JB Cronjé, tralac Researcher, discusses economic policy issues in SADC and the recent signing of the Protocol on Employment and Labour

SADC Member States placed industrial development at the centre of the region’s developmental integration agenda to raise diversification of the Members’ economic base, develop productive capacity and increase employment. At the recent SADC Summit of Head of State and Government, the Members decided that “industrialisation should take centre stage in SADC’s regional integration agenda. To this end, Summit mandated the Ministerial Task Force on Regional Economic Integration to develop a strategy and roadmap for industrialisation in the region.” This follows the adoption of the SADC Industrial Development Policy Framework. The Framework sets out the region’s vision for industrialisation, key interventions for implementation and areas of cooperation at regional level. It serves as a guide for the coordination of complex complementary policies, activities and processes forming part of this framework. The areas for coordination and implementation at regional level include:

• Identification of opportunities that are mutually beneficial;
• Standards, technical regulations and infrastructure;
• Innovation, technology transfer, and research and development;
• Access to finance for manufacturing and related sectors;
• Small and medium-sized enterprise (SMEs) support;
• Integration of infrastructure and services into the regional industrialization strategy;
• Local, regional and foreign direct investment (FDI) and export promotion; and
• Developing strategies to exploit opportunities emerging from the region’s strategic cooperation with global partners.

The Framework recognises existing SADC policies, protocols and other frameworks and calls for the alignment of all policies to complement efforts to enhance industrial development. The development policy mix of SADC consists of trade and competition policies; finance and investment; infrastructure and services; macroeconomic stability; agriculture and natural resources; governance; social and human development policies; labour market policies and various cross-cutting issues such as private sector development, science and technology and sustainable development. To date, SADC Member States have signed 27 protocols and 15 declarations, charters and memoranda of understanding on various matters ranging from wildlife conservation, shared watercourses, mining and health to dispute settlement in support of the region’s integration process. Most of the protocols are in force but many of their obligations are neither legally binding nor obligatory. The monitoring and implementation of agreed obligations and enforcement thereof remains a major weakness that will hamper the successful implementation of industrial development efforts.

One of the latest additions to the long list of existing legal instruments is the Protocol on Employment and Labour (click here to download). The Protocol was signed by the Member States at the recent SADC Summit Heads of State and Government. It complements a number of existing SADC instruments relating to social and human development and the upgrade and transfer of skills. Some of the existing SADC instruments to enhance and facilitate labour mobility include the Protocol on Education and Training, the Protocol on the Facilitation of Movement of Persons (not in force), the Protocol on Trade in Services (not in force), the Charter of Fundamental Social Rights in SADC, and the Declaration on Productivity.

The Industrial Development Policy Framework identifies the shortage of requisite skills as a structural constraint to manufacturing in the region. As a result, it identifies specific actions for the development and upgrading of skills in support of industrialisation. The actions include regional support mechanisms to address skills shortages, region-wide training programmes focusing on light manufacturing (including food industries, leather, metal, textile), specialised training in the priority sectors (agro-food processing, processing of minerals, chemicals and pharmaceuticals, textiles and garments, leather and leather products, forestry, fisheries, machinery and equipment, and services) at institutions of higher learning, and capacity building programmes for policymakers. The intended skills development actions include the whole spectrum of occupations ranging from plant and machine operators and assemblers, skilled agricultural, forestry and fisheries workers; service and sales workers to professionals and managers.

All SADC Members face shortages of skilled workers in almost all economic sectors. Developing training programmes to address these shortages are important, but not enough. In order to address the common challenge of industrialisation, Members need to cooperate at the regional level. To this end, Members must ensure standardisation, harmonisation and equivalence of education and training systems as required in the Protocol on Education and Training. They need to conclude agreements, as required in the Protocol on Trade in Services, which recognise academic qualifications, professional licenses and practical experience throughout the region; making skills transferable. As provided in the Protocol on Trade in Services, Members must afford skilled workers and professionals access to opportunities anywhere in the region. As envisaged in the Protocol on the Facilitation of Movement of Persons, workers must be able to take up opportunities elsewhere without facing cumbersome, time-consuming and expensive visa and work permit requirements and procedures. Ultimately, persons must feel secure to work in any SADC country knowing they are guaranteed freedom of association, minimum working conditions, equal treatment and portability of social security benefits, but this will require the implementation of the Protocol on Employment and Labour.

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