Abstract
The growth of supermarkets in southern Africa opens local and
regional markets to suppliers through participation in supermarket
supply chains. Supermarkets in the region provide an important
route to market for processed foods and household consumable
products. Through a regional value chain lens, this article provides
an assessment of the implications of the growth of supermarkets
for the participation of suppliers in Botswana, South Africa, Zambia
and Zimbabwe. The research finds that, while supermarkets
provide important opportunities for suppliers, they also exert
considerable buyer power that limits supplier development and
upgrading. High private standards, onerous requirements and
costly trading terms negatively affect supplier participation in
value chains. Long-term investments are required to build the
capabilities of suppliers to meet supermarket requirements in
terms of quality, consistency, volume and cost-competitiveness.