717,149 37

7403.11. Refined copper cathodes and sections of cathodes 2,303,609 1,471,686 10,832,307 19,697,806 677112.91. 

Gold waste and scrap, including metal clad with gold but excluding sweepings containing other 

precious metals 258,928 0 0 0 53

2401.20. Tobacco, partly or wholly stemmed/stripped 41,636,700 48,207,115 70,131,406 73,981,413 935201.00. Cotton, not carded or combed 25,471,607 42,825,794 65,110,280 92,844,608 740901.11. Coffee, not roasted, not decaffeinated 36,951,649 58,451,068 49,905,986 84,785,594 802603.00. Copper ores and concentrates 42,728,751 38,151,932 61,166,478 102,599,647 802710.19. 

Petroleum oils & oils (not light) from bituminous minerals or preps nesoi 70%+ by wt. From petroleum oils or bitum. min. 1,069,932 10,322,862 20,605,019 44,037,131 30

0304.20. Fish fillets, frozen 44,272,480 39,492,307 35,996,390 50,619,845 617402.00. 

Unrefined copper; copper anodes for electrolytic refining 0 0 0 0 16
F‐34

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 

TOGO 

1801.00. Cocoa beans, whole or broken, raw or roasted 12,501,504 15,022,378 40,393,572 99,979,545 1192510.20. 

Natural calcium phosphates, natural aluminum calcium phosphates and phosphatic chalk, ground 6,785,637 14,320,013 22,374,025 35,631,617 45

2523.10. Cement clinkers 0 0 0 109,089,446 375201.00. Cotton, not carded or combed 49,521,175 78,985,863 86,576,778 59,750,093 314403.49. 

Other tropical wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, not treated, nesoi 2,588,782 2,875,617 2,761,416 10,098,551 16

2510.10. 

Natural calcium phosphates, natural aluminum calcium phosphates and phosphatic chalk, unground 36,286,377 36,816,791 35,016,743 25,562,864 23

7204.49. Ferrous waste and scrap, nesoi 290,232 678,577 5,080,184 13,348,663 81207.20. Cotton seeds, whether or not broken 8,444,771 7,017,168 7,476,024 8,690,346 2710.21. 

Petroleum oils and oils from bituminous minerals (other than crude) and products thereof, nesoi, containing 70% (by weight) or more of these oils, unspecified 7,248,751 0 0 0 

7404.00. Copper waste and scrap 369,583 709,036 1,099,612 3,343,261 5

UGANDA 

0304.10. 

Fish fillets, and other meat (excluding fish steaks), fresh or chilled 52,526,048 51,661,517 85,255,108 118,976,640 110

0901.11. Coffee, not roasted, not decaffeinated 114,074,451 140,041,982 129,061,027 154,898,650 1407108.12. 

Gold, nonmonetary, unwrought nesoi (other than powder) 14,872,285 6,951,809 10,210,902 0 

0603.10. 

Cut flowers and flower buds, fresh, of a kind suitable for bouquets or for ornamental purposes 15,007,552 20,072,784 26,396,941 29,289,558 27

2401.20. Tobacco, partly or wholly stemmed/stripped 35,625,405 38,812,073 40,831,899 40,390,402 25
F‐35

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 0302.69. 

Fish, nesoi, excluding fillets, livers and roes, fresh or chilled 1,885,407 3,166,898 4,745,822 8,888,268 12

0602.10. Live plant cuttings and slips, unrooted 6,125,340 7,781,163 10,627,827 12,043,851 131801.00. Cocoa beans, whole or broken, raw or roasted 4,530,421 8,603,707 6,744,422 8,198,347 117102.31. 

Diamonds, nonindustrial, unworked or simply sawn, cleaved or bruted 6,741,929 0 0 0 

1005.90. Corn (maize), other than seed corn 7,351,309 195,549 4,309,043 413,780 

ZAMIBIA 

7403.11. Refined copper cathodes and sections of cathodes 187,882,614 180,878,834 527,556,863 698,613,894 1,3652603.00. Copper ores and concentrates 268,420 8,037,007 23,166,732 43,320,996 1387408.11. 

