ZIMBABWE HOSTS SADC INDUSTRIALISATION WEEK DESPITE DEINDUSTRIALISATION WOES

The Southern African Development Community (SADC) Industrialisation Week is taking place in Harare, Zimbabwe, from July 28 to August 2, 2024. This event is a major platform where the focus is on industrialisation in the region. But it is ironic that Zimbabwe is hosting it, considering the country has been facing rapid deindustrialisation for years. This has caused economic problems and pushed millions of people into poverty.

Industrialisation is very important for reducing poverty. The United Nations Economic Commission for Africa says that no country has managed to reduce poverty without industrialisation. The SADC Industrialisation Week, held at the Harare International Conference Centre, is bringing together many different groups. These include SADC member states, the private sector, international partners, policymakers, researchers, small and medium enterprises (SMEs), banks, and civil society. They are coming together to share ideas on how to improve industrialisation and transform the economy in Southern Africa.

The theme for this year’s event is “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development Towards an Industrialised SADC.” The week is full of activities like seminars, meetings, workshops, a gala dinner, exhibitions, and tours of manufacturing and industrial sites in Zimbabwe. Some of the main topics include mineral beneficiation, agro-processing, pharmaceuticals, infrastructure, and women and youth entrepreneurship. The African Continental Free Trade Area enterprises are also part of the focus.

This event aims to engage various groups in helping to implement the SADC Industrialisation Strategy and Roadmap 2015-2063. It focuses on looking at the progress made, the challenges, and also sharing success stories and solutions. The goal is to develop regional value chains in Southern Africa.

However, Zimbabwe is still experiencing a lot of company closures and deindustrialisation. Since 2000, many companies have shut down. Some big companies that left include Anglo American plc, Lonmin Plc, HJ Heinze, BP, Shell, Harven Manufacturing, Rio Tinto, and David Whitehead. Even some airlines like British Airways, Lufthansa, and Qantas left. Banks like Barclays and Standard Chartered also pulled out, and top accounting firms like Deloitte and PwC exited the country. The reasons for these closures include a harsh environment for doing business, government policy contradictions, land reform, indigenisation, and corruption.

When Zimbabwe gained independence in 1980, it was the second most industrialised country in Sub-Saharan Africa, after South Africa. But now, it is one of the poorest countries in the region. The country has become an example of poor economic management. Sectors like agriculture, mining, and manufacturing, which were once the foundation of Zimbabwe’s economy, have collapsed due to poor government policies. This has led to massive unemployment and an economic crisis.

It is believed that around 90% of Zimbabweans are unemployed. Many people have turned to the informal sector, selling second-hand clothes and basic goods to survive. Others have fled to neighboring countries like Botswana and South Africa or gone overseas to countries like the United Kingdom, Australia, Canada, and the United States.

The manufacturing sector in Zimbabwe has been in a state of decline for a long time. By 2015, the sector had collapsed, with many companies either closing or relocating. This decline started in the 1990s and has continued until today. Bulawayo, which used to be the industrial heart of the country, is now a shadow of its former self. The once-bustling Belmont industrial area is now home to churches and non-industrial activities.

Industrialisation is key for fast and lasting economic development. The UN Economic Commission for Africa says that the contribution of manufacturing to the GDP of Southern Africa is still very low. In 2018, it was only 11.8%, and in some countries, it was even lower. Most countries in the region rely on just a few primary commodities for their income.

There are still chances for industrialisation in Southern Africa, especially by adding value to raw materials and through better integration between countries. For industrialisation to work, it is important to build productive capacity, attract investment in modern industries, create strong value chains, and boost regional integration and trade. This also means solving problems like poor infrastructure, adopting good economic policies, learning new technologies, and building a manufacturing sector that can compete globally.