Online Reporter
Oliver Kazunga
WHEN Southern African Development Community (SADC) officials convened in Harare in July 2024 to adopt the region’s long-awaited Industrialisation Policy, the moment carried more than bureaucratic weight — it carried expectation.
For decades, Southern Africa has exported its minerals, crops and labour, only to import finished goods at a premium.
The new policy promised a turning point: factories instead of raw exports; regional value chains instead of fragmented markets; and shared prosperity instead of isolated growth.
Across the region, early signs suggest the vision is not merely aspirational.
From agro-processing hubs in Tanzania to emerging mining-manufacturing linkages in Zambia, and Zimbabwe’s growing steel and lithium beneficiation projects, pilot initiatives are proving that industrialisation is technically possible.
Yet the scale of transformation required remains immense.
The central question confronting SADC is no longer whether industrialisation is desirable — but whether the region can convert policy ambition into production, co-ordination into competitiveness, and promise into prosperity.
Early signs of progress
Across Southern Africa, small pilot projects, emerging industrial clusters and agro-processing hubs are beginning to demonstrate what co-ordinated industrialisation could look like in practice.
In Tanzania’s Pwani region, local cashew processing facilities are creating new income streams for farmers while reducing reliance on raw exports. In Zambia, cross-border initiatives are seeking to link copper mining with regional manufacturing networks.
Zimbabwe’s growing lithium and iron ore endowment has also attracted investor attention. One of the most significant projects is the US$1,5 billion steel plant constructed by China’s Tsingshan Holdings Group Limited through its local subsidiary, Dinson Iron and Steel Company, near Mvuma in Zimbabwe’s Midlands Province.
Touted as Africa’s largest integrated steel plant, the project is expected to produce 600 000 tonnes of steel annually under Phase I, scaling up to 3,2 million tonnes by its fourth and final phase.
Having commenced operations toward the end of 2023, the plant is already producing close to 600 000 tonnes annually and has begun exporting steel billets and pig iron to South Africa and Zambia — a tangible example of regional value addition taking shape.
Yet these successes remain isolated. The challenge is whether SADC can leverage such projects into a broader, integrated industrial transformation.
Policy ambition: A blueprint for transformation
The 2024 SADC Industrialisation Policy outlines an ambitious roadmap to transform the region’s natural resources into shared prosperity. Its priorities include developing industrial parks, agro-processing centres and value-addition facilities; establishing regional value chains that link raw materials to processing hubs across borders; supporting small and medium enterprises (SMEs) to foster inclusive industrial growth; harnessing green and digital technologies to build climate-resilient and modern industries; and boosting intra-regional trade to reduce dependency on external markets.
“This policy is historic. It lays the foundation for a new industrial era in Southern Africa, where resources are processed locally, value chains are regional, and the benefits are widely shared,” said SADC Executive Secretary, Dr Elias Magosi, at the policy’s launch in Harare.
Numbers reveal the gap between ambition and reality
Intra-SADC merchandise trade stood at just 19,8 percent of total trade in 2024, far below Asia’s 30 percent and the European Union’s 60 percent. Manufacturing contributes only 11-12 percent to regional GDP, well short of the 30 percent target set for 2030, while intra-SADC manufacturing trade accounted for only 22,7 percent of total intra-regional trade in 2022. Of the region’s US$343 billion in merchandise trade recorded in 2023, just US$79 billion was intra-SADC. These figures reveal a region rich in resources but weakly integrated internally, underscoring the urgent need for co-ordinated industrial action.
Zimbabwe: Rich resources, partial realisation
The country holds vast reserves of gold, platinum, lithium and fertile agricultural land. Yet much of its output is exported in raw form. In 2024, mining accounted for 60 percent of export earnings, while manufacturing utilisation remained below 60 percent.
Former Confederation of Zimbabwe Industries (CZI) president and industrialist, Mr Sifelani Jabangwe, said the SADC policy aligns closely with Zimbabwe’s Vision 2030 agenda.
“As Zimbabwe, we have influenced the policies that we are implementing regarding modernisation, transformation and moving up the value chain. This has significantly shaped initiatives such as Education 5.0 where universities and colleges are establishing incubation hubs and developing projects like marula beverages,” he said.
While investments in mining and manufacturing are increasing, he noted that benefits must be more widely shared across the SADC region. Without reliable power supply and efficient logistics, Zimbabwe’s industrial ambitions risk remaining aspirational.
Zambia: Copper’s unfinished journey
Zambia produces nearly 800 000 tonnes of copper annually, much of it exported semi-processed. The SADC policy promotes cross-border industrial clusters, linking mining, smelting and downstream manufacturing.
“Cross-border industrialisation is the key. If Zambia processed the copper and supplied neighbouring countries such as South Africa with finished goods, it means Zambia would create more jobs, skills and wealth — not only for Zambia, but the region at large,” said Zambia-based industrialist Ms Bethel Shikwe.
However, energy constraints and underdeveloped transport networks continue to undermine competitiveness, leaving many projects idle.
South Africa: Anchor economy, uneven integration
South Africa remains the region’s industrial anchor, accounting for 55 percent of intra-SADC exports and 17 percent of imports. It supplies much of the machinery and capital goods essential for regional value chains.
“Countries in the SADC region should take advantage of their proximity to South Africa, which is already industrialised and the only African member of the G20,” said economic commentator Mr George Nhepera.
Yet bureaucratic delays, tariff inconsistencies and fragmented policy approaches continue to slow deeper integration, despite promising pilot collaborations with neighbouring states.
Tanzania: Agricultural bounty, processing gap
Tanzania produces large volumes of cashews, coffee, cotton and maize — yet most of this output is exported raw. Pilot agro-industrial hubs have created jobs and improved farmer incomes, but scaling remains constrained by financing gaps and regulatory bottlenecks.
Why projects stall
Investigations and SADC internal assessments highlight recurring obstacles that continue to derail industrial projects. Frequent power outages undermine industrial competitiveness, while infrastructure gaps persist, with only about 40 percent of regional roads in good condition and congested borders inflating trade costs. Finance remains scarce, leaving SMEs struggling to access affordable capital, and regulatory barriers such as inconsistent standards and bureaucracy deter cross-border investment. In addition, severe skills shortages mean millions of technically trained workers are needed to operate industrial hubs effectively.
Voices
Ms Paida Mutombwa, an employee at a Harare-based clothing and textile company, highlighted that regional support could significantly boost value addition.
“Reliable supply chains and markets are critical for fostering value-added production and intra-regional trade to promote the production of value-added products. SADC should improve its revenue by supplying finished products across the globe,” she said.
In Ndola, Zambia, mining entrepreneur Ms Patience Siame echoed similar concerns.
“Most of our exports leave the country raw or semi-processed because of lack of investment in processing facilities. Despite the few processing centres, we see potential in supplying regional and international markets with value-added products. For instance, we export semi-processed copper to South Africa,” she said.
Blueprint or breakthrough?
The adoption of the 2024 SADC Industrialisation Policy marked a bold recommitment to regional value addition, job creation and shared economic growth. It provided a clear blueprint for transforming SADC from an exporter of raw materials into a competitive industrial bloc.
However, history offers a sobering lesson — policy frameworks alone do not build factories, power machines or create jobs. Without reliable energy, efficient transport corridors, harmonised regulations, affordable finance and sustained investment in skills and technology, the promise of industrialisation risks remaining trapped on paper.
Pilot projects across Zambia, Zimbabwe, Malawi and Tanzania demonstrate that when energy, governance and finance align, industrialisation can succeed. These examples offer hope. However, scaling them requires urgency, political will and regional coordination. Southern Africa has the resources, talent and entrepreneurial spirit to industrialise.
The blueprint is clear — what remains uncertain is execution. The defining challenge now is whether SADC can turn the resolve expressed in Harare in 2024 into a genuine regional industrial revolution, or whether, once again, ambition will outpace delivery.
