EU-CELAC Innovact Platform: Innovation to promote Territorial Cohesion - Task 2: Value chain mapping in the Ecuador-Colombia cross-border region
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29th September 2017 EU-CELAC Innovact Platform: Innovation to promote Territorial Cohesion Task 2: Value chain mapping in the Ecuador- Colombia cross-border region
EU-CELAC Innovact Platform: Innovation to promote Territorial Cohesion Task 2: Value chain mapping in the Ecuador-Colombia cross-border region 29st September 2017 For any information regarding this document, please contact: Begoña Sánchez, TECNALIA R&I begona.sanchez@tecnalia.com +34 946 430 850 Inés Sagrario, Task Leader for Task 2, Competitiveness ines.sagrario@competitiveness.com +34 626163032
Table of Contents
1 Summary in EN ...................................................................................................................................... 6
2 Resumen en ES ....................................................................................................................................... 8
3 The Context of the Border Area Ecuador – Colombia ........................................................................ 10
3.1 Ecuador-Colombia border Integration Zone ............................................................................................... 10
3.2 Bi-national Plans and other integration actions of the border Area emphasising innovation ...................11
4 National Level Priorities on each side of the Border .......................................................................... 13
4.1 Ecuador ......................................................................................................................................................... 13
4.1.1 Ecuador Government’s priorities of the border region: focal border areas ........................................... 13
4.1.2 Value chain support in the border area ................................................................................................... 13
4.2 Colombia ....................................................................................................................................................... 15
4.2.1 Colombia Government’s priorities of the border region: focal border areas ......................................... 15
4.2.2 Value chain support in the border area ................................................................................................... 15
5 Value Chain Mapping in the Border Area ........................................................................................... 16
5.1 Value Chain A: Cocoa .................................................................................................................................... 16
5.1.1 Key Value Chain Characteristics and Economic Indicators .................................................................... 16
5.1.2 Mapping of Key Players in the Value Chain ............................................................................................ 17
5.1.3 Key Challenges and Barriers to Development ......................................................................................... 18
5.1.4 Opportunities for Cross-Border Collaboration ........................................................................................ 19
5.2 Value Chain B: Tourism ............................................................................................................................... 20
5.2.1 Key Value Chain Characteristics and Economic Indicators ................................................................... 20
5.2.2 Mapping of Key Players in the Value Chain ........................................................................................... 20
5.2.3 Key Challenges and Barriers to Development ......................................................................................... 21
5.2.4 Opportunities for Cross-Border Collaboration ........................................................................................ 21
5.3 Value Chain C: Fisheries, artisanal fisheries and Aquaculture ................................................................... 23
5.3.1 Key Value Chain Characteristics and Economic Indicators .................................................................... 23
5.3.2 Mapping of Key Players in the Value Chain ............................................................................................24
5.3.3 Key Challenges and Barriers to Development .........................................................................................24
5.3.4 Opportunities for Cross-Border Collaboration ........................................................................................ 25
6 Prioritisation of Value Chains.............................................................................................................. 26
6.1 Reasoning for the selection of the value chains ...........................................................................................26
6.2 Priorisation Criteria in the Border Region Ecuador-Colombia ..................................................................29
7 Recommendations for Next Tasks.......................................................................................................30
7.1 Conclusions and recommendations ............................................................................................................ 30
: Contact Details of Interviewees ............................................................................................ 32
: Bibliography........................................................................................................................... 39: European Commission programs relevant to INNOVACT in this border area ................. 43
: Additional information on value chains prioritised ............................................................ 45
51 Summary in EN
The Ecuador-Colombia Border Integration Zone (ZIFEC- Zona de Integración Fronteriza Ecuador-
Colombia) includes the following cross-border strategic development areas (Andean, Amazon and
Pacific) with a total surface of 100,055 km². In Ecuador, the provinces of Carchi (Andean),
Esmeraldas (Pacific), Sucumbíos (Amazon) and Imbabura integrate the Zone1 of Ecuadorian
planning, with 42,065 km2 of extension. In Colombia, the Departments of Nariño (Andean and
Pacific) and Putumayo (Amazon) represent this border area with a surface of 57,990 km2.
Main challenges of this border area are extreme poverty (mainly in rural areas, work and economic
inclusion); access to basic services (education and health, drinking water and sanitation); insecurity
and violence; poor infrastructure and connectivity (digital illiteracy, use of ICT, electric
interconnection); environmental conditions under threat (deforestation, conservation of protected
areas and integral management of natural resources). The main problems are high rates of informal
employment, poor generation of adequate employment, insufficient value added generation,
productive chains that energize the local economy, and low levels of technology to improve production
processes. It is also a very extensive border zone.
The Plan Binacional de Integración Froteriza Ecuador-Colombia (PBIFEC) 2014-2022,
presents the main guidelines for the generation of cross-border policies to reach Good Living and
Prosperity for both countries, being the main framework for action of this border area. In parallel, a
common bi-national Fund is also in place to finance strategic projects. Before this Plan, this border
area developed specific border integration mechanisms such as bi-national Presidential,
Cabinet meetings and agreements to facilitate a bi-national effective relationship scheme that enables
the highest level of service to attend the needs identified in the different axes of the bi-national agenda.
The bilateral relationship is prosperous and aims to generate more communication channels
that facilitate the joint work. The national planning for both Ecuador and Colombia, through their
National Plans of Development, outline the compromise of the territories and establishes the actions to
develop, within the bi-national planning in a complementary way. A clear programmatic convergence
exists between the Ecuador´s Plan Nacional del Buen Vivir and the Plan Nacional de Desarrollo in
Colombia, where both prioritise border relationships.
The European Union (EU) has also supported this border area through specific projects (please see
Appendix C for details).
The work presented in this Mapping Report synthetises the information gathered from the
stakeholders interviewed as well as the strategic documents analysed. This has permitted to identify
and prioritise two strategic value chains for this border area: Cocoa and Tourism. Cocoa is
the fourth largest traded tropical crop behind palm oil, rubber and bananas. Ecuador is the leading
exporter in the world of high quality cocoa, also known as Fine Aroma Cocoa. In Colombia since 2013,
cocoa production has increased and nowadays, Colombia is among the top 10 producing countries.
