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SADC members urged to jointly promote investment

New from The Southern Times

By  Gugu Mahlalela

JOHANNESBURG – SADC member states have been advised to collectively promote investment in order for the region to realise the industrialisation dream in Industry 4.0.

“Partnering with the private sector in developing industry and regional value chains”.

the promotion of investment should be a regional collective effort.

For regional industrialisation to materialise, Mahoai said it will require the intensifying of Free Trade Area within SADC member states.

“There is also need to look at the rest of Africa for growth, and more utilisation of the Common Market for Eastern and Southern Africa,” he said.

According to Mahoai, the strategy sets out three potential growth paths, which are agro-processing; mineral beneficiation and downstream processing, and service driven value chains. 

SADC has approved a blueprint to guide regional development through the RISPD and other mechanisms focusing on stability and economic development in new trends, above all Industry 4.0

SADC will focus on value addition in three areas, namely mining and mineral beneficiation; agriculture and agro-processing; as well as pharmaceuticals (all related with Industyr 4.0)

Afreximbank, Senior Manager Gainmore Zanamwe said industrialisation and intra-African trade goes hand glove.

Zanamwe decried that Intra - African Trade is very low, standing at 16 percent while in Asia its’ at 51 percent, Latin America at 19 percent and in Europe it is at 60 percent. “There is a lot that needs to be done. In industrialisation the levels stands as follows; Africa 52 percent, Asia 63 percent and North America 92 percent. It was so shocking to realise that some African countries import leather for twice and even thrice the amount from overseas while there are Africa countries who also manufacture the same kind of leather,” he said.

To capitalize on the economic gains that industrialisation will bring whilst creating new jobs, the SADC region will need to reassess the education and skills requirements to cater for the fourth industry revolution (Industry 4.0) needs.

NEPAD Business Foundation, chief executive officer Lynette Chen said this will require an increased focus on developing technology and engineering skills capacity.

“These are the skills that will be required by industrialising economies and will provide new jobs with the SADC region. If our goal is to achieve sustainable economic growth and to provide jobs to more people in the region, Small Medium Enterprise (SMEs) will be key-

“Industry 4.0 has the capacity to allow developing nations to leapfrog and grow into stronger economies but only if they are capable o adapt and institute appropriate frameworks that will enable both the public and private sector to work jointly together in transforming key economic sectors,” remarked Chen

The SADC Industrialisation Week is an annual regional public-private engagement platform aimed at fostering new opportunities for intra-regional trade and investment.

It was hosted by South Africa’s Department of Trade and Industry and the Department of International Relations and Corporation in partnership with the SADC Secretariat and the Southern Africa Business Forum.