Southern African Regional Value Chains and Integration

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.