Agree on Agro Industrial Park Location to accelerate regional integration

Agree on Agro Industrial Park Location to accelerate regional integration

Kamwendo

By Daily News Reporter

Zambia-Zimbabwe and cooperating partners opened talks in Livingstone to deliberate and agree on a common ground to foster economic growth of the two neighbors creation of the Common Agro-Industrial Park (CIAP) a rider to advancing industrialization through the agricultural sector.

The two countries are already collaborating through bilateral agreements and sharing import and export revenue on goods and services traded through their borders.

There is urgent need to develop the Common Agro-Industrial Park-a vehicle for the structural transformation of the two economies through the commercialization of the agricultural sector.

The concept, a brainchild of the United Nations Industrial Development Organisation (UNIDO) introduced in Africa was arguably to assist transformation the agricultural and livestock products and envisaged to assist countries attain the objectives of the Sustainable Development Goals (SDGs).

Officiating-virtually at the two-day meeting dubbed: “The establishment of a common agro-industrial park under the joint industrialization cooperation programme between Zambia and Zimbabwe” underscored the urgency of the CAIP with a call for its urgent establishment.

Eunice Kamwendo, the UNECA Sub Regional Office for Southern Africa said it was important to agree on various modalities including agreeing on possible CAIP location of the infrastructure being cardinal to the growth of the agriculture sector.

The urgency by the two countries showing political will and commitment to the CAIP was more important than before as Africa embraces the Africa Continental Free Trade Area (AfCFTA), operationalised on 1 April last year.

This was arguably to gauge the continent’s competitiveness amid calls to harness regional integrations.

The Director challenged leadership in the two countries to be candid during deliberation, exercise political will, review draft policy, legal, regulatory and institutional framework options, among others to excite potential donors, on hand to accelerate Africa’s agriculture sector development.

The undertaking would expedite the purpose intended and help reach a consensus on the location for the CAIP unlike previously which has harboured ‘blind discussion’ the pre-feasibility study was undertaken on the location of the infrastructure-thus delaying the actual feasibility.

“Pleased to note the strong leadership and political will on this initiative by the two countries – this is necessary in moving ideas to action. You have the support of my office, the COMESA Secretariat and many other partners that are committed to see this initiative come to life,” Dr. Kamwendo stated.

The meeting seeks to among other pending issues, discuss and agree on funding options for the CAIP under the AfDB window, agree on a roadmap for the initiative's subsequent phases.

The outcome of the meeting is envisaged to excite the private sector-keen to form part of the CAIP should durable solutions be found.

The lack of CAIP has contributed to the stunted development of the agriculture sector-contribution a paltry 15% to GDP in both countries, employing over 70% of the labour force and contributing between 4 to 27% percent of regional GDP for SADC and COMESA regional economic communities.

Despite its critical role as the driver for structural transformation; job creation and poverty reduction; production and productivity remains suboptimal due to a range of issues.

From Low mechanization, low utilization of irrigation systems, limited use of fertilizers and constrained access to markets, as well as the unstable weather patterns due to climate change continue to undermine the sector.

Developing regional agricultural value chains will therefore require significant investments towards the sector by the two countries.

There is urgent need to increase productivity, strengthen linkages along the different value chains, facilitate value addition and industrialization and economic transformation which are critical for the creation of sustainable jobs as well as the attainment of SDGs, particularly SDG 9 and the Agenda 2063.

“The Common Agro-Industrial Park (CAIP) Promise - is what should push us into accelerated action.” She said.

“The promise to deliver sustainable and decent jobs; improve food security; reduction of poverty and inequalities; and strengthening of regional integration and regional value chains and harness the opportunities offered by the AfCFTA of a market of 1.3 billion and $3.4 billion in GDP); increase export earnings; tax revenues and anchor economic transformation and diversification – are goals that we should all pursue with a sense of urgency.”

Comesa-Assistant Secretary General-programmes- Ambassador Dr. Kipyego Cheluget noted that despite the Memorandum of Understanding being signed by the two countries, many questions remain unanswered since its was conceptualized in 2019.

There is a need to expedite and overcome all impediments that surround CAIP actualization hence the need to plug the challenges.

“We must form strong structures and build their capacities at national and regional level. Our interaction must be as frequent as possible especially in the formative years of the Programme so that we do not lose the momentum.”

Zimbabwe’s Permanent Secretary for industry and commerce, Dr. Mavis Gumbo noted the various milestones attained in actualizing the CAIP since signing of the MoU and the pre-feasibility study undertaken to kick start the process but was concerned with the sluggishness in actualising the much touted project.

She commended the various donor agencies for standing by to help foster the actualization of CAIP.

She expressed gratitude with the donors’ desire to help realize the project and called on players to join hands and actualize the dream with the inclusion of the private sector.

“Private sector participation will see the coming to fruition of whatever glorious agreements that we will come up with on this platform”

Zambia’s Permanent Secretary Chawe Chuulu expressed displeasure at the sluggish pace of implementing the CAIP and challenged all players to elevate the ties to that of a strategic partnership and see the realization of the Industrial Park.

The realization of the CAIP resonates well with the aspirations of the drafters of the AfCFTA as it will be the ladder for the two neighbours to be integrated into regional and global value chains based on their collective comparative and competitive advantages.

The launch of the AfCFTA last year was a launching pad for countries-Zambia included to help diversify the export markets of Zambia, increase the country’s earnings from traditional and non-traditional exports, and improve the competitiveness and reach of its services sector.

It also helped Zambia, like other countries to deepen sectoral linkages through national and regional value chains.

The strategy is guided by and complements aspirations elaborated in the country’s Vision 2030 and other Government policies and strategies.

The success of the CAIP is dependent on the two countries pooling resources and ensure economies of scale and allow the two neighbors to compete favourably on the market.

With the advent of the current geo-political landscape in Eastern Europe, the Joint Industrialisation Cooperation Programme has come in very handy.

However economic commentators cite Decrease in air emissions, depleted groundwater and surface contamination, Water conservation, reduced greenhouse gas emissions as some of the advantages.

It works better in recycled materials, conserved resources and availability and dependable technology, energy, and electricity as some of the environmental advantages.