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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
African Development Bank. 2015. Chinsali–Nakonde Road Rehabilitation (North–South Corridor): Project Appraisal Report. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Zambia_AR-_Chinsali_-_Nakonde_Road_Rehabilitation_Project.pdf. Accessed 5 Match 2018.
Altenburg, Tilman, et al. 2016. Making Retail Modernisation in Developing Countries Inclusive: A Development Policy Perspective. DIE Discussion Paper 2/2016.
Cattaneo, Olivier. 2013. Aid for Trade and Value Chains in Agrifood. https://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/agrifood_47.pdf. Accessed 14 February 2018.
Chege, Christine G., et al. 2015. Impacts of Supermarkets on Farm Household Nutrition in Kenya. World Development 72: 394–407.
Emongor, Rosemary A., and Johann F. Kirsten. 2006. Supermarkets in the Food Supply System in Southern African Community Development: A Case Study of Zambia. Journal of Applied Sciences 6: 800–809.
———. 2009. Supermarket Expansion in Developing Countries and Their Role in Development: Experiences from the Southern African Development Community (SADC). Agrekon 48 (1): 60–84.
Nordås, Hildegunn K., Massimo Geloso Grosso, and Enrico Pinali. 2008. Market Structure in the Distribution Sector and Merchandise Trade. OECD Trade Policy Papers 68.
Reardon, Thomas. 2006. The Rapid Rise of Supermarkets and the Use of Private Standards in their Food Product Procurement Systems in Developing Countries. In Agro-Food Chains and Networks for Development, ed. Ruerd Ruben, et al., 79–105. Dordrecht: Springer.
Reardon, Thomas, and Ashok Gulati. 2008. The Supermarket Revolution in Developing Countries: Policies for “Competitiveness with Inclusiveness”. International Food Policy Research Institute Policy Brief 2.
Reardon, Thomas, et al. 2005. Links Among Supermarkets, Wholesalers, and Small Farmers in Developing Countries: Conceptualization and Emerging Evidence. http://siteresources.worldbank.org/INTAFRSUMESSD/Resources/1729402-1150389437293/Reardon_et_al_Supermarkets_august_2005.doc. Accessed 5 March 2018.
———. 2007. Proactive Fast Tracking Diffusion of Supermarkets in Developing Countries: Implications for Market Institutions and Trade. Journal of Economic Geography 7 (4): 399–431.
Stokke, Hildegunn E. 2009. Multinational Supermarket Chains in Developing Countries: Does Local Agriculture Benefit? Agricultural Economics 40 (6): 645–656.
Vilakazi, Thando, and Paelo Anthea. 2017. Competition in Road Transportation of Perishable Goods between Malawi, South Africa, Zambia, and Zimbabwe. WIDER Working Paper 49/2017.
Weatherspoon, Dave D., and Thomas Reardon. 2003. The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor. Development Policy Review 21 (3): 333–355.
World Bank. 2015. World Integrated Trade Solution. https://wits.worldbank.org. Accessed 17 December 2015.
Zambia Development Agency. 2014. Agro Processing Sector Profile. http://www.zda.org.zm/?q=es/download/file/fid/58. Accessed 5 March 2018.
Acknowledgement
The authors are grateful to Mike Morris and Sören Scholvin for comments on a draft version of this chapter. The chapter presents research carried out for the UNU-WIDER project on ‘Regional Growth and Development in Southern Africa’.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Phiri, M., Ziba, F. (2019). Expansion of Regional Supermarkets in Zambia: Finding Common Ground with Local Suppliers. In: Scholvin, S., Black, A., Revilla Diez, J., Turok, I. (eds) Value Chains in Sub-Saharan Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-030-06206-4_4
Download citation
DOI: https://doi.org/10.1007/978-3-030-06206-4_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-06205-7
Online ISBN: 978-3-030-06206-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)