This is what Maliki Natchaba, Rural Development and Value Chain Consultant tries to explain in this exclusive interview.
"Economic progress cannot succeed without value chains", he declared.
Maliki defines value chain as a model in which a set of actors carries out value-added activities along a process from production to final consumption in a given sector.
For him, value chains rely on offshored or non-relocated but interconnected businesses that at each stage bring added value along the way.
“This is how we talk of global value chain when a product or service crosses several companies in different countries around the world to reach the final consumer", he explains before adding that "for countries hosting these companies along the value chain, it is an opportunity for job creation through the call for skills and labor, wealth by the payment of taxes and fees that can lead economic progress of countries along the value chain".
Value chains can be developed in all sectors of activity. Rather, they reason in terms of the interconnectivity of companies that focus more on the cost-result relationship from a given analysis. For example, we can talk of value chains in the tourism, mining, industrial and agricultural sectors.
Agricultural value chains
Value chains are very effective way of boosting the agricultural sector.
Local processing of agricultural products, their marketing and others reduce imports and exports related to the sector breaking the vicious circles of uncertainty, food insecurity and poverty in developing countries especially, and constitute most of these countries, the key to emergence.
In Togo for example, the buoyant sector, provider of jobs and sure to boost the economy is agriculture.
For this sector which employs more than 2/3 of the active population and covers the entire territory, the choice of promotion and development of agricultural value chains is a strategic point for the inclusive economic development of the country.
The National Development Program (PND) of 4.622 billion CFA contains all the development programs of Togo covering the period 2018-2022.
Its axis 2 takes into account the development of agricultural value chains through the development of agricultural processing poles, manufacturing and mining industries.
Yet, the launch of the National Program for Agricultural Investment, Food Security and Nutrition (PNIASAN), the indictment of agro-food processing areas including agro poles and incentive mechanism for agricultural financing (MIFA) whose results are strongly expected by Togolese and rural population especially, are among others actions carried out in this perspective.