ABSTRACT

Value chains, or the linkages from raw materials to finished products, 1 have become a central focus of economic development activities in recent years. While the value chain approach is not a novel idea, it is being emphasized anew in development scholarship and practice (Bair 2005). To date, initiatives to facilitate value chain development have occurred largely within the borders of nation states, although it is increasingly understood that some value chains may make more sense at the regional scale. In fact, many of the world’s most profitable value chains are international in scope due to globalization. Unfortunately, African states’ participation in regional value chains has been limited thus far. A lack of economic cooperation and production across African borders may be linked in part to historical and political factors that exacerbate cross-border tensions. Other factors limiting economic cooperation and integration—especially within Africa’s regional economic communities (RECs)—are more economic and cultural in nature, including poor infrastructure, linguistic barriers, weak regulatory environments, and poor border administration, each of which can increase transaction costs.