Agro Processing Strategy

22i n d u s t r y sec t o r strategyas acceptance of raw material.Many grant funds do notconsider some expenses aseligible costs for funding, likevehicles and land preparationwhich are critical items, andthat are more expensive nonoperational(capital) expenses.• There is no technologicalfocus, and limited expertise toguide retooling for improvingefficiencies.• As with other sectors, accessto capital at a reasonable costlimits capacity development,and product development.• High cost of productdevelopment, particularly forsmaller firms if undertaken bythe firm itself limits levels of newproduct development. Suchwork is undertaken by the SRC,but is expensive to acquire andcommercialise.• Insufficient use of informationtechnology based on limitedawareness on how its applicationdrives efficiency.• Too few skilled scientists/technicians in technicalsupport fields such as productdevelopment and testing.• Poor entrepreneurial skills (andintrapreneurial skills within firms)in the industry (primarily due topersistence of older practicesand few new entrants).• High cost of factory space andlimited availability in preferredlocations.Strategic Consideration # 3– Border Issues and Priorities• High Government bureaucracythat slows the pace of businessand impacts productivity.• Praedial larceny results inreduced supply and increasedproduct ingredient costs.• There is no harmonisation ofimport policy.• Land transport costs increaseswith the absence of rail. Itis noted however that roadtransport allows for promptdelivery response typically within24 hours. Rail transport would beinflexible, based on the specificschedule while the loading andoffloading from rail to road addsanother step and therefore time.Rail would be an option for onlysome road transport.• High port charges that are