adminLeonard Ncube Victoria Falls Reporter
AFRICA should hasten the crafting of a robust industrialisation policy that would create an enabling environment for tackling socio-economic challenges through value addition and beneficiation, an official has said.
Speaking during the 21st session of the Inter-Governmental Committee of Experts of Southern Africa in Victoria Falls last week, Permanent Secretary in the Ministry of Finance and Economic Development Willard Manungo said the Sadc region was faced with a myriad of challenges that could be solved by a deliberate industrialisation roadmap.
He said declining commodity prices and youth unemployment could be tackled through value addition, beneficiation and industrialisation that would create jobs and alleviate poverty and inequality.
“Despite positive developments, the unstable economic environment continues to destabilise resolve to address poverty, unemployment and inequality . . . these weigh down regional and continental growth,” said Manungo.
He challenged participants to come up with strategies to “accelerate industrialisation through value addition and beneficiation” and for crafting of focused recommendations.
“There’s a need to leverage between comparative advantages from the abundant natural resources as the basis for accelerated industrial growth,” he added.
Manungo said the Sadc region has already adopted an approach to unlock industrial potential through value addition and beneficiation as it gears itself towards Intra-Africa trade in the Continental Free Trade Area to be launched in 2017.
He explained that Zimbabwe has already crafted an Industrial Development Policy (IDP) aimed at driving the industry to be a critical driver of economic growth.
“Value addition and beneficiation are the cornerstone of our policy. Through IDP implementation strategy, industries will be capacitated for enhanced value addition to commodities to translate the comparative advantage in resource endowments to competitive advantages producing finished products, which can compete on the export market,” said Manungo.
He said the Economic Commission Africa (ECA) has supported the Sadc secretariat in delivering the regional industrial strategy and roadmap requested by the Sadc Summit in 2014.
The African Union has also set agenda 2063, which prioritises industrialisation through value addition.
Manungo also called for embracement of the private sector in value addition and beneficiation as well as the key enablers of the energy, water, transport and ICT sectors.
“We’ll endeavour to create an enabling policy and operational environment. We’re in the process of realigning our sectorial policies with the new economic blueprint (Zim-Asset). For example in the mining sector we’ve developed a draft mining policy which has specific beneficiation strategies and milestones,” he said.
“We believe a diversified and competitive manufacturing sector would generate higher multipliers and jobs for citizens with four priority sectors being agri-business, fertilizer and chemicals, pharmaceuticals, metals and electrical have potential to boost trade.”
During deliberations participants said a faltering world growth continues to threaten economic growth and exerts pressure on national budgets.
Bongani Moyo
Online Reporter