Priority Value Chains Assessment and Selection: Part One

This assessment was undertaken on behalf of the USAID-funded Southern Africa Trade Hub (SATH) based in Botswana. The overall goal of SATH is to increase international competitiveness, intra-regional trade, and food security in the Southern African Development Community (SADC). To achieve these goals, SATH seeks to accomplish two objectives:

• Advancement of the Regional Integration Agenda; and

• Increased Trade Capacity of Regional Value Chains

Selection of the most appropriate regional value chains for technical assistance and support was one of the first tasks under the activity. SATH is required by USAID to focus on three value chains that have the potential to not only increase competitiveness, trade, and food security, but are also relevant regionally, across as many member-states within SADC as possible. The 15 Southern African countries, while a part of SADC, vary significantly from an economic perspective. Given the diversity among member-states, it will be difficult to identify value chains that cut across all 15 countries, and at the same time, deliver the stated goals of this activity. Therefore, as a first step, SATH's focus will be on facilitating regional value chain strengthening in Zambia, Malawi, Mozambique, South Africa, and Zimbabwe given their similarities and well established industry linkages. Other countries within SADC are to be added to the support framework, in due course.

The final value chains selected for SATH support will represent commodity categories rather than single product lines, for various reasons. All selected value chains must meet the SATH set of diagnostic criteria to be considered as priority. Once selected, these priority value chains (with greatest opportunities for efficient business relationships and developmental impact) will be supported to deliver its promise: increased competitiveness, trade and food security.