How big supermarket chains in southern Africa keep out small suppliers
Development programmes have had limited success because they are restricted in scale and scope, and lack regional perspective, writes Reena das Nair
Supermarkets are a key route to market for many suppliers of food and household consumable products. The growth of supermarket chains in southern Africa presents important opportunities for suppliers, as it potentially opens up much larger regional markets for them. Supermarkets can therefore be a strong catalyst to stimulate suppliers in food processing and light manufacturing industries in southern Africa. But even the most efficient suppliers with competitively priced, high-quality products are unlikely to succeed if they cannot get their products to consumers. Here, large supermarkets play a key role. Onerous requirements and exertion of buyer power by large supermarket chains can result in small- and medium-sized suppliers and entrepreneurs failing to enter and participate in the economy. We examined the obstacles to accessing shelf space in supermarkets in Botswana, SA, Zambia and Zimbabwe. The research revealed a range of costs that suppliers incur even before a single unit o...
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