SADC INDUSTRIALIZATION STRATEGY AND ROADMAP
SADC INDUSTRIALIZATIONSTRATEGY AND ROADMAP2015 - 2063Approved by Summit in Harare on 29 April 2015
TABLE OF CONTENTSTABLE OF CONTENTS . iACRONYMS . iiiFOREWORD FROM THE SADC CHAIRPERSON . vFROM THE EXECUTIVE SECRETARY . viiACKNOWLEDGEMENTS . .ix1.INTRODUCTION . .12.STRATEGIC OBJECTIVES, GUIDING PRINCIPLES AND CORE PILLARS OF THE STRATEGY .32.1 Strategic Goals . 33.2.2Essential Elements for Industrialization . 42.3Three core pillars of the Industrialization Strategy . 5STRATEGIC INTERVENTIONS . 73.1Macroeconomic Framework . 73.2Revitalizing Regional Integration . 73.3Removing Binding Constraints . 93.4Industrial Development . 133.5Potential Growth Paths. 143.6A Compact for Industrialization - The Role of the State and Engaging the Private Sector . 173.7Mainstreaming Gender and Youth Issues . 193.8Strengthening Small and Medium Scale Enterprises . 203.9Enhancing Competitiveness . 213.10Ensuring Environmental Sustainability (Green and Blue Economy) . 223.11 Growth Scenarios and Timelines. 234.3.12Investment Planning . 243.13Mobilizing Financial Resources for the Industrialization Strategy . 24CO-ORDINATION, IMPLEMENTATION AND MONITORING . 27i
5.CONCLUSIONS . 28THE ROADMAP . 29ii
ACRONYMSAGOAAfrica Growth and Opportunity ActAIDAThe Plan of Action for Accelerated Industrial DevelopmentAMVAfrican Mining VisionAUAfrican UnionAUCAfrican Union CommissionASMArtisanal and Small-Scale MiningBIATBoosting Intra-African Trade InitiativeCCBGCommittee of Central Bank GovernorsCFTAContinental Free Trade AreaCOMESACommon Market for Eastern and Southern AfricaEACEast African CommunityECCASEconomic Community of Central African StatesEUEuropean UnionEPAEconomic Partnership AgreementsFDIForeign Direct InvestmentFTAFree Trade AreaGVCGlobal Value ChainsGDPGross Domestic ProductICTInformation and Communication TechnologiesIDPFSADC Industrial Development Policy FrameworkIMFInternational Monetary FundIOCIndian Ocean CommissionIUMPSADC Industrial Upgrading and Modernization ProgrammeLDCsLeast Developed CountriesMVAManufacturing Value Addediii
OECDOrganization for Economic Corporation and DevelopmentPIDAProgramme for Infrastructure DevelopmentPPPPublic-Private PartnershipRISDPSADC Regional Indicative Strategic Development PlanR&DResearch and DevelopmentRVCRegional Value ChainsSADCSouthern African Development CommunitySACUSouthern African Customs UnionSEZSpecial Economic ZonesSMEsSmall and Medium EnterprisesSQAMStandardization, Quality Assurance, Accreditation and MetrologySTEMScience, Technology, Engineering and MathematicsSWOTStrengths, Weaknesses, Opportunity and Threats AnalysisTFPTotal Factor ProductivityTFTATripartite Free Trade AreaTIVATrade in Value AddedTRIPSAgreement on Trade Related Aspects of Intellectual Property RightsUNCTADUnited Nations Conference on Trade and DevelopmentUNECAUnited Nations Economic Commission for AfricaUNIDOUnited Nations Industrial Development OrganizationVAX RatioRatio of Value-Added Exports to total ExportsWTOWorld Trade Organizationiv
FOREWORD FROM THE SADC CHAIRPERSONIn August 2014, SADC Heads of State and Government considered and endorsed the SummitTheme: “SADC Strategy for Economic Transformation: Leveraging the Region’s DiverseResources for Sustainable Economic and Social Development through Beneficiation andValue Addition”. The Theme reflects the urgent need for the region to leverage its abundant anddiverse resources, especially in agriculture and mining, to accelerate industrialization throughbeneficiation and value addition. To operationalize the Theme in the SADC regional integrationagenda, Summit resolved to develop a SADC Industrialization Strategy and Roadmap.I am pleased to present the SADC Industrialization Strategy and Roadmap, 2015-2063, which wasapproved by the Extra-Ordinary Summit in Harare, Zimbabwe, in April 2015. This is a historicachievement we should build on and use to transform our economies, to enhance economic growth,and create empowerment.Despite persistent efforts to boost trade within the region through the SADC Free Trade Area, thevalue of intra-SADC trade has remained very low, at only 17% of total SADC trade. Exports fromthe region are dominated by unprocessed or minimally processed products mainly from theagricultural and mineral sectors, thus providing very low value returns. Such low level of intraregional trade clearly shows that the great emphasis placed on tariff elimination, has not broughtabout the intended socio-economic development, nor the enhancement of quality of life and thewell-being of our people. To address this challenge, we have agreed to act collectively, as a Region,to implement effective strategies that boost the productive capacity of our industries, developinfrastructure that leverages industrialization and promotes technological advancement.While SADC is endowed with abundant and diverse natural resources, our productive