| Abstract [eng] |
Cocoa is an essential crop that plays a significant role in the economies of West African countries. Together, Ivory Coast and Ghana produce more than half of the world’s cocoa beans, signifying how important cocoa is to their communities and livelihoods. However, their participation in the global cocoa value chain is mostly confined to the production of raw materials, a limitation that constrains value capture, increases vulnerability to price volatility, and weakens their global competitiveness. Although they lead in global cocoa beans production, industrialized countries secure the majority of profits through processing and manufacturing activities. The relevance of this study is emphasized by the increasing recognition of value chain upgrading as an enabler for economic transformation. Ivory Coast and Ghana experience limited advancement within the global cocoa value chain. Existing literature suggests that, by enhancing processing and manufacturing activities which are facilitated by robust infrastructure, effective institutions, and policies, can improve their position in global trade. Empirical research that specifically identifies conditions and strategies for upgrading within the cocoa sector remains notably scarce. Therefore, this study offers a theoretical and empirical analysis to address this gap in the existing body of knowledge. Research object: Cocoa value chain upgrading in Ivory Coast and Ghana for enhanced international competitiveness. Research aim: To identify means of upgrading the cocoa value chain of Ivory Coast and Ghana to enhance their international competitiveness on the global cocoa market. The objectives of this research, undertaken to achieve the goal, are as follows: 1. To analyze the drawbacks inherent in a primary focus on the production stage within the global cocoa value chain, with the aim of highlighting the limitations this position imposes upon the international competitiveness of Ivory Coast and Ghana. 2. To develop a theoretical framework for enhancing international competitiveness by explaining alternative options for value chain upgrading, according to the industry’s internal and external conditions and context. 3. To research Ivory Coast and Ghana’s cocoa industry’s internal and external conditions using global value chain framework, Porter’s value chain, the Smile curve in analyzing the chain’s structure to understand the distribution of value. 4. To identify impactful resources and capabilities that Ivory Coast and Ghana can deploy to upgrade their position within the cocoa value chain and thereby enhance their international competitiveness. Research result: The findings of the research indicate that both Ivory Coast and Ghana face structural, institutional, and infrastructural barriers that impede their enhanced participation in higher value-added activities within the global value chain. The study further reveals that by leveraging resources (such as accessible financing and robust infrastructure), developing capabilities, adopting supportive policies and improving governance structures, these countries can upgrade their position within the global value chain. This transition will make them more competitive. Furthermore, the research proposes a conceptual framework that outlines enablers for upgrading, which is validated through mixed-methods empirical data obtained from industry stakeholders. |
