By Joseph Ngwawi and Kizito Sikuka
Southern
African News Features – An eventful year awaits southern Africa in 2018
as the region intensifies efforts to deepen economic integration and
achieve sustainable development and stability.
The region is set
to strengthen efforts to implement programmes and projects aimed at
meeting various key milestones, including those on infrastructure
development and industrialization.
In line with the theme of the
37th SADC Summit held in South Africa in August 2017, member states are
expected to pursue programmes and projects aimed at promoting industrial
development in the focus areas of agro-processing, mineral
beneficiation and pharmaceuticals.
The 2017 summit of SADC heads
of state and government was held under the theme “Partnering with the
Private sector in developing industry and regional value-chains”.
As
per tradition, the theme will be the rallying point for most activities
undertaken by the region until the 38th summit scheduled for Namibia in
August.
During the coming year, countries in the region are
expected to create a mechanism for the involvement of the private sector
in the roll-out of the economic integration agenda.
Public-private
partnerships are regarded as a viable model for attracting investment
for public projects by allowing governments to have more access to
additional capital and off-balance sheet financing.
The year 2018
will mark the second year of the implementation of the Costed Action
Plan of the SADC Industrialisation Strategy and Roadmap, 48-year
blueprint that outlines proposals on transformation of the region from a
resource-based economy to one that is driven by innovation and high
industrial productivity.
The Costed Action Plan on
Industrialisation, approved by the SADC Extraordinary Summit in
Swaziland in March 2017, allocated about US$100 million for coordination
of the industrialisation agenda at the level of SADC Secretariat and
member states over the 15-year period extending from 2015-2030.
It
seeks to establish a coherent and synergistic implementation scheme
containing strategic options and general policies towards the
progressive attainment of time-bound targets set out in the strategy and
roadmap.
The action plan aims to create an enabling environment
for sustaining industrial development as a driver of economic
transformation; and establish an enduring alliance for industrialisation
consisting of the public and private sectors as well as strategic
partners.
Strategic interventions proposed under the action plan
include an improved policy environment for industrial development,
increased volume and efficiency of public and private sector investments
in the SADC economy, creation of regional value chains and
participation in related global processes, as well as increased value
addition for agricultural and non-agricultural products and services.
In
order to improve the operating environment, there are plans to develop
and operationalise a Protocol on Industry by 2020, which should lead to
the development of industrialisation policies and strategies at national
level.
Where member states already have such policies and
strategies, these should be reviewed and aligned to the
industrialisation strategy and roadmap.
To encourage the creation
of regional value chains and participation in global processes, the
region has identified five priority areas in which the value chains can
be established and for which regional strategies should be developed by
2020.
These are in the areas of agro-processing, minerals beneficiation, consumer goods, capital goods, and services.
A detailed value chain study is proposed for specific products or services in the priority areas.
As
part of the process of promoting value-chain participation, there are
plans to develop model legislation and regulations for intra-SADC
agro-processing, minerals beneficiation and other manufacturing
activities and services.
A related and complementary activity
expected to be undertaken during the coming year will be
operationalisation of the proposed SADC University of Transformation,
the brainchild of King Mswati III of the Kingdom of Swaziland.
The
university will be a regional institution to train citizens in
innovation and entrepreneurship as part of efforts to transform southern
Africa into an industrialised region.
Swaziland has offered to
host the training institution and pledged to offer scholarships to 300
students – 20 each per member state for the initial intake.
The
SADC Council of Ministers resolved at its last meeting held in South
Africa in August 2017 called on ministers responsible for education and
training; and science, technology and innovation in member states to
expedite the finalisation of the preparatory work for the
operationalisation of the university.
The minister are expected to submit proposals to council at its next meeting in March 2018.
On
energy development, SADC is set to establish a regional Inter-State
Natural Gas Committee that will be charged with ensuring the inclusion
and promotion of natural gas in the regional energy mix and with
facilitating “an increase in universal access to energy as well as
industrial development in SADC.”
According to the SADC Energy
Monitor launched at the 36th SADC Summit in Swaziland in 2016, the
contribution of gas to the regional energy mix is still very minimal,
accounting for a mere 1.3 percent of the total power generation mix.
