SANF 15 no 12
Southern Africa will fully realize maximum benefit from its vast natural resources only if countries in the region develop and strengthen their industries.
Chairperson of the SADC Committee of Senior Officials, Joey Bimha said this at a recent Experts Review Workshop on the SADC Industrialization Strategy Framework held in late March in Harare, Zimbabwe.
He said industrialization will allow the region to add value to its natural resources, and get more in return when exporting finished or processed goods.
At present, SADC countries get very little in return since the resources are usually exported in their raw form, with most of the value-addition and beneficiation taking place outside the region.
“We could only derive more benefits from the expanded market by developing and strengthening our own industries,” said Bimha, who is Zimbabwe’s Foreign Affairs permanent secretary.
He added: “Only through value addition and beneficiation could we as a region begin to chat our path towards a solid industrialization strategy.”
Bimha said the main challenges faced by most SADC countries are that value-addition is low and primary production makes up the large share of Gross Domestic Product (GDP).
“Currently the structure of production in the SADC region is one where large shares of GDP, nearly 50 percent, originate from primary production of goods in the agriculture and mining sectors,” he said.
“The majority of southern Africa’s mineral-rich states are not only earning the minimum from their resources via the export of unprocessed ore but are also limiting employment benefits, wealthy diversification and leaving themselves vulnerable to fluctuations of the global resource market.”
Norwegian ambassador to Zimbabwe, Bard Hopland concurred, saying SADC has the potential to develop its economies due to the abundance of natural resources.
However, socio-economic development could only be achieved if the “raw timber is made into dried planks before being exported.”
Sharing his country’s industrialization experience, Hopland said there was also need for SADC Member States to diversify their industries and not only depend on agriculture, which is the case with most countries in the region.
“While agriculture is for a vast number of reasons important, and also a foundation for food processing industries, I think it is fair to say that agriculture alone will not get you rich. Only manufacturing can do that,” he said.
Another topical issue discussed during the workshop was the need to ensure improved access to key enablers such as energy, infrastructure and funding.
The Expert Review Workshop on the SADC Industrialization Strategy Framework was organized by the Southern African Research and Documentation Centre (SARDC) as part of its independent contribution to the ongoing efforts by SADC to develop a vibrant Industrialization Strategy and Roadmap.
The SARDC has developed a paper that articulates some of the key issues that need to be addressed in the proposed SADC industrialisation strategy and roadmap.
The paper identifies some of the main challenges impeding efforts by SADC countries to move from being net exporters of natural resources in their raw form to industrialised states.
The analysis focuses on the six inter-related areas of agriculture; manufacturing; mining; industry and trade nexus; small to medium-scale enterprises; as well as the enabling role of institutional and financing mechanisms.
The purpose of the workshop was, therefore, to subject the paper to a review by economic experts to ensure that its contents are technically sound.
The paper will be circulated during the forthcoming SADC Extraordinary Summit scheduled for 29 April in Harare, Zimbabwe to discuss and adopt a SADC Industrialization Strategy and Roadmap. sardc.net