sectors donot practice value addition. In agriculture, SADC countries continue to export unprocessedagricultural produce, earning approximately 10% of the potential value of the products. TheIndustrialization Strategy aims at reversing this trend, in order to achieve self-sustaining developmentfor our countries. This can be achieved through value addition to our products which in turn wouldincrease returns from the export of our natural resources. In this context, we need to forge astrong partnership between Governments and the private sector.Since one of the major challenges that has retarded implementation of existing programmes onindustrialization is inadequate funding, it is important for the SADC region to consider innovative6v
ways of financing industrialization. This includes urgently formalising and operationalizing theRegional Development Fund, promoting public-private-partnerships, and ensuring that the privatesector plays a pivotal role in the implementation of the Strategy. Our engagement with InternationalCooperating Partners should be guided by our Strategy and Roadmap 2015-2063, so as tocomplement SADC initiatives on industrialization.I would like to commend all who contributed to the development of the Industrialization Strategyand Roadmap including SADC Member States, the Secretariat and International CooperatingPartners.President of the Republic of Zimbabwe and SADC Chairperson7vi
FROM THE EXECUTIVE SECRETARYThe SADC Industrialization Strategy and Roadmap 2015 - 2063 is the first of its kind. It has a longterm perspective, and is aligned to national, regional, continental and international dimensions. TheStrategy recognizes that for trade liberalization to contribute to sustainable and equitabledevelopment, and thus to poverty reduction, it must be complimented by the requisite capacities toproduce, and to trade effectively and efficiently.The primary orientation of the Strategy is the importance of technological and economictransformation of the SADC region through industrialization, modernization, skills development,science and technology, financial strengthening and deeper regional integration. The Strategy isanchored on three pillars namely; industrialization as champion of economic and technologicaltransformation; competitiveness as an active process to move from comparative advantage tocompetitive advantage; and regional integration and geography as the context for industrialdevelopment and economic prosperity.The Strategy’s long term vision is aligned to the African Union Agenda 2063, covering the period2015-2063. During this period, SADC economies seek to overcome their development constraints,and progressively move from factor-driven; to investment-driven, then to efficiency-driven; andultimately to the high growth trajectory driven by knowledge, innovation and business sophistication.It is envisioned that by 2063, the SADC region will be fully transformed and will be an importantplayer in the continental and global landscape, premised on the three growth phases:(a)Phase I: covers 2015 to 2020. This period constitutes a period of active frontloading of theIndustrial Development and Market Integration and related infrastructure and servicessupport to industrialization, with interventions to strengthen integration andcompetitiveness. During this phase, SADC countries should target per capita income growthof about 6 percent annually to achieve the lower income band of the factor-driven stage ofUS 2000.(b)Phase II: covers the period 2021 to 2050, will focus on diversification and enhancement ofproductivity and competitiveness. During this period, SADC aims to achieve the targetedGDP per capita of US 9000 by 2050 and a per capita growth rate of 8 per cent annuallyfrom 2020 onwards.8vii
(c)Phase III: covers 2051 – 2063, during which SADC economies would move into theinnovation-driven stage, characterized by advanced technologies and increased businesssophistication. To achieve that status, GDP per capita would need to rise from US 9000 in2050 to US 17000 by 2063, with an annual income growth of about 5 per cent.On behalf of the SADC Secretariat, I wish to express our gratitude to SADC Heads of State andGovernment, under the Chairmanship of H.E. Robert Gabriel Mugabe, for their vision andleadership, and commend and thank all stakeholders who contributed to this noble course.Dr. Stergomena L. TaxEXECUTIVE SECRETARY9viii
