COMESA LOCAL CONTENT FRAMEWORK SET FOR ADOPTION

MBABANE – The implementation strategy of the COMESA Local Content Policy Framework on Industrialisation is set for adoption this week.

The Common Market for Eastern and Southern Africa (COMESA) consists of 21 member States stretching from Tunisia to Eswatini. According to a correspondence from COMESA, the adoption is expected since the technical and ministerial committees on industry conduct their fourth meetings. “The objective of the implementation strategy is to ensure that a high proportion of project inputs are sourced from the host country without compromising the economics of the project or sector being leveraged,” reads the shared information in part.

Value

The framework, according to the report, is intended to optimise the economic value to be derived from the development of natural resources through domestic linkages while giving regard to the country’s development goals, vision for a given sector, trade competitiveness and the financial viability of the natural resource being leveraged. The regional industry experts began their meeting on Monday, with Zimbabwe hosting the virtual proceedings. The key agenda of the meeting was the adoption of the draft harmonised COMESA Framework of Managing Special Economic Zones and Industrial Parks. It will then be presented before the ministerial meeting tomorrow. In her official opening remarks, Zimbabwe’s Industry and Commerce Ministry permanent secretary Mavis Sibanda said the implementation of the local content framework would have an economic multiplier effect that would result in greater value extraction by host countries. “The Implementation Strategy of the Local Content Framework must outline successful, local content initiatives based on a well-conceived strategy as well as legal and institutional considerations that recognise the need for joint contributions from host governments, national entrepreneurs and foreign investors,” she said.

Decision

According to COMESA head of Corporate Communications Mwangi Gakunga, the decision to develop an implementation strategy of the Local Content Policy Framework was issued by the regional ministers in 2019.
He said the development of Special Economic Zones (SEZs) or industrial parks was identified as one of the key enablers for successful industrialisation. “This is primarily motivated by the necessity to attract foreign direct investment (FDI) based on experiences from countries, which demonstrate that with proper management and incentives, these zones and parks can be an important tool for industrialisation,” said Mr Gakunga.

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