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The implications for suppliers of the spread of supermarkets in southern Africa

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  • Reena das Nair
  • Shingie Chisoro
  • Francis Ziba

Abstract

The growth of supermarkets in southern Africa opens local and regional markets to suppliers through participation in supermarket supply chains. Supermarkets in the region provide an important route to market for processed foods and household consumable products. Through a regional value chain lens, this article provides an assessment of the implications of the growth of supermarkets for the participation of suppliers in Botswana, South Africa, Zambia and Zimbabwe. The research finds that, while supermarkets provide important opportunities for suppliers, they also exert considerable buyer power that limits supplier development and upgrading. High private standards, onerous requirements and costly trading terms negatively affect supplier participation in value chains. Long-term investments are required to build the capabilities of suppliers to meet supermarket requirements in terms of quality, consistency, volume and cost-competitiveness.

Suggested Citation

  • Reena das Nair & Shingie Chisoro & Francis Ziba, 2018. "The implications for suppliers of the spread of supermarkets in southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 35(3), pages 334-350, May.
    • Handle: RePEc:taf:deveza:v:35:y:2018:i:3:p:334-350
    DOI: 10.1080/0376835X.2018.1452715
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    Cited by:

    1. Anthony Black & Lawrence Edwards & Ruth Gorven & Willard Mapulanga, 2020. "Agro-processing, value chains, and regional integration in Southern Africa," WIDER Working Paper Series wp-2020-36, World Institute for Development Economic Research (UNU-WIDER).
    2. Leon Gwaka & Job Dubihlela, 2020. "The Resilience of Smallholder Livestock Farmers in Sub-Saharan Africa and the Risks Imbedded in Rural Livestock Systems," Agriculture, MDPI, vol. 10(7), pages 1-11, July.
    3. Giovanni Pasquali & Shane Godfrey & Khalid Nadvi, 2021. "Understanding regional value chains through the interaction of public and private governance: Insights from Southern Africa’s apparel sector," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 368-389, September.

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