An analysis of the competitive performance of the Congolese palm oil industry

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dc.contributor.advisorVan Rooyen, Johanen_ZA
dc.contributor.authorDiambwa, Mania Donatienen_ZA
dc.contributor.otherStellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.en_ZA
dc.date.accessioned2024-03-04T15:49:31Z
dc.date.accessioned2024-04-26T20:09:52Z
dc.date.available2024-03-04T15:49:31Z
dc.date.available2024-04-26T20:09:52Z
dc.date.issued2024-03
dc.descriptionThesis (MScFoodSc)--Stellenbosch University, 2024. en_ZA
dc.description.abstractENGLISH SUMMARY: The palm oil industry of the Democratic Republic of the Congo (DRC) provides an interesting case study. Richly endowed with the required natural resource base, the DRC was a leading palm oil producer and the main African exporter of palm oil and second in the world with 150 000+ metric tons from 1961 to 1975. Thereafter and due to neglect and decline, the Congolese palm oil industry reached the point, in the 1990s to 2010, where palm oil had to be imported to meet local demand. Since 2015, indications of recovery have been observed. This study measures and analyses the competitive performance of the Congolese palm oil industry to understand the factors constraining and enhancing competitiveness and to propose strategies for improvement. The New Trade Theory and Porter Diamond model provided a grounded theoretical construct for the analysis as it relates to converting comparative advantages, based on natural resource endowments (for palm oil production in the DRC), into business related competitive advantage positions. The relative trade advantage (RTA), the revealed comparative advantage (RCA), and the normalised revealed comparative advantage (NRCA) were used as quantitative measures, with trade data from FAOSTATS and Trade Map ITC. The RTA measurement shows fluctuating trends for the Congolese palm oil industry from highly competitive to negative ratings, with four phases of competitiveness: Phase 1 - “Post-impendence highly competitive but fluctuating” (1961-1975), with 1 849 as highest RTA and 703 as lowest; Phase 2 - “Decreasing positive competitiveness” (1975-1985), with 489 as highest RTA, and 0 as lowest; Phase 3 - “Neglect and nationalization with marginal to negative competitive performance”(1986-2015), with 50 as highest RTA and -83 as lowest; and Phase 4 - ”Recovery towards competitiveness” (2016 onwards), with 95 as highest RTA and 15 as lowest. From an export competitive performance perspective, RCA and NRCA indices show a marginal positive performance since 2015, indicating some recovery from the net import years. To explore the current reality of the competitive performance of the Congolese palm oil industry, analysis structured through the Porter Diamond model indicated that demand and market conditions (rating 3.4/5) and firm strategy, structure, and rivalry (rating 3.2/5) enhance competitiveness, with production factor conditions (rating 2.4/5) near neutral. Competitive performance is however constrained by weak related and supporting industries (rating 1.7/5), chance factors (rating of 1.8/5), and government policies and support (rating of 1.9/5) Note: 5/5 is viewed as most enhancing; 1/5 most constraining. The conversion of comparative into competitive advantages for the industry thus indicates constraining conditions within the Congolese palm oil industry. Strategies towards improving competitive performance require collaboration between the industry and government and include improving the business climate, power and electricity provision and rebuilding the general infrastructure. Linked to these are actions to be dealt with through private-public cooperation and improved industry value chain collaboration. These include research and development through the upgrading of the Nationale de Recherche Agronomies (INERA), technological innovation, replacement of obsolete equipment and improved processing facilities to increase the extraction rate of palm oil.en_ZA
