Comesa local content framework set for adoption

THE implementation strategy of the Comesa local content policy framework on industrialisation is set for adoption this week, as the technical and ministerial committees on industry conduct their fourth meetings.

The objective of the implementation strategy is to ensure that a high proportion of project inputs are sourced from the host country without compromising the economics of the project or sector being leveraged.

Hence, the framework is intended to optimise the economic value to be derived from the development of natural resources through domestic linkages while giving regard to the country’s development goals, vision for a given sector, trade competitiveness and the financial viability of the natural resource being leveraged.

The regional industry experts began their meeting on Monday, with Zimbabwe hosting the virtual proceedings.

The key agenda of the meeting is the adoption of the draft harmonised Comesa (Common Market for Eastern and Southern Africa) framework of managing Special Economic Zones and industrial parks.

It will then be presented before the ministerial meeting tomorrow.

In her official opening remarks Zimbabwe’s Industry and Commerce Ministry permanent secretary, Dr Mavis Sibanda, said the implementation of the local content framework will have an economic multiplier effect that would result in greater value extraction by host countries.

“The implementation strategy of the local content framework must outline successful, local content initiatives based on a well-conceived strategy as well as legal and institutional considerations that recognize the need for joint contributions from host governments, national entrepreneurs, and foreign investors,” she said.

According to Comesa head of corporate communications, Mr Mwangi Gakunga, the decision to develop an implementation strategy of the local content policy framework was issued by the regional ministers in 2019. He said the development of Special Economic Zones (SEZs) or industrial parks was identified as one of the key industrialisation enablers for successful industrialisation.

This is primarily motivated by the necessity to attract foreign direct investment (FDI) based on experiences from countries, which demonstrate that with proper management and incentives, these zones and parks can be an important tool for industrialization, said Mr Gakunga.

Comesa’s assistant secretary general, Dr Kipyego Cheluget, who also addressed the Monday meeting said the draft strategy and the Framework of managing SEZs have been crafted to be in tandem with other regional, continental and international development frameworks.

“It takes into account the ongoing implementation of the African Continental Free Trade Area, the Tripartite Free Trade Area, and Industrial Development Decades for Africa, which requires that industrialization is at the centre stage,” he said.

The AfCFTA provides an opportunity for improving trade facilitation more widely, which benefits the development of trade and industrialization in the region.

It also provides an opportunity for local content actors to grow with the benefits from positive spill-over effects including technological knowledge and skilled manpower, which could increase the economic growth in the continent.

Further, Mr Gakunga said the framework was part of the thrust to foster local value addition through utilization of local resources and localization of supply chains.

“It is also a tool to promote local linkages between the agricultural, extractive, industrial and service sectors,” he said.

During the duration of the meeting, Comesa has said the technical committee will also discuss the draft guidelines on inclusive and sustainable industrial production during and after the Covid-19 pandemic.

Delegates will also take stock of what has been achieved in implementing council decisions on industry since its last meeting in 2019 in Nairobi, Kenya.-herad.clzw