Wire of refined copper, with a maximum cross sectional dimension over 6 mm (.23 in.) 8,364,767 13,084,851 32,584,600 51,055,446 117

2401.20. Tobacco, partly or wholly stemmed/stripped 14,150,950 18,153,141 19,158,847 35,262,483 877402.00. 

Unrefined copper; copper anodes for electrolytic refining 4,472,225 7,464,755 11,548,369 17,945,221 66

8105.20. 

Cobalt mattes and other intermediate products of cobalt metallurgy; unwrought cobalt; powders 68,335,227 86,271,956 196,552,905 111,313,388 111

5201.00. Cotton, not carded or combed 30,621,501 35,121,584 79,789,687 87,677,435 7281SS.S6. [Unspecified HS chapter 81 product] 10,673,848 24,104,894 75,731,920 56,347,227 378544.59. 

Insulated electric conductors, for a voltage exceeding 80 v but not exceeding 1,000 v, not fitted with connectors 3,744,897 3,838,079 9,031,076 14,939,750 25

1701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 14,014,267 25,109,641 17,183,682 19,229,351 24

ZIMBABWE 

2401.20. Tobacco, partly or wholly stemmed/stripped 530,266,788 476,816,365 374,172,039 276,970,198 225
F‐36

App. F.1 Top 10 exports, by HTS6 for selected SSA countries that experienced the greatest absolute change in export value, 2002−06 ($) 

Based on reporting country import data for countries that reported every year during 2002−06 ($)Continued

HTS6 Description 2002 2003 2004 2005 7502.10. Nickel, not alloyed, unwrought 86,827,568 143,774,573 160,204,428 225,911,858 3287501.10. Nickel mattes 0 19,747 0 0 1672604.00. Nickel ores and concentrates 56,641,790 132,039,855 180,617,390 220,644,240 1717202.41. 

Ferrochromium, containing more than 4% (wt.) Carbon 102,053,891 115,700,698 171,024,149 198,904,489 185

2516.11. Granite, crude or roughly trimmed 11,230,184 16,767,158 30,385,327 29,294,750 450603.10. 

Cut flowers and flower buds, fresh, of a kind suitable for bouquets or for ornamental purposes 66,310,954 70,594,748 56,549,778 44,202,517 31

7102.10. Diamonds, unsorted 861 0 3,704,970 38,891,600 287403.11. Refined copper cathodes and sections of cathodes 1,037,130 6,288,336 10,722,624 14,391,671 291701.11. 

Cane sugar, raw, in solid form, not containing added flavoring or coloring matter 31,690,746 29,255,695 49,812,880 49,494,168 59

Source: GTIS, Global Trade Atlas, annual data compiled from reporting countries' official statistics. 

Notes: This list includes five cases where the reporting country did not indicate a valid HS 6 digit heading. This usually occurs to prevent the disclosu

five headings are: 12SS.S9 for Benin, 29SS.S5 for Equatorial Guinea, 26SS.S2 for Niger, 0000.00 for São Tomé & Príncipe, and 81SS.S6 for ZambiaDemocratic Republic of the Congo is not available. 
F-37

App. F.2 Leading SSA services exports for reporting SSA countries, 2001-06 (in million dollars)

 Absolute change Percent change 

 

Description 2001 2002 2003 2004 2005 2006 

2001- 

05 

2002- 

06 

2001-

05

2002-

06 

 ANGOLA 

Other business services 156.930 151.850 135.490 9.636 2.480 32.407 -154.450 -119.443 -98 -79 

Personal, cultural and recreational na 1.219 1.077 2.852 4.561 6.409 na 5.19 na 426 

Royalties and license fees 4.420 na na 226.800 49.431 1339.590 45.011 na 1,018 na 

