The report examines how “cumulation” – allowing countries to share inputs across borders while still qualifying for trade preferences – can strengthen regional value chains and industrial development in sub-Saharan Africa.
Drawing on firm-level evidence from five countries, the findings highlight a clear gap between potential and practice.
Despite being embedded in major trade agreements, cumulation remains more a legal option than a commercial reality in sub-Saharan Africa. Firms across the region rarely use it in practice, even where potential for establishing value chains exists. This gap is driven by low awareness, complex customs procedures and high logistical costs.
The report identifies promising regional value chains that could expand if these barriers are addressed.
Country experiences reveal uneven progress
Firm-level evidence shows that progress varies widely across countries, but challenges are consistent.
- Mauritius and South Africa provide the most advanced examples of cumulation in practice. Yet even in these cases, use remains limited and often confined to specific sectors, like automotive, or situations.
- In Kenya, engagement is high among firms and institutions, but logistical constraints and limited regional sourcing – particularly for fabrics – restrict broader uptake.
- In Ethiopia, firms show low familiarity with rules of origin and limited understanding of cumulation. In Mozambique, institutional awareness is improving, but private-sector knowledge and capacity remain weak.
Systemic barriers constrain firms
Across all countries, structural constraints limit the practical use of cumulation, even where firms see potential.
- Customs procedures for importing inputs from regional partners remain complex and difficult to navigate.
- Trade information is often fragmented.
- Coordination between institutions is weak in establishing the necessary administrative processes to benefit from cumulation.
At the same time, high transport costs and poor connectivity reduce the competitiveness of regional sourcing.
Firm-level evidence shows how severe these constraints can be. In one case, transport costs increased the price of inputs from around $4 per ton to around $42 per ton, undermining the viability of regional trade.
Untapped opportunities across key sectors
The report highlights opportunities across several sectors, including textiles and apparel, agro-processing, fisheries and light manufacturing. These value chains could expand significantly if firms are better able to source inputs regionally and meet rules-of-origin requirements.
The African Continental Free Trade Area (AfCFTA) offers an opportunity to extend cumulation across the continent if implemented correctly and uniformly by African states. A more integrated and streamlined system for cumulation could strengthen intra-African trade.
Policy action is needed to turn potential into practice
Targeted policy action is essential to make cumulation usable for firms. The report highlights the need to simplify procedures, improve awareness and strengthen regional coordination.
In practice, this means reducing administrative burdens, expanding training for firms and customs authorities, and improving infrastructure to lower transport costs. It also requires stronger regional cooperation to support supplier networks and facilitate trade.
Cumulation remains underused but highly strategic for Africa’s development. With the right reforms, it can evolve from a complex legal provision into a practical tool for industrialization, job creation and export diversification.