Value Chains in Southern Africa: Entry Points for Donor Impact

The report evaluates the PSDP's interventions with SMMEs in Botswana, categorising them into those hindered by the enabling environment, nascent manufacturers, and those lacking specific skills training. While individual interventions showed positive results, the report highlights a failure in policy implementation regarding micro-financing and suggests that targeted donor support for audited SMMEs can unlock regional value chains in markets like Namibia and Zambia.

• The Private Sector Development Programme (PSDP) conducted audits on nearly one hundred SMMEs to identify skill gaps and implement training interventions, which resulted in some businesses moving from the brink of collapse to increased profit margins.
• A project to develop a micro-financing policy framework in Botswana successfully engaged private sector and government actors, but the resulting policy has remained stalled at the ministerial level, leading to zero actual impact despite efficient implementation.
• SMMEs in the micro-financing sector argue that a functional policy framework is essential to move beyond payroll lending, which currently excludes the unemployed youth who are most likely to start small businesses.
• Small manufacturers in Botswana, such as those embroidering and printing imported t-shirts, have growth potential in export markets in Namibia and Zambia, though it is unclear if full domestic manufacturing would be cost-effective due to labour prices and layout costs.
• Growth for certain SMMEs, including an independent bakery, is limited by a lack of specialized training within Botswana and the prohibitive cost of seeking such training in South Africa.

APA

South African Institute of International Affairs (2015). Value Chains in Southern Africa: Entry Points for Donor Impact. https://saiia.org.za/research/value-chains-in-southern-africa-entry-points-for-donor-impact/

Chicago

South African Institute of International Affairs. Value Chains in Southern Africa: Entry Points for Donor Impact. 2015. https://saiia.org.za/research/value-chains-in-southern-africa-entry-points-for-donor-impact/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Value Chains in Southern Africa: Entry Points for Donor Impact |date=6 November 2015 |url=https://saiia.org.za/research/value-chains-in-southern-africa-entry-points-for-donor-impact/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2015value, author = {{South African Institute of International Affairs}}, title = {{Value Chains in Southern Africa: Entry Points for Donor Impact}}, institution = {South African Institute of International Affairs}, year = {2015}, month = nov, url = {https://saiia.org.za/research/value-chains-in-southern-africa-entry-points-for-donor-impact/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }