Industrialization will drive national and regional economic growth and development – ECA
Industrialization anchors economic growth, industrial development, and facilitates trade creation and special economic zones (SEZs) are a key policy tool in this endeavour.
Speaking on the sidelines of the 7th SADC Industrialization Week & Exhibition, which kicked off in Harare, Zimbabwe on July 28 2024, Ms. Eunice Kamwendo, Director of the Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA), highlighted that SEZs are an important policy tool to support private sector development, including micro-, small and medium-sized enterprises.
“SEZs should align with a country’s comparative and competitive advantage and be supported by a conducive policy and regulatory environment, including the integration of these zones into broader national development plans and policy frameworks,” said Ms. Kamwendo, adding that “strong political will is necessary to secure bilateral investment commitments to the zones by providing confidence to investors.”
Ms Kamwendo emphasized that stakeholders in the region should consider the specific needs, priorities, and comparative and competitive advantages of each country in the region in deciding on specific SEZs approaches. In addition, she underlined that it is crucial to introduce transparent and harmonised policy, legal, regulatory, and institutional frameworks for transboundary SEZs to facilitate growth of regional value chains.
Speaking at the same event, the United Nations Resident Coordinator in Zimbabwe, Mr. Edward Kallon, in remarks read on his behalf by the UNESCO Regional Director of the Regional Office for Southern Africa and UNESCO Representative to Zimbabwe, Ms. Nisha, lauded the Economic Commission for Africa for supporting regional structural transformation, development and growth through various targeted initiatives in member States.
“ECA remains a trusted partner in the development journey in Southern Africa and has specifically and has, recently supported Lesotho, Malawi, Zambia, and Zimbabwe in recalibrating industrial policies for alignment and harmonisation with regional frameworks,” Ms. Nisha said.
She underlined that Southern Africa should leverage its mineral wealth for sustainable industrialization and the creation of sustainable jobs while adhering to lofty environmental and social standards, adding that this requires strong governance frameworks, elaborate environmental regulations, and the active participation of all stakeholders.
“The path to sustainable industrialization in Southern Africa requires collective effort, strategic planning, and unwavering commitment,” said Ms. Nisha. “By harnessing the potential of SEZs, supporting MSMEs, and leveraging the support of development partners, we can build resilient economies that are both inclusive and sustainable.”
The ECA sub regional for Southern Africa organised two expert sessions during the Industrialization Week as part of support to the regional industrial development agenda. The sessions focused on establishment and management of SEZs and on critical energy transition minerals development. They provided a platform for sharing experiences on the development and managements of SEZs, both national and cross-border and also allowed regional experts to explore the emerging issues in the exploitation of green minerals and the just energy transition leveraging the rich natural resource base on the continent.
Source: ECA