Activities marking the 20th anniversary of the African Export-Import Bank (Afreximbank) began in Addis Ababa on Thursday with bank president, Jean-Louis Ekra, saying that the only means through which Africa could benefit from its abundant natural resources was through processing and eventual joining of the global value chain.
In an address at the anniversary opening ceremony held at the United Nations Conference Centre in Addis Ababa, Ekra said that because many African countries had underdeveloped supply chains across many export industries and sectors, the continent continued to be predominantly an exporter of primary commodities which attracted lower values than processed goods.
“The net effect is a disconnect between prices paid by final consumers of processed African commodities and those received by African producers, because of higher margins at later stages of the product value chain,” added the president, citing the example of cocoa beans, which Africa produces 72 percent of the world total but 90 percent of the income from the end product goes to counterparties in the processing and consuming countries.