ACKNOWLEDGEMENTSFirst and foremost, our special gratitude goes to the SADC Heads of State and Government, underthe chairmanship of His Excellency, Robert Gabriel Mugabe, President of the Republic of Zimbabwe,for their vision and leadership in the formulation of the Strategy. We also highly appreciate thesupport provided by Member States throughout the process of developing the Strategy.Recognition also goes to Professor Samuel Mwita Wangwe, the Chief Executive Officer, Research onPoverty Alleviation (REPOA) Tanzania, and Dr. Angelo Mondlane, Director, Policy Planning andResource Mobilization for their critical role in developing the concept paper that stimulated decisiveengagement on the development of the SADC Industrialization Strategy during the 34th Victoria FallsAugust 2014 Summit.The development of the SADC Industrialization Strategy and Roadmap 2015-2063 was an inclusiveprocess involving SADC Member States, Strategic Partners, notably, the United Nations EconomicCommission for Africa (UNECA), World Bank, United Nations Industrial Development Organization(UNIDO) and GIZ; the private sector and non-state actors. Fifteen national reports on industrialpolicies, strategies and programmes, as well as priorities of SADC Member States informed theIndustrialization Strategy and Roadmap. Special recognition goes to UNECA, under the leadershipof Dr. Carlos Lopes, Executive Secretary, supported by Prof. Said Adejumobi, Director, Sub-RegionalOffice for Southern Africa. The development of this Strategy and Roadmap would not have beenpossible without strategic financial support from UNECA.Appreciation should also go to SADC staff for their dedication and effective coordination whichenabled the preparation of the Strategy in record time. Membership of the core team of theSecretariat included Dr. Stergomena L. Tax, the Executive Secretary of SADC who providedoutstanding oversight, supported by Dr. Thembinkosi Mhlongo, Deputy Executive Secretary Regional Integration, and Ms Boitumelo Sendy Gofhamodimo, Director for Trade, Industry, Financeand Investment, who was responsible for coordinating the assignment. Other members of the Teaminclude Dr Angelo Mondlane, Director, Policy Planning and Resource Mobilization, Mr. RemigiousMakumbe, Director, Infrastructure and Services, Mr. Stephen Sianga, Director for Social HumanDevelopment and Special Programmes, and Mrs Margaret Nyirenda, Director, Food, Agriculture andNatural Resources.We are equally indebted to the team of three Regional Experts, availed by UNECA namely, Dr.Yousif Suliman-Team Leader, Professor Anthony Hawkins and Seth Akweshie, members of the team,who were responsible for putting together the Strategy and Roadmap. Their work wascomplemented by that of the following national experts: António Henriques da Silva, MalekantwaMmapatsi, Tshikuku Kabeya, Peete Molapo, Richard Rakotoniaina, Dr Hudson Mtegha, MrinalsingRamhit, Dr Peter Coughlin, Errolice Tjipura, the late Kamalandua Winnie Sibongile, Dr MosesTekere, Allan Kilindo, Professor Samuel Mwita Wangwe, William S. Mbuta, Dr Eli Mtetwa and SaulLevin and Sithembiso Mtanga from Trade and Industrial Policy Strategies (TIPS).We are equally grateful for the support provided by the following officers: Gainmore Zanamwe,Jabulani Mthethwa, Alisoa Vololoniaina, Martin Muchero, Dick Kamuganga, Paul Kalenga, KirstenFocken and Kuena Molapo. Useful comments were also received from staff in various divisions of theSecretariat10ix
INTRODUCTIONThe primary orientation of the strategy is the necessity for the structural transformation of the SADC regionby way of industrialization, modernization, upgrading and closer regional integration. .but the strategic thrust must shift from reliance on resources and low cost labour to increased investmentand enhanced productivity of both labour and capital.The SADC Industrialization Strategy and Roadmap is formulated in the context of existing nationaland regional policies and specifically the August 2014 Summit at Victoria Falls, Zimbabwe, which washeld under the theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s DiverseResources for Sustainable Economic and Social Development through Beneficiation and Value Addition”.Summit directed that industrialization takes centre stage in SADC’s regional integration Agenda. Tothis end, Summit mandated the Ministerial Task Force on Regional Economic Integration to developa strategy and roadmap for industrialization of the Region.Within this context, Summit also “requested the Committee of Ministers of Trade, assisted by theSecretariat, to review Priority A in the draft Revised Regional Indicative Strategic Development Plan(RISDP), 2015-2020, particularly the sequencing of targeted outputs on Industrial Development andTrade Liberalisation in order to ensure that, at the current stage of integration in SADC,industrialization is prioritized”. Council also directed the Secretariat to finalise the revised RISDP byfrontloading industrialization in its implementation plan and to mainstream the theme in the revisedRISDP.The Strategy is premised on the conviction that regional integration will promote industrialization. Itrecognizes that industrial policy and implementation will be largely undertaken at the national leveland that its success depends on forging a compact for industry consisting of the government, theprivate sector, civil society, labour and the development