EXPORT CROP LIBERALIZATION IN AFRICA

 

As a result of Structural Adjustment Programmes throughout Africa, the export crop sector has witnessed significant changes in recent years. In the mid 1980s purchasing, processing and exporting of commodities was almost entirely in the hands of marketing boards. Many of these boards also played a significant role in the supply of inputs to farmers, often on credit. Now, monopoly boards are the exception rather than the rule. Some of the boards have been wound up, others continue to trade, but are generally losing out in competition with the private sector, and yet others have been converted into non-trading industry boards for the purpose of promotion and regulation.

This transfer of export crop marketing responsibilities from the state to the private sector can, in general, be considered to have been reasonably successful, although it is perhaps still too early to draw definite conclusions. Producer returns have generally been higher than under the former marketing arrangements and payments more prompt . In many countries, however, the changes have led to problems, particularly with regard to the supply of production inputs. The quality of the crops and their processing has also been a major cause for concern.

This Agricultural Services Bulletin reviews approaches to and experiences with export crop liberalisation in a number of African countries, and tries to draw some conclusions regarding the general impact of the changes. The problems encountered are identified in detail and ways of overcoming them are considered. The Bulletin should be of particular interest to policy-makers in Africa, to agencies which have promoted the policy changes of the last two decades, and to the private sector, which will have to play the lead role in overcoming the problems if market liberalisation is ultimately to be regarded as a complete success.

Export Crop Liberalization in Africa - A Review by Andrew W. Shepherd and Stefano Farolfi,
Agricultural Services Bulletin No. 135,  US$ 20.00.

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