Sisulu bemoans trade bottlenecks
Bottlenecks, as well as inadequate infrastructure and customs procedures, are among the issues that SADC will have to tackle as a matter of urgency, in order to synchronise trade in the region.
This is according to South African foreign affairs minister Lindiwe Sisulu, the outgoing chairperson of the SADC Council of Ministers. Sisulu handed over the chairpersonship to Namibia's international relations Namibia Netumbo Nandi-Ndaitwah this week. These hindrances, Sisulu said, is the main cause of the poor movement of goods and the slow delivery of services in the region.
According to her, transport costs and transit delays in southern Africa are reported to be particularly higher than in most other regions, and have a potential to reverse regional industrial development gains.
“Without resource mobilisation, which provides options for funding our programmes and agenda, we cannot achieve envisioned objectives, as outlined in our approved strategic blueprints.
“Regional integration is not an option, and as such, we must strive to establish sustainable funding mechanisms for the implementation of SADC programmes and projects,” she said. Sisulu also urged policymakers to increase intra-trade within the region, with a focus on value addition.
“It is now time that we diversify our economies, increase participation of member states in regional value chains and promote value addition. We must collectively work towards accelerating economic integration processes that will promote specialisation and the development of regional value chains.”
According to 2016 trade statistics released by SADC, imports from the rest of the world to the region stood at US$114 billion, while it imports stood at US$123 billion, resulting in a trade deficit of US$9 billion.
Imports between SADC member states stood at US$33 billion, while exports amongst member states stood at US$37 billion.
Progress
SADC director for infrastructure, Mapolao Rosemary Mokoena, told journalists on Sunday the goal is to lift the regional growth rate in real GDP terms from 4% annually to a minimum of 7% a year. SADC also aims to double the share of manufacturing value added (MVA) to 30% of GDP by 2030 and to 40% by 2050, including the share of industry-related services. Other targets include building market share in the global economy for the export of intermediate products to East Asian levels of around 60%, as well as increase the share of industrial employment to 40% of total jobs by 2030.
This is according to South African foreign affairs minister Lindiwe Sisulu, the outgoing chairperson of the SADC Council of Ministers. Sisulu handed over the chairpersonship to Namibia's international relations Namibia Netumbo Nandi-Ndaitwah this week. These hindrances, Sisulu said, is the main cause of the poor movement of goods and the slow delivery of services in the region.
According to her, transport costs and transit delays in southern Africa are reported to be particularly higher than in most other regions, and have a potential to reverse regional industrial development gains.
“Without resource mobilisation, which provides options for funding our programmes and agenda, we cannot achieve envisioned objectives, as outlined in our approved strategic blueprints.
“Regional integration is not an option, and as such, we must strive to establish sustainable funding mechanisms for the implementation of SADC programmes and projects,” she said. Sisulu also urged policymakers to increase intra-trade within the region, with a focus on value addition.
“It is now time that we diversify our economies, increase participation of member states in regional value chains and promote value addition. We must collectively work towards accelerating economic integration processes that will promote specialisation and the development of regional value chains.”
According to 2016 trade statistics released by SADC, imports from the rest of the world to the region stood at US$114 billion, while it imports stood at US$123 billion, resulting in a trade deficit of US$9 billion.
Imports between SADC member states stood at US$33 billion, while exports amongst member states stood at US$37 billion.
Progress
SADC director for infrastructure, Mapolao Rosemary Mokoena, told journalists on Sunday the goal is to lift the regional growth rate in real GDP terms from 4% annually to a minimum of 7% a year. SADC also aims to double the share of manufacturing value added (MVA) to 30% of GDP by 2030 and to 40% by 2050, including the share of industry-related services. Other targets include building market share in the global economy for the export of intermediate products to East Asian levels of around 60%, as well as increase the share of industrial employment to 40% of total jobs by 2030.
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