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AFRICABIZ VOL 1 - ISSUE: 61
MAY 15 - JUNE 14, 2004
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
editor@africabiz.org
Featured Article
Countries Briefs
Live News On Africa
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A Word From the Editor
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A WORD FROM THE EDITOR


Dear visitor and international investor,

If this is your first visit to AFRICABIZ ONLINE Monthly Issue - The ultimate newsletter on trading and investing in 48 sub-Saharan African countries - we warmly welcome you. If you are a regular and faithful reader, welcome back. Since April 12, 2004 our news URLs are:

1- The Consulting Website: http://businessafrica.net
2- Africabiz Online: http://africabiz.org
3 - The Electronic Marketplace: http://businessafrica.net/bizboard/

Now Africabiz' websites have plenty of Bandwidth to cope with the increasing flow of visitors. You are invited to make use of the Electronic marketplace to post offers of services and goods. Visit here for more on the Electronic Marketplace.

- WTO INTERIM RULING ON COTTON SUBSIDIES IS A FALSE VICTORY

On April 26, 2004, a World Trade Organization (WTO) panel ruled U.S. cotton subsidies violate international trade rules. The decision hands a potentially major victory to developing countries about the problem of subsidies granted by the international trading major players - the United States of America and the European Union - to American and European producers of agricultural products; particularly to cotton's growers. Remember, the subsidies' issue was one of the main reason Cancun WTO Round of Negotiations (September 10-14, 2003) collapsed.

Could one consider WTO interim ruling a true victory for developing countries? Or is it a false victory? Click here to review Africabiz Online's opinion: There Is No Reason To Exult About WTO Ruling Against Cotton' Subsidies.

- Contributor's Guidelines are here to review. Your contribution on "How African countries / entrepreneurs could bridge the developing gap" is welcome.

Many thanks for dropping by and see you here on June 15, 2004.


Dr. B.M. Quenum

Editor of AFRICABIZ
Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA

- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.

a- SHEA BUTTER ( 5, 6, 7, 11, 12, 13)
b- BLUE GOLD ( 14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN ( 20, 21, 22 and here)
d- KENAF ( 23, 24)
e- VEGETABLE OIL ( 25, 26, 27, 28)
f- CEREALS ( 30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS 54, 55, 56, 57, 58, 59, 60)

- TROPICAL ROOTS AND TUBERS: (VII) - B- GARI'S MARKET

Cassava, potato, and sweet potato rank among the top 10 food crops produced in developing countries. Sub-Saharan Africa - SSA - is expected to experience the fastest growth in food demand for all roots and tubers, largely driven by rapid population's growth. SSA share in the total demand for developing countries will be 53 percent, with cassava accounting for two-thirds of the increase.

Here are listed four processed cassava's products
, which highlight the fact that cassava could be an important components - an Economic Catalyst - to the Integrated Economic Development Scheme. Briefs on the preparation of fresh cassava prior to the production of chips and pellets are reported here. Operating conditions to producing cassava ships on a small-scale basis are posted here. The following link dealt with Investment briefs to producing cassava floor with small-scale industrial units. Each unit can create 60 jobs or 60,000 jobs if 1,000 units are installed. That is a lot for rural areas in a developing country.

Starting from Issue 60, four deliveries (A -
Introduction B- Market C - Plantation's creation and D - Medium-scale industrial production unit) deal with the production of a granulated cassava flour that is a popular food in Africa: GARI

- B- GARI'S MARKET IN AFRICA

Gari is a granulated, white or yellowish product - depending on production methods. It has 10 to 15% moisture content that permits a long conservation (up to one year) in normal atmospheric conditions. It has a high swelling capability and can absorb up to 4 times its volume in water. It is a popular diet eaten in may flavors:

- In sugared water.
- With groundnuts and sugar, in water.
- Transform in pasta with hot water and eaten with a variety of sauces (vegetable, meats, fish).
- As supplement to beans' preparations and a variety of sauces.

