Modern Bamboo Sofa Chair Value Chain Analysis around Addis Ababa

Abstract

This paper examines the modern bamboo sofa value chain around Addis Ababa, focusing on the links and roles of key actors, the production process, and the challenges faced by the industry. Through a case study approach, the paper analyzes the production process in selected workshops and identifies key challenges hindering the growth of the bamboo sofa value chain. The research has used primary and secondary data and descriptive analysis to obtain the following facts; diverse actors have been participated directly or indirectly in the chain. Directly input suppliers, producers, traders, consumers and indirectly actors are ministry of trade and investment are involved. The actors involved to bring bamboo sofa chair product to the final stage used several inputs such as bamboo culm producers, local traders, and wholesalers, manufacturers, and consumers. Commonly produced bamboo sofas in the selected enterprises are single seater sofa (55cm by 60cm seat area) and double seater sofa (69cm by 110cm seat area). The study revealed that, at study place the products are consumed by hotels, recreational places and individuals. The volume of production of bamboo sofa (both single and double seater) was about 620 pieces in the year 2016 E.C from which about 520 pieces were sold. The average total production cost incurred for raw material, labor, manufacturing over head and administrative issues is Birr 2060, 412, 309 and 4078, 815.6, 611.7 for single, and double seater bamboo sofa chair respectively. The manufactures received in average profit of Birr 3119 and 5295 form single, and double seater bamboo sofa chair respectively. The study revealed that the modern bamboo sofa chair industry around Addis Ababa faces issues related to sourcing sustainable bamboo, manufacturing quality products, and lack of demand markets efficiently. Based on the findings, the paper recommends the way that could enhance the sustainability and competitiveness of the industry. This study contributes to the existing literature by offering insights into the value chain of modern bamboo furniture, providing recommendations for industry stakeholders, and highlighting the theoretical significance of applying value chain analysis in the context of sustainable modern bamboo sofa production.