Tourism is an industry in continuous change and evolution that shows strong growth and
diversification, as well as a growing sophistication of the demand, which requires from personalised
and quality services. The launch of new touristic products and packages is a good opportunity for this
value chain linked to the biological, cultural and geographic diversity.
These value chains have relevant critical mass and potentiality to generate competitiveness and
economic diversification with high cross-sectoral impact. Supporting these value chains is a means of
offering new opportunities for the population, better labour conditions, reinforcing capabilities and
boosting economic sustainability. Previous bi-national work exists on these value chains as well as
public and private support at national and territorial level. Both Cocoa and Tourism value chains can
also enhance better cross-border connectivity, complementarities to generate more value added and
better linkages not only at cross-border level, but also at European and international level. Both value
chains have potentialities for cooperation with EU regions. They can also provoke economic
revitalisation by means of a more sustainable integral model of development that allows the reduction
6of poverty and the improvement of the quality of life of peasant families. Both can take advantage from
the increasing demand of Cocoa, especially fine Cocoa and Tourism not only from their internal
market but also internationally.
INNOVACT has been widely disseminated to the stakeholders of this border area, who have supported
it and recommended to integrate the project with other similar actions in place to avoid duplication,
increase the impact. Stakeholders have also suggested thinking on specific actions that will permit to
ensure the sustainability of the results in the near future.
72 Resumen en ES
La Zona de Integración Fronteriza Ecuador-Colombia (ZIFEC) incluye las siguientes áreas de
desarrollo estratégico transfronterizo (Andina, Amazónica y Pacífico) con una superficie total de
100.055 km². En Ecuador las provincias de Carchi (región Andina), Esmeraldas (región Pacífica),
Sucumbíos (región Amazónica) e Imbabura integran la Zona1 de planificación ecuatoriana, con 42.065
km2 de extensión. En Colombia los departamentos de Nariño (región Andina y región Pacífica) y
Putumayo (región Amazónica) con una superficie de 57.990 km2 conforman esta área.
Los principales retos de esta zona fronteriza son la pobreza extrema (principalmente en las zonas
rurales, el trabajo y la inclusión económica); el acceso a servicios básicos (educación y salud, agua
potable y saneamiento); la inseguridad y la violencia; las infraestructuras y conectividad deficientes
(analfabetismo digital, uso de las TIC, interconexión eléctrica); las condiciones ambientales
amenazadas (deforestación, conservación de áreas protegidas y manejo integral de recursos naturales).
Los principales problemas son las altas tasas de empleo informal, la baja generación de empleo de
calidad, la insuficiente generación de valor añadido, las cadenas productivas que dinamizan la
economía local y los bajos niveles de tecnología para mejorar los procesos productivos. Es también una
zona fronteriza muy extensa.
El Plan Binacional de Integración Fronteriza (PBIFEC) 2014-2022 presenta las principales
pautas para la generación de políticas en el área fronteriza que permitan el Buen Vivir y la
Prosperidad para ambos países. Este Plan es el principal mecanismos de actuación en esta zona
fronteriza. En paralelo, existe un Fondo binacional común para financiar los proyectos estratégicos.
Previo a este Plan, esta zona fronteriza desarrolló mecanismos específicos de integración fronteriza
tales como reuniones binacionales Presidenciales y de Gabinete así como acuerdos para facilitar un
esquema binacional de relación efectiva que permita atender las necesidades identificadas en los
diferentes ejes de la agenda binacional al más alto nivel.
La relación bilateral es próspera en esta zona fronteriza y persigue generar más canales de
comunicación que faciliten el trabajo conjunto. La planificación nacional tanto para Ecuador como
para Colombia, a través de sus Planes Nacionales de Desarrollo, confirma el compromiso de estos
países y establece las acciones a desarrollar dentro de la planificación binacional de manera
complementaria. Existe una clara convergencia programática entre el Plan Nacional del Buen Vivir y
el Plan Nacional de Desarrollo en Colombia, donde ambos priorizan las relaciones fronterizas.
La Unión Europea (UE) también ha apoyado esta zona fronteriza a través de proyectos específicos
(véase el Anexo C para más detalles).
El trabajo presentado en este Informe sintetiza la información recabada de los actores entrevistados
así como los documentos estratégicos analizados. Esto ha permitido identificar y priorizar dos
cadenas de valor estratégicas para esta zona fronteriza: Cacao y Turismo. El cacao es la
cuarta cosecha comercial más grande detrás del aceite de palma, el caucho y los plátanos. Ecuador es el
principal exportador mundial de cacao de alta calidad. En Colombia, desde 2013, la producción de
cacao ha aumentado y actualmente Colombia está entre los 10 primeros países productores. El
turismo es una industria en constante cambio y evolución que muestra un fuerte crecimiento y
diversificación, así como una creciente sofisticación de su demanda, que requiere de servicios
personalizados y de calidad. El lanzamiento de nuevos productos y paquetes turísticos es una gran
oportunidad para esta cadena de valor ligada a la diversidad biológica, cultural y geográfica.
Estas cadenas de valor tienen suficiente masa crítica y potencialidad para potenciar la competitividad y
la diversificación económica con gran impacto inter sectorial. El apoyo a estas cadenas de valor
permitirá ofrecer nuevas oportunidades para la población, mejores condiciones laborales, reforzar las
capacidades de sus integrantes e impulsar la sostenibilidad económica. El trabajo previo realizado, es
un punto de partida muy importante así como el apoyo público y privado a nivel tanto nacional como
territorial. Ambas cadenas pueden propiciar una mejor conectividad y complementariedad
transfronteriza, para generar más valor añadido así como mejores conexiones, no sólo a nivel
8transfronterizo, sino también a nivel europeo e internacional. Estas cadenas de valor presentan un
gran potencial para cooperar con regiones de la UE. También pueden provocar una revitalización
económica mediante un modelo integral de desarrollo más sostenible que permita reducir la pobreza y
mejorar la calidad de vida de las familias campesinas. Ambas cadenas pueden aprovechar la creciente
demanda de Cacao especialmente el de alta calidad y Turismo, no sólo del mercado interno sino
también internacional.
