Factory Southern Africa: SACU in Global Value Chains

This executive summary outlines a study on the potential of Global Value Chains (GVCs) to drive growth, diversification, and job creation within the Southern African Customs Union (SACU) region, specifically focusing on increasing non-commodity exports and manufacturing value addition.

• The study aims to analyze GVC participation and competitiveness in South Africa and the wider SACU region to determine how these chains can act as engines for growth, productivity, and job creation. It specifically seeks to map regional value chain integration, identify barriers to that integration, and determine the policies necessary to create a 'factory Southern Africa' that is globally competitive and high value-adding.
• GVCs represent a significant opportunity for the SACU region to expand non-commodity exports. For South Africa, the focus is on increasing manufacturing exports and value addition, while other SACU countries view GVCs as a means for global integration, diversification, and attracting investment from South Africa.
• The paper recommends several policy actions to enhance competitiveness and regional integration, including improving trade, transport, and urban infrastructure; reducing cross-border trade barriers; liberalizing work permits and the movement of people; closing technical and management skills gaps; improving electricity reliability and ICT infrastructure; and increasing institutional coordination at regional, provincial, and municipal levels.

APA

South African Institute of International Affairs (2016). Factory Southern Africa: SACU in Global Value Chains. https://saiia.org.za/saiia-toolkit/factory-southern-africa-sacu-in-global-value-chains/

Chicago

South African Institute of International Affairs. Factory Southern Africa: SACU in Global Value Chains. 2016. https://saiia.org.za/saiia-toolkit/factory-southern-africa-sacu-in-global-value-chains/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Factory Southern Africa: SACU in Global Value Chains |date=2 June 2016 |url=https://saiia.org.za/saiia-toolkit/factory-southern-africa-sacu-in-global-value-chains/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2016factory, author = {{South African Institute of International Affairs}}, title = {{Factory Southern Africa: SACU in Global Value Chains}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jun, url = {https://saiia.org.za/saiia-toolkit/factory-southern-africa-sacu-in-global-value-chains/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }