SATH will work within a value chain framework to support new trade linkages and increase competitiveness for staple foods and other products. The priority value chains have been selected based on their potential competitiveness, development impact and the ability to achieve results. The priority value chains are: grains (primarily maize), legumes (primarily soybeans and groundnuts), cotton-textile-apparel, and as a target of opportunity, specialty/fancy foods, such as baobab.
Activities will include: support to the apex value chain organizations and companies such as SAFEX commodity exchange, the Animal Feed Manufacturers Association, Southern African Council of Agricultural Unions (SACAU), and the Southern Africa Fancy Food Association. This support will increase the ability of their member firms to produce and market export quality products; improve the ability of commercial business service providers (BSPs) to advise associations and firms on improving export competitiveness; improving the ability of business service providers (BSPs) to help firms understand and meet standards requirements –specifically those for aflatoxin, improving the provision of commercial and trade information to the key value chain players through the development/strengthening of trade and market information platforms, supporting commodity exchanges to provide price discovery and price risk management services, and to identify and develop solutions to the gaps in credit provision along the value chains, with an initial focus on leveraging South African financial services to the region.
Activities will focus on the key constraints/opportunities for sustainable trade expansion, as described and measured by the following four sub-areas:
- New trade linkages established and greater competitiveness achieved in staple foods and other strategic value chains
- Increased use and availability of financial products and services for trade and investment
- Increased investment through targeted promotion efforts
Activities will focus on the following high-priority countries: Malawi, Zambia, South Africa, Mozambique, Zimbabwe, Botswana, Lesotho, Swaziland and Namibia.
Finally, as a key implementing partner for the African Growth and Opportunity Act (AGOA) in Southern Africa, SATH will undertake a number of activities which will mobilize U.S. and African enterprises to better understand and take advantage of the opportunities presented by AGOA.
SATH will contribute to increasing food security in the region by increased availability and more competitive pricing of staple foods/seeds supplied through private sector channels, assist in expanding both intra- and extra-regional trade, reduce trade costs and support more efficient service markets (in market information, transport, finance).