Zim-Zambia push for agro-industrial synergies

ZIMBABWE and Zambia have intensified efforts towards establishing a Common Agro-Industrial Park under the Joint Industrialisation Cooperation Programme aimed at unlocking wider economic opportunities and enhancing regional trading of high value products and services.

Co-operation between the two neighbouring countries is anchored on the Comesa Industrialisation Strategy (2017-2026), which has identified sectors such as agro-processing, energy, textiles and clothing, leather and leather products, mineral beneficiation, pharmaceuticals, chemicals and agro-chemicals and light engineering as priority sectors.

These focus areas have been identified among those that will have the greatest impact on the sustainable and inclusive economic growth to attain a structural transformation of the economies of the two member states.

As a way of implementing joint co-operation, Comesa has already constituted a Technical Working Group (TWG) of officials from both countries’ ministries responsible for industrialisation.

The United Nations Economic Commission for Africa (Uneca) is supporting the programme and has funded a pre-feasibility study on the establishment of the common agro-industrial park.

Led by the Ministry of Industry and Commerce, the country is now conducting sensitisation workshops regarding the initiative and on Friday the co-ordinating team was in Bulawayo where it met different stakehodlers and gathered their input.

In a speech read on her behalf by chief director Ms Florence Makombe at a Bulawayo hotel, Industry and Commerce Minister, Dr Sekai Nzenza, said the establishment of a common agroindustrial park by the two countries would be a milestone achievement.

“The proposal to come up with a common agro industrial park is part of a grand scheme of things whereby the two Comesa member states are set to achieve economies of scale by co-operating in the field of industrialisation,” she said.

“Specific industries that are slated to be part of the agro-industrial park include agro-processing, textiles and garments, leather and leather products, agro-chemicals, agri-inputs, agriinfrastructure, storage and agricultural engineering.

“It is anticipated that as value chains develop, other allied industries will also emerge. The common agro-industrial park will facilitate the incorporation of micro, small and medium enterprises exploiting opportunities along the various value chains.”

The success of the project, Dr Nzenza added, is set to position the two countries for positive trade gains under the African Continental Free Trade Area (AfCFTA), which also demands enhanced cooperation in order to overcome existing challenges.

Zimbabwe and Zambia share a history of co-operation, which dates back to the colonial period up to the time of the Federation of Northern Rhodesia, Southern Rhodesia and Nyasaland. The cooperation has continued to take place after the two countries gained independence in 1964 for Zambia and 1980 for Zimbabwe.

The two governments signed a Memorandum of Understanding (MoU) on 18 March 2021, which established a joint industrialisation cooperation programme to anchor structural and economic transformation in both countries. Under the MoU, exists potential for the two countries to facilitate the setting up of joint ventures, which utilise complementarities of national resource endowments, value-addition, skills, technology, marketing, among other capabilities.

Agriculture and agro-industries are among the priority sectors for joint co-operation among others. Minister Nzenza said the agro-industrial park will utilise the agricultural resources in both countries to create employment, anchor investment and economic growth across the borders as well as foster linkages with other economic sectors across the two countries.

“Overall, the agro-industrial park is expected to increase the share of agriculture in total GDP, provide food security and improve lives in the region by creating additional jobs and stimulating the development of small and medium-size businesses,” she explained.

“Co-operation between the two countries will deepen regional integration and lead to the development of regional value chains.”

Zimbabwe has already prioritised the development of value chains as a building block towards achieving an upper middle-income economy by the year 2030.

This will be done through the National Development Strategy 1 (NDS1 2021-2025), the country’s economic blue print.
Minister Nzenza also paid tribute to the Comesa secretariat for driving the initiative and also commended Uneca for funding the pre-feasibility study.

Zimbabwe and Zambia share an expansive border, stretching from Mashonaland West to Matabeleland North province on the Zimbabwean side, with the Chirundu One-Stop-Border Post (OSBP) being one key infrastructure for trade facilitation on the North-South Corridor for Comesa and Sadc market.-The Chronicle