The value creation process and governance of the African NonTraditional Export Sector

The Non-Traditional Export (NTE) sector promises to be the antidote to Africa’s economic woes in the face of the dwindling nature of traditional exports. Adopting Porters value chain framework, we explore how beverage companies engaged in the NTE create value in their upstream, midstream, and downstream activities through effective governance, application of focused technology and skill development. In exploring these intricacies arising from African GVCs, we draw on two major case studies from South Africa and Ghana. Our study shows that the NTE sector has the potential to change the poverty dynamics in Africa, contribute to industrialisation as well as create international competitiveness for African firms. Nevertheless, having the right mix of factors of production, institutional support, adequate financing, infrastructural development, internet connectivity, investment in skill development and research and development (R&D) will account for the differential performance of African firms in global trade.