SADC Elements of the Regional Action Plan

1. SADC Elements of the Regional Action Plan

2. IMPROVING INDUSTRIAL PERFORMANCE AND PROMOTING EMPLOYMENT

3. Agro-food processing

4. SWOT Analysis

5. 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

6. 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 R&D (infrastructure and spend) • Poor/indequate, unitegrated transport infrastructure (ports, rail, air-cargo, road)

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

8. 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

9. 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

10. 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

11. STRATEGIESAND ACTIONS continued • Increasing investment in R&D • 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

12. Superior quality Competitive Advantage · Low cost · Differentiation Superior customer responsiveness Superior efficiency Superior innovation

13. An Example

18. 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

19. Thank you