The growth challenges of small and medium enterprises (SMEs) in South Africa's food processing complex

Abstract

This article focuses on the growth challenges and opportunities of small and medium enterprises (SMEs) in South Africa's food processing complex and argues that the growth challenges of these enterprises must be seen in the context of restructuring in South Africa's agrifood system. Based on a 30-company sample of SME food processors, the article argues that supermarket sourcing practices represent the most significant obstacle to the growth of these companies. Paradoxically, the complexity of South Africa's food retail system also offers opportunities for growth. The article ends by considering policy options for assisting SMEs, given this growth opportunity.

The author would like to thank two referees for their helpful comments on an earlier draft, and Wendy Job for preparing the diagram.

Additional information

Notes on contributors

Charles Mather

Charles Mather is Associate Professor in the School of Geography, Archaeology and Environmental Studies, University of the Witwatersrand. An earlier version of this article was prepared for Trade and Industrial Policy Strategies (TIPS).