SADC Urged to Act as Manufacturing Share Slips

Manufacturing's contribution to the regional economy fell from 11.3% of GDP in 2024 to 10.9% in 2025, moving SADC further away from its target of raising the sector's share to 30% of GDP by 2030.

The Southern African Development Community (SADC) must take urgent action to reverse a decline in regional manufacturing or risk falling further behind its industrialisation goals, Deputy Minister of International Relations and Cooperation Thandi Moraka has warned. Speaking at the closing of the ninth SADC Industrialisation Week in Durban, Moraka said stronger coordination, investment and regional cooperation are needed to transform the bloc's economic future.

Manufacturing's contribution to the regional economy fell from 11.3% of GDP in 2024 to 10.9% in 2025, moving SADC further away from its target of raising the sector's share to 30% of GDP by 2030.

Building industries instead of exporting raw materials

Addressing government leaders, investors, businesses, researchers and development finance institutions, Moraka said the region must move beyond exporting raw materials while importing finished products at much higher costs.

She highlighted SADC's rich reserves of lithium, cobalt, manganese, graphite, rare earth elements and platinum group metals as a major opportunity for industrial growth. Instead of exporting these resources in their raw form, member states should expand local processing, refining and manufacturing to create higher-value products. She described mineral beneficiation as a shared industrial strategy that can attract investment, strengthen regional industries and create sustainable employment.

Agriculture and infrastructure remain priorities

Moraka said agriculture and agro-processing continue to play a central role in the region's industrial ambitions. Although the number of food-insecure people in SADC dropped from 69 million in 2024 to 58 million in 2025, millions of people still face food shortages. Agricultural growth recovered to between 2% and 3% during 2025 but remains below the African Union's 6% growth target.

She also warned that the spread of Foot and Mouth Disease across six SADC member states threatens livestock production, regional trade and food security. Greater investment in agriculture, logistics, processing industries and technology would help strengthen regional value chains, reduce food losses and create more jobs.

Technology and energy key to future growth

The Deputy Minister noted that regional electricity generation capacity has increased to 88,202 megawatts, while electricity access improved from 56% in 2024 to 60% in 2025. Even with this progress, the region remains well below its target of 85% electricity access by 2030.

Moraka said reliable energy supplies, modern transport networks, efficient logistics and stronger digital infrastructure are essential for industrial growth. She also called for greater investment in artificial intelligence, advanced manufacturing and digital technologies so that SADC countries become innovators and producers rather than relying on imported technologies.

Looking ahead, she said South Africa's upcoming Chairship of SADC provides an opportunity to turn the discussions held during Industrialisation Week into practical action, stronger partnerships and lasting industrial transformation across the region.