Industrialisation is no longer optional, Tau tells SADC leaders

Climate change, geopolitical instability and rapid technological change are reshaping the global economy, making industrialisation and regional integration an urgent priority for Southern Africa.

This was the message from Trade, Industry and Competition Minister Parks Tau at the opening of the ninth Southern African Development Community (SADC) Industrialisation Week at Durban’s Inkosi Albert Luthuli International Convention Centre (ICC) on Monday.

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Addressing government leaders and business representatives from across the continent, Tau said adapting to the changing global environment was no longer optional, particularly as protectionist trade policies in the U.S. posed new challenges for African economies.

These developments present significant challenges, but they also create unprecedented opportunities for Southern Africa to reposition itself as a competitive, resilient and industrially advanced region.

The five-day event, which ends on Friday, is being held under the theme: “Resilient, Sustainable and Inclusive Industrialisation through Infrastructure Development, Agriculture and Critical Minerals: Transformation in Pursuit of a Just World”.

Tau said the theme reflected the region’s determination to move beyond discussion and accelerate industrialisation, deepen regional integration and build more diversified and inclusive economies.

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“Industrialisation remains the cornerstone of sustainable economic transformation. It provides the foundation for higher productivity, economic diversification, technological advancement and greater resilience against external shocks,” he said.

Tau said Southern Africa had abundant critical minerals, fertile agricultural land and a growing regional market, but continued to lose economic value by exporting raw materials instead of finished products.

For too long, we have exported raw materials and imported manufactured products.

This has limited industrial development, job creation and the value retained in our economies. Industrialising our critical minerals gives us a chance to change that trajectory,” he said.

He also called for reduced reliance on donor funding, the removal of trade barriers and stronger regional value chains.

SADC Business Council (SADC BC) chairperson Khulekani Mathe said the increasingly unpredictable global economy had made SADC Industrialisation Week an important platform for governments and the private sector to develop strategies to strengthen the region’s economies.

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“SADC Industrialisation Week has evolved into the region’s premier platform for dialogue between the public and private sectors.

“More importantly, it is a platform for action, where ideas are translated into partnerships, investments, policy recommendations and tangible outcomes that strengthen regional competitiveness and accelerate economic integration,” said Mathe, who is also chief executive officer of Business Unity South Africa (Busa).

Delegates agreed that industrialisation remains the region’s top economic priority and committed to turning policy commitments into measurable action to drive economic growth and create jobs.

The discussions form part of the build-up to the SADC Heads of State and Government Summit, which will be held in Durban next week.

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At the summit, South Africa will officially assume the SADC chairmanship.