The
low share of natural gas in the regional energy mix belies the fact the
southern Africa has some of the largest deposits of gas in the world.
The
east coast of the SADC region has emerged in the past few years as one
of the brightest spots on the global energy landscape, with large
natural gas finds in Mozambique and Tanzania.
Exploration has taken place in other SADC member states although the exact amounts of reserves are unknown for these countries.
New
offshore natural gas finds along the Mozambique coast are expected to
be a “game changer” for the country and the southern African region. The
country has estimated recoverable natural gas reserves of between 15
trillion and 30 trillion cubic feet (tcf), enough to meet one year’s gas
consumption by the United States.
Tanzania has also identified natural gas reserves of more than 10 tcf from its deep-water offshore region.
Efforts
will be stepped up towards ensuring that the first-ever surplus
electricity-generation capacity time experienced by SADC last year in
over a decade is maintained through the commissioning of new power
generation projects.
The Southern African Power Pool (SAPP) has
already indicated that it will commission an average of 5,000 megawatts
(MW) per year over the next six years.
Southern Africa has experienced surplus electricity generation capacity of around 900MW since the beginning of last year.
The
surplus is partly due to a slowdown in the South African economy but
also the result of the coordinated approach in implementation of the
SADC energy programme, which has seen a number of new power plants
commissioned over the past few years.
With regard to gender
development, SADC will celebrate 10 years since the adoption of the SADC
Protocol on Gender and Development. The protocol was revised in 2016.
The region is expected to take stock of achievements made and challenges encountered during past decade.
Agriculture and food security will remain a top priority for SADC following a slow start to the agricultural season.
At
the continental level, the SADC region will work with other regional
economic communities to conclude efforts to operationalise the
Tripartite Free Trade Area (TFTA) as well as establish the Continental
Free Trade Area (CFTA).
The TFTA is an enlarged market covering 27
countries in eastern and southern Africa involves the Common Market for
Eastern and Southern Africa (COMESA), the East African Community (EAC)
and SADC.
At least 24 of the 27 countries have signed the
agreement to establish the TFTA, which aims to facilitate the smooth
movement of goods and services across borders, as well as allowing
member countries to harmonize regional trade policies to promote equal
competition.
Negotiations for the CFTA were expected to conclude
by the end of 2017. However, various challenges affected the
discussions, and expectations is that concrete agreements will be made
during the year.
When operational, the CFTA will bring together
all 54 African countries, creating a combined population of more than
one billion people and a combined Gross Domestic Product of more than
US$3.4 trillion
On environmental issues, the region will begin the
process of reviewing achievements and challenges in the implementation
of the Strategic Action Plan (RSAP IV) on Integrated Water Resources.
Development and Management (2016-2020).
As SADC recognises the
importance of sustainable use and management of the environment in the
fight against poverty and food security, the region is set to assess the
domestication of the SADC Protocol on Environmental Management for
Sustainable Development of 2014.
Namibia will host the 38th SADC
Heads of State and Government Summit in August. At the summit President
Hage Geingob of Namibia will take over the SADC chair from his South
African counterpart, Jacob Zuma.
The annual summit will also mark
the first time that the newest member of SADC – the Union of Comoros –
will participate at this high-level regional meeting.
Comoros was
formally admitted into the SADC at the 37th SADC Summit held in August
in Pretoria, South Africa, taking the membership of SADC to 16.
Buoyed
by the relative peace and political stability that has been obtained in
the region for the past few years as well as the smooth transition of
power experienced in three member states last year – Angola, the Kingdom
of Lesotho and Zimbabwe – the SADC region will seek to maintain the
same peaceful and tolerance atmosphere in 2018 when at least four
countries hold elections.
The Democratic of Congo, Madagascar,
Mozambique, the Kingdom of Swaziland and Zimbabwe are scheduled to go to
the polls this year.
Mozambique has set 10 October as Election
Day for its sixth municipal polls, while the DRC has announced 23
December for its general elections.
The other three countries – Madagascar, Swaziland and Zimbabwe – are yet to pronounce Election Day. (sardc.net).
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