INNOVACT ha sido ampliamente difundido entre los agentes de esta zona fronteriza, quienes han
apoyado y recomendado integrarlo con otras acciones similares para evitar la duplicación de acciones,
aumentar el impacto. Asimismo, se ha sugerido pensar en acciones que permitan asegurar la
sostenibilidad de sus resultados en un futuro cercano.
93 The Context of the Border Area Ecuador – Colombia
3.1 Ecuador-Colombia border Integration Zone
The Ecuador-Colombia Border Integration Zone (ZIFEC- Zona de Integración Fronteriza Ecuador-
Colombia)1 includes the following cross-border strategic development areas (Andean, Amazon and
Pacific regions) with a total surface of 100,055 km² corresponding to:
• Ecuador: the provinces of Carchi (Andean region); Esmeraldas (Pacific region);
Sucumbíos (Amazon region) and Imbabura2 that integrate the Zone1 of Ecuadorian
planning, with 42,065 km2 of extension.
• Colombia: the Departments of Nariño (Andean and Pacific region) and Putumayo
(Amazon region), with 57,990 km2.
Figure 1: Ecuador-Colombia border Integration Zone
In 2013, the population of the ZIFEC was 3,287,374 inhabitants expecting to grow up to 3,758,273 by
2020. The majority of the population, 61.27% is located in Colombia (4.3% of the total Colombian
population); 38.73% in Ecuador (8.7% of the total Ecuadorian population). By population density,
Nariño and Carchi gather the majority of population per Km2. The employed population is mainly
engaged in agriculture, livestock, hunting and Forestry (41%), wholesale and retail trade (18%) in
Ecuador. In Ecuador, the contribution of the ZIFEC to the national GDP is moderate, with a
predominance of the agricultural, fishing and services sectors. For Colombia, the ZIFEC contributes
marginally to the national GDP; with predominance of service and trade activities. ZIFEC has the
highest investment from all the Comunidad Adina’s ZIFs as of 2,745,055 US$. International
Cooperation amounts 51% of the investment and the rest corresponds to local governments.
Main challenges of this border area are extreme poverty (mainly in rural areas, work and economic
inclusion); access to basic services (education and health, drinking water and sanitation); insecurity
1 Decisión 501, establecida mediante Nota Reversal DM/DDF 44552 del Ministerio de Relaciones Exteriores de Colombia, y
Nota Reversal 5467/02 GM/DGAF del Ministerio de Relaciones Exteriores del Ecuador; publicadas en la Gaceta Oficial del
Acuerdo de Cartagena N° 888, del 21 de enero de 2003.
2 Decisión 501. The ZIF corresponds to the adjacent border territories of member countries ... ". For Ecuador the province of
Imbabura was also included by the influence of this province for the cross-border area.
10and violence; poor infrastructure and connectivity (digital illiteracy, use of ICT, electric
interconnection); environmental conditions under threat (deforestation, conservation of protected
areas, and integral management of natural resources). The main problems of are high rates of
informal employment, poor generation of adequate employment, insufficient value added generation,
productive chains that energize the local economy, and low levels of technology to improve production
processes. It is also a very extensive border zone.
The EU has supported this border area through specific projects (please see Appendix C for details).
3.2 Bi-national Plans and other integration actions of the border Area emphasising
innovation
The Plan Binacional de Integración Froteriza (PBIFEC) 2014-2022 was approved in
November 2014. It presents the main guidelines for the generation of policies that will reach Good
Living and Prosperity for both countries. It follows the agreement reached in the historic Tulcán
Declaration of 2012, which instructed the Secretaría Nacional de Planificación y Desarrollo
(Ecuador) and the Plan Fronteras para la Prosperidad (Colombia) the elaboration of this Plan. The
Plan is the first joint effort between the two nations to enhance the integration process, to plan the
development of the territory, to reduce social gaps, to support competitiveness on both sides of the
border, to define challenges and common indicators for both nations and to solve structural problems.
The Secretaría Nacional de Planificación y Desarrollo and the Plan Fronteras para la Prosperidad
are the institutions responsible of drafting the Plan and thus, key players. The following are the
structuring axes for bi-national planning: 1-Equity, social and cultural cohesion; 2-Comprehensive
security and human mobility; 3-Productive and commercial complementarity; 4-Connectivity and
infrastructure; and, 5-Environmental sustainability.
The PBIFEC gives details of running projects mainly regarding social security, health and
infrastructure (road, rivers, airports, etc.). Innovation is present through the entire Plan. Actions on
science, technology and innovation have been defined for bi-national scientific cooperation between
research groups, centers and institutes (biodiversity, renewable energies, biofuels, medicine, tropical,
public health, among others)3 in Axis 1. Axis2 promotes innovation regarding bi-national productive
and commercial complementarity for the production of goods and services with a high component of
value-added, making the most of innovation and technology transfer for the growth of the economy
and the generation of employment. Axis3 highlights policy mechanisms for the transfer of technologies
and innovation at the production processes. Axis4 foresees the development of Information and
Communication Technologies (ICT), as they present great opportunities of applicability in sectors such
as education, health and production, which have big implications for economic development,
competitiveness and innovation4.
Previous to this Plan, this border area developed specific border integration mechanisms such as
bi-national Presidential, Cabinet meetings and agreements (for artisanal fishermen, sanitary
and phytosanitary measures to facilitate bi-national trade, bilateral agreements to promote air routes
and connectivity, such as the international bridge of Rumichaca, Bi-national petroleum agreement).
The Gabinete Binacional-Binational Cabinet is the highest instance between Colombia and
Ecuador for the harmonization, definition and coordination of public policies for the benefit of the
population of both countries, especially in the border area. In 2012, in Tulcan- Ecuador took place the
I Gabinete Binacional Colombia-Ecuador, an effective relationship scheme that enabled the
highest level of service to attend the needs identified in the different axes of the bi-national agenda
(Security and Defence, Infrastructure and Connectivity, Border Affairs, Environmental Issues, Social
and Cultural Rights, Economic and Trade Affairs). The II Gabinete Binacional took place in
3 SENESCYT del Ecuador y Departamento Administrativo de Ciencias, Tecnología e Innovación, COLCIENCIAS de Colombia.
II Gabinete Binacional, Ipiales, 2013.