Transportation 13.460 16.771 15.811 17.691 18.075 20.200 4.615 3.429 34 20 

Travel na 36.947 49.020 65.790 88.240 74.903 na 37.956 na 103 

 BENIN 

Construction services 0.686 0.268 na 2.692 0.064 na -0.622 na -91 na 

Financial services 2.607 3.172 0.602 0.778 2.906 na 0.299 na 11 na 

Insurance services 0.503 0.694 0.229 2.270 1.175 na 0.672 na 134 na 

Other business services 21.674 25.118 36.812 40.828 33.488 na 11.814 na 55 na 

of which: 

Advertise market research & 

polling 0.071 0.072 0.043 0.314 0.880 na 0.809 na 1,139 na 

Telecommunication services 3.743 5.601 4.229 5.175 5.388 na 1.645 na 44 na 

Transportation 19.550 12.799 14.365 33.654 32.777 na 13.227 na 68 na 

Travel 84.573 92.914 106.404 118.465 103.371 na 18.798 na 22 na 

 BOTSWANA 

Computer and info services 0.390 1.745 1.392 0.375 1.154 1.394 0.764 -0.351 196 -20 

Construction services 7.258 8.126 8.650 8.443 13.926 8.057 6.668 -0.069 92 -1 

Financial services 2.814 1.361 1.872 3.662 5.212 2.447 2.398 1.086 85 80 

Insurance services 8.107 7.915 33.761 48.508 70.262 19.648 62.155 11.733 767 148 

Other business services 19.265 35.343 42.506 36.129 83.917 104.617 64.652 69.274 336 196 

of which: 

Advertise market research & 

 polling 0.530 0.365 0.803 1.075 1.747 0.955 1.217 0.59 230 162 

Agricultural, mining & on-site 

 processing services 0.318 1.376 12.728 9.329 4.645 4.571 4.327 3.195 1,361 232 

Operational leasing services 0.429 1.061 0.312 0.502 0.739 0.839 0.310 -0.222 72 -21 

Research and development 1.078 1.041 2.674 3.786 3.396 9.035 2.318 7.994 215 768 

Royalties and license fees 0.006 0.459 3.367 5.402 0.462 0.316 0.456 -0.143 7,600 -31 

Transportation 52.680 55.430 69.064 83.038 85.024 81.222 32.344 25.792 61 47 

Travel 230.194 319.104 456.656 580.954 560.022 537.228 329.828 218.124 143 68 

 BURUNDI 

Insurance services 0.375 1.072 0.014 0.008 0.047 0.050 -0.328 -1.022 -87 -95 

Other business services 0.637 0.659 0.800 1.392 3.357 3.398 2.720 2.739 427 416 

Transportation 0.849 0.865 0.709 1.385 1.668 0.818 0.819 -0.047 96 -5 

Travel 0.470 1.146 0.725 1.205 1.451 1.311 0.981 0.165 209 14 

 CAPE VERDE 

Computer and info services 0.096 0.029 0.044 0.102 0.017 0.023 -0.079 -0.006 -82 -21 

Financial services 0.037 0.044 0.146 0.063 0.641 1.160 0.604 1.116 1,632 2,536 

Insurance services 2.477 0.412 1.169 1.729 1.623 4.173 -0.854 3.761 -34 913 

Other business services 2.171 2.282 3.520 3.005 2.689 0.870 0.518 -1.412 24 -62 

of which: 

Advertise market research & 

 polling 0.006 0.008 0.019 0.019 0.006 na 0.000 na 0 na 

Personal, cultural and recreational 0.071 0.069 0.048 0.040 0.013 0.014 -0.058 -0.055 -82 -80 

Transportation 50.617 62.593 83.151 99.049 106.103 128.091 55.486 65.498 110 105 

Travel 53.780 65.455 86.803 99.413 121.788 215.106 68.008 149.651 126 229 

 REPUBLIC OF THE CONGO 

Other business services 51.495 66.051 80.351 80.070 112.993 na 61.498 na 119 na 

Transportation 39.804 37.230 31.487 31.612 76.592 na 36.788 na 92 na 

Travel 21.823 25.409 28.734 22.147 33.746 na 11.923 na 55 na 

 CÔTE D'IVOIRE 

Computer and info services 0.177 3.300 1.614 4.411 4.880 na 4.703 na 2657 na 

Construction services 16.878 17.791 10.668 17.564 16.754 na -0.124 na -1 na 

Financial services 46.830 38.738 47.488 52.994 54.032 na 7.202 na 15 na 

Insurance services 23.883 24.678 38.197 42.343 33.545 na 9.662 na 40 na 

Other business services 221.780 217.971 207.933 221.471 230.063 417.487 8.283 199.516 4 92 

Transportation 91.445 102.871 114.074 138.312 188.648 178.049 97.203 75.178 106 73 

Travel 53.044 51.285 68.997 81.589 83.260 84.148 30.216 32.863 57 64 
F-38

App. F.2 Leading SSA services exports for reporting SSA countries, 2001-06 (in million dollars) Continued

 Absolute change Percent change 

 

Description 2001 2002 2003 2004 2005 2006 

2001- 

05 

2002 

06 

2001-

05

2002- 

06 

 DJIBOUTI 

Other business services 5.509 6.336 6.527 6.724 6.893 7.343 1.384 1.007 25 16 

Telecommunication services 3.309 3.984 5.571 5.599 5.824 6.116 2.515 2.132 76 54 

Transportation 56.217 59.644 68.231 67.825 74.943 79.884 18.726 20.240 33 34 

Travel 8.592 8.924 6.932 6.808 7.079 9.172 -1.513 0.248 -18 3 

 ETHIOPIA 

Computer services 1.364 0.258 na 0.008 0.087 0.076 -1.277 -0.182 -94 -71 

Information services -1.211 -1.302 -1.512 -2.393 -2.970 -3.007 -1.759 -1.705 145 131 

Construction services 1.524 na na na 12.588 11.139 11.064 na 726 na 

Financial services 4.104 4.114 4.980 2.874 25.750 10.853 21.646 6.739 527 164 

Insurance services 1.916 2.936 0.798 1.124 5.472 9.325 3.556 6.389 186 218 

Other business services 79.164 92.538 147.516 211.368 69.991 55.976 -9.173 -36.562 -12 -40 

Personal, cultural and recreational 1.356 3.354 0.590 0.025 na 0.460 na -2.894 na -86 

Postal and courier Services 0.815 0.641 0.731 0.894 0.739 0.699 -0.076 0.058 -9 9 

Telecommunication services 14.921 23.711 20.692 40.684 40.509 54.991 25.588 31.280 171 132 

Transportation 234.353 250.625 298.466 369.675 465.644 583.981 231.291 333.356 99 133 

Travel 50.774 71.891 114.275 173.553 168.258 161.993 117.484 90.102 231 125 

 GHANA 

Insurance services 5.434 6.160 6.842 7.703 8.074 9.803 2.640 3.643 49 59 

Other business services 55.100 59.800 66.780 73.200 92.810 224.690 37.710 164.890 68 276 

Transportation 103.566 114.640 124.258 136.827 145.906 205.507 42.340 90.867 41 79 

Travel 351.300 358.200 414.430 466.000 836.090 861.330 484.790 503.130 138 140 

 KENYA 

Computer and info services 0.334 0.681 0.002 0.364 1.087 0.655 0.753 -0.026 225 -4 

Insurance services 3.567 11.189 13.778 12.359 10.457 7.298 6.890 -3.891 193 -35 

Personal, cultural and recreational 0.065 0.443 0.264 0.251 0.396 0.700 0.331 0.257 509 58 

Postal and courier services 2.639 2.320 1.587 1.554 1.172 2.872 -1.467 0.552 -56 24 

Royalties and license fees 5.026 9.943 11.644 16.632 17.501 9.889 12.475 -0.054 248 -1 

Telecommunication services 42.856 13.167 13.655 111.652 176.491 280.358 133.635 267.191 312 2,029 

Transportation 460.554 458.832 487.839 598.494 736.497 1,021.590 275.943 562.758 60 123 

