Growth and Development in the Cosmetics, Soap and Detergent Regional Value Chains: South Africa and Zambia

This executive summary details research by the Centre for Competition, Regulation and Economic Development (CCRED) and the Zambia Institute for Policy Analysis and Research (ZIPAR) into the soap, detergent, and cosmetics value chains of South Africa and Zambia. The document compares the industrial maturity and competitiveness of both nations, identifies barriers to growth for small and local firms, and proposes strategic interventions to increase regional production and reduce import reliance.

• South Africa possesses a soap, detergent, and cosmetics industry that is more mature, sophisticated, and larger than that of Zambia. Between 2010 and 2015, South Africa's exports of these products averaged $865.8 million, which is 20 times the size of Zambia's exports. During the same period, South African exports constituted 70% of Zambia's total imports of these goods, while Zambian exports represented only 0.3% of South Africa's total imports.
• The South African industry operates below its optimum production capacity, with small firms facing significant barriers. These include high costs for raw materials and packaging, limited access to finance for advertising, skills shortages, and difficulties accessing supermarkets. Regulatory hurdles include expensive export certification, a failing bio-diversity permit system, and compliance with good manufacturing practices.
• Zambia's soap, detergent, and cosmetics industry is hindered by poor quality and expensive local packaging, which prevents firms from securing supermarket shelf space. While one dominant firm has entered regional markets, most Zambian firms suffer from low production capabilities, lack of brand awareness, and limited export capabilities, leading to a failure to achieve economies of scale. Growth is further restricted by high taxes and compliance fees on chemical imports, the depreciation of the kwacha, high finance costs for technology, and the lack of international recognition for Zambia Bureau of Standards’ certification.
• To foster regional growth and import substitution, the report recommends that both South Africa and Zambia produce cosmetics from natural products to reduce chemical reliance, engage supermarkets to open shelf space for regional goods, and establish industrial clusters. Specific recommendations for Zambia include improving packaging quality, providing affordable finance, and implementing a supermarket regional procurement strategy. For South Africa, recommendations include increasing funding for export missions, leveraging IDC shareholding of Le-Sel Research to support new entrants, and engaging suppliers like Sasol to provide competitively priced inputs.

APA

South African Institute of International Affairs (2019). Growth and Development in the Cosmetics, Soap and Detergent Regional Value Chains: South Africa and Zambia. https://saiia.org.za/saiia-toolkit/growth-and-development-in-the-cosmetics-soap-and-detergent-regional-value-chains-south-africa-and-zambia/

Chicago

South African Institute of International Affairs. Growth and Development in the Cosmetics, Soap and Detergent Regional Value Chains: South Africa and Zambia. 2019. https://saiia.org.za/saiia-toolkit/growth-and-development-in-the-cosmetics-soap-and-detergent-regional-value-chains-south-africa-and-zambia/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Growth and Development in the Cosmetics, Soap and Detergent Regional Value Chains: South Africa and Zambia |date=26 March 2019 |url=https://saiia.org.za/saiia-toolkit/growth-and-development-in-the-cosmetics-soap-and-detergent-regional-value-chains-south-africa-and-zambia/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2019growth, author = {{South African Institute of International Affairs}}, title = {{Growth and Development in the Cosmetics, Soap and Detergent Regional Value Chains: South Africa and Zambia}}, institution = {South African Institute of International Affairs}, year = {2019}, month = mar, url = {https://saiia.org.za/saiia-toolkit/growth-and-development-in-the-cosmetics-soap-and-detergent-regional-value-chains-south-africa-and-zambia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }