Industrialising Zimbabwe and the region: Anchoring climate and AI adaptation in the AfCFTA era

Note from ZNCC

The 2024 Zimbabwe National Chamber of Commerce (ZNCC) annual congress, held in Victoria Falls from June 26th to 28th, provided a vibrant forum for discussions on the critical intersections of industrial growth, climate resilience and technological advancement within the framework of the African Continental Free Trade Area (AfCFTA).

The panel discussion, themed “Industrialising Zimbabwe and the Region: Anchoring Climate and AI Adaptation in the AfCFTA Era”, brought together key stakeholders to explore strategies for leveraging the AfCFTA’s potential while addressing the dual challenges of climate change and rapid technological advancements.

The Vice Chancellor of the University of Zimbabwe, Professor Paul Mapfumo, set the tone with his keynote presentation, focusing on positioning Zimbabwe and Africa for industrialisation within the AfCFTA framework.

He highlighted the transformative opportunity presented by AfCFTA, with its combined GDP of $3,4 trillion and a population of 1,3 billion, spanning 55 AU member states and eight regional economic communities. Central to his message was the concept of leveraging Africa’s abundant resources, resilient people and heritage-based education 5,0, which integrates science, innovation and technology.

Prof Mapfumo emphasised the importance of organising Africa’s development through self-mobilisation and self-organisation, with sectors like finance, communication, energy, and transport as critical service pillars.

Prof Mapfumo underscored the pivotal role of artificial intelligence (AI) in Africa’s industrialisation, advocating for specialised capabilities and commitments at various levels — from individual skills to national and regional specialisation.

He highlighted Zimbabwe’s potential to become a hub for Africa’s industrial future, anchored on pillars including peace, education, agriculture, tourism, mining and good leadership.

Prof Mapfumo’s vision for leapfrogging industrialisation through science, innovation, and specialised education emphasised the pivotal role of universities in driving technological advancements and economic growth across Africa.

His call to embrace climate change adaptation and AI positioned Zimbabwe as a key player in Africa’s sustainable development journey.

The panel discussion, moderated by Mr Herbert Mazonde, featured distinguished speakers: Jobst von Kirchmann, Head of the European Union Delegation to Zimbabwe; Tapiwa D. Karoro, the then ZNCC Mashonaland Region Vice President; Wellington Makamure, CEO of Liquid Intelligent Technologies; Adv. Mtho Xulu, South African Chamber of Commerce and Industry president; and Monica Mutsvangwa, Minister of Women Affairs, Community and SMEs Development.

Kirchmann emphasised the critical importance of industrialisation for Zimbabwe and the broader region. He highlighted industrialisation as key to economic growth, job creation and meeting global standards.

Comparing intra-African trade at 17 percent to intra-EU trade at 70 percent, he underscored the need for African countries to adopt common standards to enhance trade. He pointed out that the EU’s stringent environmental standards require products to meet specific criteria, including carbon emissions regulations, if they are to access EU markets.

Kirchmann also addressed the challenges and opportunities of industrialisation in the context of global interconnectedness. He noted that while Zimbabwe can use coal for energy, it cannot expect financial support from environmentally-conscious partners, nor can it easily export to markets with strict environmental standards.

He stressed that EU consumers are willing to pay a premium for environmentally-friendly products, which drives the demand for higher standards. His submissions highlighted the necessity for Zimbabwe to industrialise sustainably, aligning with global standards to improve market access and leverage consumer preferences in major markets like the EU.

Responding to Mazonde’s inquiry about Zimbabwe’s vulnerability within the AfCFTA framework when considering investments, Karoro asserted that capital naturally flows toward opportunities, highlighting the importance of environmental, social, and governance (ESG) criteria on the international stage.

He emphasised that investments must consider future generations, suggesting a shift towards sustainable and responsible investment practices. Karoro pointed out the necessity for clear investment agendas and strategies, underscoring that tough decisions must be made to align with global standards and ensure long-term economic resilience and growth within the framework of the AfCFTA.

In response to concerns about the licensing of StarLink in Zimbabwe, Wellington Makamure conveyed confidence, stating that the telecommunications industry has a history of evolution characterised by disruptive changes.

