Southern African Regional Value Chains and Integration

2021 ◽  
pp. 395-418
Author(s):  
Reena das Nair

Despite the changing face of global trade towards greater ‘south-south’ trade, the development of regional value chains (RVCs) and the record of intra-regional trade and integration in Southern Africa has been poor. This chapter unpacks the nuances that affect participation, investment, and upgrading in RVCs in Southern Africa, drawing lessons from selected agro-processing and food retail value chains. The lack of a clear regional development vision is evident in how these value chains have developed in practice, with limited value-addition outside South Africa, even where there is potential for it. Regional integration in Southern Africa has been fairly weak against stated targets, and the development of RVCs can push forward the regional integration agenda. This requires tailored and coordinated investments across public and private sectors, and targeted policy interventions at a value chain level, with an appreciation of political economy dynamics and the role that South African firms with market power play in shaping value-chain outcomes in the region.

2020 ◽  
Author(s):  
Liako Mofo

Plastics are ubiquitous across the region and play an important role in multiple industries. Most plastic products are based on a value chain that is grounded in petroleum refining, posing an environmental challenge. Plastic manufacturing in South Africa suffers from the high cost of polymers as inputs. Mozambique is endowed with large natural gas deposits. This research assesses the potential for the sustainable development of a plastics value chain in Southern Africa, with the aim of future-proofing the industry against changes in the petroleum space while bolstering growth in plastics manufacture and fostering a more equitable regional distribution of plastics activities. This study found that there is strong regional value chain potential between South Africa and Mozambique, with Mozambique producing natural gas feedstock and South Africa providing labour, capital, and technology. South African plastic manufacturers could also benefit from better input prices derived from better priced natural gas from Mozambique.


2002 ◽  
Vol 11 (3) ◽  
pp. 170-180 ◽  
Author(s):  
Lassi Linnanen ◽  
P�ivi Luoma ◽  
Hanna-Leena Pesonen

2021 ◽  
Vol 5 ◽  
Author(s):  
Soledad Cuevas Garcia-Dorado ◽  
Kevin Queenan ◽  
Bhavani Shankar ◽  
Barbara Häsler ◽  
Tafadzwanashe Mabhaudhi ◽  
...  

Livestock value chains globally are increasingly dualistic, with integrated market-leaders co-existing with comparatively disadvantaged small producers who, nevertheless, support rural livelihoods and food access, and can also contribute to more resilient supply chains. The South African broiler value chain provides a highly illustrative case study. The purpose of this study is to identify potential leverage points for policy intervention to support small and emerging producers in the South African broiler value chain, and to discuss the strengths and limitations of system dynamics approaches to promote inclusive food value chains. This study develops a causal loop diagram (CLD) based on semi-structured stakeholder interviews and policy documents. The main challenges, key variables and causal relationships between them are systematically identified. Variables are coded, generalised and graphically represented, and entry points for intervention and their links to existing policies are mapped. The challenges faced by smallholders in the context of our study can be characterised, using a CLD, as a set of interlinked and reinforcing dynamics which perpetuate existing disadvantages and reinforce duality in the value chain. Key policy entry points have been identified that could be targeted by a coordinated policy package, including: Direct support for infrastructure investment and input access through grants, subsidies or other policies; credit and liquidity provision for day-to-day expenses; creation of aggregation mechanisms for both inputs and outputs; regulations or initiatives that directly target the relationship of farmers with the commercial segment to improve access to day-old-chicks and, finally, training in business and technical skills. Although most of these interventions have been addressed at some point, implementation has been fragmented, failing to fully consider their complementary nature, thus undermining effectiveness. Existing approaches to consensus building and stakeholder participation in system dynamics research can present challenges when it comes to engaging with complex policy processes and issues of conflict of interest that are relevant in the context of smallholder promotion and equitable food systems, but there are promising avenues for addressing. Despite some methodological challenges, we find that there is considerable scope for system dynamics approaches to inform policy for smallholder promotion, even in contexts characterised by complex policy processes.


