The Southern African Customs Union and Mozambique-UK Economic Partnership Agreement (SACUM-UK EPA) commits the United Kingdom to development cooperation with Mozambique and SACU member states. Since the EPA entered into force in 2021, the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO) has provided a number of targeted interventions to support its implementation.

In consultation with SACUM member states, the FCDO commissioned a study to understand key sectors and value chains with the potential to drive poverty reduction and promote inclusive and sustainable growth in Botswana, Eswatini, Lesotho, Mozambique, and Namibia.

This Imani-led research sought to provide information on “what works” to promote sustainable development and poverty reduction through trade, leveraging trade programmes and policies, like the SACUM-UK EPA.

The study focused on identifying: (i) which goods and services sectors and value chains the UK should focus on for inclusive growth and poverty reduction; (ii) what activities and actions the UK should prioritise to stimulate SACUM exports to the UK and other markets; (iii) how these actions should be incorporated into implementation and future improvement of the SACUM/UK EPA, and; (iv) how these activities and interventions should be delivered to ensure complementarity and additionality with domestic trade facilitation efforts and instruments (e.g. AfCFTA, SADC, SACU), as well as UK trade and development policies and priorities (e.g. UK DCTS, Global Gateway, etc).

  • In the tourism sector, development opportunities were identified within the value chain, particularly in handicrafts and cultural products, which can provide economic benefits to marginalized communities.
  • In manufacturing, upgrading within the textiles and apparel value chain was highlighted as a pathway to more sustainable export growth. Discussion also highlighted cross cutting issues relating to the business environment.
  • Investment in renewables energy for the SADC power pool was seen as an area where British investment could unlock sustainable export growth.
  • Agriculture, livestock, fisheries, and aquaculture sectors were reaffirmed as crucial for generating livelihoods in rural and peripheral areas, where poverty is concentrated. However, these sectors are also highly vulnerable to water stress and climate change. Niche value addition emerged as particularly significant for expanding export opportunities for women-led businesses.

Read more about the findings from the final report; Promoting Export-led Economic Transformation under the Southern African Customs Union and Mozambique-UK Economic Partnership Agreement (SACUM-UK EPA).