4 This had particularly led to the creation of the "Network for The South American Connectivity for Integration", within the
framework of UNASUR. http://www.unasursg.org/
11Ipiales, on 25th November 2013, advancing in the review of the commitments reached and emphasising
the need to put in place the Plan Binacional for the eradication of poverty and considering the
objectives set out in the Sustainable Development Objectives and the scenarios of the Post 2015
Agenda. The V Gabinete was held in February 2017 in Guayaquil5. The topics of the Comisión de
Vecindad Colombo Ecuatoriana were incorporated to this Gabinete Binacional. Furthermore,
both sides are currently preparing a bi-national information system and are engaged in an important
prospective planning exercise of the border integration zone (ZIF-“Zona de Integración Fronteriza”6).
ZIFs are the adjacent border areas of the member countries of the Andean Community, in which plans,
programs and projects are implemented to promote their development in a joint, shared and
coordinated way, following the Decision 5017.
On 14th September 2012, an agreement was signed by the two countries to set a common Fund to
finance strategic bi-national projects. In 2015, the operative and organizational structure of the Fund
was settled and CAF- Banco de Desarrollo de América Latina was designed as administrator of this
Fund.
The bilateral relationship is prosperous and aims to generate more communication channels
that facilitate the joint work. The national planning for both Ecuador and Colombia, through their
National Plans of Development, outlines the compromise of the territories and establishes the actions
to develop, within the bi-national planning in a complementary way. A clear programmatic
convergence exists between the Ecuador´s Plan Nacional del Buen Vivir and Plan Nacional de
Desarrollo in Colombia, where both prioritise border relationships. On top of the PBIFEC, indicators
and bi-national goals are established as well as a bi-national system of information.
A territorial prospective process of the ZIFEC to 2030 exists. The need to strengthen governance and
regional and local institutions is highlighted, designing an entity that leads the regional development
of the ZIFEC. The process has contributed to generate capacities, but its continuity is required with the
design of an institutional scheme.
Both countries support science, technology and innovation through different Plans and Strategies (for
more detail please see Appendix C).
5 http://www.andes.info.ec/es/noticias/ecuador-colombia-acuerdan-profundizar-integracion-cooperacion-durante-v-gabinete-
binacional.
6 Programa de Estadísticas en coordinación con el Proyecto de Fronteras de la Secretaría General de la Comunidad Andina.
7 http://www.comunidadandina.org/Seccion.aspx?id=122&tipo=TE.
124 National Level Priorities on each side of the Border
4.1 Ecuador
4.1.1 Ecuador Government’s priorities of the border region: focal border areas
The ZIFEC for Ecuador extends for 42,065 km2. The investment in the ZIF-Norte is a proportional
part of the Plan Plurianual de Inversión Pública (PPIP) which includes programs and projects
programmed by the State for their execution during the next four years and whose financing is
included in the Presupuesto General del Estado (PGE). Esmeraldas followed by Sucumbios had the
largest amount of investment during the period 2007-2013. Ecuador, promotes investments in
strategic sectors in the border area to provoke a change of the productive matrix. Social Development
(16%), Security (15%) and Human Talent (12%) are also prioritised. More in detail, the main economic
activities of the population are linked to agriculture and livestock (27.02%); followed by wholesale and
retail trade (13.76%), especially in the province of Carchi where there is greater trade movement with
Colombia. Manufacturing and construction follow (8.54% and 5.43%, respectively). Approximately,
90% of the area is considered agricultural concentrated in palm, cacao, corn, other crops, palm fallow,
potato, shrimp, industrial sugar cane, beans and coffee. The remaining 10% of the area is disperse, but
mainly dedicated to fruit trees.
4.1.2 Value chain support in the border area
In Ecuador, research and innovation is part of a national strategy resulting in the creation of a national
science, technology and innovation system (please see Appendix C for more detail). The promotion of
sustainable and inclusive growth is central to the action of the current government, to reach poverty
eradication and better living conditions. The country has designed a second phase of its PNBV
National Plan (Plan Nacional para el Buen Vivir 2013-2017), that contains 12 strategic
objectives and meta-indicators. One of these objectives is the transformation of the productive matrix.
Ecuador is experiencing a crucial phase in its development, trying to evolve from being a
producer/exporter of raw materials to an economy that creates knowledge and adds value to its
primary products. The National Strategy for the Change of the Productive Matrix8 was a
response to the prevailing conditions of the country and focuses on a transition towards a knowledge
economy from a primary-based economy. This strategy seeks to improve intensive production in
innovation, knowledge and technology, productivity and quality, increasing the added value,
diversifying and expanding production up to 2017. To this aim, the focus is on the following value
chains and related actors for the change: Agro industrial chain (Cocoa, Sea culture-shrimp);
Manufacturing chains (articulated on basic industries such as metal-mechanic, pharmaceutics);
Service chains and intensive sectors in knowledge (sustainable tourism, software and ICT services,
comprehensive waste management).
The new Industrial Policy Strategy of Ecuador 2016-20259 is the most recent Strategy that
establishes the roadmap in productive matters of the country, placing special emphasis on the product
value chains. It focuses at sub-national level, on the implementation of territorial economic
development plans, on the promotion of local public financial management and on the greater
decentralisation. The main value chains prioritised are Agro industrial (coffee, cocoa, dairy products,
fish, palm, fruits and vegetables, bioenergy and bio-insumers, meat) and Metal mechanics.
Provinces in Ecuador have a certain degree of autonomy. In 2011, the Prefecturas assumed
competencies on productive promotion. The central Government launched various coordination
mechanisms at provincial level, by organising local coordination roundtables on development plans in
the provinces, involving donors and local stakeholders, and at national level on the Agendas for the
8 Estrategia Nacional para el cambio de la Matriz Productiva. Producir más, producir mejor, producir nuevas cosas.
Vicepresidencia República del Ecuador (2015).
9 Política Industrial del Ecuador 2016-2025, más industrias mayor desarrollo. Ministerio Coordinador de Producción, Empleo
y competitividad; Ministerio de Industrias y Productividad.
13Transformation of the Productive Sector. Within this context, Plan Ecuador (2008)10 sets the
policy framework for Northern border area where Cocoa, coffee, dairy products and herbs are
highlighted as priority sectors. All border provinces have drafted the Agendas for territorial
productive transformation11; where the productive, social and institutional situation of these
provinces is analysed in order to promote endogenous development and competitiveness. These
Agendas include a diagnosis, a report on the prioritised value chains and an Action Plan. Following
this, in 2016, the provincial productive Agendas were developed. These Agendas identify prioritized
value chains and pose strategic alliances linked to a portfolio of projects that will be implemented. In
Sucumbios, the following value chains are prioritised: corn, rice, coffee, cocoa, Livestock Cattle: Meat
and Milk, Fish. Carchi has also developed specific strategies for value chains in 2011, such as Coffee,
beans, meat, fruits, potatoes and food security. All provinces have also developed specific reports
where they detail the socioeconomic characteristics as well as details of the whole value chains (Línea
Base reports).
In Ecuador, the policy has been oriented so far towards the strengthening of productive chains through
the producers. Nowadays, the new country framework "Minga agropecuaria"12 aims at working
with the provincial and cantonal governments in the identification of priority productive chains and
elaborating joint plans between government agencies, producers and their respective organizations,
through a national and territorial dialogue. The first assembly has been on July 20 2017 in Carchi, and
it is planned to be replicated.
10 Plan Ecuador, Ministerio Coordinador Seguridad Interna y Externa (2008).
11Agendas para la Transformación productiva territorial, Ministerio de Coordinación de la Producción, Empleo y
Competitividad: Carchi and Esmeraldas (May 2011), Sucumbios (June 2011)
12 http://www.agricultura.gob.ec/gran-minga-agropecuaria/
144.2 Colombia
4.2.1 Colombia Government’s priorities of the border region: focal border areas
The ZIFEC for Colombia extends for 57,990 km2. The gross domestic product is concentrated in the
following sectors: social, communal and personal services activities (Nariño 25.8%, Putumayo 22.9%);
agriculture, livestock, hunting, forestry and fishing (Nariño 13.8%, Putumayo 4.3%); Financial
establishments, insurance and real estate activities (Nariño 10.6%, Putumayo 5%); Exploitation of
mines and quarries (Putumayo 45%). The participation of Nariño and Putumayo in the national GDP
is 1.54% and 0.43% respectively; both presented growth above the national average for the period.
Nariño stands out for having high productive diversity, low productivity, deterioration of social
conditions and the constant affectations of the El Niño phenomenon. The main crops are shrub beans,
oil palm and potato, pea, cocoa, coffee together with a relevant milk production. In Putumayo, most
important crops are bananas, corn, meat and cocoa. Among the major problems, affecting productive
and social activities in the departments of Nariño and Putumayo are the high presence of areas with
coca cultivation mainly in border municipalities.
4.2.2 Value chain support in the border area
The Plan Nacional de Desarrollo (PND) 2015-201813, is the basis for all policies in Colombia.
The Plan has been updated since the first version is 2006. The Plan also prioritises policies for border
development.
Colombia has a Productive Development Policy that seeks to promote sustained increases in
productivity that will lead to greater growth of the economy in the long term and that proposes to
implement a prioritization strategy from the regions with the aim to generate an integral development.
The commitment of the Ministry of Trade, Industry and Tourism, through the Regional Productive
Transformation Program (PTP), consists on the identification, prioritization and implementation
of the results in each region, in an articulated way with the other national and local actors. At the
national level, six production chains have been identified: chemicals, fashion system, metalworking,
real state agencies, industry 4.0 (Software and IT and BPO) and Tourism. PTP is a National
Governmental initiative which objective is to transform the industry and foster the development of the
companies of 20 strategic sectors in order to promote growth and competition. It reinforces resources,
knowledge of regional, and national government entities in order to promote a joint offer that meets
the needs of local industries.
Vision Colombia 2019, aims for a coordinated and articulated state action between the central
government and the regions, departments and different sectors of civil society, stimulating and
framing the design and implementation of goals, plans and viable sectoral projects. It is structured on
four broad objectives: economic development for better well-being; a society with more equality and
solidarity; a society of free and responsible citizens; an efficient state apparatus at the service of the
population. The proposed focal sectors are also in line with long term policy documents.
In Colombia since 2012, most of the regions have published the strategic plans for science,
technology and innovation, including 10-year road-map, for the development of policies and tools for
the regional innovative systems that frames and focus future investment efforts by the public sector
(for more detail, please see Appendix C). The aim of the Strategic Plans has been to identify the gaps
and thematic axes in innovation and to establish the priority sectors and programmes14. At provincial
level, both Nariño and Putumayo have developed own strategies Apuestas Productivas (update of
the regional competitiveness Plan 2016-2032). In Putumayo it focuses on dairy chain, tourism,
petroleum, aquaculture, palm, cacao, ornamental fish, fruits and vegetables. In Nariño the focus is on
the following value chains: coffee, milk, fruits and vegetables, cocoa, coconut, palm oil, Pope, panela,
fique, craft, tourism, fish, cuy, forest and culture.
13 https://www.dnp.gov.co/Plan-Nacional-de-Desarrollo/Paginas/Que-es-el-Plan-Nacional-de-Desarrollo.
14 http://ec.europa.eu/regional_policy/sources/cooperate/international/pdf/final_report_ris_latam_en.pdf
155 Value Chain Mapping in the Border Area
5.1 Value Chain A: Cocoa
5.1.1 Key Value Chain Characteristics and Economic Indicators
Cocoa is the fourth largest traded tropical crop behind palm oil, rubber and bananas. Ecuador is the
leading exporter in the world of high quality cocoa, also known as Fine Aroma Cocoa. The country has
its own variety of cocoa, called "Nacional" or "Arriba", which is much appreciated by gourmet
chocolate manufacturers and, consequently, gets high prices in the market. The cocoa segment is the
one of the high priority agriculture chains for Ecuador to develop and Ecuador is investing over 80
million USD in the next 10 years to develop the sector.
In Colombia since 2013, cocoa production increased 12% reaching 47,000 tonnes, up from 42,000
tonnes a year previously, according to the National Federation of Cacao Producers (Federación
Nacional de Cacaoteros, Fedecacao). Colombia produced 56,000 tons of cocoa in 2016 and is among
the top 10 producing countries. Production is mainly for domestic consumption, with the country’s two
largest processing firms, Nutresa and CasaLuker, absorbing between 80% and 90% of output.
Colombia began exporting excess production in 2011 and since then, cacao exports have registered
stable growth. In the Cacao Network15 there are 33,000 families in 60 associations dedicated to
cultivation. Only in Nariño and Putumayo there are 12,000 families and it is estimated that in Tumaco
there are 20,000 hectares planted.
In Ecuador (Zona 1), there are 58,097 hectareas (15,8%) dedicated to Cocoa and 21,273 in Colombia
(Nariño, 19290; Putumayo: 1983). The Decentralised Autonomous Government of the Province of
Esmeraldas (Gadpe), with the participation of public, private and small-scale producers are members
of the Cocoa Bureau of this jurisdiction. Together they have designed the 'Provincial Strategy of
the value chain Fine national cocoa of aroma'. About 46% of the producers are associated16. La
Gran Minga de Cacao Nacional17 is part of the Aroma Fine Cocoa Reactivation Program,
promoted and financed by MAGAP, its contribution is evident not only in the rehabilitation of the
cocoa plantations, but also in the revival of the families' economies of the whole country. The Ruta del
Cacao is a new conception to support rural tourism.
The potential for growth in Colombia is significant. To capitalise on the potential for growth that cacao
production presents, the Colombian government is joining efforts with the private sector to boost the
country’s competitiveness internationally through incentives to production, both in renovation
campaigns and with the grafting of new trees. The goal is to bring into production an additional 700m
ha available for cacao cultivation, while providing producers with adequate financing instruments and
incentives to invest in their plots. The National Cocoa Federation was created in 196018,
responding to the need to have an agency that represented and defended the interests of cocoa farmers
at the national level. In Colombia, both coffee and cacao have been considered as the main productive
value chains for peace19. This value chain is a priority for ZIFEC in Nariño and Putumayo as well as
Esmeraldas and Sucumbíos. Cocoa value chain is a means for competitiveness of these border areas,
for the reduction of social gaps and contribution to the eradication of poverty. There is also a high
public support to this value chain by the two national Governments as well as the territorial ones. The
majority of stakeholders interviewed have suggested supporting this value chain. For more details on
this value chain, please see Appendix D.
15 http://www.elpais.com.co/economia/cacao-el-cultivo-llamado-a-sembrar-el-posconflicto.html.
APROCANE, Unión de Aso, Eloy Alfaro, FONMSOEAM, APROCA, APROCAR, APROCAM, ECOCACAO, UOCIPE, COCPE,
16
UOCAQ, UONCRE, among others.
17 http://www.mingadelcacao.com/sobre-el-proyecto.html
18 http://www.fedecacao.com.co/portal/index.php/es/institucional/historia.
19 https://www.apccolombia.gov.co/noticia/cafe-y-cacao-las-cadenas-productivas-de-la-paz
165.1.2 Mapping of Key Players in the Value Chain
The following information shows a preliminary mapping of the actors of this value chain. More details
and focus would be reached as the project advances:
• Public Support Organizations: Government and Intermediate Organizations:
o Ecuador. MAGAP (Ministry of Agriculture, Livestock, Aquaculture and
Fisheries). In Ecuador, the state plays a key role in institutionalizing and fostering
coordination between chain actors. The Consejo Consultivo de la Cadena Agroindustrial
Cacao y Elaborados, was formed to define, recover, and protect the special position of
Ecuadorian cocoa in the world market. In 2005, the government passed a decree that
defines that specialty coffee (‘Arriba’) has to be marketed separately forms the new CCN51.
Some of the government initiatives that directly targets improvements in cocoa. The
MAGAP facilitates, regulates and manages agricultural production in Ecuador.
Industrialization and export promotion is managed by the Ministry of industry and
productivity, Ministry of foreign relations commerce, and ProEcuador. The
National Institution of Standards (INEN) controls the quality of cocoa beans.
Local governments: Prefecturas Carchi, Esmeraldas, Sucumbios, Imbabura
o Colombia. MinComercio, Industria y Turismo. Colombia sets cocoa value chain as
an example of value generation and innovation20. The MinAgricultura21 supports the
commercialisation of cocoa among others and Procolombia supports exports of cocoa.
Colombia's Presidential Agency for International Cooperation (APC-
Colombia)22, created the counterpart program "Support for Strengthening the Value
Chain of Fine Cacao and Aroma as an Economic Alternative for Peace," which benefits
nine partners (Biotrade Fund Colombia, Business Incubator Colombia Solidaria-Gestando
|CCA, Chocolate Colombia, Chocolate Tumaco, Cacaotera Network, Econexus Colombia
Corporation, Swisscontact, Asocama and Coprocaguamuez).
Local governments: Gobernación Nariño- Secretaría de Agricultura del
Departamento de Nariño, Gobernación de Putumayo
o Chambers of Commerce of these provinces and departments in Ecuador and
Colombia.
• Associations
o National Association of Cocoa Exporters (ANECACAO): the largest association that
represents exporters. It provides a range of services including industry data, technical
assistance, marketing of Ecuadorian cocoa, and provides policy advice.
o Red Nacional Cacaotera-Colombia23.
o Fedecacao - Federación Nacional de Cacaoteros24.
o Chocolate Colombia25.
