Ministers of industry from the 21 COMESA Member States have approved the implementation strategy of the regional local content policy framework.
They have also okayed the management of the Special Economic Zones and industrial parks.
The COMESA Local Content Policy Framework is aimed at helping to transform the region’s low productivity economies, from overreliance on export of unprocessed primary commodities with either little or no value addition, to competitive economies that produce, and export value added products.
With the approval, member states will formulate similar policies to maximize local benefits from industrialisation.
Equally, the adopted framework of managing special economic zones (SEZ) and industrial parks will guide member states when domesticating SEZ strategies and industrial parks at the national level.
In communique yesterday, the ministers committed to ensure the harmonised regional frameworks and guidelines are implemented in their respective countries.
During the meeting, Zimbabwe's Minister of Industry and Commerce , Sekai Nzenza, noted that despite high growth potential in the region, poverty, unemployment, low investment levels, and depressed aggregate demand are prevalent.
“This is attributed to depressed industrialization 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 Industrialization Strategy and Action, which was adopted by the Ministers in 2019, to guide structural economic transformation of the region.
There is no better time than now when coming into effect of the African Continental Free Trade Area promises to offer an even greater opportunity for countries to widen their access to global supply chains and export higher value goods and services
Among its key component is the promotion of agriculture and value addition.
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 and prioritised sectors with high potential for growth.
It also calls for strong partnerships for financial and non-financial resource mobilisation at the multilateral, regional and bilateral levels.
COMESA Secretariat said it is keen to continue providing a platform for lobbying international technical and financial assistance to support the special economic zones development.
“The initiatives will include supporting learning events and profiling some SEZ projects that could serve as regional centers of excellence,” Secretary General 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,she added.
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 that Covid-19 has had 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.
Malawi Minister for Industry Roy Kachale, described the development of the frameworks as timely given the disruption occasioned by the Covid-19 pandemic.
“There is no better time than now when coming into effect of the African Continental Free Trade Area 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 cooperating partners that addressed the meeting included the European Union, the World Bank, United Nations Industrial Development Organization and the International Trade Centre.
Representatives from the private sector in region also participated in the meeting.
