Overcoming Barriers to Supply Chain Integration in SACU

Abstract

Cross border value chains are increasingly seen as critical for export growth, providing the conduit for more than half of developing countries exports in value-added terms. However, Africa’s contribution to cross border value chains remains low, at 1.5 percent. And African countries’ limited participation in value chains is in the lower-value, lower end stages of production. Reasons for this limited integration include infrastructure, thick borders, geographical remoteness, size, fragmentation, and the limited financial capacities and service industries of African countries.