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Using Intra-African Trade Scorecards to identify opportunities for increasing agricultural trade

Using Intra-African Trade Scorecards to identify opportunities for increasing agricultural trade
Photo credit: Fintrac Inc.

05 Feb 2019

4 minute read

Across the continent, African governments are taking steps to make agricultural trade freer. In June 2014, heads of state of African Union member countries issued a bold commitment to a series of measurable goals related to agriculture-led growth and food security on the continent.

Tripling intra-African agricultural trade by 2025 was among the list of commitments. In 2018, the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) issued a report on performance against this indicator. While overall trade increases were observed continent-wide, performance among countries varied considerably.

Noting these trends, the Feed the Future Enabling Environment for Food Security project has developed a set of trade improvement scorecards for countries in sub-Saharan Africa that capture relative performance on a range of elements that underpin an effective trading system. The Intra-African Agriculture Trade Improvement Scorecards include:

  • Three regional trade scorecards reflecting selected countries across Southern Africa, East Africa, and West Africa.

  • Eight country-level scorecards covering Ethiopia, Ghana, Kenya, Mali, Niger, Nigeria, Senegal, and Uganda.

  • An indicator summary note providing additional information on indicators and data sources.

The regional trade scorecards compile publicly available and regularly updated data related to four key trade determinants that are actionable at the national level, including: (1) production capacity, (2) the cost of trade, (3) institutional efficiency, and (4) trade policies. The indicators align with determinants identified in the ReSAKSS pdf 2018 Africa Agriculture Trade Monitor (3.70 MB)  report and are described in the Intra-African Agriculture Trade Improvement Scorecards Indicator Summary.

To make these tools useful as performance snapshots, we restricted our data sources based upon the following criteria:

  1. Relevance – Data sources were selected to hew as closely as possible to key trade determinants identified by ReSAKSS in the Africa Agriculture Trade Monitor.

  2. Transparency – Only publicly available data sets with posted scoring methodologies were selected.

  3. Recent Data – Only data updated biennially factored into the scorecards.

Applying these data, the Project team organized comparative country performance per a three-part ranking system: green for the top-third performers, red for the middle-third performers, and red for the lower-third performers in each indicator.

Looking at the data across the scorecards, common opportunities emerged. For example, many countries do not recognize cross-border document authentication, creating additional steps and costs for traders who must secure double authentication of documents. Additionally, inconsistent standards and metrology regimes preclude reliable and traceable measurements for goods in trade. And in many countries, outmoded legal and regulatory regimes can be upgraded to enable increased use of digital commerce platforms and mobile payment services.

Freer flowing agricultural trade is critical for improved food security. More trade can build resilience in food systems across the continent, as food passes over political boundaries faster and in a less costly manner from areas of plenty to zones of hunger. Producers can gain increased access to lucrative markets across borders, improving conditions for increased rural and agricultural incomes. Consumers stand to gain more selection, opening up opportunities for greater dietary diversity.

But trade system performance gaps pervade in sub-Saharan Africa and limit the potential for increased agricultural trade on the continent. After all, a marketing channel – much like a chain – is only as strong as its weakest link. Through these scorecards, the Feed the Future Enabling Environment for Food Security project seeks to help identify opportunities for governments across sub-Saharan Africa to strengthen their trading systems to make their freer trade commitments work harder for improved food security outcomes.

Author Nate Kline
Source Agrilinks | Feed the Future initiative
Website Visit website
Date 05 Feb 2019
  4 minute read
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