Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
THE Southern African Development Community (SADC) is intensifying efforts to build a strong, industrialised and integrated regional economy, with intra-regional trade expanding and the markets of its 16 member states firmly interlinked.
At the core of this agenda is the push to industrialise the region while sustainably harnessing its vast natural resources, in line with the SADC Industrialisation Strategy and Road Map (2015-2063), which prioritises industrial development, market integration and infrastructure as key pillars.
A report presented at the bloc’s 45th summit, hosted by Madagascar, under this year’s theme “Advancing Industrialisation, Agricultural Transformation and Energy Transition for a Resilient SADC”, reveals that the region’s manufacturing sector has stagnated, contributing around 11 percent to gross domestic product (GDP) — far below the 30 percent target by 2030.
“The manufacturing sector has maintained a consistent contribution to the overall GDP, with manufacturing value-added (MVA) remaining within a narrow range of 11-12 percent since 2020,” notes the report.
Data shows a slight decline from 11,7 percent in 2023 to 11,3 percent in 2024, reflecting global economic pressures and shifting domestic dynamics.
Performance, however, varies widely across member states. Seychelles recorded the lowest MVA-to-GDP ratio, at 4,2 percent, while Eswatini emerged as the strongest performer, at 31,2 percent.
Other notable contributors include the DRC (18 percent), Zimbabwe (16,4 percent), Lesotho (13,6 percent), South Africa (12,8 percent) and Madagascar (12 percent).
Trade economist Dr Ndabezitha Sithole said the statistics speak to the urgency of industrialisation.
“Without a coordinated push to develop value chains and strengthen cross-border supply networks, the region risks remaining a consumer of finished goods while exporting raw materials. SADC’s 2030 targets can only be met if member states commit to joint industrialisation programmes rather than working in silos,” he warned.
The report shows intra-SADC trade grew from 18,4 percent in 2023 to 19,8 percent in 2024, recovering from a dip caused by the Covid-19 pandemic.
“While intra-SADC trade improved to 19,8 percent in 2024, it remained below pre-pandemic levels due to persistent external shocks, including global trade tensions and supply chain disruptions,” the report notes.
Dr Sithole added that stronger regional trade was the key to economic transformation.
“The numbers show that SADC trades more with external partners than with each other. This weakens regional value chains and limits job creation. To change this trajectory, member states must prioritise buying from one another, harmonise standards and speed up trade facilitation,” he said.
“Strong regional trade is the foundation for global competitiveness.”
The urgency of building stronger internal markets has been amplified by recent tariff hikes by the United States and rising global protectionism, which threaten Africa’s export prospects, other economic experts say.
By depending heavily on external markets, SADC risks being caught in the crossfire of global trade tensions and losing access to key export destinations.
They warn that higher US tariffs on imports could make African goods less competitive, undermining revenues from commodities and manufactured exports.
“Global trade dynamics are changing fast. If SADC countries continue to rely on distant markets, they will remain vulnerable to decisions made in Washington, Brussels or Beijing,” said economist Ms Alice Chikonzi.
“The best insurance against protectionism is to build a strong internal market that cushions the region from external shocks.”
In contrast, expanding intra-SADC trade would allow the bloc to absorb more of its own production, diversify exports, stabilise supply chains and create jobs at home.
By trading more within the region, member states can reduce exposure to global tariff wars while unlocking Africa’s own vast consumer market.
On April 11, 2025, the SADC Inter-Ministerial Task Force convened to address bottlenecks at the Kasumbalesa Border Post — a key trade hub linking Zambia and the DRC (Democratic Republic of Congo).
Transport and Infrastructural Development Minister Felix Mhona underscored the new challenges.
“Key problems highlighted included prolonged delays for cargo, inadequate infrastructure, complex administrative processes and security concerns. These issues have disrupted supply chains and increased the cost of doing business, highlighting an urgent need for effective solutions,” adds the report.
An action plan was adopted to strengthen infrastructure, simplify customs, enhance security and establish a one-stop border post.
Mr Simbarashe Chivandire, a regional logistics expert with Freight Logistics, said efficient borders are the heartbeat of trade.
“Kasumbalesa is not just a national asset; it is a regional one. If we fix Kasumbalesa, we fix half the supply chain problems affecting regional trade,” said Mr Chivandire.
According to the report, SADC’s merchandise trade balance improved from US$20,7 billion in 2023 to US$29,6 billion in 2024, with surpluses recorded by Angola (US$24,2 billion), the DRC (US$20,8 billion), South Africa (US$10,5 billion) and Zambia (US$4 billion).
“The overall SADC merchandise trade balance is characterised by embryonic industrial activity but with significant growth potential,” the report noted.
Ten years into its industrialisation strategy, SADC has registered progress in agro-processing, pharmaceuticals and mineral beneficiation.
Identified agro-processing value chains include soya beans, wheat, rice, cotton and leather.
The SADC Pooled Procurement Services (SPPS) has been launched to strengthen pharmaceutical procurement, while regional model policy frameworks are being rolled out in leather and antiretroviral (ARV) supply chains.
Meanwhile, the SADC Mining Protocol is under review to scale up mineral beneficiation.
“The success of SADC’s value chains will depend on linking small producers with larger industries and ensuring inclusive growth. If agro-processing and mineral beneficiation are done within the region, SADC will reduce its dependence on imports and keep more value locally,” Mr Chivandire said.
Further to that, the report says financial inclusion continues to rise, with 78 percent of adults in 2024 now accessing financial services, up from 77 percent in 2023.
“The SADC region has maintained a remarkable improvement from the 57 percent baseline recorded in 2011,” said Mr Chivandire.
“The 21-percentage point increase represents one of the most significant achievements in global financial inclusion, bringing financial services to an additional 24 million adults across the region.”
The SADC Real Time Gross Settlement (RTGS) system further boosted efficiency, with transaction volumes rising by 23 percent to R16,19 trillion in 2023/2024, linking 88 central and commercial banks from 15 member states.
To attract investors, the SADC Investment Climate Scorecard (2022-2023) and the SADC Investment Practical Guide were launched to harmonise investment information.
“Access to accurate and precise investment information has remained a challenge to investors wishing to set up in SADC countries.
“Information is usually fragmented and is either accessed through different websites or physical contacts with various regulators. The guide aims to facilitate information access and dissemination on how to invest, start and run a business in the SADC region,” reads part of the report.
Dr Sithole hailed the initiative.
“The SADC Investment Guide is a game-changer. Investors are discouraged when information is scattered. Having one consolidated source will boost confidence and help attract long-term capital to the region,” he said.
Analysts agree that industrialisation alone will not deliver prosperity without robust intra-SADC trade.
By strengthening internal markets, cutting trade costs and investing in cross-border infrastructure, SADC can shift from being an exporter of raw materials to a hub of value-added production.
Crucially, as global powers such as the US raise tariffs and trade barriers, SADC’s ability to trade within itself becomes a strategic shield against external protectionism.
A strong and interconnected SADC market will not only enhance resilience against global shocks but also position the region as a competitive player in international trade.
The success of the integration will determine whether the bloc can achieve the ambitious goals of its Industrialisation Road Map (2015-2063), experts said.
Online Reporter