THE SADC EPA – OPPORTUNITIES IN THE AGRO-PROCESSING SECTORS OF SOUTH AFRICA AND LESOTHO

The document examines how South Africa and Lesotho can leverage the SADC EPA to increase agro-processing exports to the EU. While South Africa has established capacity but struggles with quota uptake and SME integration, Lesotho starts from a 'near zero base' with significant infrastructure and standards gaps. The paper emphasizes the need for regional value chains and targeted EU development support to assist SMEs, women, and youth.

• The SADC EPA provides higher tariff preferences for processed agricultural products compared to unprocessed goods, creating a strategic incentive for agro-processing. For example, processed items like jams, pastes, and purees attract higher preferences than the original fruit or nuts.
• South Africa possesses significant agro-processing expertise and capacity but has failed to fully utilize its EPA quotas. As of October 2017, 0% of the annual quota for canned tropical fruit and only 5% of the apple juice quota were used, attributed to a lack of awareness, sanitary and phytosanitary (SPS) issues, and drought.
• SME involvement in South Africa's fruit and vegetable processing is low, particularly among women-owned firms, with most focusing on domestic markets. A major barrier is the lack of local laboratories for product-specific testing, forcing companies to send products to Europe, which increases costs.
• The macadamia nut sector in South Africa and Mozambique has high potential for processed exports. While raw kernels have a low 2% tariff preference, processed nut purees or pastes attract much higher preferences of 19.5% for South Africa and 20% for Mozambique.
• Lesotho's agro-processing sector is in its infancy with almost no experience in exporting fresh produce. The country faces severe 'stumbling blocks,' including a lack of knowledge about the SADC EPA, inadequate production volumes, and a lack of refrigerated transport to manage difficult terrain.
• Lesotho has attempted to develop its horticulture sector through donor-funded projects, but these have been hindered by institutional delays. A state-of-the-art market centre remains 'empty and inactive' because it was developed without a business plan for produce volumes or off-takers.
• There is a strategic opportunity to develop Regional Value Chains (RVCs) where Lesotho integrates its production into South African processing chains to access the EU market, which could also help South Africa meet its own quotas.
• The document recommends that the EU prioritize standards negotiations and support the SADC Secretariat's Standardisation, Quality Assurance, Accreditation and Metrology (SQAM) programme to eliminate non-tariff barriers.

APA

BERTELSMANN-SCOTT, T., MARKOWITZ, C., & QOANE, M. (2018). THE SADC EPA – OPPORTUNITIES IN THE AGRO-PROCESSING SECTORS OF SOUTH AFRICA AND LESOTHO. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/07/Occasional-Paper-282.pdf

Chicago

BERTELSMANN-SCOTT, TALITHA, CHELSEA MARKOWITZ, and MAHLAPE QOANE. THE SADC EPA – OPPORTUNITIES IN THE AGRO-PROCESSING SECTORS OF SOUTH AFRICA AND LESOTHO. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/07/Occasional-Paper-282.pdf.

Wikipedia

{{cite report |last1=BERTELSMANN-SCOTT |first1=TALITHA |last2=MARKOWITZ |first2=CHELSEA |last3=QOANE |first3=MAHLAPE |title=THE SADC EPA – OPPORTUNITIES IN THE AGRO-PROCESSING SECTORS OF SOUTH AFRICA AND LESOTHO |publisher=South African Institute of International Affairs |date=June 2018 |url=https://saiia.org.za/wp-content/uploads/2018/07/Occasional-Paper-282.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bertelsmannscott2018sadc, author = {BERTELSMANN-SCOTT, TALITHA and MARKOWITZ, CHELSEA and QOANE, MAHLAPE}, title = {{THE SADC EPA – OPPORTUNITIES IN THE AGRO-PROCESSING SECTORS OF SOUTH AFRICA AND LESOTHO}}, institution = {South African Institute of International Affairs}, year = {2018}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2018/07/Occasional-Paper-282.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }