Growth and Development in the Cosmetics, Soaps and Detergents Regional Value Chains: South Africa and Zambia
74 Pages Posted: 18 Jan 2018
Date Written: October 1, 2017
The challenge facing regional economies is how to leverage rising urbanisation, increasing populations and incomes and the resultant higher demand for fast moving consumer goods towards building industrial production capabilities and diversifying production away from minerals towards labour absorbing manufacturing. Trade data shows that there is a trade deficit of $536m for cosmetics & $667m for soaps and detergents in the SADC region. This presents an opportunity for the region to meet this demand internally rather than imports from global markets This study discusses the relative importance of light manufacturing as a stepping stone towards the establishment of industries in the region to enhance economic transformation and inclusive economic growth. It maps the cosmetics, soaps and detergents value chain in South Africa and Zambia and analyses competitiveness, critical success factors, growth constraints and opportunities presented by end markets.
Keywords: cosmetics, soaps, detergents, value chain, manufacturing, industrialization
JEL Classification: L66, L81, O14
Suggested Citation: Suggested Citation