IMPLEMENTATION OF SADC INDUSTRIALIZATION STRATEGY AND

ROADMAP 2015-2063

16 May 2019

SADC Secretariat

OUTLINE

About SADC

Instruments Guiding Industrialization in SADC

SADC Industrialization Strategy and Roadmap 2015-2063

Status of Value Chains Implementations

Existing Policy Framework for Industrialization

Mutually dependent relationships

Achievements

Conclusion

About the Southern African Development Community (SADC)

Member States - Angola, Botswana, Comoro, DemocraticRepublic of Congo, Lesotho, Madagascar, Malawi, Mauritius,Mozambique, Namibia, Seychelles, South Africa, Swaziland,Tanzania, Zambia and Zimbabwe

Objectives - To achieve economic development, peace andsecurity, and growth, alleviate poverty, enhance the standard andquality of life of the peoples of Southern Africa, and support thesocially disadvantaged through Regional Integration (Ref Article 5 ofthe SADC Treaty)

Vision - Build a region in which there will be a high degree ofharmonisation and rationalisation, to enable the pooling ofresources to achieve collective self-reliance in order to improve theliving standards of the people of the region.

Cont.

Mission - To promote sustainable and equitable economic growth andsocio-economic development through efficient, productive systems, deeperco-operation and integration, good governance, and durable peace andsecurity; so that the region emerges as a competitive and effective player ininternational relations and the world economy

SADC Milestones

Instruments Guiding Industrialization in SADC

1. The SADC Industrialization Strategy and Roadmap (2015 – 2063)

The primary orientation of the Strategy is the importance oftechnological and economic transformation of the SADC regionthrough industrialization, modernisation, skills development, scienceand technology, financial strengthening and deeper regionalintegration.

The Action Plan to guide the implementation of the Industrialization Strategy ad Roadmap is in place

The Strategy is anchored on three pillars:

Industrialization as champion of economic and technological transformation.

Competitiveness (at the firm/industry, country and regional level) as an active process to move from comparative advantage to competitive advantage.

Regional integration and geography as the context for industrial development and economic prosperity

Cont.

2. The SADC Treaty

The need for a regional cooperation in the field of industrialdevelopment is espoused in the SADC Treaty under Article21.

Under the SADC Treaty, Member States undertook to:

Harmonize their overall macro-economic policies and strategies,programs and projects in the areas of cooperation

3. Revised Regional Indicative Strategic Development Plan (RISDP) 2015-2020.

Prioritizes Industrial Development and Market Integration andplaces industrialization at the centre of the regional integrationagenda

Cont.

4. SADC protocols

The Industrial Development Policy Framework (IDPF)

Protocol on Science Technology and Innovation (2008)

Protocol on Trade (1996) etc

5. Continental Integration

EAC-COMESA-SADC Tripartite Free Trade area. The Communityjointly with COMESA and EAC has further initiated a process ofwidening integration in an effort to implement the Lagos Plan ofAction

AfCFTA

SADC Industrialization Strategy and Roadmap 2015-2063

SADC Industrialization Strategy and Roadmap 2015-2063 and Action PlanApproved April 2015 and March 2017 respectively

A phased approach1. Phase 1: 2015-2020 (foundation)2. Phase 2: 2021-20503. Phase 3: 2051-2063

Growth PathsEnhanced and upgraded participation in RVC and GVC

Focus1. Agro-processing2. Minerals beneficiation3. Pharmaceuticals

Strategic goals

1. Quantitative goals

2. Qualitative goals

a) Achieve a major socio-economic transformation at the national and regional levels.

b) Accelerate the growth momentum and enhance the comparative and competitive advantage

c) Diversify and broaden the industrial base and interdependences.

d) Enhance the productive capacity, productivity and competitiveness of SADC economies.

e) Provide a framework for technological and industrial catch-up, export diversification, natural resources beneficiation, enhanced value-addition and increased regional trade and employment generation. …etc

SADC Industrialization Strategy and Roadmap

2015-2063….

Objective Present 2015 Target 2030 Target 2050

Double share of manufacturing value added (MVA) in GDP

Estimated value of 13%

Manufacturing industry ’s contribution to the regional real GDP

Currently at an average of 4%

annually

Increase the share of medium-and-high-technology production in total MVA.

less than 15 percent at

present

Increase the share of industrial employment

To build market share in the global market for the export of intermediate products to East Asian levels

Increase manufactured exports less than 20%

Enhance the productive capacity, productivity and competitiveness of SADC economies

SADC Industrialization Strategy and Roadmap 2015-2063….

Strategic interventions

1. Macroeconomic Framework

2. Revitalizing Regional Integration

3. Removing Binding Constraints

4. Industrial Development

5. Potential Growth Paths:a. Agriculture-led growth including agricultural value chains; b. Natural resource-led growth including minerals beneficiation and processing, also

linking into value chains, both regional and globalc. Enhanced and upgraded participation in RVC and GVC:

6. A Compact for Industrialization - The Role of the State and Engaging the Private Sector

7. Mainstreaming Gender and Youth Issues

8. Strengthening Small and Medium Scale Enterprises

9. Enhancing Competitiveness

10. Ensuring Environmental Sustainability (Green and Blue Economy)

SADC Industrialization Strategy and Roadmap 2015-

2063….Institutional framework

Status of Implementation of the Value Chains

Agro-processing:

- Profiling underway; Expected completion (October 2018)

