Evidence and Potentialities of Regional Value Chains in Sub-Saharan Africa Using Cumulation: a Quantitative and Firm Level Approach

This study examines the role of cumulation under rules of origin (RoO) in strengthening regional value chains and promoting industrial development in Sub-Saharan Africa. Cumulation enables producers to count inputs sourced from participating countries as originating products, allowing them to qualify for preferential tariff treatment and supporting cross-border production, investment, and specialization. The research assesses how African firms use cumulation opportunities provided by trade agreements such as the EU-SADC Economic Partnership Agreement, the United Kingdom's Developing Countries Trading Scheme, AGOA, and the AfCFTA. Using legal, quantitative, and firm-level analysis, the study draws on data from Mauritius, Kenya, Mozambique, South Africa, and Ethiopia, supported by surveys, input-output analysis, field missions, and stakeholder consultations. Findings reveal that, despite significant opportunities, utilization of cumulation remains limited because of regulatory complexity, institutional challenges, and low awareness among firms. The study concludes that simpler rules, stronger coordination, and greater private-sector awareness are essential to transform cumulation into a practical driver of industrialization, employment creation, regional integration, and export diversification in Africa.