For decades, African industrialisation strategies have focused on what to produce. Perhaps the more important question is who coordinates production, finance, logistics, market intelligence, and market access across the different scales of the continental economy? Japan found one answer in its sogo shosha (general trading companies). These firms are system integrators, connecting manufacturers, financiers, shipping companies, governments, and foreign buyers into a coherent commercial ecosystem. Their role is also to create complementarity between national, regional, and global value chains, allowing firms of different sizes and capabilities to participate in increasingly sophisticated production and trade networks. Could Africa develop its own version? This paper explores how the sogo shosha model could inspire a new generation of African trading companies capable of strengthening the AfCFTA, accelerating industrialisation, and transforming fragmented markets into an integrated continental trade system. Sometimes the most valuable innovation is not a new product or service. It is a new way of organising trade.
Read the paper on the international journal of Technology, Health and Sustainability.