How agro-processing can boost regional integration – and development
Regional integration in Africa is underway but progress requires that the gains are widely spread. South Africa’s huge regional trade surplus in manufactured goods is leading to protectionist pressures in neighbouring countries. Agro-processing is a large sector that has significant potential, but the export performance of the region has been poor if South Africa is excluded. Regional value chains are failing to include the small economies of southern Africa. Constraints include tariff and non-tariff barriers, weak infrastructure, as well as poorly developed local suppliers. Some retail chains, supported by governments and NGOs, are now taking the lead in developing small-scale suppliers in the region. But other policies to improve the regulatory and investment environment are also necessary. Introduction