2020 ◽  
Vol 252 ◽  
pp. R19-R32
Author(s):  
Robert Marschinski ◽  
David Martínez-Turégano

The EU´s falling share in global manufacturing has fuelled concerns about an overall loss of EU competitiveness, in particular vis-à-vis China. We analyse the empirical evidence underlying these concerns by applying a newly developed decomposition technique to global input-output data spanning the years 2000 to 2014. Our results confirm the diminishing role of the EU in manufacturing value chains, but also show that this is mostly, by nearly 75 per cent, a consequence of the geographical and sectoral reallocation of global demand, reflecting the lower economic growth in the EU relative to the rest of the world. Still, the other almost 25 per cent of the EU’s loss of global share is explained by its lower participation in manufacturing value chains, which confirms a downturn in EU competitiveness. By extending the analysis to individual manufacturing activities we show that this general trend is more pronounced for low-tech (e.g. textiles) than high-tech sectors, with pharmaceuticals emerging as the most resilient EU industry. Policy concerns appear to be most warranted for electronics, a key sector for which the EU´s global share fell even more than for overall manufacturing, without evidence that EU value added from upstream service inputs could significantly mitigate this trend.


2021 ◽  
Vol 13 (12) ◽  
pp. 6551
Author(s):  
Gaëlle Petit ◽  
Gwenola Yannou-Le Bris ◽  
Claudia Eckert ◽  
Yan Liu

The transition of existing food value chains towards greater sustainability is a societal imperative and a potential competitive factor. To succeed, some actors in the chains define new practices to establish common sustainability goals. To date, there is little evidence that the visions and values of the various actors in the chains have been leading to common solutions. This work explores the impact of collaboration on the value chain actors’ ability to jointly decide strategies for redesigning their activities. It reports on an empirical approach, which elicits the values and priorities of different stakeholders. The case takes place in the context of a value chain of the production/processing/sale of pork products. This value chain involves two French production-processing and redistribution cooperatives. Stakeholders were questioned about their prioritization of sustainability issues and these weights were applied to evaluate 12 animal feed solutions that vary in terms of the composition and geographical origin of rations, and the means and locations of their production. The results show that despite several years of cooperation, the objectives of the upstream and downstream actors remain different. The objectives of the upstream actors are driven by the economic difficulties of production and those of the downstream actors by the multiplicity of consumer demands and cost control objectives. In a reversal of the current practice marked by the economic difficulties of the actors upstream of the chain, an integrated culture could be led by bottom-up approaches to create a shared vision. Public policy would be then essential in regulating the sharing of value among actors; and in promoting chain models that help the required investments.


Energies ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 1566
Author(s):  
Cosette Khawaja ◽  
Rainer Janssen ◽  
Rita Mergner ◽  
Dominik Rutz ◽  
Marco Colangeli ◽  
...  

Bioenergy represents the highest share of renewable energies consumed in the European Union and is still expected to grow. This could be possible by exploring bioenergy production on Marginal, Underutilised, and Contaminated lands (MUC) that are not used for agricultural purposes and therefore, present no competition with food/feed production. In this paper, the viability and sustainability of bioenergy value chains on these lands is investigated and measures for market uptake were developed. Using three case study areas in Italy, Ukraine, and Germany, a screening of MUC lands was conducted, then an agronomic assessment was performed to determine the most promising crops. Then, techno-economic assessments followed by sustainability assessments were performed on selected value chains. This concept was then automated and expanded through the development of a webGIS tool. The tool is an online platform that allows users to locate MUC lands in Europe, to define a value chain through the selection of bioenergy crops and pathways, and to conduct sustainability assessments measuring a set of environmental, social, and economic sustainability indicators. The findings showed positive results in terms of profitability and greenhouse gas emissions for bioethanol production from willow in Ukraine, heat and power production from miscanthus, and biogas and chemicals production from grass in Germany. The webGIS tool is considered an important decision-making tool for stakeholders, which gives first insights on the viability and sustainability of bioenergy value chains.


2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Henri Bezuidenhout ◽  
Sonja Grater ◽  
Ewert P.J. Kleynhans

Orientation: African countries offer many investment opportunities and also urgently need global investment finance. Along the value chains of the agro-industrial sector there are many global challenges for African countries to attract foreign direct investment. This article investigates the investment flows in agro-industries and products to and from South Africa.Research purpose: This study evaluates the nature and dimensions of the agro-industrial sector that receive investment inflows in South Africa, as well as investigating South African investment patterns into Africa.Motivation for the study: Of particular interest is the relationship between foreign direct investment (FDI) flows, their integration into global value chains and sustainable investment options.Research design, approach and method: Qualitative data and visual techniques using available data for the period 2003–2014 disambiguate the linkages in FDI patterns with regard to regions, industries and specific companies. Flows between regions and the specific companies are identified and studied.Main findings: The results indicate that the United States, the United Kingdom and the Netherlands are the largest investors in South Africa, with a strong focus on agricultural input production and subsequent agro-processing industries. South African investment into Africa follows a similar, albeit narrower and more focused, pattern. The study concludes that foreign multinational enterprises are actively involved in global value chain expansion and South African firms are following suit.Practical/managerial implications: The lack of FDI in actual agricultural crop production in Africa offers future investment opportunities.Contribution/value-add: This study creates a better understanding of how FDI in agriculture is linked to the development of regional value chains in the Southern African region. The methodology applies a novel approach to an important field of study, of which little knowledge exists, and may contribute to the creation of wealth in the countries of the region and the welfare of its population.


