INTRODUCTION TO CLUSTERS IN AFRICA

6. Agro-based clusters in Africa

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6.1 INTRODUCTION TO CLUSTERS IN AFRICA

Cluster work in Africa is in an infant stage of development. Some descriptive work has been done in a few English-speaking countries where cluster initiatives are just starting to develop. The analysis so far suggests that there is vast scope for positive AC interventions at both policy and programme levels. Pioneers in analysing clusters in Africa are McCormick 1998, 1999 and Mitullah 1999, who started collecting material on clusters and explored whether the benefits that clustering provided in other parts of the world could also be applied in Africa. 29 The existing literature shows that African clusters vary tremendously in internal structure and level of industrialization. In fact, the literature suggests the existence of three types of clusters in Africa. The first type is the so-called groundwork cluster that provides a basis for development by improving producers’ access to markets. The second one is the industrializing cluster, which has started the process of specialization and differentiation. The third type is the complex cluster that has already diversified its size structure and linkages and is able to tap wider national or international markets. Groundwork clusters are more common in Africa, followed by industrializing clusters, whereas only a few complex clusters are found. Those in the last category are less developed than in other parts of the world mainly because: a trading networks are underdeveloped in Africa; b clustering has taken place in the context of an overabundance of labour, which means that labour market pooling effects have not worked as expected; c clustering has occurred in environments of weak political and economic institutions; and d large-scale industries including agro-industries are in disarray as a result of a rapid market liberalization while small and medium firms continue to offer low-value, low-quality products that have difficulty competing with the widely available imports McCormick, 1998, 2003. The World Bank Institute WBI started some work on African clusters with its initiative “Knowledge, Technology and Growth in Africa” in 2005–06 Zeng, 2008. The initiative delivered 11 case studies, 3 of which are in the agricultural sector: fish clusters in Uganda, a Kenyan cut- flower cluster and a South African wine cluster. The general conclusions were that African clusters face enormous challenges, and that their sustainability depends on how successfully they can overcome them. Resource-based clusters, especially those in the agricultural sector, need 28 This chapter is based on a contribution of Alexandra Röttger. Agricultural Management Officer. Agricultural Management, Marketing and Finance Service, FAO Rural Infrastructure and Agro-industries Division. 29 The research was part of a project on collective efficiency and small-scale industry, implemented by the Institute of Development Studies at the University of Sussex, and funded by DFID. to find solutions to avoid resource depletion and to upgrade their products. Most importantly, the public sector needs both to establish a favourable regulatory and incentive environment, facilitating knowledge and technology learning and innovation, and to provide high-quality public goods, notably infrastructure, that the private sector can benefit from Zeng, 2008.

6.2 FISH PROCESSING CLUSTERS AROUND LAKE VICTORIA