This study provides an overview and analysis of the structure, key functions and characteristics of the forestry value chain operating in and among South Africa, Mozambique and Tanzania in order to identify market opportunities and the interventions required to support the growth of the regional value chain. The research focuses on three value chains – forestry to timber; forestry to pulp and paper; and forestry to furniture.
It focuses on three countries – South Africa, Mozambique and Tanzania. The latter two were selected on the basis of their current level of forestry output, together with their contiguous location. An evidence-based approach has been adopted for this study, based on the compilation of industry data from existing and new sources. The value chain analysis is focused on answering the following questions: how is the value chain organised? How does it function? Who are the main actors? What are the key institutions and forms of coordination? How well is the chain performing in coordination, competitiveness and intra-regional trade? Where are the opportunities to (1) relocate parts of the chain among the countries, and (2) to enhance existing intra-regional activities?
Technical regulations refer to standards and compulsory specifications that apply to certain products and processes, and which can play an important role in regional trade. Firms that wish to trade in value chains need to be able to comply with the regulations set by lead firms and state regulators, or risk being excluded from those value chains, and replaced with compliant competitors. It is therefore essential that Southern Africa’s technical infrastructure aids firms in meeting technical regulations in order to develop working regional value chains. Failure to do so could see otherwise capable regional firms excluded from value chains and replaced with compliant firms from outside the region.
This report makes nine key recommendations, all of which aim to strengthen the capacity of the Southern African Development Community (SADC) Technical Infrastructure to achieve its core mandates, while promoting regional value chain development.