Statement by Claver Gatete at the 44th SADC Summit of Heads of State and Government

44^th SADC Summit of Heads of State and Government

Theme: "Promoting Innovation to unlock opportunities for sustained economic growth and development towards an industrialized SADC" Statement

By

Mr. Claver Gatete

United Nations Under-Secretary-General and

Executive Secretary of the ECA

Harare, Zimbabwe

17 August 2024

Your Majesty, King Mswati III of the Kingdom of Lesotho

Your Excellency, Mr. João Manuel Lourenço, President of the Republic of Angola, and Chairperson of Southern African Development Community

Your Excellency, Dr. Emmerson Dambudzo Mnangagwa, President of the Republic of Zimbabwe and incoming Chair

Heads of State and Government present

Mr Elias Magosi, Executive Secretary of the Southern African Development Community

Distinguished delegates

Ladies and gentlemen

It is an honour to address the 44^th SADC Summit of Heads of State and Government on the theme of "Promoting innovation to unlock opportunities for sustained economic growth and development towards an industrialized SADC."

I want to start by conveying my gratitude to the Government of Zimbabwe for the generous hospitality, as the host of this August event.

I also wish to thank the Heads of State and SADC for this opportunity to deliver my inaugural address in my capacity as the Executive Secretary of the United Nations Economic Commission for Africa.

Excellencies, Distinguished delegates,

We are meeting at a time when our continent is facing major challenges, especially financing, security, soaring debt levels and climate change.

Sovereign debt in Africa is over USD1 trillion, causing severe fiscal crisis, with more than 1 in 3 countries in or at high risk of debt distress.

This is also happening when long-term concessional finance, official development assistance and foreign direct investments are declining.

In addition, climate change is eroding 5 per cent of GDP on average annually.

These impacts are quite evident in the SADC region.

That is why we are working on an African position on the reform of the global financial architecture so that Africa's needs are taken into account at next month's Summit of the Future and at the Fourth Financing for Development Conference that will take place next year, in Spain.

Excellencies, Distinguished delegates,

There are no clear solutions.

We have no choice but to look inward for homegrown solutions including domestic resource mobilization and innovative financing for climate to sustain our development.

And SADC can be a leader on this imperative.

The region is home to most of the world's gold, copper, cobalt, lithium, chromium, graphite, platinum and possesses significant livestock and agricultural endowments.

Four key areas offer SADC innovative and scalable solutions.

One of them is the development of regional value chains and this is possible in the whole of SADC.

Regional agglomeration remains a ticket to sustainable industrialization because fragmented approaches will not generate the jobs we need, nor will it reduce poverty and inequality.

Indeed, following our recent visits to Botswana, Namibia and Ethiopia to study the beef and leather value chains, we have concluded that all of SADC offers enormous potential to increase the export markets within these sectors.

That is why we partnered with the Arab Bank for Economic Development in Africa (BADEA), who have now approved grant financing for a feasibility study in the beef sector for Botswana that will be conducted by ECA, working closely with the SADC secretariat and partners.

This will be replicated to other SADC Member Countries.

We also plan to do similar work for the leather sector.

In tandem, is the energy regional value chain.

We must approach energy solutions from a regional perspective.

For example, SADC is using only one per cent of its solar and wind energy potential.

This means that SADC can be a continental energy provider with the development of this value chain.

Excellences,

Distinguished delegates,

The second area of opportunity is food security.

There is no reason why Africa should import food to the tune of USD 120 billion per year when SADC can be Africa's breadbasket.

This is also why we are embarking on the establishment of the Zambia-Zimbabwe Common Agro Industrial Park, again working with BADEA, who have also approved grant financing for a study to move forward with this initiative.

I am glad that the President of BADEA is here with us in the room. Thank you very much.

This is not just critical for SADC, but for the whole continent.

Thirdly is minerals development.

Our critical minerals can deliver fair and inclusive prosperity.

Our fundamentals for this agenda are stronger than anywhere else in the world.

But our window of opportunity is closing.

We are using our study on the DRC-Zambia electricbattery initiative as a proof of concept that we can and should drive mineral beneficiation, and we are working on a road map to translate this into a reality that will allow expansion to other minerals, such as diamond.

Finally, we must leverage technology.

Our work with Botswana on the Lobu Small Stock Farm shows the benefits of using smart agriculture technologies for climate change adaptation.

With the right investments, we can scale-up innovations like this, and not just in the agricultural sector, but in health, education, finance and transport, amongst others.

ECA is now developing a platform that showcases innovations across Africa, which can be accessed by all countries. This was one of the requests by member States at our last Conference of Finance Ministers in March, this year, chaired by the Minister of Finance of Zimbabwe.

Excellences, Distinguished delegates,

These notwithstanding, significant investments and critical infrastructure development is needed to unlock these opportunities.

Governments alone cannot do this.

The private sector can play its part with the right incentives and derisking mechanisms.

For us at ECA, we are working closely with the African Development Bank and regional partners to enhance derisking mechanisms that promote successful publicprivate sector partnerships.

Excellences, Distinguished delegates,

As I conclude, let me emphasize that the impetus for rapid industrialization is not simply a question of convenience.

It is a matter of absolute necessity.

Home-grown solutions can help us address today's complex challenges.

We are here because we believe we can do it.

I am convinced that each SADC country can be a cluster leader of innovation and breakthroughs and ECA stands ready to partner with you on this journey.

Thank you for your kind attention!

Siyanbonga Kakhulu

Tatenda Zvikuru

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