Impacts and challenges of Southern African Development Community’s industrialization agenda on Botswana and Tanzania

Gladness L. Monametsi,Kezia H. Mkwizu

doi:10.1108/pap-04-2021-0024

Abstract

PurposeThis paper aims to explore the impacts and challenges of the Southern African Development Community’s industrialization agenda on the industrialization of two Sub-Saharan African states, Botswana and Tanzania.Design/methodology/approachThe study adopts the documentary research method by carefully analyzing relevant policy documents, conference papers, reports, and journals.FindingsWhile there is an impact on policy provisions targeted towards industrialization, there are challenges such as poor policy implementation that, if not addressed, could dampen efforts by policymakers in achieving the goal of industrializing the countries.Practical implicationsGovernments should ensure equal synergy relations amongst institutions tasked with implementation. Increase investment in research and development (R&D) and human capital as drivers of innovation are needed for industrialization.Originality/valueThis paper adds to the discourse on industrialization. It also highlights challenges faced by countries whose policies have had minimal impact on industrialization.

Highlights

Industrialization in Southern African Development Community (SADC) has been slow, in the manufacturing sector, which has shown a decline in contribution of 10.6 percent to Gross Domestic Product (GDP) in 2015 compared to 14.1 percent in 2005 (SADC, 2020)
Additional findings imply that the benefits of integration for Botswana are in competitiveness of high ranking in human development plus prosperity index which align better with SADC’s Industrialization Agenda (SADC-IA) thematic policies of “politics and governance”, and “social and human development policy” and lead to GDP growth on manufacturing sector
There is a negative impact of SADC-IA on the manufacturing value added of manufacturing sectors contribution to the total gross domestic product of Botswana, whereas a positive impact on manufacturing value added of the manufacturing sector for Tanzania, strengthening Tanzania’s industrial competitiveness of sub-sectors

Summary

Introduction

Industrialization in Southern African Development Community (SADC) has been slow, in the manufacturing sector, which has shown a decline in contribution of 10.6 percent to Gross Domestic Product (GDP) in 2015 compared to 14.1 percent in 2005 (SADC, 2020). The SADC framework hinges upon regional commitment, creation and intensification of individual country policies. The SADC region needs to increase the manufacturing sector share of GDP to above 25 percent to significantly transform the economic and social status of its citizens (Southern African Research and Documentation Centre, 2015). While there are concerted efforts towards regional industrialization in SADC, it is still a very individual experience. The aim of this paper is to explore the impacts and challenges of SADC’s Industrialization Agenda (SADC-IA) on the industrialization of Botswana and Tanzania guided by the integration theory

Objectives

Methods

Results

Discussion

Conclusion