Working Paper 16/2017 GROWTH AND DEVELOPMENT IN THE SUGAR TO CONFECTIONERY VALUE CHAIN Reena das Nair and Maria Nkhonjera Centre for Competition, Regulation and Economic Development
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[email protected] Francis Ziba Zambia Institute for Policy Analysis & Research
[email protected] Abstract The member states of the Southern African Development Community (SADC) have placed industrial development at the core of the region’s integrated development agenda. This paper seeks to assess the regional competitiveness and opportunities in the sugar to confectionery value chain in Zambia and South Africa. Agro-processing, specifically in the sugar to confectionery value chain, is an important area in which industrial development can be pursued in both countries. This study aims to develop a shared understanding of the challenges impeding the expansion of downstream industrial activity in the sugar confectionery sector in the two countries, and to identify the potential for firms to upgrade. This research offers concrete proposals that will inform cross-country policy initiatives to address these challenges at a regional level. JEL classification: L10, L66, L81 CONTENTS 1. Introduction .................................................................................................................... 3 2. Literature Review: Global value chains, regional value chains and agro-processing ...... 6 3. Overview of the role of retailers in the sugar to confectionery value chain...................... 9 4. Mapping the sugar to confectionery value