Value Chains in Southern Africa: Entry Points for Donor Impact

The report evaluates the EU-funded Private Sector Development Programme (PSDP) in Botswana, noting that while audit and training interventions helped SMMEs avoid collapse and increase profits, systemic issues remain. A micro-financing policy framework has stalled at the ministerial level, and a lack of affordable specialized training—particularly for sectors like baking—limits the ability of SMMEs to scale into regional value chains involving Namibia and Zambia.

• The PSDP's audit and training interventions for nearly one hundred SMMEs provided significant benefits, with some businesses moving from the brink of collapse to increased profit margins and turn-around.
• A project to develop a micro-financing policy framework in Botswana involved broad participation from government and private sector actors, resulting in a draft policy submitted to the Ministry of Trade and Industry and the Ministry of Finance and Development Planning. However, the impact is currently zero because the framework has remained on a desk without feedback or evidence of prioritization for cabinet approval.
• Small manufacturing SMMEs in Botswana that add value to imports from the East via South Africa, such as embroidery and printing on T-shirts, show growth potential. While export markets exist in Zambia and Namibia, it is unclear if full T-shirt production within Botswana would be cost-effective due to labor prices and initial layout costs.
• Growth for certain SMMEs in Botswana is limited by a lack of available specialized training. While VAT-paying businesses can access some free training, seeking advanced training in South Africa is prohibitively expensive. For example, an independent bakery's growth depends on chefs receiving training in a broader range of baking skills to access markets in Botswana, Namibia, and Zambia.

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} }