“How can SADC promote Industrialisation for inclusive, resilient and sustainable economic

growth?”

The Southern African Development Community (SADC) is a regional economic organisation in

Southern Africa which comprises 16 countries, including Angola, Mozambique, Seychelles and
Mauritius among others. The main objectives of SADC, as stated by the organisation’s Treaty, which
was signed in 1992, are to promote economic development, alleviate poverty and improve the
quality of life of people in the region. SADC can achieve inclusive, resilient and sustainable economic
growth through industrialisation by adopting a comprehensive and coordinated approach that
addresses the various barriers and challenges to industrial development in the region.
Industrialisation refers to the process by which an economy converts from a farm-based economy to
one dominated by manufacturing and services. The process of industrialisation encompasses various
key components, such as development of infrastructure, creation of a skilled workforce and
technology transfer.

It is important to note that SADC has implemented several activities and programmes to develop
industrialisation in the region. In 2012, SADC began the industrialisation strategy and Roadmap
(2015-2063) as a scheme to guide the region’s industrialisation agenda. Moreover, SADC organises an
Industrialisation Week every year to follow up the region’s industrialisation progress and promote
investment opportunities. The Renewable Energy and Energy Efficiency and Master Plan intends to
increase access to affordable and reliable energy, decrease greenhouse gas emissions and promote
sustainable growth. Botswana has a growing mining industry and strives to diversify its economy
through industrialisation. The country has invested in the expansion of its manufacturing sector as
well as in renewable energy. Other programmes brought about by SADC to support industrial
development include the SADC Industrialisation Fund and the Regional Infrastructure Development
Master Plan(RIDMP). However, more needs to be done to achieve inclusive, resilient and sustainable
economic growth.

SADC can promote industrialisation by encouraging regional value chains, where countries specialise
in different stages of production so as to improve productivity and efficiency. SADC can work towards
greater regional integration, which will generate a larger market for businesses in the region. Thus,
businesses will benefit from economies of scale and compete more effectively in global markets.
Besides, regional value chains encourage the creation of new industries and products, which can
diversify the economy. Mauritius has diversified its economy beyond its traditional industries of sugar
and textile. It has also signed a few trade agreements with neighbouring countries, inclusive of
SADC ,which have helped increase access to regional markets and promote industrialisation.

In addition, SADC can facilitate access to finance for small and medium-sized enterprises (SMEs). As a
matter of fact, SMEs represent the backbone of industrialisation. SADC can encourage the setting up
of dedicated regional financing institutions, such as regional development banks and microfinance
institutions to support SMEs. SADC can invest in capacity building programmes as well to help
owners of small enterprises write business plans, enhance their management skills and obtain loans
from commercial banks. Small and medium enterprises have played a key role in achieving economic
growth in Tanzania. According to the Tanzania Bureau of Statistics, SMEs contribute to around 35% of
the country’s Gross Domestic Product and employ more than 5 million people, accounting for
approximately 15%of the total labour force. Hence, a balanced approach that supports businesses of
all sizes is essential for sustained economic development.

It should also be pointed out that SADC can develop industrialisation for sustainable economic
growth by putting into practice initiatives that focus on infrastructure development. Investing in

Teija Goinden| Dr maurice cure state college PAG E |1

 roads, railways, ports and energy is crucial for sustainable development. Indeed, improvement in
infrastructure will reduce production costs and attract investors. SADC can also encourage innovation
in industries through collaborations with universities, research institutions and private sector firms.
SADC has collaborated with many universities, including the University of Mauritius and the
University of Zimbabwe on numerous initiatives such as research, capacity building and training.
Through these partnerships, SADC and universities are working hand in hand to build a pool of skilled
labour that can drive industrialisation. This will help create new products, processes and
technologies which will increase competitiveness and reduce reliance on imported goods. Import
dependency is a major issue which hinders industrialisation in developing countries. Furthermore,
SADC can motivate sustainable industrialisation by using green technologies, promoting renewable
energy sources and developing ecological friendly products. This will alleviate the negative
repercussions of industrialisation on the environment and ensure economic growth is viable in the
long term.

Limited technological capabilities can be a significant barrier that impedes industrialisation. In fact,
developing countries may lack the adequate expertise and knowledge to adopt new technologies. In
spite of improvement in economic performance and diversification of its economy from the copper
industry, Zambia has yet to achieve significant gains in resilient growth because it is poor in
technology. SADC can facilitate technology transfer and collaboration between member states in an
attempt to improve efficiency and innovation. Technology transfer refers to the process of
transferring skills and technology from one country to another. It will enable domestic businesses to
adopt modern technology and improve their productivity. In fact, exposure to advanced technology
can provide incentive to local entrepreneurs to make new goods and services or improve existing
ones. Improved production processes can aid developing countries produce goods and services more
competitively This can augment their chances of attracting Foreign Direct Investment(FDI) and
increasing exports. It should be noted that technology transfer is a pivotal process for advancing
economic development and promoting creativity.

In a nutshell, promoting industrialisation is critical to achieve inclusive, resilient and sustainable

economic growth in the SADC region. Addressing barriers such as lack of finance, poor infrastructure
and primary product dependency, that hinder economic growth requires a multi-faceted approach.
By implementing strategies like investment in infrastructure, access to finance and regional value
chains, SADC will attain its goals of supporting social development in the region and promoting peace
and security. Boosting industrialisation in SADC will necessitate a coordinated effort from
governments, private sector enterprises and civil society organisations.

Teija Goinden| Dr maurice cure state college PAG E |2