Exploring Growth Linkages and Market Opportunities for Agriculture in Southern Africa

The heterogeneity of southern African countries offers the region a unique opportunity to exploit agricultural potential and trade opportunities through regional integration. We analyze the implications of such opportunities using a regional general equilibrium model. We find that growth in South Africa benefits the region`s lowincome countries through increased demand for their agricultural exports, higher prices that stimulate production for domestic markets, and slower decline of prices from increased production. Agricultural productivity growth, however, is necessary for low-income countries to take advantage of South Africa`s growth. The largest benefits for low-income countries result from rising productivity of grain and livestock production.