Table 3: An Action Plan for Supporting Supply Chain Development Policy Directive Rationale Key Implementation Activity In most African economies Governments need to initiate strategic Identify and there are a limited number discussions with these lead firms to support, engage with of export sectors in which and if necessary, initiate supply chain key lead firms lead firms either play, or development. have the potential to play a Governments should pressure lead firms critical role in supply chain who are reluctant to promote supply chain efficiency. A focus on major development programmes. export products, or significant exporting sectors, will identify the appropriate lead firms. Lead firms are generally Government can help to assemble a Assist firms in best able to identify, and consortium of supply chain partners. assembling a engage with, their first-tier This may involve government agencies, and consortium of suppliers and customers. institutions in the National System of firms in their But this meets only a part Innovation (such as research centres and supply chains of the agenda to achieve universities). systemic competitiveness. International experience Government or international agencies shows governments have a should provide matching grant financing for Promoting role to play in facilitating upgrading programmes to assist local bottom-up supply chain efficiency, in suppliers meet the international supply chain part through incentives competitiveness standards of the lead firms. efficiency schemes to facilitate the To ensure long sustainability support growth of Business financing should be time-bound to create a Services firms promoting market-driven bottom-up supply chain supply chain development development programme. Meeting the variety of Government should reduce costs by Certification to supply chain standards establishing centralised local certification meet the social imposed on suppliers agencies. and (social, environmental, Government should provide one-off loans or environment health etc.) requires being grant subsidy funding to help firms fulfil the bottom line able to satisfy certification various certification processes. codes. Certification is costly and local suppliers struggle to muster the funds and capabilities to pass these tests.
Table 3: An Action Plan for Supporting Supply Chain Development Policy Directive Rationale Key Implementation Activity Identify and engage with key lead firms In most African economies there are a limited number of export sectors in which lead firms either play, or have the potential to play a critical role in supply chain efficiency. A focus on major export products, or significant exporting sectors, will identify the appropriate lead firms. Governments need to initiate strategic discussions with these lead firms to support, and if necessary, initiate supply chain development. Governments should pressure lead firms who are reluctant to promote supply chain development programmes. Assist firms in assembling a consortium of firms in their supply chains Lead firms are generally best able to identify, and engage with, their first-tier suppliers and customers. But this meets only a part of the agenda to achieve systemic competitiveness. Government can help to assemble a consortium of supply chain partners. This may involve government agencies, and institutions in the National System of Innovation (such as research centres and universities). Promoting bottom-up supply chain efficiency International experience shows governments have a role to play in facilitating supply chain efficiency, in part through incentives schemes to facilitate the growth of Business Services firms promoting supply chain development Government or international agencies should provide matching grant financing for upgrading programmes to assist local suppliers meet the international competitiveness standards of the lead firms. To ensure long sustainability support financing should be time-bound to create a market-driven bottom-up supply chain development programme. Certification to meet the social and environment bottom line Meeting the variety of supply chain standards imposed on suppliers (social, environmental, health etc.) requires being able to satisfy certification codes. Certification is costly and local suppliers struggle to muster the funds and capabilities to pass these tests. Government should reduce costs by establishing centralised local certification agencies. Government should provide one-off loans or grant subsidy funding to help firms fulfil the various certification processes.