Travel 308.749 275.997 347.423 485.731 579.015 687.523 270.266 411.526 88 149 

 LESOTHO 

Insurance services na -0.508 -0.034 2.625 -2.270 -0.226 na 0.282 na -56 

Other business services na 0.063 0.056 1.739 0.006 0.083 na 0.020 na 32 

Royalties and license fees 11.497 10.547 14.902 17.033 18.079 18.455 6.582 7.908 57 75 

Transportation 0.418 0.400 0.521 0.633 0.784 0.685 0.366 0.285 88 71 

Travel 22.757 19.528 27.599 33.572 30.129 27.599 7.372 8.071 32 41 

 MADAGASCAR 

Construction services 17.543 17.234 73.706 10.152 2.287 na -15.256 na -87 na 

Insurance services 2.712 1.260 1.447 2.953 0.222 na -2.490 na -92 na 

Other business services 72.091 120.163 32.076 79.083 111.047 na 38.956 na 54 na 

Royalties and license fees 0.970 0.428 0.873 0.477 2.321 na 1.351 na 139 na 

Transportation 56.268 74.692 57.802 100.104 118.131 na 61.863 na 110 na 

Travel 114.828 63.966 76.003 156.929 183.191 na 68.363 na 60 na 

 MALI 

Construction services 7.935 0.079 5.879 2.262 1.983 na -5.952 na -75 na 

Financial services 1.521 2.445 1.979 3.570 4.226 na 2.705 na 178 na 

Insurance services 2.529 1.710 1.220 1.694 3.240 na 0.711 na 28 na 

Other business services 9.406 9.963 15.736 10.142 15.876 na 6.470 na 69 na 

Personal, cultural and recreational 0.061 na 0.174 0.030 0.303 na 0.242 na 397 na 

Royalties and license fees 0.078 0.047 na 0.178 0.165 na 0.087 na 112 na 

Transportation 23.790 21.003 42.653 30.635 35.094 na 11.304 na 48 na 

Travel 88.192 103.987 127.892 140.398 148.365 na 60.173 na 68 na 

 
F-39

App. F.2 Leading SSA services exports for reporting SSA countries, 2001-06 (in million dollars)Continued

 Absolute change Percent change 

 

Description 2001 2002 2003 2004 2005 2006 

2001- 

05 

2002- 

06 

2001-

05

2002- 

06 

 MAURITIUS 

Computer and info services 6.098 6.217 9.162 12.322 16.877 24.276 10.779 18.059 177 290 

Construction services 3.449 6.173 3.313 4.553 23.986 17.680 20.537 11.507 595 186 

Financial services 68.031 17.551 12.702 17.867 17.144 21.198 -50.887 3.647 -75 21 

Insurance services 13.599 4.031 8.635 6.541 3.343 6.466 -10.256 2.435 -75 60 

Other business services 234.083 189.361 182.277 155.501 265.243 198.037 31.160 8.676 13 5 

Personal, cultural and 

 recreational 2.795 5.034 5.344 3.567 2.413 1.926 -0.382 -3.108 -14 -62 

Postal and courier services na 0.768 1.383 3.625 2.882 2.699 na 1.931 na 251 

Telecommunication services na 30.005 19.139 16.312 17.061 23.449 na -6.556 na -22 

Transportation 235.127 275.142 335.085 372.895 384.094 361.848 148.967 86.706 63 32 

Travel 622.878 611.790 696.747 856.051 871.045 1005.230 248.167 393.440 40 64 

MOZAMBIQUE 

Computer and info services na 0.001 0.008 0.988 1.568 2.723 na 2.722 na 272,200 

Construction services 1.791 30.589 11.834 11.115 22.095 24.867 20.304 -5.722 1134 -19 

Financial services na 8.424 3.966 1.459 1.287 1.727 na -6.697 na -79 

Insurance services na 1.279 0.659 0.391 0.042 0.073 na -1.206 na -94 

Other business services 117.418 120.237 73.129 47.997 58.437 61.847 -58.981 -58.390 -50 -49 

