IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/2366.html
   My bibliography  Save this paper

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

Author

Listed:
  • Roberts Simon

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.

Suggested Citation

  • Roberts Simon, 2017. "Working Paper 255 - Competition and industrial policies relating to food production in southern Africa," Working Paper Series 2366, African Development Bank.
    • Handle: RePEc:adb:adbwps:2366
    as

    Download full text from publisher

    File URL: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WPS_No_255_Competition_and_industrial_policies_relating_to_food_producti....pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shohei Nakamura & Rawaa Harati & Somik V. Lall & Yuri M. Dikhanov & Nada Hamadeh & William Vigil Oliver & Marko Olavi Rissanen & Mizuki Yamanaka, 2019. "Is living in African cities expensive?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(12), pages 1007-1012, July.
    2. Gnutzmann, Hinnerk & Spiewanowski, Piotr, 2016. "Did the Fertilizer Cartel Cause the Food Crisis?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145777, Verein für Socialpolitik / German Economic Association.
    3. Xinshen Diao & Margaret McMillan & Dani Rodrik, 2019. "The Recent Growth Boom in Developing Economies: A Structural-Change Perspective," Springer Books, in: Machiko Nissanke & José Antonio Ocampo (ed.), The Palgrave Handbook of Development Economics, chapter 9, pages 281-334, Springer.
    4. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    5. Phumzile Ncube & Simon Roberts & Tatenda Zengeni & Paul C. Samboko, 2017. "Identifying growth opportunities in the Southern African Development Community through regional value chains: The case of the animal feed to poultry value chain," WIDER Working Paper Series 004, World Institute for Development Economic Research (UNU-WIDER).
    6. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    7. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    8. Francis Ziba & Mwanda Phiri, 2017. "The expansion of regional supermarket chains: Implications for local suppliers in Zambia," WIDER Working Paper Series wp-2017-58, World Institute for Development Economic Research (UNU-WIDER).
    9. Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), 2013. "The Industrial Policy Revolution II," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33523-4, December.
    10. Manuel A. Hernandez & Maximo Torero, 2013. "Market concentration and pricing behavior in the fertilizer industry: a global approach," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 723-734, November.
    11. Suttie, D. & Benfica, R., 2016. "IFAD RESEARCH SERIES 3 - Fostering inclusive outcomes in sub-Saharan African agriculture: improving agricultural productivity and expanding agribusiness opportunities," IFAD Research Series 280040, International Fund for Agricultural Development (IFAD).
    12. Phumzile Ncube & Simon Roberts & Tatenda Zengeni, 2016. "Development of the animal feed to poultry value chain across Botswana, South Africa, and Zimbabwe," WIDER Working Paper Series wp-2016-2, World Institute for Development Economic Research (UNU-WIDER).
    13. Oliver Budzinski & Maryam H.A. Beigi, 2015. "Generating instead of protecting competition," Chapters, in: Michal S. Gal & Mor Bakhoum & Josef Drexl & Eleanor M. Fox & David J. Gerber (ed.), The Economic Characteristics of Developing Jurisdictions, chapter 9, pages 223-247, Edward Elgar Publishing.
    14. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    15. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    16. Thomas Reardon & Peter Timmer & Julio Berdegue, 2004. "The Rapid Rise of Supermarkets in Developing Countries: Induced Organizational, Institutional, and Technological Change in Agrifood Systems," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 168-183.
    17. Reena das Nair & Shingie Chisoro, 2015. "The expansion of regional supermarket chains: Changing models of retailing and the implications for local supplier capabilities in South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series 114, World Institute for Development Economic Research (UNU-WIDER).
    18. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    19. Sen, Kunal, 2013. "The Political Dynamics of Economic Growth," World Development, Elsevier, vol. 47(C), pages 71-86.
    20. Stefano Ponte & Timothy Sturgeon, 2014. "Explaining governance in global value chains: A modular theory-building effort," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 195-223, February.
    21. Thando Vilakazi & Anthea Paelo, 2017. "Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
    22. Amsden, Alice H. & Singh, Ajit, 1994. "The optimal degree of competition and dynamic efficiency in Japan and Korea," European Economic Review, Elsevier, vol. 38(3-4), pages 941-951, April.
    23. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    24. Cimoli, Mario & Dosi, Giovanni & Stiglitz, Joseph E. (ed.), 2009. "Industrial Policy and Development: The Political Economy of Capabilities Accumulation," OUP Catalogue, Oxford University Press, number 9780199235278.
    25. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-46, World Institute for Development Economic Research (UNU-WIDER).
    26. Thomas Farole, 2016. "Factory Southern Africa?," World Bank Publications - Reports 23787, The World Bank Group.
    27. Geroski, Paul A. & Jacquemin, Alexis, 1984. "Dominant firms and their alleged decline," International Journal of Industrial Organization, Elsevier, vol. 2(1), pages 1-27, March.
    28. Neo Chabane & Simon Roberts & Andrea Goldstein, 2006. "The changing face and strategies of big business in South Africa: more than a decade of political democracy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(3), pages 549-577, June.
