SADC

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• SADC
• Elements of the Regional Action Plan

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• IMPROVING INDUSTRIAL PERFORMANCE
• AND
• PROMOTING EMPLOYMENT

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• Agro-food processing

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• SWOT Analysis

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Strengths

• Existence of raw materials/conditions for
  production of raw materials
• Production of some world-class products
• Support at all Governmental levels
• - Programmes
• - Financial support
• Existing processing plants/capacity
• Fairly large market in SADC Africa

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Weaknesses

• Unintegrated industrial development structures
• Limited value addition
• Inadequate marketing and export market access
• Lack of farming infrastructure
• Lack of technical management skills
• Lack of external trade strategy (strategic
  protection, promotion, market intelligence, etc)
• Low RD (infrastructure and spend)
• Poor/indequate, unitegrated transport
  infrastructure (ports, rail, air-cargo, road)

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Opportunities

• Growing demand for finished products worldwide
• Growing SADC African market
• Labour-intensive production processes
• Growth opportunities in China and India market

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Threats

• Low quality quantity of raw materials
• Unstable supplies of raw materials
• Recurrent drought and seasonality of supplies
• High transportation costs
• Lack of credit facilities
• Existence of TBTs, NTBs/SPS
• Interventionist policies of export countries
• HIV/AIDS

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CHALLENGES (based on SWOT Analysis)

• Product Quality
• Market Access (TBs NTBs/SPS)
• Marketing (Pricing Margins Promotions)
• Human Capital
• Shortage of water
• Transaction costs
• - Transportation logistics
• - Provision of Relevant Information
• - Infrastructure development
• Regulatory Environment Cost of doing business
• HIV / Aids

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STRATEGIES AND ACTIONS

• SME Development with emphasis on Women in food
  processing industry
• Networking backward linkages through JVs
• Development of industrial clusters
  Collaboration
• Integrated infrastructure development
• Development/management of water resources
• Development of agro-food sector-related skills
• Development of directory for equipment
  machinery suppliers
• Encouraging producers to improve packaging,
  distribution and marketing
• Acceleration of reduction/removal of Tariffs

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STRATEGIES AND ACTIONS continued

• Increasing investment in RD
• Promotion and rewarding innovation
• Provision of proactive incentives favouring
  agro-food processing sector
• Involving Sector Associations and Trade Unions in
  decision-making
• Improving capacity of Statistics Unit of SADC
  Secretariat to collate industrial statistics
• Promoting positive media reporting about Africa
• Establishment of Performance Monitoring Committee
• Support for identified Centres of Excellence

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  Superior quality
Competitive Advantage    Low cost  Differentiati
on
Superior customer responsiveness
  Superior efficiency
Superior innovation
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• An Example

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Financing

• SADC Development Fund
• SADC Governments
• - 2-4 of all donor funds
• - 10 of budget for strategic food security
  (Min of Finance)
• Public-Private Partnerships (PPPs)
• Private Sector
• - Industry Sector Associations
• - Sector Development Funds (?)
• - Development Finance Institutions (DBSA, etc
• - Investment Banks
• - Stock Markets
• - Other financial institutions (e.g. Pension
  Funds, Insurance
• companies, Venture Capitalists, etc)
• The Diaspora
• Donors
• - UNIDO, EU, UNCTAD, USAID, GTZ, CDE,
  Philantropists, etc

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• Thank you