UVserva ◽  
2018 ◽  
Author(s):  
Darío Fabián Hernández González ◽  
Jessica Fernández Lara

El  Centro de Información Estadística y Geográfica de Veracruz de Ignacio de la Llave (CIEGVER), es un organismo creado para la  generación de información en la investigación científica y para la toma de decisiones públicas y privadas. Avalada por el INEGI, elaborada por los investigadores y personal de la Universidad Veracruzana, con información aportada por el Gobierno del Estado de Veracruz, además de otra información de origen propio de la UV. Relacionado a ello, se propone la creación de un observatorio sobre las economías de aglomeración y cadenas de valor en Veracruz las cuales nunca antes han sido estudiadas de forma precisa, correcta y recurrente, y cuyo estudio  podría aportar bases de datos determinantes para el desarrollo productivo, económico ambiental y sobre todo social del Estado de Veracruz.Palabras clave: Observatorio; cadenas de valor; economías de aglomeración; desarrollo pro­ductivo; económico y ambiental AbstractThe Center for Statistics Informa­tion and Geography of Veracruz de Ignacio de la Llave, or CIEGVER (its acronym in Spanish), is a public institution created for the genera­tion of information related to scientific inves­tigation that helps in the process of decision making in both public and private spheres. It is validated by INEGI and elaborated by re­searchers and personnel from the Universidad Veracruzana, with information contributed by the government of Veracruz State, as well as information from UV. Related to this, it sug­gests the creation of an observatory studying the economics of agglomeration and value chain in Veracruz, which have never been studied precisely, correctly, and recurrently before; the study could provide determinant databases for the productive development, economic environmental, and especially the social issues in the state of Veracruz. Keywords: Observatory; value chains; agglo­meration economies; productive development; economic development and environmental development


2018 ◽  
Vol 10 (1(J)) ◽  
pp. 135-145 ◽  
Author(s):  
Andrew O. Enaifoghe ◽  
Toyin C. Adetiba

Following the end of colonialism in the Southern African sub-region, the SADC has experienced a thorough rearrangement with South Africa as the front-runner as opposed to her pre-1994 stance on integration. African regional cooperation has nevertheless been revitalised in some ways as a result of the two major events which started in the beginning of the 1990s that include the abolition of the apartheid regime in South Africa, and the eventual stabilisation of both political and economic relationships in the Southern Africa sub-region. This study employs the use of content analyses to assess the position of South Africa investments in SADC. Through the use ofregional integration, the studyfurther examined various South Africa’s Key Economy Performance since 1994 which are the main contributing factors to South African economic growth; furthermore it looks at her material, commodity and political investment in the subregional integration process to determine if it serves as the strategy for National Economic Development for South Africa.The paper find out thatregardless of South Africa’s economic clout within the SADC region, its Foreign Direct Investment is predominantly from its investment and market penetration of Southern Africa region while maintaining constant economic growth.  


Author(s):  
Wouter G. Bam ◽  
Karolien De Bruyne ◽  
Mare Laing

AbstractRecent years have seen renewed interest in evaluating the effectiveness of industrial policy, especially in the context of global value chains. One approach that might add a complementary view in this domain is product space analysis. To date, product space-based value chain analyses have focused on theoretical debates only, or on empirical applications for a single year. In this paper, we employ the input–output product space (IO–PS) framework combined with a time dimension. We thereby evaluate the effectiveness of industrial policies within a value chain over time. The paper focuses on the case of the South African automotive value chain for the years 1995 to 2017. We evaluate ex post the implemented industrial policies and confirm their (partial) success. We then use the framework to make ex ante recommendations to improve the current policy approach and find that it might pay off to target specific sub-sectors in the future. The results illustrate how the framework can be used to evaluate industrial policies and to identify which parts of the global value chain should be targeted to foster both short- and long-term growth. We also highlight shortcomings of the approach which might limit its application.


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