Subregional Office for Southern Africa Issues paper: The state of industrialization in Southern Africa and opportunities for acceleration

Abstract

The document discusses the state of industrialization in Southern Africa and explores opportunities for accelerating industrial growth in the region. It emphasizes the importance of industrialization for economic development, poverty reduction, and structural transformation. Despite high growth rates in the early 2000s, the subregion's industrial GDP remains low, with economies largely dependent on primary commodities. The document highlights the need for upgrading productive capacities, promoting investment in modern industries, developing value chains, and enhancing subregional integration and trade. It reviews national and subregional industrial policies and strategies, including those of SADC and COMESA, and underscores the role of regional integration and trade in promoting industrialization. The document also identifies key drivers of industrialization, such as macroeconomic conditions, infrastructure development, factor endowments, geographical location, and institutional frameworks. It concludes with policy recommendations for accelerated industrialization, focusing on export orientation, sectoral focus, and forward-looking approaches.