Development Policies for Sustainable Economic Growth in Southern Africa

Transforming Southern Africa’s Economies through Regional Integration and Industrial Policy

Towards a Solution

This project by the United Nations Conference on Trade and Development (UNCTAD) has contributed importantly to the development of the structural transformation programmes and productive policies in the targeted countries, therefore contributing to the achievement of SDG Targets 8.2 and 8.3, that specifically aim to: “achieve higher levels of productivity of economies through diversification, technological upgrading and innovation” and “promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation”. It also contributed to SDG Target 9.b that aims to “support domestic technology development, research and innovation in developing countries including by ensuring a conducive policy environment for inter alia industrial diversification.”

Three out of four countries have developed policies and UNCTAD has thereby fulfilled its target. UNCTAD has conducted a background study of the textile sector in Tanzania in order to support the development of a concrete value chain. For the case of Mozambique, the industrial sector has benefited from support in the development of the capacities of decision-makers to implement industrial policies as well as from support in the development of the value chains of the chemical, rubber and plastic sectors, where studies have been prepared. In Mauritius, UNCTAD has supported the development of a new industrial policy strategy (launched in December 2020). After attending a workshop in Tanzania, Mauritius requested UNCTAD for support to the development of a similar industrial policy. Despite Mauritius being rather different from Tanzania in many ways (an island with a much stronger public-private sector relationship, a constant dialogue, and frameworks in place), the model used to support Tanzania could still be calibrated to the Mauritius context.

The project has also contributed to the regional integration process, especially with reference to the production and trade, thereby contributing to SDG 17 that specifically aims to “enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all sustainable development goals, including through North-South, South-South, and triangular cooperation”. Through its two regional workshops, the project has emphasized the need to deal with skills and infrastructure gaps (e.g., energy) at the regional level as part of productive policy development and the opportunities to build regional value chains in mining machinery and agro-processing. The endorsement of the Outcome Document at the regional workshop in Dar es Salaam by high-level policymakers from all targeted countries has constituted an important commitment to the project at the decision-making level. This is evidenced by the participation of high-level government representatives to the national workshops and requests from the governments to UNCTAD for continued support.

The project largely benefited from in-depth cooperation with governments of the target countries. In fact, the priority sectors were decided in back-to-back meetings with government officials participating in UNCTAD XIV in Nairobi (July 2016). This ensured full buy-in of participating countries at the highest levels. The project also benefited from strict cooperation with several agencies within and beyond the UN system; this guaranteed the participation of top-notch experts to regional and national events and fostered the achievement of political convergence. Finally, the round tables with key actors from the private sectors was an essential instrument to facilitate the flow of information between the civil society and economic rulers.

The project is sustainable from multiple points of view. First, the interregional dialogue was strengthened in the last four years along with the interpersonal relationships that sustain it, are a legacy of the project and will continue after its conclusion. The same goes for the impetus given to the dialogue between governments and the private sector through several roundtables. Finally, the capacity-building workshops were designed to transmit a policy approach and a modus operandi rather than specific policy tools in order to enable local policymakers to improve their capacity to respond to the challenges in the years to come. Finally, it is important to stress that the project took place in a very special conjuncture for the African continent leading to the ratification of the African Continental Free Trade Agreement (AfCFTA). Strengthening dialogue and coordination at the subregional level certainly represents a building block for the success of the continental agreement while at the same time the lessons learned by the countries of the region are likely to spill over to the remaining continental partners.