- Additional support for preparation of bankable projects in time for AfricaAgribusiness Investment Conference (Nov 2018)

Minerals beneficiation:

- Profiling of Regional Mining Value Chains completed

- Draft Regional Mining Vision being developed

- Packaging of investment opportunities along each RVC

Pharmaceuticals:

- Feasibility Study & Strategy for Regional Manufacturing

completed and approved

- Pharmaceutical Business Plan launched (August 2017)

- Action Plan and appropriate Instruments for investment needed

Mutually Dependent relationships

Extra-Ordinary Summit, 29 April 2015, in Harare,Zimbabwe, directed the SADC Secretariat:

a. to develop a detailed and costed Action Plan toguide the implementation of the SISR

b. Design and develop an appropriate institutionalframework to implement the Strategy.

c. The Costed Action Plan should cover Phase I andII of the Strategy, with specific focus on the firstfifteen years (2015-2030).

d. Approved by Summit in Lozitha, Eswatini on 18March 2017

Costed Action Plan

Cont.

The Action Plan addresses the following issues:1. Identification of high potential areas for value chains and value

addition.2. Infrastructural needs and removal of constraints on trade and

industry.3. Making regional integration the fulcrum for collective

industrialization and competitiveness.4. Involving and leveraging the resources and ingenuity of the private

sector for industrial transformation.5. Competiveness constraints of the business environment.6. Enhancing productive capacities within the context of industrial

cluster and small and medium enterprises (SMEs) development while ensuring resource efficiency, environmental sustainability and climate resilience.

7. Benchmarking the Action Plan to high performance comparators.8. Strategic and investment planning.9. Costing and financing the Action Plan.10. Institutional structure to drive, support, monitor, evaluate, and

govern the industrialization process in SADC.

Industrialisation

Competitiveness

Regional Integration

1. Increasing share of Manufacturing Value Added (MVA) in GDP to 20% by 2020 and 30% by 2030

2. Enhancing competitiveness through industrial policy

3. Increase participation in global value chains

4. Agro-processing, Minerals Beneficiation and Downstream Processing and Value-Chain Development

5. SADC Raw Material Initiative as a path to "Factory SADC“

6. To diversify industrial production and exports through advanced technologies

7. Enhance contribution of SMEs to Industrial Development

8. Develop and expand industrial clusters

9. Closer public-private cooperation in industrial development

10. Ensuring greater environmental sustainability (green and blue economy)

1. Creation of a business-friendly and conducive environment for competitiveness

2. Upscaling Efficiency enhancers3. Improving Regional Standards,

Quality Assurance, Accreditation and Metrology (SQAM)

4. Establish and Invest in Innovation and Technology Transfer Programmes in support of Industrialization

5. Infrastructure in support of industrialization

6. Access to finance for Industrialization

1. Implementation of SADC protocols in the Regional Economic Integration Priority Areas relevant for industrialization

2. Deepened Regional Integration to facilitate industrialization

3. Promote Trade Liberalisation and Services Market Integration

4. Enhance factor mobility5. Enhanced institutional and legal

framework for Intellectual Property Rights

6. Enhanced cooperation on Competition Policy to support Industrialization

7. Improved Trade, Transport and Transit Facilitation Measures to support Industrialization

8. Integrate SADC with other regional markets to support industrialization preferences

9. Complete CFTA negotiations

Pillars and Goals/Priorities

Industrialisation

Competitiveness

Regional Integration

1. increasing share of Manufacturing Value Added (MVA) in GDP to 20% by 2020 and 30% by 2030

2. Enhancing competitiveness through industrial policy

3. Increase participation in global value chains

4. Agro-processing, Minerals Beneficiation and Downstream Processing and Value-Chain Development

5. SADC Raw Material Initiative as a path to "Factory SADC“

6. To diversify industrial production and exports through advanced technologies

7. Enhance contribution of SMEs to Industrial Development

8. Develop and expand industrial clusters

9. Closer public-private cooperation in industrial development

10. Ensuring greater environmental sustainability (green and blue economy)

1. Creation of a business-friendly and conducive environment for competitiveness

2. Upscaling Efficiency enhancers3. Improving Regional Standards,

Quality Assurance, Accreditation and Metrology (SQAM)

4. Establish and Invest in Innovation and Technology Transfer Programmes in support of Industrialization

5. Infrastructure in support of industrialization

6. Access to finance for Industrialization

1. Implementation of SADC protocols in the Regional Economic Integration Priority Areas relevant for industrialization

2. Deepened Regional Integration to facilitate industrialization

3. Promote Trade Liberalisation and Services Market Integration

4. Enhance factor mobility5. Enhanced institutional and legal

framework for Intellectual Property Rights

6. Enhanced cooperation on Competition Policy to support Industrialization

7. Improved Trade, Transport and Transit Facilitation Measures to support Industrialization

8. Integrate SADC with other regional markets to support industrialization preferences

9. Complete CFTA negotiations

Cross-Cutting Issues

Increase women participation in the industrialization process

Increase youth participation in the industrialization process

Increase participation of persons with disabilities in the industrialization process

Advocacy and Communication Strategy for Industrialization

Pillars and Goals ….

Conclusion

Due to a number of reasons, among them being resourceconstraints at the Secretariat, low uptake by Member States,unfavourable market conditions and dampened economicgrowth in some Member States, a number of key Phase 1activities of the Action Plan could not be implemented or aseffectively implemented as anticipated in the Action Plan

THANK YOU

MERCI

OBRIGADO

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