The International Monetary Fund has recommended expansion of agro-processing in sub-Saharan Africa as the region has a comparative advantage in agriculture and countries such as Ethiopia have enhanced their integration into global value chains through agro-processing.
In such a market, a market participant that consistently makes mistakes and keeps on selling low and buying high will inevitably be forced out because of mounting losses. Consequently, the market will have to be populated by participants who can generally make the right calls, and a market populated by such well-informed participants should not be susceptible to persistent price overshoots.