Milking the region? South African capital and Zambia’s dairy industry

Africa Files eZine 8(4) article by Bridget Kenny & Charles Mather, June 2008

The Zambian dairy sector is currently undergoing a phase of dynamic change and development.  Foreign Direct Investment (FDI) by South African companies in the processing node of the dairy chain, combined with significant developments in the retail sector, have led to rapid changes in both the production and consumption of dairy products. While the structural adjustment programme in Zambia that underpinned the dairy and retail privatisations has been widely criticized for its negative impact on labour markets, industrial capacity, living standards and overall economic sovereignty, the case of the dairy sector raises important questions around strategies for engaging FDI.

Are there ways of "disciplining" FDI to ensure local production and consumption benefits - even in poorly resourced countries like Zambia? Can foreign investment be channelled to fuel local development? Are local accountability and inclusion consistent with commercial viability? In each case, the Zambia dairy sector raises new and perhaps unexpected answers to old questions.

Full article at http://www.africafiles.org/article.asp?ID=18184