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THE Southern African region is poised for greater economic prosperity if measures needed to stimulate economic growth are implemented, outgoing Sadc executive secretary Dr Tomaz Salomao said.
He said the region was faring well despite economic challenges prevailing globally.
“The region continues to recover from the global financial economic crisis of 2008 and 2009 albeit at a slow but safe pace. On average the region recorded a growth rate of 4,4 percent in 2012 which is still below the target of seven percent,” he said.
“On the investment side the region recorded total investments of 36 percent of Growth Domestic product (GDP) in 2012 a slight improvement from the 25 percent of GDP recorded in 2011.”
Dr Salomao, who was addressing the 33rd Ordinary Summit of Sadc Heads of State and Government in Malawi, said member states ought to take advantage of the Sadc Free Trade Area and the Comesa, East African Community, Sadc tripartite FTA to increase trade and in turn boost their economies.
He said most member states were positioning themselves well on the economic front despite facing challenges including low international commodity prices and droughts.
“Despite the challenging environment globally, member states continue to carry out reforms in order to improve their investment and business climate to help attain a better performance in global competitive index,” he said.
He said it was crucial for the region to develop robust industries and policies that encourage the exportation of finished products to ensure Africa reaped maximum benefits from its abundant natural wealth.
“Most of the Sadc republics are still relying on exports of raw materials hence continue to be significantly vulnerable to external shocks. This calls for policy measures by the region and individual member states in diversifying their economies in order to mitigate the effects of external shocks and instability emanating from the global markets.
“It is in this context that your Council of Ministers approved the Sadc Industrial Development Framework as an important tool to address these challenges in an innovative and pragmatic manner,” said Dr Salomao.
He encouraged member states to take advantage of the good prospects existing in the agricultural sector due to continued global demand for food.
“It is thus imperative to boost investment both public and private in the agricultural sector.”
African Union Commission chairperson Dr Nkosazana Dhlamini Zuma said exciting times lay ahead for the continent on the economic front.
Dr Zuma said because the continent was relatively peaceful some meaningful progress on the economic front had been made over the last decade.
“We have also seen enormous economic growth averaging five percent in the last decade, we also witness encouraging signs in our human development indicators, our growth and investment figures and finally also with regards to Africa’s infrastructure development.
“This coupled with the potential of our natural resources we have all reasons to face the future with confidence and conscious optimism,” she said.
She, however, warned Africans to approach the future with caution as the continent was still grappling with poverty, underdevelopment, unemployment low levels of industrialisation, gender inequality and conflicts and instability in some areas. – New Ziana
Online Reporter