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Value Chains in Sub-Saharan AfricaExpansion of Regional Supermarkets in Zambia: Finding Common Ground with Local Suppliers

Value Chains in Sub-Saharan Africa: Expansion of Regional Supermarkets in Zambia: Finding Common... [Supermarkets, which have become a key feature of Zambia’s retail sector, provide formal-market value chains that can trigger local development and even hold the potential of agro-processing for export. This chapter investigates how Zambian suppliers integrate into supermarket value chains. As a first step, the potential related to these value chains is discussed. Based on structured interviews with three major foreign supermarkets and 99 local firms, the authors then show that (potential) local suppliers overestimate their participatory preparedness. They rate their own capacities much more favourably than supermarkets do, and also somewhat misunderstand the latter’s procurement criteria. Other key challenges are the delayed payments by supermarkets, the low output of many local firms and the lack of financing to upgrade production processes. Supermarkets promoting their own brands causes additional competition for local suppliers. Based on this assessment, the authors provide policy recommendations to help Zambia benefit from clear opportunities in the retail sector.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Value Chains in Sub-Saharan AfricaExpansion of Regional Supermarkets in Zambia: Finding Common Ground with Local Suppliers

Part of the Advances in African Economic, Social and Political Development Book Series
Editors: Scholvin, Sören; Black, Anthony; Revilla Diez, Javier; Turok, Ivan
Phiri, Mwanda; Ziba, Francis
Value Chains in Sub-Saharan Africa — May 10, 2019
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Publisher
Springer International Publishing
Copyright
© Springer Nature Switzerland AG 2019
ISBN
978-3-030-06205-7
Pages
43 –58
DOI
10.1007/978-3-030-06206-4_4
Publisher site
See Chapter on Publisher Site

Abstract

[Supermarkets, which have become a key feature of Zambia’s retail sector, provide formal-market value chains that can trigger local development and even hold the potential of agro-processing for export. This chapter investigates how Zambian suppliers integrate into supermarket value chains. As a first step, the potential related to these value chains is discussed. Based on structured interviews with three major foreign supermarkets and 99 local firms, the authors then show that (potential) local suppliers overestimate their participatory preparedness. They rate their own capacities much more favourably than supermarkets do, and also somewhat misunderstand the latter’s procurement criteria. Other key challenges are the delayed payments by supermarkets, the low output of many local firms and the lack of financing to upgrade production processes. Supermarkets promoting their own brands causes additional competition for local suppliers. Based on this assessment, the authors provide policy recommendations to help Zambia benefit from clear opportunities in the retail sector.]

Published: May 10, 2019

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