20 http://www.mincit.gov.co/publicaciones/34613/conozca_el_mincomercio
21 https://www.minagricultura.gov.co/tramites-servicios/apoyos-incentivos/Paginas/v1/Apoyo-Directo-por-Comercializacion-
a-los-Productores-de-Cacao-en-el-2013.aspx
22 https://www.apccolombia.gov.co/noticia/sembrando-cacao-y-paz-en-el-pais
23 http://www.redcacaotera.com/index.php/es/
24 www.fedecacao.com.co/
25 https://www.chocolatecolombia.com
17o Cacaoteros de Colombia se unen para progresar - Asocaval26.
o Asociación Nacional de Exportadores de Cacao27 .
o Asociación de Productores de Cacao Fino y de Aroma creado en 199628
o Asociación Nacional de Exportadores de Cacao del Ecuador 29
o Productores de cacao - APROCACI - Asociación Productores de Cacao30
o Swiss Contact
• Cocoa Producers
o Families, individuals, etc.
• Exporters
o Alianza exportadora de cacao Nariño
o Pro Colombia 31
o Pro Ecuador32
• Other agents of the value chain such as: Universities, Suppliers, Processors, Marketing
support, Consumers, etc.
5.1.3 Key Challenges and Barriers to Development
Esmeraldas from Zona1 gathers the biggest production of cocoa followed by Sucumbios. Nariño and
Putumayo also prioritise this value chain as a means for peace.
The production segment of the chain is fragmented in small and medium size farms that are also
mostly underdeveloped. However, most of its activities continue to be in the lower value segments of
the chain in the production and exports of raw cocoa beans. Its grinding capacity is small compared to
its competitors, who managed to attract investments by multinationals through tax incentives and
other schemes. Ecuador is exporting some intermediary cocoa products and finished products but this
is a very small segment in its exports compared to trade in raw cocoa bean. In general terms, industry
is not competitive as infrastructure is old and requires from investment in research and innovation as
well as in capabilities. Macroeconomic factors affect competitiveness (labour costs, complex processes,
publicly accessible credit lines, etc.) Competition of countries producing cocoa commodity with
cheaper costs. The challenge for this border area is to concentrate on the Fine Aroma Cocoa.
Exports are a good opportunity for this value chain as the Cocoa produced in this border area is of very
high quality and there is an increased demand by the “gourmet” market especially from European
countries. New opportunities also emerge from the new artisan companies created that need to be
supported as well as from the connection to the tourism value chain for combined touristic routes.
Among the challenges are to be highlighted the following: the need to develop better market and
marketing opportunities; the need to improve local consumption as the level is still low; better
26 www.asocaval.org/noticias
27 www.anecacao.com/
28 www.aprocafa.net/
29 cee.org.ec/.../
30 www.aprocaci.org
31 http://www.procolombia.co/
32 http://www.proecuador.gob.ec/
18connection among the actors of the value chain; higher investment in R&D and innovation as well as
training to improve the capabilities.
5.1.4 Opportunities for Cross-Border Collaboration
There are many potentialities for this value chain such as:
• The already existing dialogues such as: Mesa Binacional de la Cadena productiva del
Cacao. The VI FORO BINACIONAL planed the elaboration of a bi-national plan focusing on
technological developments for sustainable cocoa cultivation. As well as the creation of a
specific entity that supports the development of this value chain integrated by La Cadena
Regional de Cacao (Colombia), and la Mesa de Cacao de Esmeraldas (Ecuador). There is also
the Mesa binacional Café-Cacao Sucumbios.
• Cross border Connectivity: Cocoa value chain, according to the views from interviews, has
had successful experiences such as very good associativity and good connectivity, good
exports. Challenge is marketing and processing as the demand is more for cocoa paste rather
than raw grain and this is not yet industrialised in Ecuador. A potentiality for the border area
is the connectivity through Esmeraldas (Port, vials to Colombia) especially also because a new
Park, Ecoparque is being built and this infrastructure could be used to support and boost this
value chain.
• Cross-border complementarities: Café-cacao value chain that offers opportunities for
most vulnerable population. On top of this, the Cabuya production in the cross border area
presents a good opportunity to complement this value chain including packaging. In the cocoa
value chain, although there have been many support programs there is still a need for
productivity improvement as well as attention to new markets and more effective
commercialization and production processes. The cabuya production is a good
opportunity for this value chain. Innovation is also a challenge for this value chain.
• To link cocoa marketing and commercialization organizations to the level of the
two countries to generate more added value. Cross-border cooperation presents advantages
as both Ecuador and Colombia have different product with flavors that make a difference and
different advantages regarding production and commercialization. Complementarities can
create better opportunities.
• Good Practice for border regions in Colombia: Ecuador is the world's leading producer
of fine cocoa and aroma (62%) with more than 400,000 ha. International demand and
technology ready to be installed in Ecuador so opportunities to serve world demand for high-
quality fine cocoa and chocolate. Ecuador's experience with the cocoa value chain is replicable
in Colombia33 since both have common elements that permit to create pacified territories with
local income options and giving opportunities to small producers.
• Public support to this value chain from both Countries. ‘Gran Alianza del Cacao y el
Chocolate’ to support exports in Colombia34. Gran Minga Caco in Ecuador.
• Good opportunities for exports especially to the EU and for connection with EU value
chains. As the cacao produced is fine aroma, it has greater export opportunities for gourmet
market in the EU, such as German, French and Belgian, whose consumers value the good
conditions for fair-trade.
• Good opportunities for the combination with Tourism value chain as for the Ruta
del Cacao.
33 https://www.apccolombia.gov.co/noticia/sembrando-cacao-y-paz-en-el-pais
34 http://www.procolombia.co/noticias/lanzan-gran-alianza-del-cacao-y-el-chocolate-para-aumentar-las-exportaciones
195.2 Value Chain B: Tourism
5.2.1 Key Value Chain Characteristics and Economic Indicators
As one of the world’s largest economic sectors, Travel & Tourism creates jobs, drives exports, and
generates prosperity across the world. Growth of the Travel & Tourism sector will continue to be
strong. In Ecuador, the total contribution of Travel & Tourism to GDP (including wider effects from
investment, the supply chain and induced income impacts in 2016 was 5.1% of GDP and it is expected
to grow up to 6.1% % of GDP in 2017. It generated 137,500 jobs directly in 2016 (1.9% of total
employment) and the forecast is to grow by 7.1% in 2017 to 147,000 (excluding commuter services). In
Colombia, the direct contribution of Travel & Tourism to GDP in 2015 was 2.0% of GDP. This
primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines
and other passenger transportation services (excluding commuter services) and it also includes, for
example, the activities of the restaurant and leisure industries directly supported.
