Agricultural Sector Performance in SADC Countries

Joshua Mabeta
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Joshua Mabeta: University of South Bohemia in České Budějovice, Faculty of Economics

No 2025-02, Economics Working Papers from University of South Bohemia in Ceske Budejovice, Faculty of Economics

Abstract: This paper reviews the agricultural sector performance of Southern African Development Community (SADC) countries, specifically the efficiency of agricultural production and the overall competitiveness of their agricultural sectors. The study uses data spanning the period from 2001 to 2019 to assess agricultural production performance, and from 2001 to 2021 to investigate the competitiveness of the agricultural sectors. Using Malmquist productivity indices, the findings reveal that while overall productivity has increased in SADC, with 11 out of 15 countries recording an upward trajectory during the review period, technological progress has regressed. The gains in productivity have been driven by technical efficiency rather than advancements in technology. On the other hand, the Normalized Revealed Comparative Advantage (NRCA) index shows that 11 out of the 16 SADC countries were competitive, especially among diversified economies like South Africa, Zimbabwe, and Tanzania, compared to less diversified countries. This demonstrates that diversification plays a critical role in resilience to shocks such as climate change, variability, and global commodity price fluctuations. The findings further reveal that mineral-rich countries have less competitive agricultural sectors, potentially reflecting the presence of Dutch disease. These findings highlight the need to attract foreign direct investment (FDI) not only to reduce the funding gap in the agricultural sectors of SADC countries but also to bring much-needed technological innovation that can drive agricultural productivity, meet the food needs of the fast-growing population, and contribute to the overall growth of their economies.

Keywords: Efficiency; competitiveness; SADC; Malmquist index; Normalized Revealed Comparative Advantage index (search for similar items in EconPapers)
JEL-codes: F14 F15 F21 Q10 Q17 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2025-05-08, Revised 2025-06-11
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Persistent link: https://EconPapers.repec.org/RePEc:boh:wpaper:02_2025

DOI: 10.32725/ewp.2025.002

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