Ramaphosa urges SADC to drive its own industrial revolution

Greater regional trade would give SADC countries a market over which they have more influence, while reducing their exposure to sudden changes in access to external markets.

President Cyril Ramaphosa has called on Southern African countries to use the region's minerals, farmland, energy resources, skills and growing market to fuel their own industrial revolution, arguing that continued dependence on distant economies leaves the region vulnerable to decisions and disruptions beyond its control.

Speaking at a public lecture at the University of KwaZulu-Natal's Westville Campus on Friday, ahead of the 46th Southern African Development Community (SADC) Summit in Durban, Ramaphosa said the region already possesses many of the resources and institutions required to build a more prosperous and industrialised economy.

The lecture, held under the theme "Translating SADC Vision 2050 into Action: Pathways Towards Solidarity, Equality and Shared Prosperity", focused heavily on turning regional commitments into factories, infrastructure, jobs and stronger trade between neighbouring countries.

Regional trade needs to grow

Trade between SADC countries accounts for just under a quarter of their combined total trade, despite the region having substantial agricultural land, energy resources, minerals, technical expertise, financial institutions and a sizeable consumer market.

Ramaphosa said this dependence has deep historical roots, including colonial-era transport networks designed largely to move raw materials from inland areas to ports rather than connect neighbouring African economies with each other.

Recent global conflicts and disruptions have exposed the risks of that model, with events thousands of kilometres away affecting shipping routes, fertiliser supplies, grain prices and household living costs across Southern Africa.

Greater regional trade would give SADC countries a market over which they have more influence, while reducing their exposure to sudden changes in access to external markets. Ramaphosa said achieving this would require removing non-tariff barriers, harmonising standards and making border processes faster so businesses are not repeatedly delayed by licensing and inspections.

Minerals must create more value inside SADC

The region's large deposits of critical minerals give it an important position in the global transition towards cleaner energy, yet much of their economic value is currently realised elsewhere after raw materials leave Southern Africa.

"We supply an industrial revolution taking place somewhere else, and we then purchase its products at a price set by others," Ramaphosa said, calling for SADC to use its resources to drive industrial development at home.

He wants commitments around industrialisation translated into refining and smelting capacity, local agricultural processing, electricity generation, transmission networks and cross-border water projects.

Better roads, railways and ports would also be needed to move processed minerals and manufactured products efficiently between countries and towards export markets. Ramaphosa said the SADC Regional Development Fund could help mobilise financing for these investments, while governments also need to tackle losses caused by smuggling, under-declared exports, transfer mispricing and other illicit financial flows.

Manufacturing and digital industries offer opportunities

Ramaphosa identified pharmaceuticals, automotive manufacturing, agro-processing, paper and pulp, furniture, innovation and semiconductor value chains as industries capable of supporting a broader regional manufacturing base.

Pharmaceutical production received particular attention, with the President arguing that Southern Africa should reduce its reliance on imported medicines and health products. He welcomed the SADC pooled procurement mechanism, saying collective purchasing could give regional manufacturers enough certainty about demand to justify investing in local production.

Transport corridors including Maputo, North-South, Trans-Kalahari, Beira and Lobito should also become platforms for wider economic activity rather than simply routes for moving freight. Ramaphosa said these corridors should carry electricity, digital connectivity and people alongside goods.

The energy transition offers another industrial opportunity through renewable power, green hydrogen and battery storage, while increased electricity trading through the Southern African Power Pool could strengthen energy security across national borders.

Small businesses central to industrial transformation

Ramaphosa also warned against recreating the region's traditional raw-material dependency in the digital economy by exporting data while paying foreign companies to process it into valuable intelligence.

He called for investment in computing infrastructure, connectivity and digital skills so more value from the region's data can be created locally, placing technological capability alongside refineries, factories and smelters as a necessary part of modern industrialisation.

Agriculture will require similar investment in irrigation, climate-resilient seeds, veterinary science and agro-processing, which could create jobs and businesses beyond major cities while improving regional food security.

Small and medium-sized enterprises are expected to play a particularly important role because of their ability to create local employment and open economic opportunities for young people and women.

Ramaphosa said the central challenge under SADC Vision 2050 is to move Southern Africa beyond an economy that mainly extracts and exports resources, building regional industries that process those resources, manufacture higher-value products and retain more jobs, expertise and wealth within the region.