Agriculture contributes about 15% of total SADC GDP (between 4% and 27% of GDP in the different SADC Member States), industry accounts for 31% and services for 55%. The share of manufacturing (11.3% SADC wide, 2014) with the exception of South Africa and Mauritius, remains low and relatively undiversified in SADC.
The revised SADC Regional Indicative Strategic Development Plan (RISDP 2015-2020) earmarks Industrial Development and Market Integration as top priority with the overall goal of facilitating competitive and diversified industrial development for deeper regional integration and poverty eradication. The promotion of regional value chains and increasing value addition for agricultural and non-agricultural products are key vehicles for realising sustainable industrial development, improving productivity and supply side capacity.
In light of this the project specifically intended to profile the agro-processing sector across the region, hoping to:
1. Characterize the nature, form, ownership, size, depth, and spread of the agroprocessing industry across the region;
2. Identify and profile relevant regional value chains in the industry, and;
3. Select potentially significant regional value chains to promote.
Imani Development was contracted to undertake a comprehensive profiling of the industry across the region, identify key value chains for further analysis, undertake primary data collection in-country, and select priority value chains to be further promoted for investment and support.
The full list of Value Chains covered in both the Rapid VCA and the Deep-Dive VCAs under this assignment include: Grains (Maize, Wheat, Rice); Legumes, Oil Seeds and Vegetable Oils (Dried Beans, Groundnuts, Sunflower, Sesame, Avocado); Fruit (Shelved, Dried, Juiced, Packaged, Canned) and Nuts; Cotton (Ginning & Other Processing); Sugar; Coffee; Tea; Biomass; Poultry (Geese & Ducks); Livestock (Cattle & Goats), and; Fish (Aquaculture).
Specific tasks performed by Imani Development included:
1. Inception Phase:
2. Rapid Value Chain Analysis and Assessment:
a. Comprehensive literature and desk-based review of related SADC and other industry documentation;
b. Applying the scoring mechanism to identify 12 value chains for rapid value chain analysis;
c. Rapid Value Chain Analysis (RVCA), identifying: (i) Key products throughout various steps of the VC; (ii) Ownership characteristics of primary actors; (iii) Production and consumption characteristics; (iv) Geographic spread of the VCs; (v) Trade Analysis (including volumes, barriers, and compliance issues); (vi) Challenges or shortcomings in accessing inputs, facilities, and support infrastructure (hard and soft);
d. Identification of 6 value chains for deep analysis, based on findings from RVCA.
3. Deep-dive VCA, including:
a. Primary in-country data collection, targeting producers, input suppliers, processors, BDS firms, donors and government, civil society and private sector organisations, national and regional groupings, wholesalers and lead firms, and informal economy actors
i. Fieldwork undertaken in South Africa, Zambia, Malawi, Madagascar, Mozambique, and Zimbabwe
b. Comprehensive deep-dive VCA utilising an adaptation of the VC4A and Market System frameworks.
c. Preparation of comprehensive profiles identifying: Advantages of investment, income potential, export potential, employment opportunity, linkages with other industries, economic proximity, scalability, potential for rural development, investment potential for domestic and foreign investment, and potential intervention areas.
4. Standards Reporting: Inception Report; Final Report; Presentation at Stakeholders Consultative Workshop