Both countries have public support to tourism through specific plans at national and provincial level.
Such as in Colombia the Plan Sectorial del Turismo 2014-2018. “Turismo para la construcción de la
paz”35. Nariño and Putumayo36 have also their respective Plans: Plan de Desarrollo Turístico 2011-
2010 and plan de Desarrollo Turístico de Nariño37. In Ecuador, the Plan Estratégico del Desarrollo
del Turismo Sostenible en Ecuador 2020: PLANDETUR 202038, from the Ministry of Tourism. This
Plan also covers activities for border areas.
This value chain is a priority for ZIFEC. In the border areas of Putumayo and Sucumbios39, there
are already activities to plan common touristic routes as well as in Carchi-Nariño. This value chain is
an alternative value chain to the traditional ones supported in the border. As for the forecast of growth
of tourism and especially sustainable tourism, the border area presents potentialities to this value
chain, being a means of competitiveness and support to regional economies. Carchi and Nariño are
also very active in supporting bi-national tourism. A bi-national agreement was signed40 to support
Andin and Pacific regional tourism, other specific plans and actions are also in place41. As already
mentioned in Cocoa value chain, the Tourism value chain has also the potentiality of being cross-
sectoral as many of the touristic routes are developed together with other sectors/value chains such as
cocoa, café, gastronomy, etc.
5.2.2 Mapping of Key Players in the Value Chain
The value chain in general terms consists on the following group of actors: Travel organisations;
Transport; Accommodation; Food and entertainment; Shopping: crafts; Visitor experience:
recreational, cultural, nature and sports activities; Public national organisations such as MINTUR in
35
http://www.mincit.gov.co/minturismo/loader.php?lServicio=Documentos&lFuncion=verPdf&id=71713&name=PLAN_SECTO
RIAL_DE_TURISMO_2014-2018_16_DE_SEPTIEMBRE_DE_2014.pdf&prefijo=file
36
http://www.mincit.gov.co/loader.php?lServicio=Documentos&lFuncion=verPdf&id=66414&name=Plan_Desarrollo_Turistico
_Putumayo.pdf&prefijo=file
37
http://www.mincit.gov.co/loader.php?lServicio=Documentos&lFuncion=verPdf&id=66532&name=Plan_de_desarrollo_turisti
co_de_Narino_1.pdf&prefijo=file
38 http://www.undp.org.ec/odm/planes/plandetur.pdf
39 http://www.sucumbios.gob.ec/plan_binacional/index.php/site-administrator/acuerdos/78-noticias/80-putumayo-y-
sucumbios-le-apuntan-al-turismo-transporte-y-ambiente
40 https://lahora.com.ec/noticia/1101193282/firman-convenio-binacional-para-fortalecer-el-turismo-
41http://edicionimpresa.elcomercio.com/es/2512000035c3ea9b-ed07-4a8b-bf41-43ffe4fa0d23;
http://www.upec.edu.ec/index.php?option=com_content&view=article&id=1101:upec-inauguro-seminario-binacional-de-
administracion-publica&catid=59:campus&Itemid=53
20Ecuador and Ministerio de Turismo- MINTUR42 in Colombia. MINTUR has substantially increased its
budget, and announced the drafting of a new Tourism Law and other standards. It has also developed
a Strategy to address several of the problems revealed in the diagnosis articulated in five pillars: safety,
quality, destinations and products, connectivity and promotion. Ministerio de Industria, Comercio y
Turismo, Colombia43- MINCIT is also supporting tourism as a concrete means of competitiveness (see
Appendix D for a description of the value chain in Ecuador).
Provincial and departmental Governments are also key players of this value chain as for the support
they give, as well as the respective Chamber of commerce.
As this value chain is quite extensive, a more focalised mapping of actors is actuality in process in the
border area. At this stage, it is quite difficult to be more precise. For instance, at public level, most of
the Ministries from the Governments are involved in this value chain, as there are inter and intra-
sectoral linkages (culture, education, national parks, agriculture, transport, tourism promotion offices,
etc.). As for private many small companies and families are also involved.
5.2.3 Key Challenges and Barriers to Development
Tourism is an industry in continuous change and evolution that shows strong growth and
diversification, as well as a growing sophistication of the demand, which requires from personalized
and quality services. Today, tourism has become one of the world's largest economic and growing
sectors. Tourism presents challenges both for advanced economies and emerging countries and could
become an engine of socio-economic progress, through the creation of jobs, enterprises, and
infrastructure.
There are many opportunities in relation for instance to: the biodiversity, ecotourism, ethno tourism
and adventure, agro industrial potential to favor tourism. This value chain can support a sustainable
industry, a socio-cultural and environment based on a high quality offer that values the natural and
cultural heritage, especially in this border area.
Main barriers are related to the improvement of infrastructure, services, connectivity (especially
international connectivity with few routes); weak linkage with other local activities; deficiency in
standards, certification and supply control. Specific plans and touristic packages that promote tourism
on the border are needed that include actions to improve internal and external connections. The
tourism value chain is very diverse and includes many actors in its development.
Among the challenges can be found the development of new touristic products such as scientific
tourism, health tourism, etc. based on sustainable tourism principles. It is indeed a means to reinforce
regional economies of the border areas respecting the biodiversity and natural and environmental
wealth. Public policies should articulate adequately the instruments aiming to stimulate the demand
and strengthen supply as well as a better coordination and articulation is needed among them
including a continuity in the support of these strategies.
This border area has biological, cultural and geographic diversity which is a strength and the
opportunity linked to the increasing demand of “specialised tourism” together with a strong political
support to reinforce this sector and value chain.
5.2.4 Opportunities for Cross-Border Collaboration
• Tourism is an alternative value chain to generate added-value and competitiveness to
the border area by development of new routes based on sustainable tourism.
42 http://www.turismo.gob.ec/
43 http://www.mincit.gov.co/
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