    29. Neil M. Coe, 2014. "Missing links: Logistics, governance and upgrading in a shifting global economy," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 224-256, February.
    30. Thando Vilakazi & Anthea Paelo, 2017. "Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-49, World Institute for Development Economic Research (UNU-WIDER).
    31. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
    32. Gertrude Makhaya & Simon Roberts, 2013. "Expectations and outcomes: considering competition and corporate power in South Africa under democracy," Review of African Political Economy, Taylor & Francis Journals, vol. 40(138), pages 556-571, December.
    33. T.S. Jayne & Shahidur Rashid, 2013. "Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 547-562, November.
    34. Morris, Mike & Kaplinsky, Raphael & Kaplan, David, 2012. "“One thing leads to another”—Commodities, linkages and industrial development," Resources Policy, Elsevier, vol. 37(4), pages 408-416.
    35. Phumzile Ncube & Simon Roberts & Tatenda Zengeni, 2016. "Development of the animal feed to poultry value chain across Botswana, South Africa, and Zimbabwe," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haraguchi, Nobuya & Martorano, Bruno & Sanfilippo, Marco, 2019. "What factors drive successful industrialization? Evidence and implications for developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 266-276.
    2. Phumzile Ncube & Simon Roberts & Tatenda Zengeni & Paul C. Samboko, 2017. "Identifying growth opportunities in the Southern African Development Community through regional value chains: The case of the animal feed to poultry value chain," WIDER Working Paper Series 004, World Institute for Development Economic Research (UNU-WIDER).
    3. Phumzile Ncube & Simon Roberts & Tatenda Zengeni & Paul C. Samboko, 2017. "Identifying growth opportunities in the Southern African Development Community through regional value chains: The case of the animal feed to poultry value chain," WIDER Working Paper Series wp-2017-4, World Institute for Development Economic Research (UNU-WIDER).
    4. Reda Cherif & Fuad Hasanov & Philippe Aghion, 2023. "Fair and inclusive markets: Why dynamism matters," Global Policy, London School of Economics and Political Science, vol. 14(5), pages 686-701, November.
    5. Vu, Trung V., 2020. "Economic complexity and health outcomes: A global perspective," Social Science & Medicine, Elsevier, vol. 265(C).
    6. Dosi, Giovanni & Roventini, Andrea & Russo, Emanuele, 2019. "Endogenous growth and global divergence in a multi-country agent-based model," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 101-129.
    7. repec:hal:spmain:info:hdl:2441/46k9rkvut99i7qnn4vqm25t53b is not listed on IDEAS
    8. Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2022. "Specialize or diversify? And in What? Trade composition, quality of specialization, and persistent growth [Catching up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(2), pages 301-337.
    9. Thando Vilakazi & Stefano Ponte, 2022. "Black Economic Empowerment and Quota Allocations in South Africa's Industrial Fisheries," Development and Change, International Institute of Social Studies, vol. 53(5), pages 1059-1086, September.
    10. Mulatu, Abay, 2016. "On the concept of 'competitiveness' and its usefulness for policy," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 50-62.
    11. Gisela Di Meglio & Jorge Gallego & Andrés Maroto & Maria Savona, 2018. "Services in Developing Economies: The Deindustrialization Debate in Perspective," Development and Change, International Institute of Social Studies, vol. 49(6), pages 1495-1525, November.
    12. Mijiyawa, Abdoul' Ganiou, 2017. "Drivers of Structural Transformation: The Case of the Manufacturing Sector in Africa," World Development, Elsevier, vol. 99(C), pages 141-159.
    13. Thomas Goda & Santiago Sánchez González, 2024. "Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth," International Economic Journal, Taylor & Francis Journals, vol. 38(1), pages 21-44, January.
    14. Bahar, Dany & Rosenow, Samuel & Stein, Ernesto & Wagner, Rodrigo, 2019. "Export take-offs and acceleration: Unpacking cross-sector linkages in the evolution of comparative advantage," World Development, Elsevier, vol. 117(C), pages 48-60.
    15. Popov, Vladimir, 2023. "Can China maintain high growth rates under the “dual-circulation” decoupling?," MPRA Paper 117953, University Library of Munich, Germany.
    16. Thando Vilakazi & Anthea Paelo, 2017. "Towards the integration of markets: Competition in road transportation of perishable goods between Malawi, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-49, World Institute for Development Economic Research (UNU-WIDER).
    17. Lavopa, Alejandro & Szirmai, Adam, 2018. "Structural modernisation and development traps. An empirical approach," World Development, Elsevier, vol. 112(C), pages 59-73.
    18. Dosi, Giovanni & Riccio, Federico & Virgillito, Maria Enrica, 2021. "Varieties of deindustrialization and patterns of diversification: why microchips are not potato chips," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 182-202.
    19. Behuria, Pritish, 2017. "The political economy of import substitution in the 21st century: the challenge of recapturing the domestic market in Rwanda," LSE Research Online Documents on Economics 69470, London School of Economics and Political Science, LSE Library.
    20. Haroon Bhorat & Francois Steenkamp & Christopher Rooney, "undated". "Africa’s Manufacturing Malaise," UNDP Africa Policy Notes 2016-03, United Nations Development Programme, Regional Bureau for Africa.
    21. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:2366. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adeleke Oluwole Salami (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.