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Working Paper 255 - Competition and industrial policies relating to food production in southern Africa

Simon Roberts

Working Paper Series from African Development Bank

Abstract: The paper examines developments in key markets and value chains in food production in southern Africa in order to evaluate the role of markets and the significance of market power. Rising incomes and urbanisation are driving demand for processedfood across the continent and, without substantial improvements in industrial development in food processing, the trade deficit is set to worsen. The paper draws on a range of research on regional value chains undertaken in recent years along with insights from competition cases to assess issues of competition, market power and industrial policy. The analysis covers key inputs in the form of fertilizer, two important food value chains namely animal feed to poultry, and sugar to confectionary,and developments in wholesale and retail trade. The paper identifies critical implications with regard to regional and international linkages, governance andmarket power, and industrial policy, if an appropriate agenda is to be pursued to shape markets for more inclusive growth.

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Date: 2017-05-17
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