The Southern African Development Community (SADC) region must diversify away from its reliance on commodities for economic growth and prioritise industrial development, SADC regional standardisation president Dr Eve Gadzikwa said on Wednesday.
“Industrialisation can contribute to transformation in the agriculture, trade, transport and other sectors and is key for economic development,” she told delegates at the SADC Industrialisation Week conference, in Johannesburg.
She asserted that no progressive country could afford to neglect industrialisation, given its impact on economic growth.
“Industrialisation is the most effective driver of structural poverty reduction, owing to its capacity to expand employment opportunities, boost productivity and increase wages.”
Gadzikwa pointed out that industrialisation required a focus on improving competitiveness and the ease of doing business, and enhancing the quality of products that could compete internationally.
She stated that it was crucial to cultivate effective multistakeholder partnerships that would bring together all major players in the industrial development process, including governments, development agencies, national and international development finance institutions, the private sector, civil society and institutions of higher learning.
“For successful industrialisation, a nation should consider investing in technological upgrades and recognise the mainstream information and communication sector as an enabler and catalyst to industrialisation,” she noted.
She added that government’s role in creating the requisite macroeconomic environment to enable successful industrialization could not be overlooked.
Gadzikwa stressed that an enabling operating policy environment, a reduction in the cost of doing business, a reduction in regulatory compliance procedures, the roll out of modern infrastructure and greater focus on areas of competitive advantage were key.
Meanwhile, governments’ collaboration with the private sector is equally important if industrialisation is to succeed.
“The private sector fills important gaps in industrial development and in manufacturing quality products that are distributed to citizens and cannot be produced by the public sector.
“Partnerships with the private sector can also help large numbers of beneficiaries in many ways that individual governments, businesses or nongovernmental organisations would not be able to achieve,” she said.