Opportunities for Micro-small and Medium-sized Enterprises within the Green and Blue Economies: Case of the Southern African Development Community

Abstract

Micro-small and medium-sized enterprises dominate the economies of the Southern Africa Development Community (SADC) in terms of their numbers, although not in value. Most, however, are micro- and informal enterprises and are largely cut off from opportunities to improve their capabilities. They mainly operate in the agriculture, fisheries, forestry, wholesale and retail trade sectors. Manufacturing micro-small and medium-sized enterprises are relatively few and data on medium-sized firms are sparse. In SADC countries, micro-small and medium-sized enterprises do not substantially participate in existing regional value chains, which are mainly composed of unbeneficiated natural resources. One large and buoyant market in SADC countries is the role of informal cross-border traders, who mainly trade food items, handicrafts and clothing. Many traders are women, and this trade plays an important role in food security and small-scale access to goods. The adoption of the green and blue economies by SADC countries needs to be context specific. In this regard, and as one example, SADC policy will need to manage the tensions between green and blue economy efforts on the one hand, which support the millions of small-scale farmers, fishers, harvesters and sellers of bio-economy products, with efforts geared towards mega-projects driven by large enterprises. Green and blue economy policies and plans will also have to be sufficiently geared towards addressing rural development needs and seizing the potential of a rapidly urbanizing population. The present report demonstrates the many opportunities available to micro-small and medium-sized enterprises in the green and blue economies in SADC countries. Realizing this potential requires a number of actions to be taken.