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Fundamental tension between competition and industrial policy in a small developing country

Abstract

Kelebe Margret Sakobo, Pontashego F. Makwala, Festus Mokgweesti

This paper examines the development of the Botswana’s poultry sector, which has become the dominant meat industry in Botswana. The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. The paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. This paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 36 years of protection, the question of a new trade and industry regime is considered.

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