dc.description.abstractAFRIKAANSE OPSOMMING: Die palmoliebedryf van die Demokratiese Republiek van die Kongo (DRK) bied 'n interessante gevallestudie. Die DRK, ryklik toegerus met die vereiste natuurlike hulpbronbasis, was vanaf 1961 tot 1975 'n toonaangewende palmolieprodusent, die belangrikste uitvoerder in Afrika asook die tweede grootste uitvoerder van palmolie - met 150 000+ metrieke ton - in die wereld. Daarna, en as gevolg van organisatoriese en bestuurs verval en verwaarlosing, het die Kongolese palmoliebedryf in die 1990's tot 2010 die punt bereik waar palmolie ingevoer moes word om in die plaaslike vraag te voorsien. Sedert 2015 is daar egter aanduidings van herstel in die bedryf. Hierdie studie meet en ontleed die mededingende prestasie van die Kongolese palmoliebedryf oor die afgelope 50 jaar heen, om die faktore van mededingendheid te verstaan, asook om strategiee vir verbetering voor te stel. Die New Trade Theory en Porter Diamond-model het 'n begronde teoretiese konstruk vir die analise verskaf, aangesien dit verband hou met die omskakeling van vergelykende ekonomiese voordele, gebaseer op natuurlike hulpbron skenkings (vir palmolieproduksie in die DRK),na besigheidsverwante mededingende voordeelposisies. Die relatiewe handelsvoordeel (RTA), die geopenbaarde vergelykende voordeel (RCA) en die genormaliseerde geopenbaarde vergelykende voordeel (NRCA) is as kwantitatiewe maatstawwe gebruik. Die FAOSTATS en Trade Map ITC se handelsdata is gebruik. Die RTA-meting toon wisselende tendense vir die Kongolese palmoliebedryf; van hoogs mededingend tot negatiewe graderings. Vier fases van mededingendheid word beskryf: Fase 1 is die “na-onafhanklikheidsfase (1961-1975), hoogs mededingend maar wisselend" met 1 849 as die hoogste RTA en 703 as die laagste (telling). Fase 2 is die “verminderende maar steeds positiewe mededingendheidsfase” (1975-1985), met 489 as die hoogste RTA, en 0 as laagste (telling). Fase 3 is die “verwaarlosing en nasionalisering met marginale tot negatiewe mededingende prestasie-fase” (1986-2015), met 50 as die hoogste RTA en -83 as laagste RTA. Fase 4 is die herstel na mededingendheidsfase" (2016 en daarna), met 95 as hoogste RTA en 15 as laagste RTA. Vanuit ’n uitvoermededingende prestasieperspektief toon RCA- en NRCA-indekse marginaal positiewe prestasies sedert 2015. Dit dui ’n mate van herstel deur toenemende uitvore, alhoewel invoer steeds voorkom. Om die huidige realiteit van die mededingende prestasie van die Kongolese palmoliebedryf te verken, het ontledings , gestruktureer deur die Porter Diamond-model, aangedui dat vraag en marktoestande (gradering 3.4/5) en ook bedryfstrategie, struktuur en wedywering (gradering 3.2/5) die mededingendheid verbeter met produksiefaktortoestande (gradering 2.4/5) grootliks neutraal. Mededingende prestasie word beperk deur swak verwante en ondersteunende bedrywe (gradering 1.7/5), toevalsfaktore (gradering van 1.8/5), en regeringsbeleid en -ondersteuning (gradering van 1.9/5). Let wel: 5/5 word as die mees ondersteunende mededingende prestasie beskou; 1/5 as die mees beperkende. Strategiee om mededingende prestasie te verbeter vereis verbeterde samewerking tussen die bedryf en die regering en sluit in die verbetering van besigheidsklimaat (business climate), krag- en elektrisiteitsvoorsiening en die herbou van die algemene infrastruktuur ( vervoer en verskeping). Aksies wat hieraan verwant is, is sterker privaat-openbare samewerking en verbeterde industriewaardeketting koordinasie, en verbeterde produksie navorsing en ontwikkeling deur onder andere die opgradering van die Nationale de Recherche Agronomies (INERA), tegnologiese innovasie, vervanging van uitgediende produksie toerusting en verbeterde verwerkingsfasiliteite om onttrekkingskoers van palmolie te verhoog.af_ZA
dc.description.versionMasters
dc.format.extentix, 78 pages : illustrations, maps, includes annexures
dc.identifier.urihttps://scholar.sun.ac.za/handle/10019.1/130508
dc.language.isoen_ZAen_ZA
dc.publisherStellenbosch : Stellenbosch University
dc.rights.holderStellenbosch University
dc.subject.lcshPalm oil industry -- Congo (Democratic Republic)en_ZA
dc.subject.lcshPalm oil industry -- Economic aspects -- Congo (Democratic Republic)en_ZA
dc.subject.lcshPalm oil industry -- Environmental aspects -- Congo (Democratic Republic)en_ZA
dc.subject.nameUCTD
dc.titleAn analysis of the competitive performance of the Congolese palm oil industryen_ZA
dc.typeThesisen_ZA
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