The nutritional supplements provides by Gari are reported here The main consumption's area in Africa covers Nigeria, Benin, Togo and Ghana. The other actual Africa's consumption markets (Niger, Burkina Faso, Ivory Coast, Guinea, Chad, Gabon, Congo, Cameroon) are marginal. Click here for Countries' Briefs

In the main consumption area, 80% of the populations eat Gari on a daily basis (together with maize flour in Benin and Togo). The remaining portion of the populations (20%) eat Gari twice per week. (Source: Africabiz's market analysis).

The intake per person and per day averaging 100 gr. (Source: Africabiz's Prefeasibility Study for the Development of Cassava Production in Africa - 2002 and reference to this study by Mr. Saliou Ousmane).

Based on above findings Table below gives a conservatory evaluation about the actual Gari's Market (Metric Tons) in the main consumption area (Nigeria, Benin, Togo and Ghana):

ItemsCountriesNigeriaBeninTogo Ghana
AFresh Cassava Production (MT x 1,000 - Year 2003)76.7893.3102.7759.760
A-bisQuantities of fresh cassava used to produce Gari70.6023.1602.3859.309
BPopulation x 1,000 - (Year 2003)150.4746. 7375.08519.842
C B x 80% x 100gr. x 365 days - (MT)4.393.841196.720148.482579.386
DB x 20% x 100gr. x 52 weeks x 2- (MT)312.98514.01310.57741271
ETotal consumption of Gari (MT)4.706.826210.733159.059620.657

Depending on the varieties of cultivars, the theoretical Gari's yield per kg of fresh Cassava varies from 18% to 36% (17 cultivars tested). That is an average of 24.1%. In reality, due to traditional production's methods (the most practiced actually), Gari's yield per kg of fresh Cassava is in the range of 15% to 16% (See Line A-bis on above Table).

That means the current production of Gari is lower than the potential one as shown on Table below, in case a quantity equal to the current total production of cassava is industrially processed for export to other African and international markets:

NigeriaBeninTogoGhana
Fresh Cassava Production (Year 2003) x 1,000 (MT)76.7893.3102.5949.294
Potential Gari's Production Level (24.1% yield) x 1,000 (MT)18.5067976252.240

- B- MONETARY EVALUATION OF GARI'S MARKET

The conservatory Gari's market in the main consumption area above outlined gives a total of 5,697,275 metric tons (produced by traditional methods) per annum - for a population of 186,138,000 people. At the average current pricing of Gari in the area (US$ 180 per metric tons "ex-works") that production amount represents a market value of US$ 1,025.460 billion.

Owing to the fact that production's yield of cassava plantations in the main consumption area are in the range of 11 to 12 metric tons per hectare, one could imagine the huge potential existing if cultivars producing up to 45 metric tons per hectare of fresh cassava are promoted and cultivation techniques improved (seedling, pest control and fertilization).

Keeping above remarks in mind and comparing figures in
line E of Table about actual consumption and the one in the last line of previous table (about the potential Gari's production level), one sees that there is a margin to increasing the production of Gari in the main consumption area for export markets to garnering substantial foreign exchanges revenues.

Indeed, considering first, the "readiness" of the flour to be used as diet's complement (for a variety of African sauces and cooking); and, second, the long conservation's period (up to one year in dried and normal atmospheric conditions) - it is possible to expand the consumption's area to covering Central, Eastern and Southern African countries.

Taking into account the population level in sub-Saharan Africa (680 million people in 2003) one calculates there is a huge Gari market in Africa. A minimum of 20 millions metric tons of Gari per year for a minimal market value (ex-works) of US$ 3,750 billions.


MORE ON ROOTS AND TUBERS
1- Roots & Tubers Market in Qatar
2- Roots & Tubers Market in Europe
3- Food Security: In Sub-Saharan Africa
In Latin America and the Caribbean
4- Roots and Tubers: A Vegetable Cookbook
by Kyle D. Fulwiler
5-
Tuber Crops
by N. M. Nayar

6- Roots, Tubers, Plantains and Bananas in Animal Feeding
Proceedings of the Fao Expert Consultation Held in Ciat, Cali, Colombia 21-25 January 1991
7- Pest Management for Tropical Roots & Tubers Workshop on the Global Status of and Prospects
8- The Tropical Tuber Crops
Yam, Cassava, Sweet Potato, and Cocoyams by I. Chukuma Onwueme

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