Royalties and license fees na 0.030 15.000 0.548 2.203 1.018 na 0.988 na 3293 

Telecommunication services na 11.005 7.445 8.478 10.557 14.792 na 3.787 na 34 

Transportation 55.681 101.689 90.491 80.029 89.315 105.004 33.634 3.315 60 3 

Travel 63.568 62.851 97.620 95.276 129.643 139.690 66.075 76.839 104 122 

 NAMIBIA 

Financial services 1.171 1.337 0.002 na 0.050 0.003 -1.121 -1.334 -96 -100 

Insurance services -0.325 0.138 -0.014 0.017 0.103 1.686 0.428 1.548 -132 1122 

Other business services 0.423 0.416 3.398 9.743 2.394 4.046 1.971 3.630 466 873 

Telecommunication services 4.789 3.957 8.529 15.451 16.774 15.666 11.985 11.709 250 296 

Transportation 36.960 35.852 54.079 25.542 23.411 104.754 -13.549 68.902 -37 192 

Travel 236.335 218.144 332.515 404.795 349.028 381.345 112.693 163.201 48 75 

 RWANDA 

Other business services 4.142 4.283 na na na 8.467 na 4.184 na 98 

Transportation 16.253 12.225 18.390 21.440 30.050 30.160 13.797 17.935 85 147 

Travel 24.715 31.038 30.080 43.500 48.760 31.319 24.045 0.281 97 1 

 SEYCHELLES 

Insurance services 2.992 2.695 1.561 1.440 3.602 0.883 0.610 -1.812 20 -67 

Other business services 6.465 4.244 2.996 4.903 5.162 6.454 -1.303 2.210 -20 52 

Telecommunication services 9.361 10.225 10.406 12.143 12.616 12.884 3.255 2.659 35 26 

Transportation 115.168 115.349 124.735 118.213 133.465 160.851 18.297 45.502 16 39 

Travel 146.166 164.328 171.128 171.707 192.100 227.768 45.934 63.440 31 39 

 SIERRA LEONE 

Financial services na 0.391 0.128 0.479 1.512 0.306 na -0.085 na -22 

Insurance services 0.030 na 0.008 0.003 0.815 2.124 0.785 na 2,617 na 

Transportation 18.990 na 3.028 1.436 11.606 13.584 -7.384 na -39 na 

Travel 14.248 37.945 59.924 58.196 64.037 23.003 49.789 -14.942 349 -39 

 SOUTH AFRICA 

Computer and info services 46.337 44.713 66.441 89.004 109.391 128.755 63.054 84.042 136 188 

Construction services 15.897 14.495 21.300 27.977 34.553 39.980 18.656 25.485 117 176 

Financial services 240.430 224.753 294.825 425.629 534.349 713.824 293.919 489.071 122 218 

Insurance services 53.492 53.010 77.081 105.837 124.474 152.084 70.982 99.074 133 187 

Other business services 488.563 430.368 605.117 742.261 836.959 868.263 348.396 437.895 71 102 

Personal, cultural and 

 recreational 37.373 38.259 60.125 87.864 113.821 103.347 76.448 65.088 205 170 
F-40

App. F.2 Leading SSA services exports for reporting SSA countries, 2001-06 (in million dollars)Continued

 Absolute change Percent change 

 

Description 2001 2002 2003 2004 2005 2006 

2001- 

05 

2002- 

06 

2001-

05 

2002

-06 

 SOUTH AFRICA—Continued

Postal and courier services 6.520 6.458 9.073 13.038 16.960 23.801 10.440 17.343 160 269 

Royalties and license fees 21.490 19.455 26.550 37.392 45.302 45.784 23.812 26.329 111 135 

Telecommunication services 85.618 86.713 127.133 175.504 213.815 280.907 128.197 194.194 150 224 

Transportation 1,163.100 1,021.860 1,261.160 1,417.250 1,533.540 1,487.680 370.440 465.820 32 46 

Travel 2,569.020 2,922.870 5,570.720 6,321.830 7,335.210 7,875.780 4,766.190 4,952.910 186 169 

