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Dr Tomaz Salomao

The Southern African Development Community should move with haste to implement measures to stimulate economic growth. It is particularly encouraging that the regional bloc is poised for greater economic prosperity. But officials say this could only be realised if the region implements the necessary measures to spur economic growth. Outgoing Sadc executive secretary Dr Tomaz Salomao said at the weekend the region was faring well despite the economic challenges prevailing globally.

Dr Salomao told the 33rd ordinary summit of the Sadc Heads of State and Government in Lilongwe, Malawi that the region continued to recover from the global financial crisis of 2008 and 2009 although at a slow but safe pace. We believe Sadc member countries can realise the goal of increased economic growth should they take advantage of the Sadc Free Trade Area, the Comesa, East African Community and Sadc Tripartite Free Trade Area. These facilities help in increasing trade and thereby boost economies of member countries.

It is also commendable that most member countries are positioning themselves well on the economic front despite the challenges of low commodity prices and droughts.

Low commodity prices can be dealt with by beneficiation of the natural resources including minerals that member countries possess. President Mugabe has always spoken about the need to sell processed goods rather than raw materials.

The finished goods fetch much higher prices than the raw materials, which are bought at low prices by developed countries. The developed countries would then sell us back our raw materials but now as finished goods, making more money out of our natural resources.

Dr Salomao also pointed out the need for the region to develop robust industries and policies that encourage the exportation of finished products to ensure Africa reaped maximum income from its abundant natural wealth.

These arguments dovetail with Zimbabwe’s indigenisation and economic empowerment programme. The programme calls for Zimbabweans to own majority stakes in companies exploiting the country’s natural resources and foreigners who might have the capital, machinery and equipment coming as joint partners holding minority shareholdings.

The exporting of raw goods will continue to expose Sadc member countries to external shocks, according to Dr Salomao.
Since the Sadc Council of Ministers has approved the Sadc Industrial Development Framework as a tool to address these challenges in an innovative manner, we urge the region to move fast and start implementing such policies.

Dr Salomao urged the region to take advantage of the agricultural sector which can easily spur economic growth given the global demand for food.
Zimbabwe has done well in that regard by implementing a land reform programme that addressed a skewed land ownership system, which had a few thousand white farmers owning huge tracts of land while the majority black Zimbabweans wallowed on poor sandy soils.

The focus for Zimbabwe should now be on making the newly resettled farmers productive so that they are able to produce more food and cash crops.
In the same vein, we urge the Zimbabwean authorities to strive to establish industries based on their agricultural products so that the country also exports finished goods rather than raw materials. For example horticultural farmers who grow fruits should be able to sell their produce to factories that make fresh fruit juices.

Instead of exporting just raw oranges or apples we can also export them in the form of fruit juices.
As Dr Salomao said it becomes imperative to boost investment both private and public in the agricultural sector. In the case of Zimbabwe, this had been stalled because there was a Finance Minister whose political party did not believe in equipping or funding farmers as part of efforts to boost agricultural production.

But now with the death of the inclusive government we have confidence that the new Zanu-PF government will do more in terms of nurturing our farmers and in turn our agricultural sector.