Unlocking the potentials of Micro and Small Enterprises (MSEs) in building local technological capabilities in agro-processing industry

Abstract

This research was aimed at feeding into the quest for ways that would help advance Africa's effort to industrialize its economy. Empirical evidence suggests transforming the agro-industry and inserting MSEs into value chains is the most feasible strategy. Inspired by arguments against global value chains (GVCs) orientation of Africa's industrialization strategies, this research investigated the link between local production and technological capability in Africa using indicators from various international databases and crosscountry quantitative analyses. The research also undertook an indepth qualitative investigation on Ethiopia's edible oil industry as an important case capable of shedding some light on problems linked to Africa's agro-processing with a special focus on local production system and technological capability. The finding revealed strong positive linkages between local value chains and technological/ innovation capabilities in Africa. Structural constraints, underdeveloped supply chains, and poor implementation and coordination of policies have limited Africa's capability to harness potentials inherent in the agro-processing sector.

Systematic Review of the Factors Impacting the Agro-processing Sector Towards Economic Growth & Development: A Case for Ghana

“…Recommended future studies are to look at each endogenous and exogenous factor and perform a country-specific or general impact analysis. Shehrawat, 2006;Adaku et al, 2018;Sanida et al, 2016;Trusova et al, 2019;Mashimba & Kühl, 2014;Rae & Josling, 2003;Osei-Amponsah, 2020;Breisinger et al, 2009;Bjornlund et al, 2020;Ncube, 2018;Ahmad, 2020;Venkatesh et al, 2017;Atayi et al, 2021) 45.16 Sanida et al, 2016;Martin, 2019;Mashimba & Kühl, 2014;De Vries et al, 2015;Ahmad, 2020;Venkatesh et al, 2017) 19.3…”

“…• Access to capital 10 (Shehrawat, 2006;Dao, 2016;Mashimba & Kühl, 2014;Breisinger et al, 2009;Munyi, 2020;Thindisa & Urban, 2018) 19.3 Ahmed et al, 2014;Shehrawat, 2006;Sanida et al, 2016;Shifa, 2015;Klasen et al, 2021;Martin, 2019;Panda, 2015;Ruslan, 2018;Hawkes, 2005;Watanabe et al, 2009;Mashimba & Kühl, 2014;Rae & Josling, 2003;Osei-Amponsah, 2020;Breisinger et al, 2009;De Vries et al, 2015;Ahmad, 2020;Venkatesh et al, 2017) 54.8…”

“…• Product quality, branding, and marketing 4 (Shehrawat, 2006;Panda, 2015;Ruslan, 2018;Osei-Amponsah, 2020) 12.9 Promoting a policy-driven business environment that enables easy funding of agroprocessing 47 (Shehrawat, 2006;Dao, 2016;Mashimba & Kühl, 2014;Breisinger et al, 2009;Munyi, 2020;Thindisa & Urban, 2018;Wattanapruttipaisan, 2003;Osei-Amponsah, 2020;Munyi, 2020;Mashimba & Kühl, 2014;Adaku et al, 2018;Sanida et al, 2016;Trusova et al, 2019;Rae & Josling, 2003;Bjornlund et al, 2020;Ncube, 2018;Ahmad, 2020;Venkatesh et al, 2017;Atayi et al, 2021) 54.8 33 (Shifa, 2015;Breisinger et al, 2009;Bjornlund et al, 2020;Atayi et al, 2021;Dorosh & Thurlow, 2018;Sanida et al, 2016;Abid Sultan & Deepak, 2017;Panda, 2015;Watanabe et al, 2009;Mashimba & Kühl, 2014;Rae & Josling, 2003;Breisinger et al, 2009;Munyi, 2020;De Vries et al, 2015;Caselli & Coleman II, 2001;Thindisa & Urban, 2018;Venkatesh et al, 2017;...…”

“…Favorable economic policies, efficient management agroprocessing firms, packaging, branding, and marketing of agromanufactured products 22 (Wattanapruttipaisan, 2003;Shehrawat, 2006;Adaku et al, 2018;Sanida et al, 2016;Trusova et al, 2019;Mashimba & Kühl, 2014;Rae & Josling, 2003;Osei-Amponsah, 2020;Breisinger et al, 2009;Bjornlund et al, 2020;Ncube, 2018;Ahmad, 2020;Venkatesh et al, 2017;Atayi et al, 2021;Panda, 2015;Ruslan, 2018) 48.38…”

“…Asare & Essegbey (2016) confirmed and recommended the commercialization of technology development, innovation capability, and government investment. There is a need to move away from only niche-specific and internet-based knowledge acquisition to a more formal and institutional capacity building founded on a bedrock of deliberate and effective technology utilization (Ahmed et al, 2014;Adaku et al, 2018;Sanida et al, 2016;Abid Sultan & Deepak, 2017;(Dao, 2016;Shehrawat, 2006;Panda, 2015;Ruslan, 2018;Manonmani, 2015;Rae & Josling, 2003, Osei-Amponsah, 2020, De Vries et al, 2015, Ahmad, 2020.…”