 SUDAN 

Computer and info services na 0.460 na na na 0.010 na -0.450 na -98 

Financial services na 0.420 0.830 0.860 4.070 25.130 na 24.710 na 5883 

Other business services 0.100 0.640 0.360 na 0.060 0.310 -0.040 -0.330 -40 -52 

Transportation 6.000 16.680 9.070 9.540 3.400 18.740 -2.600 2.060 -43 12 

Travel 3.100 108.100 17.460 21.180 89.130 125.790 86.030 17.690 2,775 16 

 SWAZILAND 

Computer and info services 1.510 1.138 1.200 0.025 0.037 0.318 -1.473 -0.820 -98 -72 

Other business services 76.509 36.423 21.721 37.673 18.422 146.689 -58.087 110.266 -76 303 

Royalties and license fees 0.163 0.142 0.038 0.040 0.003 0.003 -0.160 -0.139 -98 -98 

Transportation 11.711 7.642 9.050 11.255 11.226 10.731 -0.485 3.089 -4 40 

Travel 20.539 43.231 69.814 74.979 77.772 74.310 57.233 31.079 279 72 

 TANZANIA 

Computer and info services 0.520 0.700 0.200 0.001 0.265 0.341 -0.255 -0.359 -49 -51 

Financial services 3.770 4.300 4.100 2.512 1.918 4.210 -1.852 -0.090 -49 -2 

Insurance services 15.600 19.210 19.800 25.417 37.992 11.431 22.392 -7.779 144 -40 

Other business services 102.580 68.900 68.800 85.769 94.218 119.135 -8.362 50.235 -8 73 

Personal, cultural and 

recreational 0.060 1.000 1.228 0.059 0.666 0.093 0.606 -0.907 1010 -91 

Telecommunication services 10.453 13.996 20.259 31.571 33.749 31.897 23.296 17.901 223 128 

Transportation 105.948 117.071 138.872 183.014 222.908 340.864 116.960 223.793 110 191 

Travel 615.074 635.041 646.542 746.017 823.589 914.216 208.515 279.175 34 44 

 TOGO 

Computer and info services 0.095 0.024 0.523 0.937 0.379 na 0.284 na 299 na 

Construction services 4.153 5.365 2.620 0.644 1.422 na -2.731 na -66 na 

Financial services 0.674 3.580 0.358 0.922 0.569 na -0.105 na -16 na 

Insurance services 0.825 1.059 0.489 0.876 0.857 na 0.032 na 4 na 

Other business services 15.376 21.530 23.238 41.945 53.160 na 37.784 na 246 na 

Royalties and license fees 0.001 na na na 0.006 na 0.005 na 500 na 

Transportation 12.290 20.081 21.423 46.498 56.724 na 44.434 na 362 na 

Travel 10.877 13.220 14.723 19.143 20.379 na 9.502 na 87 na 

 UGANDA 

Computer and info services na 0.125 0.745 7.900 32.825 31.463 na 31.338 na 25,070 

Financial services na 0.018 12.805 16.400 16.945 17.897 na 17.879 na 99,328 

Insurance services 1.702 1.851 3.219 4.121 7.168 6.647 5.466 4.796 321 259 

Other business services na 2.330 28.375 33.930 20.750 32.423 na 30.093 na 1,292 

Postal and courier services 0.970 1.489 2.303 1.849 1.186 1.870 0.216 0.381 22 26 

Royalties and license fees na 0.003 0.589 na 7.424 2.379 na 2.376 na 79,200 

Telecommunication services 11.170 7.639 14.312 16.817 16.671 17.536 5.501 9.897 49 130 

Transportation 29.206 30.995 8.871 9.613 10.712 10.940 -18.494 -20.055 -63 -65 

Travel 165.426 171.494 184.185 255.772 381.240 354.854 215.814 183.360 130 107 

 ZAMBIA 

Insurance services 5.600 6.200 6.800 10.500 8.000 9.600 2.400 3.400 43 55 

Transportation 53.700 40.100 42.600 48.200 84.700 84.900 31.000 44.800 58 112 

Travel 79.800 63.800 87.700 91.700 98.400 110.000 18.600 46.200 23 72 

Source: IMF, International Financial Statistics Database.