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Supermarket expansion in developing countries and their role in development: Experiences from the Southern African Development Community (SADC)

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  • Emongor, Rosemary A.
  • Kirsten, Johann F.

Abstract

This paper assesses the impact of the growth in the number of supermarkets in SADC countries. It uses a case-study approach in two countries-Botswana, and Zambia. Data was collected from 16 chain supermarkets and 42 local shops in Botswana and Zambia and 78 small-scale farmers who produce FFV for the market in Zambia in 2005 and 2007. A one-way analysis of variance was used to compare food product prices in supermarkets and local shops and a two-step impact model was used to determine the impact of supermarkets procurement on small-scale farmers. The results show that prices of processed food products were cheaper in supermarkets in Botswana and Zambia, implying that consumers gain from purchasing food products from chain supermarkets in case-study countries. Small-scale farmers who access chain supermarkets FFV supply chain in Zambia registered higher income compared to their counterparts who sold on the traditional market. The study concluded that participation in the supermarkets supply chains may impact positively on both consumers and small-scale farmers.

Suggested Citation

  • Emongor, Rosemary A. & Kirsten, Johann F., 2009. "Supermarket expansion in developing countries and their role in development: Experiences from the Southern African Development Community (SADC)," 2009 Conference, August 16-22, 2009, Beijing, China 51401, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51401
    DOI: 10.22004/ag.econ.51401
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    References listed on IDEAS

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    1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    2. D'Haese, Marijke & Van Huylenbroeck, Guido, 2005. "The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area, South Africa," Food Policy, Elsevier, vol. 30(1), pages 97-113, February.
    3. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, May.
    4. Aaditya Mattoo & Lucy Payton, 2007. "Services Trade and Development : The Experience of Zambia," World Bank Publications - Books, The World Bank Group, number 6697, December.
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    Cited by:

    1. 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).
    2. Wells, Patricia Bryn & Saghaian, Sayed H. & Osborne, William, 2013. "The Expansion of Food Retail in Developing Countries and Its Effects on the Hunger Index," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142630, Southern Agricultural Economics Association.
    3. Francis Ziba & Mwanda Phiri, 2017. "The expansion of regional supermarket chains: Implications for local suppliers in Zambia," WIDER Working Paper Series 058, World Institute for Development Economic Research (UNU-WIDER).

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