Report on private sector and regional integration in Southern Africa: accelerating opportunities for investment and growth

Abstract

The paper reviewed and discussed the state and dynamics of regional integration processes in Southern Africa, with a particular emphasis on the role, issues, challenges and investment potential of the private sector in the integration agenda. The review showed that the pace of integration had been relatively slow in the region. While significant progress had been made in the lead-up to the establishment of the SADC Free Trade Area in 2008, the integration agenda stalled thereafter. The regional trade market was still very fragmented and characterized by low levels of interindustry trade and productive integration, which clearly suggested little participation in regional value chains and the existence of untapped potential for investment and growth. The continued lack of industrial growth in the region had motivated the adoption of the SADC Industrialization Strategy and Roadmap 2015–2063, which emphasizes the development and strengthening of regional value chains and places the private sector at center stage of the implementation plan. The paper discussed at length the key and multifaceted role of the private sector in the whole process. For instance, the private sector was mainly responsible for running operations and investing along identified regional value chains; it could also facilitate implementation of the industrialization strategy by actively contributing to infrastructure and skills development and creating the conditions for enhanced access to finance.