Operations and Improvement Needs in the Informal Charcoal Sector: A Participatory Value Stream Analysis

Abstract

HIGHLIGHTS Charcoal value chains in two Kenyan counties were anayzed to identify sustainability improvement opportunities. Charcoal value chain actors need specific inputs, skills and face different operational challenges. The trade is conducted in the informal sector, which increases the actors' vulnerability. Improvement needs include sustainable forest management, improved operations, business skills, and coherent policies. SUMMARY Developing profitable and sustainable charcoal supply chains in Sub-Saharan Africa requires good knowledge about their properties, input needs and impacts. Charcoal supply chains in Taita Taveta and Kwale counties, Kenya, were analysed to identify operational and sustainability improvement opportunities. Using operations management, lean engineering and participatory research, charcoal value streams' processes, resources, and outcomes were analysed. Charcoal production and trade have low entry barriers, slow-paced innovation, and thin profit margins for value chain actors. Production is labour intensive, and the actors need specific skills, knowhow, and resources for proper business performance. The value chain's profitability and sustainability can be improved by regenerating exploited quality tree species, improving operation efficiency and safety, promoting market development, and appropriate policies on charcoal production and trade. The study's findings can guide the development of enabling policies and regulatory frameworks for the charcoal industry and improve the actors' performance in the charcoal value chain.