Comesa ministers approve key regional industry strategy
MINISTERS of industry from the 21 Comesa member states have approved the implementation strategy of the regional local content policy framework and the management of Special Economic Zones (SEZs) and industrial parks.
The Comesa Local Content Policy Framework seeks to transform the region’s low productivity economies from overreliance on exports of unprocessed primary commodities.
Equally, the adopted framework of managing SEZs and industrial parks is expected to guide member states when domesticating SEZ strategies and industrial parks at the national level.
The approval of the strategy framework gives member states green light to formulate similar policies to maximise local benefits from industrialisation.
With the coming in of the Africa Continental Free Trade Area (AfCFTA), which was operationalised in January this year, the region desperately needs to up its game and embrace value addition and beneficiation to be able to compete with advanced economies that produce and export value added products.
The approval of the implementation strategy was announced in a communique at the end of the three-day virtual Comesa regional industry experts meeting, which concluded with a ministers meeting on Thursday.
In their communique, the ministers committed to ensure the that harmonised regional frameworks and guidelines are implemented in their respective countries.
Speaking at the opening of the ministers’ meeting, Zimbabwean Minister of Industry and Commerce, Dr Sekai Nzenza, said despite high growth potential in the region, poverty, unemployment, low investment levels, and depressed aggregate demand among others, remain prevalent.
“This is attributed to depressed industrialisation in our region,” she stated, adding that industrial development was critical in addressing the productive constraints towards the realisation of inclusive and sustainable transformation of the region.
The approval of the frameworks will, therefore, enable the full implementation of the Comesa Industrialisation Strategy and Action, which was adopted by the ministers in 2019 to guide structural economic transformation of the region, Comesa corporate communications manager, Mr Mwangi Gakunga, said in a post meeting update. The Comesa industrialisation strategy is aligned with the
Third Industrial Development Decade for Africa (IDDA3), whose guiding principles include: government ownership and leadership of the initiative; strengthened enabling business environment; prioritised sectors with high potential for growth; and strong partnerships for financial and non-financial resource mobilisation at the multilateral, regional and bilateral levels. Among its key component is the promotion of agriculture and value addition.
On its part, the Comesa Secretariat has committed to continue providing a platform for lobbying international technical and financial assistance to support the SEZs development.
“The initiatives will include supporting learning events and profiling some SEZ projects that could serve as regional centres of excellence,” Comesa secretary general, Ms Chileshe Kapwepwe, said.
“Besides, the Secretariat will promote the development of border economic zones and facilitate the needed technical assistance for their development, among others.”
During the meeting, the ministers also approved the regional guidelines on Increasing Sustainable and Inclusive Industrial Production during and after Covid-19.
This is recognition of the negative impact the deadly pandemic has inflicted on industrial production by disrupting regional and global value chains.
“Among others, the guidelines provide for enhancement of digital transformation such as e-commerce and e-trade to reduce and avoid physical contacts during transaction within and across member States while at the same time cutting down on transaction costs,” said Mr Gakunga.
In closing remarks, Malawi Minister for Industry, Roy Kachale, said the development of the frameworks was timely given the disruption occasioned by Covid-19.
“There is no better time than now when coming into effect of the AfCFTA promises to offer an even greater opportunity for countries to widen their access to global supply chains and export higher value goods and services,” he said.
Heads of the delegation representing development and co-operating partners that addressed the meeting included the European Union, the World Bank, United Nations Industrial Development Organisation and the International Trade Centre. Representatives from the private sector in region also participated in the meeting.-chronicel.cl.zw
