Assessment of the Profitability and Competitiveness of the Arabic Gum Value Chain in Improving the Living Conditions of the Population in Burkina Faso’s Sahel

Abstract

The study's goal was to assess the profitability and competitiveness of the Arabic gum value chain in Burkina Faso's Sahel. The information was gathered from 40 producers, 20 collectors, the Arabic gum exporters' association, and Burkina Faso customs. Data was gathered from both secondary and primary sources. One structured questionnaire was used to obtain primary data for each actor category. For data processing and the estimation of profitability and competitiveness indicators, Excel and Value Chain Analysis (VCA) softwares, version 10, were utilised. To conduct the analysis, the Policy Analysis Matrix (MAP) was used. According to the findings, the Arabic gum value chain appears to be financially and economically profitable. The research of competitiveness indicators reveals that the Sahel region of Burkina Faso has a comparative advantage in manufacturing Arabic gum. Domestic resource costs show that all economic agents are rational in their use of domestic resources. The profits gained are likely to expand Arabic gum production, which will have a good impact on the living standards of Burkina Faso's Sahel producers.