1. SADC Elements of the Regional Action Plan

2. IMPROVING INDUSTRIAL PERFORMANCE AND PROMOTING EMPLOYMENT

3. Agro-food processing

4. SWOT Analysis

5. Strengths Existence of raw materials/conditions for production of raw materials Production of some world-class products Support at all Governmental levels - Programmes - Financial support Existing processing plants/capacity Fairly large market in SADC; Africa

6. Weaknesses Unintegrated industrial development structures Limited value addition Inadequate marketing and export market access Lack of farming infrastructure Lack of technical & management skills Lack of external trade strategy (strategic protection, promotion, market intelligence, etc) Low R&D (infrastructure and spend) Poor/indequate, unitegrated transport infrastructure (ports, rail, air-cargo, road)

7. Opportunities Growing demand for finished products worldwide Growing SADC & African market Labour-intensive production processes Growth opportunities in China and India market

8. Threats Low quality & quantity of raw materials Unstable supplies of raw materials Recurrent drought and seasonality of supplies High transportation costs Lack of credit facilities Existence of TBTs, NTBs/SPS Interventionist policies of export countries HIV/AIDS

9. CHALLENGES (based on SWOT Analysis) Product Quality Market Access (TBs; NTBs/SPS) Marketing (Pricing; Margins; Promotions) Human Capital Shortage of water Transaction costs - Transportation & logistics - Provision of Relevant Information - Infrastructure development Regulatory Environment & Cost of doing business HIV / Aids

10. STRATEGIES AND ACTIONS SME Development with emphasis on Women in food processing industry Networking + backward linkages through JVs Development of industrial clusters + Collaboration Integrated infrastructure development Development/management of water resources Development of agro-food sector-related skills Development of directory for equipment & machinery suppliers Encouraging producers to improve packaging, distribution and marketing Acceleration of reduction/removal of Tariffs

11. STRATEGIES AND ACTIONS continued Increasing investment in R&D Promotion and rewarding innovation Provision of proactive incentives favouring agro- food processing sector Involving Sector Associations and Trade Unions in decision-making Improving capacity of Statistics Unit of SADC Secretariat to collate industrial statistics Promoting positive media reporting about Africa Establishment of Performance Monitoring Committee Support for identified Centres of Excellence

12. Superior quality Competitive Advantage  Low cost  Differentiation Superior efficiency Superior customer responsiveness Superior innovation

13. An Example

18. Financing SADC Development Fund SADC Governments - 2%-4% of all donor funds - 10% of budget for strategic food security (Min of Finance) Public-Private Partnerships (PPPs) Private Sector - Industry Sector Associations - Sector Development Funds (?) - Development Finance Institutions (DBSA, etc - Investment Banks - Stock Markets - Other financial institutions (e.g. Pension Funds, Insurance companies, Venture Capitalists, etc) The Diaspora Donors - UNIDO, EU, UNCTAD, USAID, GTZ, CDE, Philantropists, etc

19. Thank you