partners.The SADC Industrialization Strategy and Roadmap seeks to engender a major economic andtechnological transformation at the national and regional levels within the context of deeper regionalintegration. It also aims at accelerating the growth momentum and enhancing the comparative andcompetitive advantage of the economies of the region.This entails the pursuit of a focussed programme for the accumulation and deployment ofknowledge, modern physical assets and human capital, particularly the youth as well as othercapabilities. A transformed economy has greater promise for substantially raising living standards,generating employment, alleviating poverty and mitigating external shocks.The Strategy is designed as a modernization scheme, and is predicated on maximum exploitation ofcomparative advantage and creating enduring conditions for competitive advantage at enterpriselevel. The latter thrust requires earnest efforts aimed at enhancing technological setups andreadiness, changes in the way of doing business, scaling-up productive capacity and enhancingeconomic interlinkages to unlock regional potential in general. Sustainability of the process wouldthus require turning the economies into knowledge-based and competitive structures. Such efforts,while requiring quality changes in a wide range of policies and actions, indeed recognize, and buildon, the efforts already made nationally and regionally.The Regional Strategy is driven by national development strategies, visions and plans and primarily bythe SADC Treaty, the RISDP, SADC protocols and specifically by the Industrial Development PolicyFramework (IDPF). It is also informed by African Union’s Accelerated Industrial Development ofAfrica and Agenda 2063.1
Given the initial development conditions in the majority of SADC countries, the transformationdrive should effectively target higher levels of growth and deeper structural change. This requiresdeliberate and induced interventions to enhance factor accumulation (labour, capital and technology)to substantially raise total and factor productivity. This implies the (direct or induced) shift ofresources to more dynamic higher productivity uses, which fundamentally means manufacturing,broadly defined to include agro-processing and minerals beneficiation as well as some developmentand business enabling services.In the 21st century, SADC economies can no longer rely on rich resources or low-cost labour as aplatform for industrialization and modernization. The strategic thrust must shift from factor
of Dr. Carlos Lopes, Executive Secretary, supported by Prof. Said Adejumobi, Director, Sub-Regional Office for Southern Africa. The development of this Strategy and Roadmap would not have been possible without strategic financial support from UNECA. Appreciation should also go to SADC staff for their dedication and effective coordination which
Special industrialization summit planned economy in SADC as well as key interventions for imple-mentation in the short, medium and longer term to move towards this vision. . SADC Treaty and any proto-cols that may be negotiated among Member States. The 34th SADC Summit held in August in Victoria Falls, Zimbabwe adopted a
THE SADC Success Stories initiative is intended to increase the public visibility of the Southern African Development Community (SADC) and to showcase some of the achievements and benefits of regional integra-tion in the belief that SADC is not sufficiently well understood in terms of its man
10 SADC Success Stories - Mozambique SADC Success Stories - Mozambique 11 It is possible to verify economic growth and the eradication of poverty in the SADC region. This can be achieved through Member States' efforts towards regional integration, leading to higher flows of trade, capital, energy, people and ideas.
HARMONISED ELECTIONS DELIVERED BY MR JUSTICE DR PATRICK MATIBINI, SC., FCIArb, MP . and 2013 general elections as well as the 2013 constitutional 1 The SADC Parliamentary Forum (SADC PF) is a Regional inter-parliamentary forum for national Parliaments of SADC Member . Midlands. The teams were deployed as follows: PROVINCE TEAM MEMBERS M/F .
Achievements, challenges, and constraints of trade integration in SADC P. Baker & V. Deleplancque 3 compensated for stringent rules of origin. While The establishment of a tripartite FTA among the eastern and southern economic blocs (COMESA, EAC, and SADC) may provide a long-term solution to these problems.
SADC Major Achievements and Challenges Acknowledgements; Page 1 Acknowledgements The production of SADC Major Achievements and Challenges was a process that involved
joined SADC only in August 2005, and traditionally has had little economic and political interaction with the rest of the region (apart perhaps from hosting the African National Congress (ANC) Radio Freedom in the struggle years). SADC
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