Comesa member states push for industrialisation in new strategy

Comesa member states are working towards boosting industrialisation to increase overall socio-economic development.

Under the trade bloc’s action plan for 2019-26, member states will focus on nine key priorities including Agro-processing, Energy, Textile and Garments, Leather and Leather Products, as well as Mineral Beneficiation.

Other priority areas are Pharmaceuticals, Chemicals and Agro-Chemicals, Light Engineering and the Blue Economy.

The Strategy is informed by two models of industrialization, the natural resources-led and the human resources-led model or a combination of the two, depending of the country’s particularity.

“The strategy is informed by two models of industrialization, the natural resources-led and the human resources-led model or a combination of the two, depending on the country’s particularity,” the bloc’s secretariat said in a statement.

The industrial strategy seeks to diversify the manufacturing base to reduce imports of value-added agricultural and resource-based commodities by at least 15 per cent in 2025 from the current estimate of seven per cent.

Member states will also work towards increasing value addition activities as a percentage of GDP by at least 20 per cent by 2026 from the current estimate of nine per cent.

This will, in turn, boost intra-regional manufactured exports relative to total manufactured imports to the region to at least 25 per cent by 2026 from the current seven per cent.

“This Industrialisation Strategy is also underpinned by national industrialisation policies and strategies and draws lessons from best regional and international practices for developing a vibrant and sustainable industrial sector that will ensure equitable benefits to all the people of comesa member states,” the statement reads.

This comes even as The African Continental Free Trade Area (AfCFTA) — expected to create a single African market with an estimated value o $3 trillion (Sh300 trillion) — came into last month.

This trade agreement, which will make Africa the largest free-trade area in the world, was approved by the African Union (AU) on April 29 after 22 countries ratified its adoption.

Although the trade agreement is now in play, work however still needs to be done on the operationalisation of the agreement and the supporting instruments that need to be finalised.

“The usual infrastructure challenges remain, and low industrialisation. However there is high political momentum to address challenges and achieve more ratifications,” Director of trade and customs at Comesa secretariat Francis Mangeni said.

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