Moving up the Value Chain
China mores up: Over time, entire industry sectors and even national economies can more up the value chain. While low-end exports are losing momentum in China, high-end exports are expected to grow by 30-40% annually in the next three to five years, with auto and software industries likely to increase even more, according to Deutsche Bank.
"Fair trade is good but countries have to produce something they sell. But it is also important to note that developing countries don't want to remain basket weavers. They don't just want to sell cocoa and coffee. They don't just want to sell cotton. They want to sell higher-value products."
Kandeh K. Yumkella, Director-General, UNIDO
Meeting business needs
"In the region, efforts have been made in training human resources in recent years, to be sure. But what can we do to improve this in the future, to have even more concrete results, to overcome problems of infrastructure, access credit and access to technology?"
Judit Guerrero, First Secretary, Nicaraguan Mission to the United Nations Office in Geneva
Build export sectors that target affluent consumers, such as specialized eco-, business- or agro-tourism services. The award-winning eco-resort at Chumbe Island in Zanzibar (Tanzania) is preserving the natural resources of the island through income from tourism, while raising environmental awareness among visitors and the local population through its various educational programmes and activities.
Investing in trademarks, geographic indicators of origin and other intellectual property initiatives can help countries add value to a variety of commodities, manufactured goods and services. Brazil is seeking to protect its national drink cachaca by negotiating agreements with the WTO and the European Union on intellectual property rights and national indicators of origin. While only 500,000 litres of cachaca were exported in 1995, 20 million litres were exported to more than 60 countries in 2003 and sales ore expected to rise to 38 million litres by 2010. (Source: Brazilian Cachaca Development Program)
"At the moment we export raw sugar. Now we are going to refine it to add value to our sugar and also produce ethanol. We already have companies in Swaziland who ore distilling the sugar."
Absalom Themba Dlamini, Prime Minister of Swaziland
From sugar came to ethanol
Swaziland is looking at ways to add value to sugar, its biggest industry,
From cocoa beans to Easter eggs
Brazil produced 21,400 tonnes of Easter eggs in 2007. Here, a worker prepares a chocolate Easter egg at a factory in Sao Paolo.
Diversifying into New Markets
Benefiting from market access
Employees of a Kenyan textile company produce clothing for the United States market. The signing of the African Growth and Opportunity Act (AGOA) has opened new opportunities for the textile sector in Kenya. Within two years of qualifying for the AGOA, Kenya's exports of clothing and investment in its textile sector hove experienced remarkable growth. (Source: Kenyan Export Promotion Council)
Competing and selling: Dance with the Dragon
"Our industrial investors, we tell them, leam to dance with the Chinese, the Chinese Dragon, because they export so much. You have to face reality."
Enrique Mantilla, President of the Argentinean Chamber of Exporters (CERA)
Finding markets: Don't look back
Forget about reopening lost markets. …