Climbing the Value Chain Ladder: A Framework for Zambia's Integration into Global Production Networks
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In Zambia, the agro-processing sector dominates manufacturing activities, accounting for approximately 63% of total manufacturing output (UNDP, 2016: 32). Therefore, this study focuses on food processing because it forms a significant component of the agro-processing industry. The growing interest in the food sub-sector is driven by the expanding demand for processed food arising from growing incomes and urbanization. Increased regional economic integration has further encouraged local and foreign firms to invest in food-processing activities to meet the increased demand for processed food and...
In Zambia, the agro-processing sector dominates manufacturing activities, accounting for approximately 63% of total manufacturing output (UNDP, 2016: 32). Therefore, this study focuses on food processing because it forms a significant component of the agro-processing industry. The growing interest in the food sub-sector is driven by the expanding demand for processed food arising from growing incomes and urbanization. Increased regional economic integration has further encouraged local and foreign firms to invest in food-processing activities to meet the increased demand for processed food and other manufactured products. Linked to this trend is the proliferation of South African-based supermarket supply chains, such as Pick n Pay, Shoprite and Game Stores, which provide key routes to markets for both local and foreign suppliers (Dakora, 2012; das Nair & Chisoro-Dube, 2016; ; Paremoer, 2018). These developments offer rapid growth prospects, provided challenges related to upgrading, access to quality inputs, design, packaging, product certification and standards, and distribution are dealt with. Despite the presence of supermarkets in Zambia, domestic processing firms possess limited capabilities to engage and effectively participate in the agro-food value-chains (Ziba & Phiri, 2017).
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