He expressed that there is no cause for concern with StarLink’s entry, as POTRAZ ensures a level playing field for all operators. Makamure emphasised that seeking protection from technological advancements is unnecessary, as adapting to change is inherent in the industry. He further elaborated on the evolution of energy sources, noting that while solar energy has been significant, wind energy is emerging as a more efficient alternative.

Makamure highlighted the need for collaborative efforts with universities to develop natural energy resources suitable for Zimbabwe, particularly focusing on battery energy storage systems, leveraging the country’s abundant sunlight. He stressed the importance of crafting policies and processes that align with Africa’s unique natural resources and needs, advocating for a forward-thinking approach to both telecommunications and energy sectors.

Adv Xulu addressed South Africa’s status as a giant in Africa, sharing insights on the country’s industrialisation experience. He emphasised the importance of organising the private sector, noting that the Chamber of Commerce, being a voluntary movement, faces limitations in fostering cooperation.

Adv Xulu highlighted South Africa’s country investment strategy, which is geared towards aligning actions with the national vision. This includes designing and mobilising the private sector around clear government budget priorities and ensuring policies and manifestos are data-driven and oriented towards long-term goals.

Adv Xulu also underscored the significance of the AfCFTA as a well-documented and appreciated policy by the South African private sector, calling for a higher level of coordination with the Government and development partners to maximise its benefits.

Regarding the green economy, he pointed out that South Africa has been proactive in decarbonisation efforts, integrating green initiatives in a way that is complementary rather than disruptive. This strategic approach reflects the country’s commitment to sustainable industrialisation and economic growth.

Mutsvangwa emphasised the importance of innovation and adaptation in the face of changing times and technological advancements. She began by rhetorically asking about the obsolescence of typewriters, underscoring the need to keep pace with technological evolution.

Mutsvangwa advocated for universities to continue their innovations, promoting the concept of Education 5,0, which integrates teaching, research, community service, innovation and industrialisation. She highlighted climate change as a unique opportunity for SMEs, encouraging them to seize the potential in cleaner and renewable energy sources.

By enhancing access to renewable energy, she argued, Zimbabwe can drive sustainable economic growth and support the transition to a greener economy.

During the question and answer session, a key query was raised regarding the just transition and how to equip African countries to swiftly transition to sustainable energy sources while still needing energy to industrialise.

Kirchmann responded by advocating for a more inclusive approach in setting global standards. He stressed the importance of involving African countries in the decision-making processes to ensure that the transition to renewable energy does not hinder their industrialisation efforts.

Kirchmann emphasised the need for supportive frameworks and investments that would enable these countries to balance their industrial energy demands with sustainable practices.

The session concluded with a reaffirmation of the themes discussed throughout the day, highlighting the importance of industrialisation, sustainable energy and the role of policy and innovation in driving economic growth.

The official opening day of the 2024 ZNCC annual congress was marked by insightful discussions and a clear commitment from stakeholders to work collaboratively towards a sustainable and industrialised future for Zimbabwe and the region.

The 2024 ZNCC annual congress highlighted the critical need for Zimbabwe and the SADC region to integrate climate adaptation and AI into their industrialisation strategies.

By aligning with the AfCFTA framework, there is a unique opportunity to drive sustainable economic growth and regional integration.

The insights shared by the panelists provide a clear path forward, emphasising the importance of innovation, sustainability and cooperation.

As the region prepares for the upcoming SADC Industrialisation Week, centered on the theme “Promoting Innovation to Unlock Opportunities for Sustained Economic Growth and Development towards an Industrialised SADC”, the discussions from the ZNCC congress will serve as a valuable foundation.

By continuing to explore and implement these strategies, Zimbabwe and its regional partners can unlock new frontiers for industrial growth, ensuring a prosperous and resilient future for all.

The alignment between the ZNCC theme and the SADC Industrialisation Week underscores a regional commitment to creating a sustainable industrial future, providing a broader forum for stakeholders to collaborate, share innovations and develop actionable plans for regional industrialisation.

This article was prepared by the ZNCC for Business Weekly