SADC calls for better national, regional economies in leather value chain

31 Jul, 2022 - 00:07 0 Views
SADC calls for better national,  regional economies in leather value chain SADC Executive Secretary Mr Elias Magosi

The Sunday News

Judith PhiriBusiness Reporter 

THE Southern African Development Community has called on stakeholders to actively participate and contribute in every way possible towards better national and regional economies in the leather value chain. 

Africa’s leather sector is part of a global industry expected to be worth US$30 billion by 2027, according to a report by Business Wire, a market research company.  Bulawayo recently witnessed the launch of the “Promoting a Competitive, Inclusive and Sustainable Leather Sector in Tanzania and Zimbabwe” under the Support to Industrialisation and Productive Sectors (SIPS) Project aimed at promoting green innovative solutions targeting the leather sector in Zimbabwe and Tanzania. 

SIPS, which began in September 2019, is financed by the 11th European Development Fund (EDF) Eastern Africa, Southern Africa and Indian Ocean (EA-SA-IO) together with the Germany Ministry for Economic Cooperation and Development (BMZ). The duration of the programme is five years with an estimated budget of 7,8 million Euros. 


Addressing delegates, at the launch, the Director of Directorate of Industrial Development, Dr Khutula Sibanda, who was speaking on behalf of  SADC executive secretary Mr Elias Magosi said:

“The SIPS programme aims to accelerate progress of the SADC regional industrialisation agenda by providing support to regional value chain development in agro-processing and pharmaceutical value chains with focus on policies and private sector development that have a bearing on the value chains.” 

He said the programme also aims to enhance private sectors participation in regional Covid-19 relevant medical and pharmaceutical products value chain. Mr Magosi said the target beneficiaries of the programme are public, private sector and non-state actors and or intermediary organisations involved and participating in the development and promotion of agro-processing and pharmaceuticals value chains. 


He added: “The SIPS programme is fully aligned to the Regional Indicative Strategic Development Plan 2020-2030 (RISDP) which prioritises Industrial Development and Market Integration and places industrialisation at the centre of the regional integration agenda and seeks to front-load and accelerate industrialisation in the SADC region.” 

Mr Magosi said the agro-processing (leather value chain) and pharmaceutical sectors (ARV, Covid-19 and other related products) have been jointly agreed by the SADC member States and the private sector as the priority areas for which SIPS programme will provide support. 

He said the instruments being implemented under the programme is a grants programme in support of regional innovation and technology development, upgrade and product development in the agro-processing and pharmaceutical value chains. 

“The total budget allocated for the grants programme is US$3,6 million over the five years. The first call of the grants was published in December 2020 with the total value of US$1,5 million. Under the first grant call one project was supported to a total value of US$500 000 focusing on the leather value chain with actions to be implemented in Tanzania and Zimbabwe,” said Mr Magosi. 

He said the second call was published in 2021 and five projects have been identified for support focusing on the ARV value chain, with a total value of US$2,7 million. 


Mr Magosi commended the launch of the leather value chain programme, which was awarded to Solidaridad at a grant total value of US$500 000, stating that it should take the efforts on industrialisation and regional integration to the next level and develop regional value chains. 

“I would like to take the opportunity to wish them well in the implementation of this ambitious project which aligns to the Sadc Industrialisation Strategy and Roadmap 2063.” 

He said the project will be implemented in Zimbabwe and Tanzania for a period of 24 months focusing on the leather value chain. 

“Let me call upon all the stakeholders (Sadc member States, private sector, non-State actors) to actively participate in the implementation and to contribute in every way possible. We have to own the project because this is designed to benefit the region. Let’s join hands to make this project a success and a facilitator towards better national and regional economies in the leather value chain.” 

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