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Richard Muponde, Zimpapers Politics Hub

THE Southern African Development Community (SADC) is advancing the industrial development and market integration in the region to boost economic growth and greater collaboration among member states and lift citizens from poverty.

As the region prepares for its 44th summit in August, the focus is on advancing industrial development and market integration across the region.

With member states eager to boost economic growth and foster greater collaboration, the summit presents a crucial platform for discussions on policies, partnerships, and solutions to drive forward the industrial landscape of the region.

They can advance industrial development through a concerted effort to align their policies.

This includes harmonising trade regulations, standardizing customs procedures, and streamlining business operations to create a more conducive environment for industries to thrive.

Additionally, investing in infrastructure, such as transportation networks and energy systems, is essential to support industrial growth and ensure efficient market integration.

To achieve industrial development and integration, the private sector can be actively engaged through Public-Private Partnerships (PPPs).

Through collaboration between government entities and private enterprises, SADC member states can leverage the expertise and resources of the private sector to drive industrial projects, infrastructure development, and technology transfer.

PPPs offer a mechanism for sharing risks and rewards, attracting foreign direct investment, and promoting knowledge transfer, ultimately contributing to the region’s industrial advancement.

In pursuing this goal, the 16 SADC states initiated the Regional Indicative Strategic Development Plan (RISDP) 2020-2030, a journey towards progress and economic transformation.

This ambitious undertaking holds the promise of bringing tangible improvements to the lives of citizens.

Posting on its website, SADC said the RISDP represent a resolute commitment to regional development and integration at its core, echoing the collective voice of member states.

“Their driving force is the sincere desire to bring about meaningful change, including job creation for all, poverty reduction, and the elimination of social exclusion. Furthermore, the plan embraces innovation and leverages science and technology to enhance productivity and competitiveness while optimising the use of the region’s abundant natural resources,” SADC said.

The region with support from German and European Union (EU) launched the Support towards Industrialisation and the Productive Sectors (SIPS) programme to the tune of e20 million.

The programme plays a vital role in advancing the Industrial Development and Market Integration pillar of the RISDP 2020-2030, effectively positioning industrialisation at the centre of regional integration.

On May 21 this year, SADC held a grand finale for SIPS at the Avani Hotel in Gaborone in Botswana.

In a press release after the meeting, the regional bloc  said the event marked a significant milestone in the discourse on regional economic integration and industrialisation within the region.

“The SIPS programme, a cornerstone initiative of GIZ’s Cooperation for the Enhancement of Southern African Development Community (SADC) Regional Economic Integration (CESARE) programme, was funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU) with a budget of over e20 million.

“This programme, a joint action between SADC, the German Government and the EU, aims to promote self-sustaining economies, reduce import dependence and strengthen regional resilience, with a particular focus on the agro-processing and pharmaceutical sectors in the SADC region.”

The regional bloc said by addressing policy, regulatory and business environment constraints, the SIPS programme also seeks to increase private sector engagement in the development of critical value chains, including the leather, medical and pharmaceutical sectors.

“These targeted value chains have enormous potential to broaden the region’s industrial base and promote job creation, in line with the objectives of the SADC Regional Industrialisation Strategy 2015-2063 and the Regional Indicative Strategic Development Plan 2020,” it said.

SIPS is implemented by the SADC Secretariat and the German Development Cooperation (GIZ).

The former retains overall responsibility for the programme.

Economic analyst, Dr Prosper Chitambara said there was need to address the doing of business environment in most SADC economies, which remains challenging with a lot of bottlenecks and constraints to investment in business and doing business in most of the regional economies.

“We need to simplify the doing business regulations, regulatory frameworks, even the tax regime, simplified and even lowered because of the tax burden, again, most economies in SADC is on the very high side” Dr Chitambara said

“Also to fully embrace e-government, e-business, e-commerce, I think that would be critical in terms of enhancing efficiencies, in terms of reducing cost.

“So then, of course, the issue of infrastructure, SADC economies, and SADC countries are not investing adequately on infrastructure, yet infrastructure is critical in terms of market integration, especially the transport and logistics. So I think there is a lot of scope really for SADC countries to come together and develop our railway network, our road network and road infrastructure. These cross-border infrastructure investments, they are critical.”

He also implored the region to solve the issue of energy which has affected the economic development of Sadc.

“There is a massive electricity deficit within the SADC region, and that is an area where, again, through cross-country cooperation, we can expedite for example, if the Inka project could be expedited, then obviously it means the whole SADC region will be self-sufficient in as far as energy is concerned. So for me, those two are critical; the issue of infrastructure and the concern of the doing business environment itself, that will go a long way in terms of enhancing competitiveness and advancing industrial development and market integration.”

Dr Chitambara said at the August summit, the Heads of State must take stock of the progress that have been made and the challenges that still remain as there are obviously still a lot of challenges.

“When you look at the number of poor people in SADC about 40 percent of the region’s population or citizens are actually living in extreme poverty. And obviously, that is a huge indictment on the SADC Heads of States,” Dr Chitambara said.

“So we need really to be honest with each other and begin to do things differently, especially around the issue of poverty and also creating employment opportunities, especially for the youth. Again, that is something that needs to be taken seriously, because it affects a lot of things. So those are some of the things that the Heads of State must really discuss and commit themselves to addressing.”

However, collaboration among SADC member states is also paramount to achieving the goal of industrial development and market integration.

This can be realised through the establishment of joint industrial zones, cross-border investment frameworks, and the facilitation of technology and knowledge exchange.

By working together, member states can pool resources, share best practices, and collectively address common challenges, fostering a more cohesive industrial landscape across the region.

During the forthcoming summit in Zimbabwe, Heads of State are expected to deliberate on various key issues in line with the protocol on industrial development and market integration.

These discussions may include the implementation of a regional industrialisation strategy, the alignment of national policies with regional objectives, the facilitation of trade and investment, and the promotion of innovation and technology transfer.

The summit also provides an opportunity for member states to reaffirm their commitment to regional cooperation and to explore avenues for strengthening public-private partnerships to drive industrial growth.

The SADC region stands at a pivotal juncture in its pursuit of industrial development and market integration.

Through collaborative efforts, policy alignment, private sector engagement, and the summit, member states have the opportunity to lay the groundwork for a more prosperous, integrated, and dynamic industrial landscape across the region.